10-QPeriod: Q2 FY2026

ARCH CAPITAL GROUP LTD. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 4, 2026For Securities:ACGLACGLNACGLO

Summary

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 billion 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.

Key Highlights

  • 1Net 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.
  • 2For 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.
  • 3The 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.
  • 4The 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%.
  • 5The mortgage segment delivered $220 million in underwriting income for the quarter, with stable U.S. market share and healthy persistency rates.
  • 6The company repurchased $1.2 billion of common shares in Q2 2026 and $1.9 billion year-to-date.
  • 7Book value per share increased to $68.04 at June 30, 2026, up from $59.17 at June 30, 2025.

Frequently Asked Questions

For the three months ended June 30, 2026, Arch Capital reported net income available to Arch common shareholders of $1,047 million.

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.

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.

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.