Arch Capital .(US:ACGL)2025-11-06 21:44Financial Performance - Net premiums earned for Q3 2025 were $4,285 million, up 7.9% from $3,970 million in Q3 2024[18]. - Total revenues for the nine months ended September 30, 2025, reached $14,995 million, a 16.3% increase from $12,892 million in the same period of 2024[18]. - Net income available to Arch common shareholders for Q3 2025 was $1,340 million, compared to $978 million in Q3 2024, reflecting a 37.0% increase[18]. - Net income for the nine months ended September 30, 2025, was $3,161 million, compared to $3,377 million for the same period in 2024, reflecting a decrease of 6.4%[27]. - Comprehensive income for Q3 2025 was $1,398 million, compared to $1,598 million in Q3 2024[21]. - The company reported net investment income of $408 million for Q3 2025, slightly up from $399 million in Q3 2024[18]. - The company provided $4,768 million in net cash from operating activities for the nine months ended September 30, 2025, down from $5,100 million in 2024, a decrease of 6.5%[27]. - The company reported unrealized holding gains of $629 million for the nine months ended September 30, 2025, compared to $500 million in the same period of 2024[27]. - The company repurchased common shares worth $1,091 million under its share repurchase program during the nine months ended September 30, 2025[27]. - The net income available to Arch common shareholders for the three months ended September 30, 2024, was $978 million, reflecting a strong performance[61]. - The net income available to Arch common shareholders for the nine months ended September 30, 2025, was $3,131 million, showcasing significant growth[64]. Assets and Liabilities - Total assets as of September 30, 2025, were $79,185 million, an increase of 11.5% from $70,906 million at the end of 2024[14]. - The total liabilities increased to $55,466 million as of September 30, 2025, from $50,086 million at the end of 2024, marking a 10.5% rise[14]. - The company’s retained earnings increased to $25,817 million as of September 30, 2025, up from $22,686 million at the end of 2024, reflecting a growth of 13.4%[14]. - Cash and cash equivalents rose to $1,063 million, compared to $979 million at the end of 2024, indicating a 8.6% increase[14]. - Cash and restricted cash at the end of the period was $1,854 million, an increase from $1,712 million in 2024, reflecting a growth of 8.3%[27]. - The reserve for losses and loss adjustment expenses increased to $32,822 million as of September 30, 2025, up from $29,369 million at the end of 2024[14]. - The total fair value of available for sale investments as of September 30, 2025, was $34.259 billion, compared to $29.819 billion at December 31, 2024, reflecting an increase of approximately 14.5%[94]. - The total liabilities measured at fair value were $89 million, including $71 million in derivative instruments[143]. Insurance Segment Performance - Gross premiums written for the insurance segment were $2,567 million, while net premiums earned were $1,969 million for the three months ended September 30, 2025[58]. - The combined ratio for the insurance segment was 93.4% for the three months ended September 30, 2025, indicating a slight increase in underwriting performance[58]. - The loss ratio for the insurance segment was 59.0% for the three months ended September 30, 2025, compared to 51.4% for the same period in 2024[58]. - The insurance segment generated $129 million in underwriting income for Q3 2025, with net premiums written nearly $2 billion, reflecting a 7.3% increase from Q3 2024[183]. - The growth in net premiums was primarily due to the U.S. MidCorp and Entertainment Insurance businesses acquired from Allianz on August 1, 2024[183]. - For the nine months ended September 30, 2025, gross premiums written reached $18,069 million, with net premiums earned at $12,810 million[64]. - The combined ratio for Q3 2025 was 93.4%, slightly up from 93.1% in Q3 2024, indicating stable underwriting performance[208]. - The loss ratio improved to 59.0% in Q3 2025 from 61.6% in Q3 2024, indicating better underwriting performance[208]. Investment Performance - Net investment income for the three months ended September 30, 2025, was $408 million, an increase of 2.3% from $399 million in the same period of 2024[102]. - Gross investment income for the nine months ended September 30, 2025, reached $1,269 million, up 9.6% from $1,158 million in the prior year[102]. - Net realized gains for the three months ended September 30, 2025, were $210 million, compared to $169 million for the same period in 2024, reflecting a 24.3% increase[105]. - The company reported net realized gains of $30 million from derivatives for the three months ended September 30, 2025, compared to $125 million for the same period in 2024[163]. - The total gains or losses from derivatives not designated as hedging instruments for the nine months ended September 30, 2025, amounted to $292 million, compared to $116 million for the same period in 2024[163]. Shareholder Returns - The company repurchased $732 million of its shares during the third quarter of 2025[181]. - The company has $1.9 billion available for share repurchases under its program as of September 30, 2025[48]. - Book value per share increased to $62.32 at September 30, 2025, up 5.3% from $59.17 at June 30, 2025, and $57.00 at September 30, 2024[187]. - The company repurchased 12.3 million common shares for an aggregate purchase price of approximately $1.1 billion during the nine months ended September 30, 2025[48]. Tax and Regulatory - The effective tax rate for the nine months ended September 30, 2025, was 14.8%, up from 8.1% in the same period of 2024, due to the Corporate Income Tax Act 2023 in Bermuda[171]. - The company had a net deferred tax asset of $1.4 billion as of September 30, 2025, down from $1.6 billion at December 31, 2024[172].