10-KPeriod: FY2015

ARCH CAPITAL GROUP LTD. Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) reported strong performance in its 2015 10-K filing, showcasing a global presence in insurance and reinsurance, with a focus on specialty lines. The company demonstrated robust financial health with $7.10 billion in capital and $3.35 billion in net premiums written for 2015. Key financial highlights include a net income available to common shareholders of $515.8 million and a book value per common share of $47.95, indicating growth from the previous year. ACGL's business is diversified across insurance, reinsurance, and mortgage segments, with operations in Bermuda, the U.S., Europe, Canada, Australia, and Dubai. The company emphasizes disciplined underwriting, risk selection, and superior claims management across its operations. Significant strategic initiatives include the expansion of its U.S. mortgage insurance business and a consistent focus on capitalizing on profitable underwriting opportunities in its core insurance and reinsurance segments. The company's investment portfolio, managed with an emphasis on capital preservation and liquidity, also contributed to its overall financial strength. ACGL remains committed to shareholder value, as evidenced by its ongoing share repurchase program.

Financial Statements
Beta
Revenue$3.94B
Interest Expense$45.87M
Net Income$537.74M
EPS (Basic)$1.41
EPS (Diluted)$1.36
Shares Outstanding (Basic)365.36M
Shares Outstanding (Diluted)378.12M

Key Highlights

  • 1Arch Capital Group Ltd. reported net income available to Arch common shareholders of $515.8 million for 2015.
  • 2Book value per common share increased to $47.95 as of December 31, 2015, up from $45.58 at December 31, 2014.
  • 3Net premiums written totaled $3.35 billion for the year ended December 31, 2015.
  • 4The company operates across three core segments: Insurance, Reinsurance, and Mortgage, with a global presence.
  • 5ACGL maintains a strong capital base of $7.10 billion as of December 31, 2015.
  • 6The company's underwriting philosophy centers on disciplined underwriting, prudent risk selection, and proper pricing.
  • 7Share repurchase program remained active, with $521.8 million authorized remaining at December 31, 2015.

Frequently Asked Questions

Arch Capital Group Ltd. operates across three main underwriting segments: Insurance, Reinsurance, and Mortgage. It also has two other operating segments: 'Other' and Corporate (non-underwriting).

In 2015, Arch Capital Group reported net income available to Arch common shareholders of $515.8 million and a book value per common share of $47.95, representing an increase from the prior year. Net premiums written were $3.35 billion.

The company's strategy across its segments focuses on capitalizing on profitable underwriting opportunities, maintaining disciplined underwriting philosophies with prudent risk selection and proper pricing, and providing superior claims management. They emphasize talent-intensive business and profitable underwriting over premium growth.

The company's investment strategy stresses preservation of capital, market liquidity, and diversification of risk. Their portfolio is primarily composed of fixed maturities, with a significant portion rated investment grade, and they manage their duration and credit quality to align with their insurance and reinsurance liabilities.