ARCH CAP GROUP R(US:ACGLN)2026-02-09 21:27Premiums and Revenues - Gross premiums written increased by 1.1% to $4,809 million for the three months ended December 31, 2025, and by 6.4% to $22,878 million for the year ended December 31, 2025[13]. - Net premiums earned rose by 2.7% to $4,255 million for the three months ended December 31, 2025, and by 13.0% to $17,065 million for the year ended December 31, 2025[13]. - Net premiums earned for Q4 2025 were $4,255 million, a slight decrease of 0.7% from $4,285 million in Q3 2025[18]. - Total revenues for Q4 2025 were $4,934 million, down 3.4% from $5,109 million in Q3 2025[18]. - Net premiums earned for the three months ended December 31, 2025, were $4,255 million, compared to $4,312 million for the same period in 2024[35]. - For the year ended December 31, 2025, gross premiums written reached $22,878 million, with net premiums written at $16,476 million[41]. - Gross premiums written for Q4 2025 were $2,542 million, an increase from $2,484 million in Q4 2024, representing a growth of 2.3% year-over-year[47]. - Net premiums written for the year ended December 31, 2025, reached $7,798 million, up from $6,874 million in 2024, indicating a year-over-year increase of 13.4%[47]. Underwriting Performance - Underwriting income increased by 32.3% to $827 million for the three months ended December 31, 2025, and by 10.2% to $2,933 million for the year ended December 31, 2025[13]. - The loss ratio improved to 53.6% for the three months ended December 31, 2025, compared to 57.5% in the same period of 2024[13]. - The combined ratio decreased to 80.6% for the three months ended December 31, 2025, from 85.0% in the prior year[13]. - The combined ratio for the insurance segment was 94.0%, while the reinsurance segment had a combined ratio of 77.0%, indicating overall underwriting profitability[35]. - The loss ratio for the insurance segment was 60.6%, while the reinsurance segment had a loss ratio of 54.5%[35]. - The loss ratio for Q4 2025 was 60.6%, compared to 66.3% in Q4 2024, reflecting a significant improvement of 5.7 percentage points[47]. - The combined ratio for Q4 2025 was 94.0%, a decrease from 98.5% in Q4 2024, showing enhanced operational efficiency[47]. Income and Earnings - Net income available to Arch common shareholders increased by 32.8% to $1,228 million for the three months ended December 31, 2025, and by 2.0% to $4,359 million for the year ended December 31, 2025[13]. - After-tax operating income available to Arch common shareholders rose by 26.1% to $1,092 million for the three months ended December 31, 2025[13]. - Comprehensive income available to Arch increased by 199.5% to $1,243 million for the three months ended December 31, 2025[13]. - Net income for the three months ended December 31, 2025, was $1,238 million, compared to $935 million for the same period in 2024, representing a 32.5% increase[25]. - Net income attributable to Arch for Q4 2025 was $1,238 million, compared to $1,350 million in Q3 2025, reflecting a decrease of 8.3%[18]. - Net income available to Arch common shareholders for Q4 2025 was $1,228 million, compared to $1,340 million in Q3 2025, reflecting a decrease of 8.3%[114]. Assets and Liabilities - Total assets increased to $79,241 million as of December 31, 2025, up from $79,185 million at the end of Q3 2025[21]. - Total liabilities decreased to $55,035 million as of December 31, 2025, compared to $55,466 million at the end of Q3 2025[21]. - Shareholders' equity rose to $24,206 million as of December 31, 2025, an increase from $23,719 million at the end of Q3 2025[21]. - Total investable assets amounted to $47,369 million, with total assets at $79,241 million and total liabilities at $55,035 million[35]. - Total capital available to Arch increased to $26,935 million as of December 31, 2025, from $26,447 million in the prior quarter[120]. Investment Performance - Total return on investments increased by 241 basis points to 1.36% for the three months ended December 31, 2025[13]. - Net investment income for Q4 2025 was $434 million, an increase from $408 million in Q3 2025[18]. - The company reported a pre-tax equity in net income of investments accounted for using the equity method of $155 million for the quarter ended December 31, 2025[89]. - Total return on investments for the year ended December 31, 2025, was 8.52%, significantly higher than the -1.05% reported for the previous year[89]. - The investment income yield at amortized cost was 4.22% for the quarter ended December 31, 2025, compared to 4.07% in the prior quarter[89]. Shareholder Actions - The company repurchased $798 million in common shares under its share repurchase program during the three months ended December 31, 2025[25]. - Aggregate cost of shares repurchased in Q4 2025 was $797.9 million, with 8.9 million shares repurchased at an average price of $90.04 per share[122]. - The company has a remaining share repurchase authorization of $1,107 million as of December 31, 2025[122]. - The company increased its share repurchase program authorization by $2.0 billion on September 4, 2025[122]. Mortgage Insurance Operations - U.S. primary mortgage insurance net premiums written were $195 million in Q4 2025, representing 73.0% of total net premiums written, with a total of $779 million for the year, down from $820 million[61]. - The insurance in force (IIF) for U.S. primary mortgage insurance was $286,318 million as of December 31, 2025, accounting for 59.1% of total IIF[61]. - Risk in force (RIF) for U.S. primary mortgage insurance was $74,679 million, representing 85.0% of total RIF as of December 31, 2025[61]. - The total impact of catastrophic activity on the combined ratio was (0.1)% for Q4 2025, indicating effective risk management strategies[47]. - The weighted average credit score for the mortgage insurance portfolio remains stable at 749 across the last four quarters[65].