Financial Performance - Net premiums earned for Q3 2025 reached $4,285 million, a 7.9% increase from $3,970 million in Q3 2024[18]. - Total revenues for the nine months ended September 30, 2025, were $14,995 million, up 16.3% 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, indicating a decrease of 12.5%[21]. - Annualized net income return on average common equity was 23.8% for Q3 2025, compared to 19.0% for Q3 2024[189]. - After-tax operating income available to Arch common shareholders for Q3 2025 was $1,042 million, compared to $762 million in Q3 2024, reflecting a 37.0% increase[203]. Assets and Liabilities - Total assets as of September 30, 2025, amounted to $79,185 million, an increase of 11.4% 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 rise of 10.5%[14]. - The company’s retained earnings grew 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]. - Total shareholders' equity increased to $23,719 million as of September 30, 2025, up from $22,274 million in 2024, representing a growth of 6.5%[24]. Investment Income - The company reported net investment income of $408 million for Q3 2025, slightly up from $399 million in Q3 2024[18]. - Net investment income for the nine months ended September 30, 2025, was $1,191 million, alongside net realized gains of $442 million[64]. - 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]. Underwriting Performance - Gross premiums written for the insurance segment were $2,567 million, while net premiums earned totaled $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 51.6% for the same period in 2024[58]. - Underwriting income for Q3 2025 was $129 million, with net premiums written reaching nearly $2 billion, reflecting a 7.3% increase from Q3 2024[183]. Acquisitions and Growth - The company completed the acquisition of the U.S. MidCorp and Entertainment insurance business from Allianz for $450 million, enhancing its capabilities in the U.S. middle markets[36][37]. - The acquisition added $3,296 million in total assets, including $2,332 million in cash and investments at fair value[40]. - The growth in net premiums was primarily driven by the U.S. MidCorp and Entertainment Insurance businesses acquired from Allianz on August 1, 2024, which is expected to enhance scale in the middle market sector[183]. Shareholder Actions - 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]. - The company repurchased $732 million of its shares during the third quarter of 2025, demonstrating strong capital-generating capabilities[181]. - The company has $1.9 billion available for share repurchases under its program as of September 30, 2025[48]. Tax and Regulatory Changes - 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 enactment of a 15% corporate income tax in Bermuda effective January 1, 2025[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]. Market Conditions and Strategy - The company continues to execute its cycle management strategy by allocating capital to segments with the best risk-adjusted returns, adapting to shifting market conditions[181]. - The company anticipates meaningful opportunities in the property and casualty market despite increasing competition, leveraging its brand strength and underwriting discipline[182].
ARCH CAP GROUP R(ACGLN) - 2025 Q3 - Quarterly Report