Q2 2026 underwriting: consolidated combined ratio was 83.5% (vs 81.2% in Q2 2025). Insurance segment earned $27M underwriting income at a 98.5% combined ratio, with a 64.4% current-year loss ratio reflecting 7.6 points of catastrophic activity primarily from the Iran conflict and severe U.S. conductive storms; growth in casualty lines (E&S casualty, construction, national accounts) was partially offset by the decision not to renew certain middle-market commercial program business from the 2024 Allianz MCE Acquisition and reduced E&S property volumes due to competitive rate pressure. Reinsurance generated $410M underwriting income at a 77.5% combined ratio; net premiums written fell 10.4% YoY to $1.8B on pricing pressures, higher cedant retentions in property and short-tail lines, and targeted increased retrocessions. Mortgage segment produced $220M underwriting income (22.8% combined ratio); U.S. primary persistency was 79.9% and new originations remained modest due to affordability constraints tied to mortgage rates and home prices.
Capital returns: Arch repurchased 12.4M common shares for approximately $1.2B in Q2 2026 at an average price of ~$94.40 per share. Through the first half of 2026, the company repurchased 20.7M shares for ~$1.9B, returning approximately 94% of net income to shareholders via buybacks. On April 19, 2026, the Board increased the existing share repurchase authorization by $3.0B (no expiration); $2.2B remained available at June 30, 2026.
Debt capital actions: On June 9, 2026, Arch completed a $2.0B public offering of senior notes comprising $600M of 5.250% notes due 2036 and $1.4B of 5.950% notes due 2056. On June 16, 2026, the company completed cash tender offers repurchasing $218.7M of 5.144% 2043 Notes (Arch-U.S.) and $199.1M of 5.031% 2046 Notes (Arch Finance), generating a pre-tax gain of $16M. The Company stated it intends to use remaining net proceeds to redeem its 4.011% Senior Notes due December 2026 and for general corporate purposes; total senior notes outstanding rose to $4.3B at June 30, 2026 from $2.7B at year-end.
Prior-year reserve development: net favorable development of $169M in Q2 2026 (vs $153M in Q2 2025). Reinsurance contributed $97M favorable, including $61M from property non-catastrophe (2024-2025 underwriting years) and $44M from property catastrophe (primarily 2024 underwriting year), offset by $26M adverse in casualty (2022-2023 underwriting years). Insurance reported $27M favorable; mortgage reported $45M favorable driven by U.S. first-lien reserve reductions (2025 accident year) with CRT and international businesses also contributing. Total net loss reserves (after reinsurance recoverables) stood at $25.5B at June 30, 2026.
Operating affiliate changes: Settlement of Greysbridge put options during Q2 2026 increased Arch's ownership stake from 30% to 31.75%, raising the carrying value to $554M from $486M at year-end. Coface ownership remained approximately 29.9% with carrying value declining to $664M from $707M. Income from operating affiliates (primarily Somers/Greysbridge and Coface) was $46M in Q2 2026 versus $40M in the prior-year quarter. Additionally, net realized losses in Q2 2026 included a litigation-related loss contingency recorded under ASC 450, though no specific amount was disaggregated in the filing.
(Filed on May 5, 2026)
-3.3%
—
$914M
MCE Acquisition (Allianz mid-market/entertainment, closed Aug 2024, $450M): substantially completed data and system migration of the acquired businesses; decided not to renew certain middle-market commercial program business from the acquisition; operating expenses elevated in Q1 due to transition costs, with remaining transition expenses expected to extend into mid-year 2026.
Underwriting results by segment: Insurance $66M income (combined ratio 96.5% vs. 100.1% prior year), net premiums written essentially flat as profitability-over-volume strategy and competitive rate pressure in property/short-tail offset growth in E&S casualty, construction, and London-market lines. Reinsurance $441M income (combined ratio 75.9% vs. 91.8%), net premiums written down ~6% on pricing pressures, higher cedant retentions, and reduced property catastrophe written at Jan 1. Mortgage $221M income (combined ratio 22.3% vs. 16.1%), net premiums written flat.
Share repurchases: repurchased 8.3M common shares for $783M in Q1 (vs. 2.2M shares/$196M in Q1 2025). On April 19, 2026 (subsequent event), the Board increased the existing repurchase authorization by $3.0 billion; approximately $3.0 billion remained available as of May 1, 2026 after ~3.6M shares repurchased for $346M in the period April 1–May 1.
Prior year reserve development: net favorable PYD of $220M (vs. $197M in Q1 2025), including $72M favorable in reinsurance property (non-cat) from 2023–2025 underwriting years, $63M in reinsurance specialty (primarily 2025), and $54M in mortgage (U.S. first-lien delinquency reserves, 2024–2025 accident years). Reinsurance long-tail casualty had $20M adverse development (2022–2024 underwriting years).
Mortgage portfolio metrics: U.S. primary MI persistency 80.7% (vs. 81.9% a year prior); delinquency rate 2.06% (vs. 1.96%); new insurance written $14.8B (vs. $9.2B) with 79% at credit score ≥740 and 79% purchase (vs. 96% prior year, reflecting higher refinancing activity); PMIERs sufficiency ratio 175% (vs. 179% at year-end). Management noted modest new originations constrained by mortgage-rate and home-price affordability.
(Filed on February 26, 2026)
+8.5%
—
$993M
Q4 2025 share repurchases: Arch repurchased 8,870,269 common shares in the fourth quarter at an average price of $90.07 per share. For the full year (annual context from the 10-K), repurchases totaled approximately $1.9 billion; the Board increased the repurchase authorization by $2.0 billion on September 4, 2025, leaving $1.1 billion available at December 31, 2025.
Annual 2025 underwriting results (10-K full-year context, not Q4-only): Insurance segment net premiums written grew 13.4% to $7.8 billion, driven primarily by the Allianz U.S. Middle Market and Entertainment acquisition (MCE, closed August 2024), producing $375 million underwriting income; reinsurance segment generated $1.6 billion underwriting income on $7.6 billion NPW; mortgage segment produced $1.0 billion underwriting income, its fourth consecutive year above that threshold. Consolidated net income available to common shareholders was $4.4 billion; book value per share rose 22.6% to $65.11.
Mortgage segment Q4/late-2025 development: In November 2025, Arch issued Bellemeade Re 2025-1 Ltd., a new aggregate excess-of-loss mortgage reinsurance transaction with $249 million initial coverage (covering in-force policies issued July 2024–September 2025), funded via $199 million of insurance-linked notes plus $50 million from a separate panel of reinsurers. Annual metrics: U.S. primary persistency held at 81.8% and delinquency rate edged up to 2.17% from 2.09%; new insurance written was $48.7 billion (nearly flat vs. 2024), with 76.7% of volume at credit scores of 740 or above.
Reinsurance 2026 renewal outlook (forward-looking, stated in the 10-K): At the January 1, 2026 renewals, property catastrophe and short-tail excess-of-loss rates were down 10% to 20%, reflecting a highly competitive environment. Management noted underwriting teams leveraged platform and trading relationships to source new opportunities mitigating rate pressure, while casualty conditions were improving. For 2025 (annual context), reinsurance current-year catastrophe loss was 8.5 points of the loss ratio, primarily from the California wildfires, compared with 11.8 points in 2024 (Hurricanes Milton, Helene, and other events).
Tax and capital-structure changes (annual 2025 context): Effective January 1, 2025, Arch became subject to a 15% Bermuda corporate income tax under the Bermuda CIT Act, lifting the consolidated effective tax rate to 14.7% in 2025 from 7.7% in 2024; the Tax Credits Act 2025 (enacted December 11, 2025, retroactive to January 1, 2025) is expected to provide a material offset. Total capital available to Arch was $26.9 billion at year-end, with debt-to-total-capital of 10.1% (down from 11.6% in 2024) and no revolving credit facility borrowings outstanding. Arch Re Bermuda could pay approximately $6.4 billion in dividends to the parent in 2026 without filing an affidavit with the BMA.
(Filed on November 6, 2025)
+8.2%
—
$1.1B
The MCE Acquisition (completed August 1, 2024, $450M cash consideration for Allianz's U.S. MidCorp and Entertainment insurance business) had its financial reporting systems fully integrated into Arch's systems as of September 30, 2025, and its purchase price fair value analysis was finalized in Q2 2025. The acquisition is driving insurance segment net premiums written growth of 7.3% year-over-year in Q3 2025 ($1.95B vs $1.82B), with management identifying it as a platform to build further scale in the middle market sector. North American other liability occurrence grew 17% and North American property and short-tail grew 15% in the quarter.
On September 4, 2025, Arch increased its share repurchase authorization by $2.0 billion (no expiration date). During Q3 2025 the company repurchased 8.25 million shares at an average price of $88.84 for approximately $732 million; from October 1 through November 5, 2025 it repurchased an additional 4.7 million shares for $411 million, leaving approximately $1.5 billion available under the program. Total common shares outstanding declined to 362.6 million as of November 5, 2025. Book value per share rose 5.3% in Q3 to $62.32.
Bermuda's Corporate Income Tax Act 2023, establishing a 15% corporate income tax effective January 1, 2025, materially increased Arch's effective tax rate to 14.8% for the nine months ended September 30, 2025 (vs. 8.1% in the prior-year period) and 13.7% in Q3 alone (vs. 9.0% a year earlier). The company reported a net deferred tax asset of $1.4 billion at September 30, 2025 and paid $315 million in income taxes for the nine-month period.
Reinsurance net premiums written declined 10.7% year-over-year in Q3 2025 to $1.74 billion, attributed to pricing conditions in short-tail and property catastrophe lines, increased cedant retentions, and two large specialty transactions in Q3 2024 that did not repeat. Despite lower volume, reinsurance underwriting income surged to $482 million (combined ratio 76.1%) from $149 million (combined ratio 92.3%) a year earlier, as current-year catastrophic activity was 1.3 points versus 21.3 points in Q3 2024 and prior-year favorable reserve development of $53 million (2.6 points) reduced the loss ratio to 51.6%. Management noted improving conditions in casualty lines and selective growth where margins are attractive.
The mortgage segment delivered $260 million of underwriting income in Q3 2025 (combined ratio 13.5%), with U.S. market share stable and persistency at 82.3%. New insurance written was $12.97 billion (vs. $13.53 billion prior year), modest due to affordability challenges, but 95.0% was purchase volume and 76.0% carried credit scores of 740 or higher. The U.S. portfolio delinquency rate was 2.04% at quarter-end, and the PMIERs sufficiency ratio was 176% (vs. 186% at year-end 2024); a new GSE PMIERs update effective March 31, 2025 is being phased in through September 30, 2026 and would reduce the pro-forma ratio to 172% if fully applied.
In 2025, Warburg and Kelso each delivered a second put option notice to sell a portion of their initial Greysbridge (40% owned by Arch) shares; the transaction involving third-party purchasers is expected to close in H1 2026, subject to regulatory approvals. A first put delivered in 2024 was expected to close during calendar 2025. The Greysbridge/Somers relationship continues as a material related party: Somers reinsurance transactions reduced Arch's net premiums written by $557 million in the nine months ended September 30, 2025, and reinsurance recoverables from Somers stood at $1.9 billion at quarter-end. Income from operating affiliates (primarily Somers and Coface) was $62 million in Q3, up from $36 million a year earlier.
