Financial Performance - Gross premiums written for Q3 2025 were $5,410 million, a decrease of 0.6% compared to $5,440 million in Q3 2024[13] - Net premiums earned increased by 7.9% to $4,285 million in Q3 2025 from $3,970 million in Q3 2024[13] - Underwriting income rose by 61.9% to $871 million in Q3 2025, compared to $538 million in Q3 2024[13] - Net income available to Arch common shareholders increased by 37.0% to $1,340 million in Q3 2025, compared to $978 million in Q3 2024[13] - After-tax operating income available to Arch common shareholders rose by 36.7% to $1,042 million in Q3 2025 from $762 million in Q3 2024[13] - Total revenues for Q3 2025 reached $5,109 million, up from $4,722 million in Q3 2024, representing an 8.2% year-over-year growth[18] - Net income attributable to Arch for Q3 2025 was $1,350 million, compared to $988 million in Q3 2024, reflecting a 36.7% increase[18] Ratios and Efficiency - The loss ratio improved to 51.4% in Q3 2025 from 60.5% in Q3 2024, a decrease of 9.1 percentage points[13] - The combined ratio decreased to 79.8% in Q3 2025 from 86.6% in Q3 2024, reflecting a 6.8 percentage point improvement[13] - Annualized net income return on average common equity improved to 23.8% in Q3 2025 from 19.0% in Q3 2024, an increase of 4.8 percentage points[13] - The combined ratio for the insurance segment was 93.4%, indicating a slight improvement in underwriting performance[35] - The loss ratio for the insurance segment was 59.0%, showing effective management of claims[35] Assets and Equity - The company reported total assets of $79,185 million as of September 30, 2025, an increase from $73,656 million a year earlier[21] - Shareholders' equity rose to $23,719 million at the end of Q3 2025, up from $22,274 million in Q3 2024, indicating a 6.5% increase[21] - The book value per common share increased to $62.32 in Q3 2025, compared to $57.00 in Q3 2024, marking a 9.9% rise[21] - Total investable assets reached $46,746 million, reflecting the company's strong asset base[35] Cash Flow and Investment - Net cash provided by operating activities increased by 8.3% to $2,186 million in Q3 2025, compared to $2,018 million in Q3 2024[13] - The company reported net investment income of $408 million for Q3 2025, slightly up from $399 million in Q3 2024[18] - Total cash holdings increased to $1,063 million, representing 2.3% of total investable assets, up from $983 million and 2.2% in the previous quarter[83] - The yield on pre-tax investment income at amortized cost was 4.07% for the three months ended September 30, 2025, compared to 4.25% in the previous quarter[88] Acquisition and Expenses - Acquisition expenses for Q3 2025 totaled $786 million, compared to $681 million in Q3 2024, reflecting a 15.4% increase[18] - The acquisition expense ratio for Q3 2025 was 19.6%, unchanged from Q2 2025, indicating stable cost management[47] - Transaction costs and other expenses related to acquisitions were $21 million in Q3 2025, reflecting their non-recurring nature[108] Market and Risk Management - The risk-to-capital ratio for Arch MI U.S. is 7.9:1 as of September 30, 2025, indicating a strong capital position relative to risk[66] - The PMIER sufficiency ratio for Arch MI U.S. is 176%, reflecting compliance with the GSEs' requirements[66] - The total RIF, net of reinsurance, is $60,662 million, demonstrating the company's effective risk management[65] Shareholder Actions - The company repurchased shares at an aggregate cost of $732.3 million in the three months ended September 30, 2025, with an average price per share of $88.82[121] - Cumulative shares repurchased reached 446.1 million, with a total cost of $6.985 billion as of September 30, 2025[121] - Remaining share repurchase authorization stands at $1.905 billion following an increase of $2.0 billion on September 4, 2025[121]
ARCH CAP GROUP R(ACGLN) - 2025 Q3 - Quarterly Results