2024 Arch Capital Group Overview
©2024
Informational Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of
Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve the Company's current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive 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 the Company's ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company's 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 foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements. The Company undertakes no obligation 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
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A History of Growing Book Value Per Common Share
Annualized growth rate from
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The DNA of a Specialty Insurance Powerhouse
Arch's playbook delivers superior results with lower volatility. Our operating principles are:
FOCUS ON SPECIALTY
INSURANCE BUSINESS
- We focus on commercial lines where our underwriting expertise enhances risk selection and returns.
- Examples of specialty lines include:
-
- Insurance: Professional and Excess and Surplus (E&S), are more difficult and require deeper expertise to generate adequate, through-the-cycle returns.
- Reinsurance: Sophisticated modeling and portfolio construction can mitigate volatile property catastrophe returns.
- Mortgage: Innovative pricing and risk models drive performance.
MANAGE
THE CYCLE
- Our executive and underwriting teams are compensated on long-term profitability, not just generating new premium.
- A diversified platform ensures we can allocate our capital to the most deserving opportunities.
- Simple in concept, difficult to execute. Successful insurers write more business when opportunities are good and less when conditions deteriorate.
EFFECTIVELY
ALLOCATE CAPITAL
- We allocate capital to the lines of business with the best relative opportunity for risk-adjusted returns.
- When excess capital exists, we deploy according to the below priorities:
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- Reinvest into our business.
- Reduce financial leverage.
- Retuto shareholders via buybacks.
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©2024 |
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A Leading Specialty Insurer
Gross Premiums
Written
Combined
Ratio
79.3%
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Recapitalized in 2001 |
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20+ |
Year ended
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Years of Success |
A GLOBAL |
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PRESENCE |
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6,400+ |
Total
Capitalization
Debt and Preferred/ Total Capitalization
16.9%
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Employees |
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Worldwide |
As of
Financial Strength Ratings*
A+ A+
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*
Member of the
S&P 500®
Stock Market Index
©2023 Arch Capital©2024GroupArchLtdCapital.All rightsGroupreservedLtd. All. rights reserved.5
Diversified Model Across Three Platforms
2023 Total Net Premiums Written (NPW) by Segment
20.8%
Property, Energy, Marine & Aviation
23.9%
Professional
Lines
INSURANCE, 43%
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INSURANCE |
REINSURANCE |
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12.7% |
29.1% |
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Programs |
Property excl. Property |
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9.5% |
Catastrophe |
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Travel, Accident |
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& Health |
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9.2% |
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Other |
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10.7% |
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Construction & |
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National Accounts |
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9.2% |
36.8% |
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4.0% |
Other Specialty |
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Excess & Surplus |
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Warranty & |
Casualty |
Lenders
Solutions
REINSURANCE, 49%
15.3%
Casualty
13.2%
Property
Catastrophe
3.8%
Marine & Aviation
1.8%
Other
20.9%
Other
MORTGAGE, 8%
MORTGAGE
70.1%
9.0%
International Mortgage
Insurance/Reinsurance
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©2024 |
6 |
Property and Casualty Net Premiums Written (NPW) Growth By Line
INSURANCE
Calendar Year NPW By Line ($M)
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2019 |
2020 |
2021 |
2022 |
2023 |
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Property, energy, marine and aviation |
Professional Lines |
Programs |
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Construction and national accounts |
Excess and surplus casualty |
Travel, accident and health |
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Warranty and lenders solutions |
Other |
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Combined Ratio |
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2019 |
2020 |
2021 |
2022 |
2023 |
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101.5% |
104.5% |
96.7% |
95.0% |
91.7% |
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Excluding Catastrophic Activity and Prior Year Development* |
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100.5% |
95.2% |
91.5% |
89.9% |
89.6% |
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REINSURANCE
Calendar Year NPW By Line ($M)
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2019 |
2020 |
2021 |
2022 |
2023 |
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Other |
Marine, aviation and space |
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Specialty |
Property catastrophe |
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Property excl. property catastrophe |
Casualty |
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Combined Ratio |
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2019 |
2020 |
2021 |
2022 |
2023 |
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94.9% |
99.5% |
94.2% |
92.2% |
81.4% |
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Excluding Catastrophic Activity and Prior Year Development* |
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92.5% |
86.0% |
84.4% |
83.6% |
77.4% |
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* We use non-GAAP financial measures in this document. See Additional Information for a reconciliation to the most comparable GAAP financial measures. ©2024 |
7 |
Global Mortgage Group Net Premiums Written (NPW) and Risk In Force
MORTGAGE
Calendar Year NPW ($M)
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2019 |
2020 |
2021 |
2022 |
2023 |
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Combined Ratio |
US Primary MI |
US CRT and other |
International |
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2019 |
2020 |
2021 |
2022 |
2023 |
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24.9% |
59.0% |
27.1% |
(7.7%) |
9.3% |
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Excluding Prior Year Development* |
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34.1% |
60.4% |
40.9% |
40.9% |
40.6% |
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MORTGAGE
Risk in Force ($M)
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2019 |
2020 |
2021 |
2022 |
2023 |
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US Primary MI |
US CRT and other |
International |
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- US Primary MI includes
US Mortgage Insurance (MI) and Alternative Markets. - US CRT and other includes credit risk transfer (CRT) transactions, predominantly with government-sponsored enterprises (GSEs), and other
U.S. reinsurance transactions. - International includes insurance and reinsurance with risk primarily located in
Australia and, to a lesser extent,Europe andAsia .
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* We use non-GAAP financial measures in this document. See Additional Information for a reconciliation to the most comparable GAAP financial measures. ©2024 |
8 |
Investments
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©2024 |
9 |
A Growing Portfolio Driven by Net Investment and Equity Method Income
Invested Assets $M
$-
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2019 |
2020 |
2021 |
2022 |
2023 |
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Total Invested Assets |
Net Investment Income |
Equity in Net Income of Invested Funds (equity method) |
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Net Investment and Equity Method Income $M
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©2024 |
10 |
Attachments
Disclaimer



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