Premiums and Revenues - Gross premiums written increased by 15.1% to $6,196 million for the three months ended June 30, 2025, compared to $5,382 million in the same period of 2024[14] - Net premiums earned rose by 21.7% to $4,337 million for the three months ended June 30, 2025, up from $3,565 million in the prior year[14] - Net premiums earned for Q2 2025 increased to $4,337 million, up 3.6% from $4,188 million in Q1 2025[18] - Total revenues for Q2 2025 reached $5,213 million, a 11.6% increase compared to $4,673 million in Q1 2025[18] - Gross premiums written totaled $6,196 million, with the insurance segment contributing $2,681 million, reinsurance segment $3,196 million, and mortgage segment $323 million[35] - For the six months ended June 30, 2025, gross premiums written reached $12,659 million, with net premiums written at $8,863 million, maintaining a net to gross ratio of 70.0%[41] Income and Profitability - Net income available to Arch common shareholders decreased by 2.5% to $1,227 million for the three months ended June 30, 2025, compared to $1,259 million in 2024[14] - Comprehensive income available to Arch increased by 24.8% to $1,597 million for the three months ended June 30, 2025, compared to $1,280 million in 2024[14] - Net income attributable to Arch for Q2 2025 was $1,227 million, a significant rise from $564 million in Q1 2025, representing a 117.5% increase[18] - Net income for the three months ended June 30, 2025, was $1,237 million, an increase from $574 million in the previous quarter[25] - The annualized net income return on average common equity was 22.9% for the three months ended June 30, 2025, down from 26.3% in 2024[14] Underwriting Performance - Underwriting income decreased by 7.3% to $818 million for the three months ended June 30, 2025, compared to $762 million in 2024[14] - The combined ratio increased to 81.2% for the three months ended June 30, 2025, from 78.7% in the same period of 2024[14] - The combined ratio improved to 81.2%, with a loss ratio of 53.1% and an acquisition expense ratio of 19.0%[35] - The loss ratio improved to 59.8% in Q2 2025 from 66.0% in Q1 2025, indicating better underwriting performance[47] - The combined ratio for Q2 2025 was 93.4%, down from 100.1% in Q1 2025, reflecting improved operational efficiency[47] Investment Performance - Pre-tax net investment income rose by 11.3% to $405 million for the three months ended June 30, 2025, compared to $364 million in the same period of 2024[14] - Total return on investments increased to 3.09% for the three months ended June 30, 2025, compared to 1.33% in the same period of 2024[14] - The company reported net investment income of $405 million and net realized gains of $229 million for the quarter[35] - Total investable assets reached $44,938 million, while total assets amounted to $78,788 million[35] - The investment income yield at amortized cost was 4.25% for the three months ended June 30, 2025, compared to 4.16% in the previous quarter, indicating a slight improvement[88] Assets and Liabilities - Total assets as of June 30, 2025, amounted to $78,788 million, up from $75,176 million at the end of Q1 2025, reflecting a growth of 3.5%[21] - Total liabilities increased to $55,747 million as of June 30, 2025, from $53,631 million at the end of Q1 2025, an increase of 3.9%[21] - Total shareholders' equity as of June 30, 2025, was $23,041 million, up from $21,545 million at the end of Q1 2025, reflecting an increase of 6.9%[21] - Common shareholders' equity increased to $22,211 million as of June 30, 2025, up from $20,715 million in the previous quarter, representing an increase of 7.2%[120] Shareholder Returns - The company repurchased shares at an aggregate cost of $163.2 million during the three months ended June 30, 2025, with 1.9 million shares repurchased[122] - The average price per share repurchased was $87.94 during the three months ended June 30, 2025[122] - The remaining share repurchase authorization is $637.1 million as of June 30, 2025[122] - Cumulative shares repurchased since the program's inception total 437.9 million shares[122] Mortgage Insurance Operations - U.S. primary mortgage insurance net premiums written were $184 million in Q2 2025, representing 72.7% of total net premiums written[61] - Total insurance in force (IIF) as of June 30, 2025, was $496.67 billion, a slight increase from $494.77 billion at the end of Q1 2025[61] - The risk-to-capital ratio for Arch MI U.S. is 8.3:1 as of June 30, 2025, up from 7.8:1 on March 31, 2025[66] - The total RIF by credit quality shows that 63.1% is from borrowers with a FICO score of 740 and above, totaling $47,261 million[65] - The ending percentage of loans in default was 1.93% in Q2 2025, slightly down from 1.96% in Q1 2025[70]
ARCH CAP GROUP R(ACGLN) - 2025 Q2 - Quarterly Results