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1©2025 Arch Capital Group Ltd. All rights reserved. ©2025 Arch Capital Group Ltd. All rights reserved. INVESTOR PRESENTATION 2024 Fourth Quarter
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2©2025 Arch Capital Group Ltd. All rights reserved. The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward -looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward-looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward -looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology. Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those express ed or implied in these statements. A nonexclusive list of the important factors that could cause actual results to differ materially from those in such forward -looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and our ability to maintain and improve our ratings; investment performance; the loss of key personnel; the adequacy of our loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including pandemics such as COVID-19; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; our ability to successfully integrate, establish and maintain operating procedures as well as consummate acquisitions and integrate the businesses the Company has acquired or may acquire into the e xisting operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangemen ts; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us; an incident, disruption in operati ons or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partn ers and service providers, which could negatively impact our business and/or expose us to litigation; and other factors identified in our filings with the U.S. Securities and Exchange Commission (“SEC”). The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements th at are included herein or elsewhere. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Our forward- looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no oblig ation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation may contain non-GAAP financial measures as defined by Regulation G of the rules of the SEC. Arch Capital Group Ltd. (the ”Company”) believes these non-GAAP financial measures provide users of its financial information meaningful and useful insight in evaluating the performance of the Company. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the comparable GAAP financial measures. The reconciliation to GAAP and information about the specific non-GAAP financial measures used herein can be found within this presentation/video/document. Additional information about non-GAAP financial measures can also be found in the Current Report on Form 8-K furnished to the SEC by the Company in connection with its most recent earnings press release and the Company's website: www.archgroup.com. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries, and investors and other recipients of this information are encouraged to check the website. Informational Statements
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3©2025 Arch Capital Group Ltd. All rights reserved. 3,908 4,689 5,868 6,931 7,911 9,053 2,323 3,472 5,094 6,948 9,113 11,112 1,466 1,474 1,508 1,455 1,387 1,351 2019 2020 2021 2022 2023 2024 Insurance Reinsurance Mortgage 42% Insurance $9.1B 52% Reinsurance $11.1B 6% Mortgage $1.4B Specialty Insurance Business Arch Operates Leading Specialty Insurance Lines Across a Wide Range of Geographies and Products $7,696 $18,403 $12,464 $15,327 $21,511 $9,633 1 The sum of gross premiums written for each segment does not agree to the total gross premiums written as a result of rounding. 2 The sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to elimination of intersegment transactions. Gross Premiums Written FY 2024 ($B) Gross Premiums Written by Segment From 2019 to 2024 ($M)2 $21.5B 1 Total
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4©2025 Arch Capital Group Ltd. All rights reserved. Creating Shareholder Value Throughout the Cycle Thorough risk assessment of underlying exposures Align executive compensation with long-term performance Dynamic capital allocation Generate Superior Risk-Adjusted Returns Talent intensive, not people intensive Specialty lines platforms Active cycle management Focus on Underwriting Minimize investment risk Cautious reserving philosophy Low financial leverage and strong liquidity Conservative Balance Sheet
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5©2025 Arch Capital Group Ltd. All rights reserved. Property and short- tail specialty (N.A.), 18% Other liability - occurrence, 15% Other liability - claims made, 12% Workers compensation, 8% Commercial automobile, 7% Commercial multi-peril, 7% Other, 4% Casualty and other (Int), 14% Property and short-tail specialty (Int), 15% Specialty, 37% Property, 29% Casualty, 16% Property catastrophe, 12% Marine and aviation, 4% Other, 2% Diversification Reduces Earnings Volatility Insurance Net Premiums Written FY 2024 ($B) Reinsurance Net Premiums Written FY 2024 ($B) $7.7B Total 2 1 Insurance Segment: Products offered in North America include: commercial automobile; commercial multi‐peril; other liability—claims made, which includes financial and professional lines; other liability—occurrence, which includes admitted and excess and surplus casualty lines; property and short-tail specialty; workers compensation; and other. Products offered across the Company’s International units include: property and short-tail specialty; and casualty and other. 2 Reinsurance Segment : Casualty includes executive assurance, professional liability, workers’ compensation, healthcare, Motor XOL and other. Specialty includes proportional motor, cyber, trade credit and surety, accident and health, workers’ compensation catastrophe, agriculture, and political risk. Other includes life. Property and Casualty Segments North America International 1 $6.9B Total
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6©2025 Arch Capital Group Ltd. All rights reserved. * Non-GAAP Financial Measures: Tangible shareholders’ equity available to Arch represents total shareholders’ equity available to Arch, which includes non-cumulative preferred shares, less goodwill and intangible assets (excluding amounts attributable to non-controlling interests). We believe that tangible shareholders’ equity available to Arch is useful to investors because it provides a more accurate measure of the realizable value of shareholders’ equity. The following table provides a reconciliation of total shareholders’ equity available to Arch to tangible shareholders’ equity available to Arch: Managed Catastrophe Risk Hard Market Soft Market ACGL Peak Zone 1:250 PML Property and Casualty Segments 1:250 PML $M $881 $867 $801 $544 $489 $492 $496 $374 $612 $860 $748 $970 $1,627 $1,788 19.4% 17.0% 14.4% 9.1% 8.1% 6.6% 5.8% 4.2% 5.7% 6.9% 5.9% 8.0% 9.2% 9.2% 0% 5% 10% 15% 20% 25% 30% 250 600 950 1,300 1,650 2,000 1/1/12 1/1/13 1/1/14 1/1/15 1/1/16 1/1/17 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 1:250 as a % of tangible shareholders' equity available to Arch*
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7©2025 Arch Capital Group Ltd. All rights reserved. 62% 38% Consistent Source of Globally Diversified Earnings Mortgage Insurance In Force ($B) Underwriting Income ($M) FY2024 14% 8% 23% 69% 9% 15% 14% 13% 25% 66% 24% 61% 28% 58% 29% 30% 57% 57% $1,094M 69% 66% 61% 58% 57% 58% 31% 34% 39% 42% 43% 42% $418 $424 $461 $513 $509 $501 2019 2020 2021 2022 2023 2024 U.S. Primary Mortgage Insurance International Mortgage Insurance/Reinsurance and U.S. Credit Risk Transfer (CRT) and other
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8©2025 Arch Capital Group Ltd. All rights reserved. U.S. government and government agencies3, 26.9% AAA, 15.5% AA, 8.2% A, 18.4% BBB, 23.2% BB, 3.5% B, 1.6% Lower than B, 0.1% Not Rated, 2.6% U.S. government, 16.2% Corporates, 32.2% MBS2, 2.6% CMBS1, 2.6%Municipal, 0.6% Asset backed sec., 7.0% Non-U.S. government, 6.2% Cash & short-term, 9.3% Equity securities, 4.1% Equity method funds & other, 19.2% Our Investment Strategy 1 CMBS = Commercial mortgage backed securities. 2 MBS = Mortgage backed securities. 3 Includes U.S. government – sponsored agency MBS and agency CMBS. Investments Invested Assets ($B) December 31, 2024 Fixed Maturity by Rating ($B) December 31, 2024 Conservative Portfolio Focused on Total Return $41.4B Total $27.9B Total
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9©2025 Arch Capital Group Ltd. All rights reserved. Growing Investment Income Net Investment Income: Investment income net of investment expenses, included as part of operating income. Equity Method Investments: Equity in net income (loss) of investment funds accounted for using the equity method. Not included in operating Income. Excluding investments in operating affiliates. Investments Net Investment Income + Equity Method Investments ($M) Total Investable Assets in ($M): $28,065 $29,401 $30,441 $31,881 $34,589 $35,944 $37,811 $42,751 $41,388 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $181 $199 $242 $269 $313 $327 $364 $399 $405 $40 $48 $69 $59 $102 $99 $167 $171 $143 $221 $247 $311 $328 $415 $426 $531 $570 $548 $0 $100 $200 $300 $400 $500 $600 Equity Method Income or Loss Net Investment Income
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10©2025 Arch Capital Group Ltd. All rights reserved. $(35) $345 $81 $1,222 $1,041 $1,094 $491 $1,495 $16 $116 Other Net investment income Mortgage underwriting income Reinsurance underrwriting income Insurance underwriting income Diversified Net Income Growth $4,272 $1,594 20242019 2 1 Excludes the net investment income from Somers Group Holdings Ltd. “Somers” (formerly Watford Holdings Ltd.) 2 Includes underwriting result and net investment income from Somers for 2019, net realized gains (losses), net impairment losses recognized in earnings, equity in net income (loss) of investment funds accounted for using the equity method, other income (loss), corporate expenses, transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains (losses), income tax (expense) benefit (which for the 2023 fourth quarter includes a one-time deferred tax benefit related to the enactment of Bermuda’s new corporate income tax), income (loss) from operating affiliates, amounts attributable to redeemable noncontrolling interests, preferred dividends and loss on redemption of preferred shares. 1 Net Income Available to Arch Common Shareholder ($M) 168% Growth
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11©2025 Arch Capital Group Ltd. All rights reserved. Our ESG Focus Areas and 2023 Sustainability Highlights Our Environmental, Social and Governance (ESG) strategy is structured around five core impact areas that drive our ESG initiatives. By organizing our strategy under these pillars, we seek to encompass Arch’s collective ESG progress and achievements across our operations. BUSINESS OPERATIONS INVESTMENTS PEOPLE COMMUNITIES ▪ Strategic approach to enterprise risk management, including integration of climate risk. ▪ Underwriting initiatives to improve resiliency and transition to a lower- carbon economy. ▪ Underwriting socially sustainable insurance products. ▪ Enhancing our data privacy and protection programs. ▪ Conducting business ethically. ▪ Measuring and committing to mitigate our Scope 1 and 2 greenhouse gas emissions in line with our 2030 goal for net zero. ▪ Implementing our Responsible Investing Policy. ▪ Continuing to focus on ESG factors in decision- making and including responsible investments in our portfolio. ▪ Aligning with asset managers who are UN PRI signatories, supporting our commitment to considering ESG risks and opportunities in investment decisions. ▪ Advancing our diversity and inclusion (“D&I”) efforts and cultivating a workplace environment with thoughtful collaboration and respect. ▪ Supporting a culture of lifelong learning, emphasizing leadership development and maintaining operational excellence. ▪ Protecting our employees’ health and well-being. ▪ Corporate giving of $5.9 million to organizations that support our giving focus areas. ▪ The Arch Group Foundation reflects our belief in the transformative power of giving; granting $1.1 million in 2023. ▪ Promoting a culture of community engagement, we continue to support regional volunteerism through our volunteer time-off program.
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12©2025 Arch Capital Group Ltd. All rights reserved. Links to ESG Documents We believe in the value of transparency of our ESG initiatives, and we are committed to communicating our progress to interested stakeholders on an annual basis though the following three reports: Annual Sustainability Report Highlights Report Intended for all stakeholders and the general public. Comprehensive ESG Strategy and priority disclosure areas. Sustainability Accounting Standards Board (SASB) Report Intended for investors. Disclosures around the financial impacts of sustainability. Task Force on Climate-Related Financial Disclosures (TCFD) Report Intended for investors and sustainability specialists. Climate-related financial disclosures including governance, strategy, risk management and metrics/targets.
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13©2025 Arch Capital Group Ltd. All rights reserved. $2.03 $2.36 $2.84 $3.45 $3.76 $4.89 $6.12 $5.71 $8.04 $9.91 $10.51 $11.98 $13.18 $15.09 $15.88 $18.40 $20.30 $21.52 $26.42 $30.31 $33.56 $32.62 $46.94 $53.11 $5.00 $0 $10 $20 $30 $40 $50 $60 $70 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Book Value Common Dividends Superior Value Creation 1 Excluding the effects of stock options and restricted stock units outstanding. 2 Available to Arch, including senior debt, preferred equity, common stock and AOCI. 3 Total value creation includes growth in book value per common share plus total common dividend paid. Total Capitalization2 ($B): $1.0 $1.4 $1.9 $2.5 $2.8 $3.9 $4.3 $3.8 $4.7 $4.9 $5.0 $5.6 $6.5 $7.0 $7.1 $10.5 $11.3 $11.2 $13.2 $15.8 $16.3 $15.6 $21.1 $23.5 Debt/Preferred to Total Capitalization2 0.0% 0.0% 10.5% 11.8% 10.8% 16.1% 14.4% 18.9% 15.3% 14.9% 14.5% 13.0% 18.7% 17.3% 17.2% 28.7% 26.4% 22.5% 19.0% 22.1% 21.8% 22.7% 16.9% 15.1% Book Value per Common Share1 + Common Dividends 15.7% 3 Compound Annual Growth Rate
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14©2025 Arch Capital Group Ltd. All rights reserved. Contact Investor Inquiries: Vinay Misquith Senior Vice President, Finance _________ (914) 872 3666 VMisquith@archgroup.com Donald Watson Executive Vice President, Financial Services _________ (914) 872 3616 DWatson@archgroup.com ▪ ESG Reports and additional governance documents are available at archgroup.com/ESG. ▪ Previous investor presentations and other financial resources are available at archgroup.com/investors. Maureen Kitson Executive Assistant, Investor Relations _________ (914) 217 1396 MKitson@archgroup.com Jordan Arnold Director, Financial Services _________ (914) 216 7134 JArnold@archgroup.com