AM Best upgrades Arch on diversification and outperformance

Core Viewpoint - AM Best has upgraded Arch Capital Group and its subsidiaries' ratings due to strong operating performance and a proven track record of superior underwriting results and investment returns, even in softer market conditions [1] Group 1: Rating Upgrades - AM Best upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to "aa" (Superior) from "aa-" (Superior) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) for Arch Reinsurance Ltd. and its strategic affiliates, with a stable outlook for both ratings [2] - The Long-Term ICRs for Arch Capital Group Ltd. and its subsidiaries were upgraded to "a" (Excellent) from "a-" (Excellent), with a stable outlook for these Credit Ratings [3] Group 2: Financial Strength and Performance - Arch's ratings reflect its strongest balance sheet strength, favorable business profile, and appropriate enterprise risk management, with operating performance consistently outperforming most peers with lower volatility [4] - The company's distinctive diversification, supported by a substantial mortgage insurance business alongside its reinsurance and insurance operations, provides multiple, durable profit and revenue streams [5] Group 3: Market Position and Resilience - Arch has a long, proven track record of producing superior underwriting results and investment returns, even during softer market years, and has continued to differentiate itself from peers in the recent hard market cycle [6]