8-KOther Events

ARCH CAPITAL GROUP LTD. 8-K Report, Corporate Update (Mar 27, 2007)

Filed March 27, 2007For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) filed a Form 8-K on March 27, 2007, to report on the sale of company stock by its President and CEO, Constantine Iordanou. Mr. Iordanou sold 135,000 shares of ACGL Common Shares on March 26, 2007, as part of a pre-established 10b5-1 trading plan. These shares were originally granted to him upon joining the company in 2002 and vested on December 31, 2006. The sale was intended to cover the income taxes associated with the vesting of this equity award. The 10b5-1 plan has now concluded as all shares designated for sale under the plan have been transacted. This disclosure provides transparency to investors regarding insider stock transactions and the reasons behind them, specifically related to tax obligations arising from executive compensation awards.

Key Highlights

  • 1President and CEO Constantine Iordanou sold 135,000 ACGL Common Shares on March 26, 2007.
  • 2The sale was executed under an existing Rule 10b5-1 trading plan.
  • 3The shares sold were part of a restricted stock award granted to Mr. Iordanou upon his joining the company in January 2002.
  • 4The restricted stock award vested on December 31, 2006.
  • 5The purpose of the stock sale was to fund the income taxes incurred due to the vesting of the award.
  • 6The Rule 10b5-1 plan has now terminated as all shares covered by the plan have been sold.

Frequently Asked Questions

The CEO, Constantine Iordanou, sold Arch Capital Group shares to cover the income taxes associated with the vesting of restricted common shares he received when he joined the company in 2002. The shares vested on December 31, 2006.

Mr. Iordanou sold 135,000 ACGL Common Shares on March 26, 2007.

Yes, the sale was conducted pursuant to an existing Rule 10b5-1 trading plan, which is a pre-arranged plan for selling stock that allows insiders to sell shares at a predetermined time and price, or according to a predetermined formula, to avoid even the appearance of insider trading.

The 10b5-1 plan under which these shares were sold has now terminated because all shares covered by that specific plan have been sold. The filing does not indicate any further planned sales beyond this plan.