10-KPeriod: FY2024

ARCH CAPITAL GROUP LTD. Annual Report, Year Ended Dec 31, 2024

Filed February 27, 2025For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) reported a strong financial performance for the year ended December 31, 2024, with net income available to common shareholders of $4.3 billion. The company's book value per share grew by 13.1% to $53.11. The insurance segment experienced a notable increase in net premiums written, driven by the acquisition of Allianz's U.S. Middle Market Property and Casualty and Entertainment Property and Casualty insurance businesses, though this segment's underwriting income decreased year-over-year due to elevated catastrophe activity. The reinsurance segment demonstrated resilience, contributing $1.2 billion in underwriting income despite catastrophic events, with selective increases in writings in property, liability, and specialty lines. The mortgage segment continued its steady performance, generating $1.1 billion in underwriting income for the third consecutive year. The company ended the year with $41.4 billion in investable assets and maintained strong capital adequacy ratios, with a PMIERs sufficiency ratio of 186%. Arch Capital also repurchased approximately $24 million worth of its common shares during the year and has a remaining authorization of $996.8 million.

Financial Highlights

33 data points
Beta

Revenue

$17.44B

Net Income

$4.31B

24.7% Net Margin

EPS (Diluted)

$11.19

Total Assets

$70.91B

Cash & Equivalents

$979.00M

Free Cash Flow

$6.67B

Financial Statements
Beta
Revenue$17.44B
Interest Expense$141.00M
Net Income$4.31B
EPS (Basic)$11.47
EPS (Diluted)$11.19
Shares Outstanding (Basic)372.50M
Shares Outstanding (Diluted)381.80M

Key Highlights

  • 1Net income available to Arch common shareholders was $4.3 billion for the year ended December 31, 2024.
  • 2Book value per share increased by 13.1% to $53.11, or 23.8% when adjusting for a special dividend.
  • 3The insurance segment's net premiums written grew by 17.3% due to the MCE Acquisition, though underwriting income decreased by 23.3% due to catastrophe losses.
  • 4The reinsurance segment saw an 18.2% increase in net premiums written and contributed $1.2 billion in underwriting income.
  • 5The mortgage segment reported $1.1 billion in underwriting income, marking the third consecutive year of over $1 billion.
  • 6Total investable assets reached $41.4 billion, with a focus on capital preservation, liquidity, and diversification.
  • 7The company's PMIERs sufficiency ratio was 186% at December 31, 2024, and has a remaining share repurchase authorization of $996.8 million.

Frequently Asked Questions

Arch Capital Group Ltd. reported strong financial results for 2024, with net income available to common shareholders of $4.3 billion and a 13.1% increase in book value per share to $53.11. The company demonstrated resilience across its insurance, reinsurance, and mortgage segments, despite facing elevated catastrophe losses.

The acquisition of Allianz's U.S. Middle Market and Entertainment Property and Casualty insurance businesses (MCE Acquisition) on August 1, 2024, contributed significantly to the insurance segment's growth, increasing net premiums written by 17.3%. However, this segment's underwriting income was negatively impacted by catastrophe activity, with the acquired business contributing to increased operational expenses and amortization of intangible assets.

Arch Capital prioritizes delivering long-term value through a diversified business mix, active management of the underwriting cycle, prudent capital stewardship, and data-driven operations. The company demonstrated its commitment to capital management by paying a special cash dividend of $1.9 billion ($5.00 per share) in 2024 and has a significant share repurchase authorization of $996.8 million remaining.

The company's investment strategy emphasizes capital preservation, market liquidity, and diversification of risk. As of December 31, 2024, total investable assets were $41.4 billion, with a fixed income portfolio duration of 3.31 years and an average credit quality of AA-/Aa3. The pre-tax investment income yield was 4.25% for 2024, benefiting from higher market interest rates.