8-KRegulation FDOther EventsExhibits & Filings

ARCH CAPITAL GROUP LTD. 8-K Report, Regulation FD Disclosure (Sep 13, 2006)

Filed September 13, 2006For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) filed an 8-K on September 13, 2006, reporting two key events. Firstly, the company announced the appointment of Jeffrey Goldstein to its Board of Directors as a Class I Director, effective September 7, 2006. This addition to the board may signal a strategic move or an expansion of expertise for the company. Secondly, the filing details dividend declarations for its Series A and Series B preferred shares. The Board of Directors approved dividends totaling $4,000,000 for the Series A shares and $2,460,938 for the Series B shares. These dividends are payable on November 15, 2006, to shareholders of record as of November 1, 2006. Additionally, the report clarifies the impact of the Tax Increase Prevention and Reconciliation Act of 2005 on U.S. expatriate tax relief and notes that ACGL will reimburse its CEO and CFO for incremental additional income taxes incurred due to this legislation, as per their existing employment agreements.

Key Highlights

  • 1Appointment of Jeffrey Goldstein to the Board of Directors as a Class I Director.
  • 2Declaration of dividends for 8.00% Non-Cumulative Preferred Shares, Series A.
  • 3Declaration of dividends for 7.875% Non-Cumulative Preferred Shares, Series B.
  • 4Total declared dividend amount for Series A shares is $4,000,000.
  • 5Total declared dividend amount for Series B shares is approximately $2,460,938.
  • 6Dividends are payable on November 15, 2006, to shareholders of record on November 1, 2006.
  • 7Company will reimburse CEO and CFO for incremental income tax increases due to the Tax Increase Prevention and Reconciliation Act of 2005.

Frequently Asked Questions

Jeffrey Goldstein has been appointed to the Board of Directors of Arch Capital Group Ltd. as a Class I Director.

The dividends are payable on November 15, 2006, to shareholders of record as of November 1, 2006.

For the Series A shares, a total of $4,000,000 in dividends was declared. For the Series B shares, a total of $2,460,938 in dividends was declared.

The Act reduces tax relief for U.S. expatriates. ACGL's CEO and CFO have tax equalization clauses in their employment agreements, and the company will reimburse them for any incremental additional income taxes they incur as a result of this legislation.