2024 Annual Report

Arch Capital Group Ltd.

2024ANNUAL REPORT

FINANCIAL HIGHLIGHTS
GROSS PREMIUMS WRITTEN	NET LOSS RESERVES
$21.5B	$21.5B
TOTAL ASSETS	TOTAL CAPITALIZATION
$70.9B	$23.5B

Œ Annualiïed growth rate from ¿ec ,to ¿ec

©2025 Arch Capital Group Ltd. All rights reserved.

,Àícludes the effects of stock oåtions, restricted and åerformance stock units outstanding

TO OUR SHAREHOLDERS

2024 was a year of growth and transformation for Arch.

We set new company records for underwriting income, investment income and after-tax operating income available to Arch common shareholders, and our strong capital position ledthe Board to approve our first special dividend of $5 per commonshare, directly returning capital back to you, our shareholders.

In addition to the special dividend, investors experienced a 13% increase in book value per common share (BVPS) and an annualized net income retuon average common equity of nearly 23% for the year.

Our three main business segments and the investment group all contributed to our2024 results, once again demonstrating the strength of our diversified platform.

Arch's Insurance and Reinsurance property and casualty (P&C) underwriting teamswrote $14.6 billion of net premium, generating nearly $1.6 billion of underwriting income. Our Mortgage segment, which operates within a different underwriting cycle, delivered more than $1 billion of underwriting income for the third consecutive year, while our investment group generated a record $1.5 billion of netinvestment income.

We believe Arch's long track record of success is a product of our strong culture and a well-established set of operating principles that guide our decision-making. Both of these traits are critically important to our ongoing success.

The resiliency of our management team and experience of our leaders are hallmarks of our success. Our deep bench of executives helped facilitate a smooth leadership transition last year upon the retirement of former CEO Marc Grandisson, whose dedicated service helped establish Arch as an industry leader.

I'm grateful for the opportunity to lead this outstanding company, and I am focused on fostering our unique culture to continue delivering exceptional value to our shareholders. Last year, we also promoted two longtime Arch executives, David Gansberg and Maamoun Rajeh, to be Presidents of Arch Capital Group. We are fortunate to have Maamoun and David's leadership experience, insights and institutional knowledge to help guide the company.

Arch Capital Group Ltd. 2024 Annual Report | 1

Underwriting Strategy

Our focus is on underwriting specialty lines, which benefit from theknowledge and expertise of skilled underwriters. By combining our deep specialty experience with the power of data, we drive insightsthat inform profitable underwriting decisions. The compensation of our senior underwriters is linked to long-term profitability to ensurealignment with shareholder results.

At the enterprise level, we prioritize expected profitability overmarket share and allocate capital to the lines of business with the most attractive risk-adjusted returns. Throughout the current hardmarket, we have deployed capital into our P&C segments that offerthe best opportunity for growth and solid risk-adjusted returns.

Insurance

The Insurance group wrote $6.9 billion of net premium in 2024, a 17% increase from 2023, while delivering $345 million ofunderwriting income in a year when catastrophic activity weighedon profitability. Our acquisition of Allianz's U.S. MidCorp andEntertainment insurance businesses in North America meaningfully expanded our presence in the U.S. middle market, a key area of expected future growth.

Reinsurance2024 marked another year of excellent performance for theReinsurance segment, which delivered $1.2 billion of underwritingincome, a new high for Arch Re. The team also wrote a record$7.7 billion of net premium, an 18% increase from 2023. ArchRe has established itself as a top 10 global reinsurance providerby becoming the first choice for our distribution partnersand cedants and consistently providing creative solutions to challenging problems.

Mortgage

The Mortgage segment provides profitable diversification that differentiates Arch from our peers by producing a steady stream of reliable earnings. In 2024, the segment generated $1.1 billion of underwriting income while writing $1.1 billion of net premium. Highmortgage interest rates compared to the last decade, combined with tight housing supply, limited new origination activity. However, persistency of our in-force portfolio remains strong, and the credit quality of homebuyers with loans we insure continues to be excellent.

Investment Results

The substantial growth of our P&C units during this hard marketincreased our investable assets to $41.4 billion at the end of 2024, a 20% increase from the end of 2023. This "float" is a materialcontributor to our net income and should serve as a tailwind for future earnings generation.

Capital Management

One of Arch's core operating principles is being prudent and disciplined stewards of the capital entrusted to us. In 2024, strong earnings provided an opportunity to deploy capital across the Company organically and strategically while also returning capital directly to you, our shareholders.

• Organic:Capital was directed toward growth efforts in our P&C units, where we grew existing and new accounts in an attractive market that should continue to deliver solid risk-adjusted returns.

• Strategic:Our strategic acquisition of the MidCorp and Entertainment insurance businesses provides an effective platform and means of building scale in the U.S. middle market while further diversifying our overall business portfolio.

• Direct:In December 2024, we paid a special dividend of$1.9 billion to common shareholders, representing $5 percommon share.

Arch's People

At Arch, we have an entrepreneurial and collaborative culturewhere our people are a key differentiator. Maintaining ahigh degree of talented individuals through retention and recruitment is crucial to our long-term success.

In 2024, we welcomed nearly 1,500 employees to the Company, including nearly 500 new colleagues who joinedthrough the MidCorp and Entertainment acquisition. Additionally, more than 700 individuals across the enterprise took on new roles or responsibilities, demonstrating our emphasis on fostering an environment where individuals can build a rewarding career.

We have a culture worth celebrating, but in 2024, weunfortunately said a final goodbye to one of Arch's keyarchitects, former Chair and CEO Dinos Iordanou. He passed away unexpectedly last June, and his vision and leadership are deeply missed.

Outlook2024 was a year where Arch delivered significant value to ourshareholders while positioning the Company for future success.

As I look ahead, I'm filled with optimism for Arch, itsshareholders, clients and employees. Our ability to manage the cycle has been on display throughout this hard market aswe've grown - profitably - at an exceptional clip. We believewe are well positioned to navigate the many underwritingcycles that will ultimately define our success in the years ahead.

I want to thank Arch employees for their work in 2024 and their commitment to helping our clients, employees, investors and communities achieve their greatest potential. I also want to thank our distributors, clients and other partners for choosingto do business with Arch. And, finally, thank you to our shareholders for your continued confidence and support.

Arch Capital Group Ltd.

The Arch Insurance North America cyber team is known for its best-in-industry products, customer service and innovation - generating value for policyholders and shareholders alike. When clients buy from Arch, they get tailored, industry-leading coverage from underwriting, access to in-house cyber risk engineers and claim professionals, as well as carefully selected external vendor partners to help avoid and defend against cyber-related losses. This multi-disciplinary team gathers and analyzes data to ensure our products and loss prevention strategies are suited for the evolving cyber risk landscape.

Foreground, left to right:Marilyn Marshall, Kyle Lutterman, Emily Licitra;Background, left to right:Rich Gatz, Connor Brennan, Jamie Schibuk

2024 HIGHLIGHTS

INSURANCE NET PREMIUMS WRITTEN

• Wrote $9.1 billion of gross premium, a 14.4% increase from 2023.

• Completed the acquisition of Allianz's U.S. MidCorp and Entertainment insurance businesses in August.

• Arch Insurance North America and Arch Insurance Internationalboth recognized as 5-Star Claims award winners by

  Insurance Business.

• Grew our presence in Europe by expanding our product offerings and teams in Spain and France.

• In an active catastrophe year, delivered a 94.8% combined ratio and a 90.5%* combined ratio excluding catastrophic activity andprior year development.

• Continued to deploy and enhance Strategic Analytics models in most of our North American businesses, positively impacting our efficiency, automation, pricing and risk selection.

Other Liability -

Claims Made

CALENDAR YEAR NET PREMIUMS WRITTEN BY LINE ($M)

$7,000

$6,000 $5,000

$4,000 $3,000 $2,000 $1,000

INTERNATIONAL

Property and Short-tail SpecialtyCasualty and Other

NORTH AMERICA

Property and Short-tail Specialty

Other Liability - Occurence

Other Liability - Claims Made

Workers Compensation

Commercial Automobile

Commercial Multi-peril

Other

2023

2024

* We use non-GAAP financial measures in this report. The first mention of each non-GAAP financial measure is referenced by an asterisk (*). See Additional Information for a reconciliation to the most comparable GAAP financial measures.

Arch Capital Group Ltd. 2024 Annual Report | 5

Embodying a data-driven approach to underwriting, Arch Re's catastrophe modeling department scans billions of records every year to ensure catastrophe programs are adequately priced and commensurate to Arch Re's risk appetite. Through its ongoingassessment of new models, emerging risks and internal research, the catastrophe modeling team exemplifies Arch's core Values ofteamwork, pursuing innovation and working hard and smart to ensure our underwriters have the tools and data necessary to make better decisions.

Left to right:Keishaun Augustus, Andrew Moore, Urbain Zibo, Amber Wolffe

2024 HIGHLIGHTS

REINSURANCE NET PREMIUMS WRITTEN

• Wrote $11.1 billion of gross premium and $7.7 billion ofnet premium in 2024, increases from 2023 of 22% and18%, respectively.

• Generated a record $1.2 billion of underwriting income, an11% increase from 2023.

• Delivered an 83.2% combined ratio and a 74.8% combined ratioexcluding catastrophic activity and prior year development.

• Welcomed 64 new colleagues to the global Reinsurance teamand promoted several experienced colleagues to continue to drive the multitude of initiatives and opportunities across the segment.

CALENDAR YEAR NET PREMIUMS WRITTEN BY LINE ($M)

$8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000

$0

3.9%

Marine & Aviation

1.9%

Other

29.2%

Property excluding Property Catastrophe

Other Specialty

Property excluding Property Catastrophe

Casualty

Property Catastrophe

Marine & Aviation

Other

2023

2024

Arch Capital Group Ltd. 2024 Annual Report | 7

The Arch U.S. MI pricing team keeps its eyes firmly focused on the horizon, ensuring Arch MI appropriately manages market andcompetitive dynamics. Through innovative tools such as RateStar® risk-based pricing and world-class loan behavior models, the team enables Arch MI to underwrite the right risks, at the right rates, at the right time. The pricing team is comprised of a mix of

actuaries, mortgage finance professionals, data analysts and implementation specialists who leverage their unique skill sets to the benefit of the world's largest mortgage insurer.

Left to right:John Hanken, Meghan Gaier, Kajuan McAfee, Jeff Mallon

Attachments

• Original document
• Permalink

Disclaimer

Arch Capital Group Ltd. published this content on March 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 25, 2025 at 12:48:30.020.