01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Arch Capital Group Ltd. (ACGL) reported its second quarter 2026 financial results, demonstrating robust performance across its insurance, reinsurance, and mortgage segments.
The company highlighted strong underwriting margins and disciplined execution of its strategies, leading to an annualized net income return on average common equity of 18.0%. Investment income also contributed positively, driven by growth in invested assets. The company continued its focus on capital management, repurchasing approximately $1.2 billiona in common shares during the quarter, and $1.9 billion year-to-date, aligning with its strategy of returning capital to shareholders.
Arch Capital maintains a strong balance sheet, providing flexibility for both business investment and capital return. Despite competitive market conditions in certain areas of the insurance and reinsurance markets, the company believes its diversified specialty platform and underwriting expertise position it well for continued attractive risk-adjusted returns.
02—Key points
Key Highlights
- Net income available to Arch common shareholders was $1,047 million for the three months ended June 30, 2026, a decrease from $1,227 million in the prior year period.
- For the six months ended June 30, 2026, net income available to Arch common shareholders was $2,084 million, an increase from $1,791 million in the prior year period.
- The insurance segment generated $27 million in underwriting income for the quarter, impacted by transitional expenses from the MCE Acquisition and reduced E&S property business.
- The reinsurance segment reported strong underwriting income of $410 million for the quarter, benefiting from relatively light catastrophe losses, though net premiums written decreased 10.4%.
- The mortgage segment delivered $220 million in underwriting income for the quarter, with stable U.S. market share and healthy persistency rates.
- The company repurchased $1.2 billion of common shares in Q2 2026 and $1.9 billion year-to-date.
- Book value per share increased to $68.04 at June 30, 2026, up from $59.17 at June 30, 2025.
03—Questions
Frequently Asked Questions
What was Arch Capital's net income for the second quarter of 2026?
For the three months ended June 30, 2026, Arch Capital reported net income available to Arch common shareholders of $1,047 million.
How did the different operating segments perform in Q2 2026?
The insurance segment generated $27 million in underwriting income, the reinsurance segment reported $410 million, and the mortgage segment contributed $220 million in underwriting income for the second quarter of 2026.
What is the company's strategy regarding share repurchases?
Arch Capital repurchased $1.2 billion of its common shares in the second quarter of 2026 and $1.9 billion year-to-date, reflecting its commitment to returning capital to shareholders. The company has an ongoing share repurchase program with $2.2 billion available at June 30, 2026.
How did the company's investment portfolio perform?
Net investment income increased to $417 million for the quarter, driven by growth in invested assets. The total return on investments for the second quarter of 2026 was 1.62%, slightly underperforming its benchmark.
04—Continue