Arch Capital Group Ltd. Announces Closing of Public Offering of 4,000,000 Depositary Shares Representing Series F Preferred Shares and Redemption of Outstanding 6.75% Series C Non-Cumulative Preferred Shares

Business Wire

HAMILTON, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. [NASDAQ:ACGL] announced today that it has closed its previously announced underwritten public offering of 4,000,000 Depositary Shares, each of which represents a 1/1,000^th interest in a 5.45% Non-Cumulative Preferred Share, Series F, of ACGL (the Series F Preferred Shares). This offering is an additional issuance of its Series F Preferred Shares originally issued in August of 2017. The additional Depositary Shares have been listed on NASDAQ, under the existing symbol “ACGLO.”

The offering was led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC as joint book-running managers.

The Company also announced today that it had called for redemption on January 2, 2018, all of its outstanding of 6.75% Series C Non-Cumulative Preferred Shares which are listed on the New York Stock Exchange under the symbol “ARH.PRC.” The Series C Non-Cumulative Preferred Shares will be redeemed at a redemption price equal to $25.00 per share (an aggregate redemption price of $92,554,825), plus all declared and unpaid dividends to (but excluding) the redemption date. The Paying Agent for the redemption is American Stock Transfer & Trust Company, LLC, and they can be reached toll-free at (877) 248-6417 or at (718) 921-8317 with any questions regarding the redemption. ACGL has declared a one-time dividend on the Series C Non-Cumulative Preferred Shares for the period from and including December 31, 2017 through and including January 1, 2018 of $0.009375 per share, which will be paid on the redemption date, along with the redemption price. Record holders of the Series C Non-Cumulative Preferred Shares as of December 15, 2017 will still receive the previously announced dividend for the fourth quarter of 2017, also payable on January 2, 2018.

Arch Capital Group Ltd., a Bermuda-based company with approximately $11.04 billion in capital at September 30, 2017, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale is not permitted. The offering is being made pursuant to the Company’s effective shelf registration statement previously filed with the Securities and Exchange Commission. This offering may be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

You may obtain a copy of the final prospectus supplement and accompanying prospectus from the Securities and Exchange Commission at www.sec.gov. Alternatively, the underwriters may arrange to send you these documents if you request them by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, by calling toll-free: 1-800-294-1322 or by emailing [email protected] or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, by calling toll-free: 1-800-645-3751 or by emailing: [email protected].

Cautionary Note Regarding Forward-Looking 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 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 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 our 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 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; 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 integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us; and other factors identified in our filings with the U.S. Securities and Exchange Commission.

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 our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.