Arch Capital Group Ltd. (ACGL) Q4 2025 Financial Results Summary

Release Date: February 9, 2026

Arch Capital Group Ltd. (NASDAQ: ACGL) has reported its financial results for the fourth quarter of 2025, showcasing strong performance across multiple metrics. Below is a summary of the key financial indicators from the report.

Key Financial Highlights for Q4 2025:

• Net Income:
  • Available to Arch common shareholders reached $1.2 billion, equating to $3.35 per share.
  • This reflects a 21.2% increase compared to $925 million or $2.42 per share in Q4 2024.
• After-tax Operating Income:
  • This figure stood at $1.1 billion or $2.98 per share, marking an 18.9% increase from $866 million or $2.26 per share in Q4 2024.
• Combined Ratio:
  • The combined ratio excluding catastrophic activity and prior year development was 79.5%, slightly higher than 79.0% in Q4 2024.
• Share Repurchases:
  • The company executed share repurchases totaling $798 million during the quarter.
• Book Value per Share:
  • As of December 31, 2025, the book value per common share was $65.11, reflecting a 4.5% increase compared to the prior quarter.

Underwriting Results:

• Gross Premiums Written:
  • In Q4 2025, gross premiums written amounted to $4.809 billion, up 1.1% from $4.756 billion in Q4 2024.
• Net Premiums Written:
  • There was a decline, with net premiums written totaling $3.649 billion, representing a 4.5% decrease from $3.819 billion in Q4 2024.
• Net Premiums Earned:
  • This category saw a 2.7% increase, totaling $4.255 billion compared to $4.143 billion in Q4 2024.
• Underwriting Income:
  • Underwriting income was $827 million, which is an impressive 32.3% increase from $625 million in the same quarter a year prior.

Key Ratios:

• Loss Ratio:
  • The loss ratio for Q4 2025 was 53.6%, which improved by 3.9 percentage points from 57.5% in Q4 2024.
• Underwriting Expense Ratio:
  • Recorded at 27.0%, a modest decrease of 0.5 percentage points from 27.5% the previous year.
• Combined Ratio:
  • The overall combined ratio for Q4 was 80.6%, a 4.4 percentage point improvement from 85.0% in Q4 2024.

Investment Performance:

• Pre-tax Net Investment Income:
  • Reached $434 million, growing from $405 million in the prior year.
• Net Realized Gains:
  • The company reported $22 million in net realized gains for Q4 2025, a significant turnaround from the $161 million loss seen in Q4 2024.

Other Considerations:

• Effective Tax Rate:
  • The effective tax rate on income before income taxes was 14.5%, higher than 6.6% in the previous year.
• Income from Operating Affiliates:
  • This stood at $61 million or $0.17 per share, slightly down from $64 million for the same quarter last year.

In conclusion, Arch Capital Group Ltd. has demonstrated robust performance with significant growth in net income and other key performance indicators in Q4 2025, as compared to the same quarter last year. The company has also committed to enhancing shareholder value through substantial share repurchase activities.

Note: All amounts are in millions.

	December 31, 2025	December 31, 2024
Net income available to Arch common shareholders	1,228	925
Net realized (gains) losses (1)	-22	161
Equity in net (income) of investments accounted for using the equity method	-155	-143
Net foreign exchange (gains) losses	6	-106
Transaction costs and other	26	26
Income tax expense (benefit) (2)	9	3
After-tax operating income available to Arch common shareholders	1,092	866
Diluted per common share results:
Net income available to Arch common shareholders	3.35	2.42
Net realized (gains) losses (1)	-0.06	0.41
Equity in net (income) of investments accounted for using the equity method	-0.42	-0.37
Net foreign exchange (gains) losses	0.02	-0.28
Transaction costs and other	0.07	0.07
Income tax expense (benefit) (2)	0.02	0.01
After-tax operating income available to Arch common shareholders	2.98	2.26
Weighted average common shares and common share equivalents outstanding — diluted	366.6	382.8
Beginning common shareholders’ equity	22,889	21,444
Ending common shareholders’ equity	23,376	19,990
Average common shareholders’ equity	23,133	20,717
Annualized net income return on average common equity	21.2%	17.9%
Annualized operating return on average common equity	18.9%	16.7%

Note: All amounts are in millions.

	December 31, 2025	December 31, 2024
Assets
Cash and equivalents	1,534	2,126
Investments	21,239	18,514
Receivables	1,987	2,194
Reinsurance recoverable	4,881	5,004
Deferred policy acquisition costs	669	650
Other assets	1,020	1,108
Total assets	31,330	29,596
Liabilities and Shareholders’ Equity
Policyholder liabilities	25,149	23,650
Senior debt	2,110	2,111
Other liabilities	1,544	1,480
Total liabilities	28,803	27,241
Shareholders’ Equity
Common stock and additional paid-in capital	4,190	3,792
Retained earnings	1,307	1,140
Accumulated other comprehensive income	(970)	(577)
Total shareholders’ equity	2,527	2,355