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April 29, 2025 Reinsurance

First Quarter 2025 Financial Supplement

U.S. Markets via PUBT

Financial Supplement

March 31, 2025

Arch Capital Group Ltd. Waterloo House, Ground Floor 100 Pitts Bay Road

Pembroke HM 08 Bermuda

The following financial supplement is provided to assist in your understanding of Arch Capital Group Ltd. ("Arch") and its subsidiaries (collectively, the "Company").

This report is for informational purposes only. It should be read in conjunction with documents filed by Arch with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q. Please refer to the Company's website at https://www.archgroup.com for further information describing Arch.

Arch Capital Group Ltd. Investor Relations

François Morin: (441) 278-9250 Donald Watson: (914) 872-3616; [email protected]

		Page

I. Financial Highlights		3

II. Consolidated Financial Statements
a.	Consolidated Statements of Income	4
b.	Consolidated Balance Sheets	5
c.	Consolidated Statements of Changes in Shareholders' Equity	6
d.	Consolidated Statements of Cash Flows	7

III. Segment Information
a.	Overview	8
b.	Consolidated Results	9
c.	Insurance Segment Results	11
d.	Reinsurance Segment Results	13
e.	Mortgage Segment Results	15
f.	Segment Consolidated Results	20
g.	Selected Information on Losses and Loss Adjustment Expenses	21

IV. Investment Information
a.	Investable Asset Summary and Investment Portfolio Metrics	22
b.	Composition of Net Investment Income, Yield and Total Return	23
c.	Composition of Fixed Maturities	24
d.	Credit Quality Distribution and Maturity Profile	25
e.	Analysis of Corporate Exposures	26
f.	Structured Securities	27

V. Other
a.	Comments on Non-GAAP Financial Measures	28
b.	Operating Income Reconciliation and Annualized Operating Retuon Average Common Equity	29
c.	Operating Income and Effective Tax Rate Calculations	30
d.	Capital Structure and Share Repurchase Activity	31

Basis of Presentation

All financial information contained herein is unaudited, however, certain information relating to the consolidated balance sheet at December 31, 2024 is derived from or agrees to audited financial information. Unless otherwise noted, all amounts are in millions, except for per share amounts and ratio information. Amounts presented have been rounded for presentation purposes and may not reconcile due to rounding differences.

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 and its subsidiaries may include forward-looking statements, which reflect the Company's 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 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 the Company's ratings; investment performance; the loss and addition 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; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; the Company's 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 the Company of reinsurance to manage gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations 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 partners and service providers, which could negatively impact the Company's business and/or expose the Company to litigation; and other factors identified in the Company's filings with the U.S. Securities and Exchange Commission.

All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. 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. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and 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.

‌The following table presents financial highlights:

(U.S. Dollars and shares in millions, except per share data) Three Months Ended

March 31,

2025 2024 Change

Underwriting results:
Gross premiums written	$ 6,463	$ 5,933	8.9 %
Net premiums written	4,515	4,085	10.5 %
Net premiums earned	4,188	3,422	22.4 %
Underwriting income (loss) (1)	417	736	(43.3)%

Loss ratio	61.8 %	50.5 %	11.3
Acquisition expense ratio	18.3 %	17.7 %	0.6
Other operating expense ratio (2)	10.0 %	10.6 %	(0.6)
Combined ratio	90.1 %	78.8 %	11.3

Pre-tax net investment income	$ 378	$ 327	15.6 %
Per diluted share	$ 0.99	$ 0.86	15.1 %

Net income available to Arch common shareholders	$ 564	$ 1,110	(49.2)%
Per diluted share	$ 1.48	$ 2.92	(49.3)%

After-tax operating income available to Arch common shareholders (1)	$ 587	$ 933	(37.1)%
Per diluted share	$ 1.54	$ 2.45	(37.1)%

Comprehensive income (loss) available to Arch	$ 886	$ 975	(9.1)%

Net cash provided by operating activities	$ 1,458	$ 1,564	(6.8)%

Weighted average common shares and common share equivalents outstanding - diluted	381.9	380.5	0.4 %

Financial measures:
Change in book value per common share during period	3.8 %	5.2 %	(1.4)

Annualized net income retuon average common equity	11.1 %	24.6 %	(13.5)
Annualized operating retuon average common equity (1)	11.5 %	20.7 %	(9.2)

Total retuon investments (3)	2.02 %	0.80 %	122 bps

See 'Comments on Non-GAAP Financial Measures' for a further discussion of consolidated underwriting income or loss, after-tax operating income or loss available to Arch common shareholders and annualized operating retuon average common equity.
The 'Other operating expense ratio' for the 2025 period includes 'Other underwriting income (loss).'
Total retuon investments includes investment income, equity in net income (loss) of investment funds accounted for using the equity method, net realized gains and losses and the change in unrealized gains and losses and is calculated on a pre-tax basis and before investment expenses. See 'Comments on Non-GAAP Financial Measures' for a further discussion of the presentation of total retuon investments.

‌(U.S. Dollars and shares in millions, except per share data)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Revenues
Net premiums earned	$ 4,188	$ 4,143	$ 3,970	$ 3,565	$ 3,422
Net investment income	378	405	399	364	327
Net realized gains (losses)	3	(161)	169	122	67
Other underwriting income (1)	53	6	5	3	12
Equity in net income (loss) of investment funds accounted for using the equity method	53	143	171	167	99
Other income (loss)	(2)	12	8	8	14
Total revenues	4,673	4,548	4,722	4,229	3,941

Expenses
Losses and loss adjustment expenses	(2,587)	(2,384)	(2,403)	(1,827)	(1,728)
Acquisition expenses	(764)	(730)	(681)	(633)	(607)
Other operating expenses	(473)	(410)	(353)	(346)	(363)
Corporate expenses	(60)	(57)	(49)	(41)	(53)
Amortization of intangible assets	(49)	(99)	(88)	(27)	(21)
Interest expense	(35)	(37)	(35)	(35)	(34)
Net foreign exchange gains (losses)	(27)	106	(63)	1	31
Total expenses	(3,995)	(3,611)	(3,672)	(2,908)	(2,775)

Income (loss) before income taxes and income (loss) from operating affiliates	678	937	1,050	1,321	1,166
Income tax (expense) benefit	(121)	(66)	(98)	(97)	(101)
Income (loss) from operating affiliates	17	64	36	45	55
Net income (loss) attributable to Arch	574	935	988	1,269	1,120
Preferred dividends	(10)	(10)	(10)	(10)	(10)
Net income (loss) available to Arch common shareholders	$ 564	$ 925	$ 978	$ 1,259	$ 1,110

Comprehensive income (loss) available to Arch	$ 886	$ 415	$ 1,598	$ 1,280	$ 975

Net income (loss) per common share and common share equivalent
Basic	$ 1.51	$ 2.48	$ 2.62	$ 3.38	$ 2.99
Diluted	$ 1.48	$ 2.42	$ 2.56	$ 3.30	$ 2.92

Weighted average common shares and common share equivalents outstanding
Basic	372.9	373.3	373.2	372.7	370.9
Diluted	381.9	382.8	382.3	381.6	380.5

'Other underwriting income (loss)' includes revenue earned from underwriting-related activities covered under existing service contracts.

‌(U.S. Dollars and shares in millions, except per share data)	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Assets
Investments:
Fixed maturities available for sale, at fair value	$ 28,798	$ 27,035	$ 28,434	$ 25,202	$ 23,628
Short-term investments available for sale, at fair value	2,477	2,784	3,341	2,297	2,142
Equity securities, at fair value	1,618	1,675	1,623	1,397	1,720
Other investments	2,888	3,066	3,261	3,206	2,886
Investments accounted for using the equity method	6,340	5,980	5,244	4,983	4,842
Total investments	42,121	40,540	41,903	37,085	35,218
Cash	1,187	979	1,025	1,020	993
Accrued investment income	267	298	292	287	236
Investment in operating affiliates	1,305	1,240	1,236	1,143	1,174
Premiums receivable	6,607	5,634	6,364	6,268	5,765
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	8,969	8,260	7,948	7,473	7,509
Contractholder receivables	2,212	2,161	2,078	2,016	1,907
Ceded unearned premiums	2,895	2,428	2,935	2,981	2,717
Deferred acquisition costs	1,785	1,734	1,744	1,635	1,625
Receivable for securities sold	324	50	790	116	166
Goodwill and intangible assets	1,308	1,351	1,486	725	778
Other assets	6,196	6,231	5,855	4,716	4,680
Total assets	$ 75,176	$ 70,906	$ 73,656	$ 65,465	$ 62,768
Liabilities
Reserve for losses and loss adjustment expenses	$ 30,946	$ 29,369	$ 28,679	$ 24,466	$ 23,705
Unearned premiums	11,090	10,218	11,238	10,452	9,971
Reinsurance balances payable	2,661	2,137	2,586	2,591	2,497
Contractholder payables	2,218	2,165	2,082	2,020	1,910
Collateral held for insured obligations	245	249	268	263	263
Senior notes	2,728	2,728	2,727	2,727	2,727
Payable for securities purchased	578	181	967	410	433
Other liabilities	3,165	3,039	2,835	1,871	1,905
Total liabilities	53,631	50,086	51,382	44,800	43,411

Redeemable noncontrolling interests	-	-	-	-	2

Shareholders' equity
Non-cumulative preferred shares	830	830	830	830	830
Common shares	1	1	1	1	1
Additional paid-in capital	2,588	2,510	2,465	2,443	2,401
Retained earnings	23,250	22,686	23,642	22,664	21,405
Accumulated other comprehensive income (loss), net of deferred income tax	(408)	(720)	(200)	(810)	(821)
Common shares held in treasury, at cost	(4,716)	(4,487)	(4,464)	(4,463)	(4,461)
Total shareholders' equity	21,545	20,820	22,274	20,665	19,355
Total liabilities, noncontrolling interests and shareholders' equity	$ 75,176	$ 70,906	$ 73,656	$ 65,465	$ 62,768

Common shares and common share equivalents outstanding, net of treasury shares	375.6	376.4	376.2	376.0	375.3
Book value per common share (1) (1) Excludes the effects of stock options and restricted stock units outstanding.	$ 55.15	$ 53.11	$ 57.00	$ 52.75	$ 49.36

	‌March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Non-cumulative preferred shares
Balance at beginning and end of period	$ 830	$ 830	$ 830	$ 830	$ 830

Common shares
Balance at beginning and end of period	1	1	1	1	1

Additional paid-in capital
Balance at beginning of period	2,510	2,465	2,443	2,401	2,327
Amortization of share-based compensation	74	33	16	16	68
All other	4	12	6	26	6
Balance at end of period	2,588	2,510	2,465	2,443	2,401

Retained earnings
Balance at beginning of period	22,686	23,642	22,664	21,405	20,295
Net income	574	935	988	1,269	1,120
Common share dividends	-	(1,881)	-	-	-
Preferred share dividends	(10)	(10)	(10)	(10)	(10)
Balance at end of period	23,250	22,686	23,642	22,664	21,405

Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period	(720)	(200)	(810)	(821)	(676)
Change in unrealized appreciation (decline) in value of available-for-sale investments	286	(442)	585	27	(112)
Change in foreign currency translation adjustments	26	(78)	25	(16)	(33)
Balance at end of period	(408)	(720)	(200)	(810)	(821)

Common shares held in treasury, at cost
Balance at beginning of period	(4,487)	(4,464)	(4,463)	(4,461)	(4,424)
Shares repurchased for treasury	(229)	(23)	(1)	(2)	(37)
Balance at end of period	(4,716)	(4,487)	(4,464)	(4,463)	(4,461)

Total shareholders' equity	$ 21,545	$ 20,820	$ 22,274	$ 20,665	$ 19,355

‌March 31, December 31, September 30, June 30, March 31,

2025 2024 2024 2024 2024

Operating Activities
Net income (loss)	$ 574	$ 935	$ 988	$ 1,269	$ 1,120
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses	(6)	176	(165)	(144)	(52)
Equity in net (income) or loss of investment funds accounted for using the equity method and other income or loss	(12)	(152)	(162)	(62)	(112)
Amortization of intangible assets	49	99	88	27	21
Share-based compensation	74	33	16	16	68
Changes in:
Reserve for losses and loss adjustment expenses, net	951	832	1,078	709	660
Unearned premiums, net	327	(324)	77	216	663
Premiums receivable	(942)	686	178	(523)	(1,159)
Deferred acquisition costs	(14)	(46)	(86)	2	(82)
Reinsurance balances payable	504	(410)	(27)	95	521
Deferred income tax assets, net	29	(96)	16	21	24
Other items, net	(76)	(160)	17	(108)	(108)
Net cash provided by operating activities	1,458	1,573	2,018	1,518	1,564
Investing Activities
Purchases of fixed maturity investments	(9,418)	(9,731)	(7,436)	(5,798)	(8,325)
Purchases of equity securities	(808)	(491)	(278)	(145)	(509)
Purchases of other investments	(697)	(1,587)	(529)	(875)	(494)
Proceeds from sales of fixed maturity investments	7,301	9,798	5,227	3,691	7,529
Proceeds from sales of equity securities	820	428	126	482	65
Proceeds from sales, redemptions and maturities of other investments	660	834	405	503	116
Proceeds from redemptions and maturities of fixed maturity investments	758	766	392	515	363
Net settlements of derivative instruments	93	(132)	115	7	5
Net (purchases) sales of short-term investments	294	549	(793)	65	(90)
Acquisitions, net of cash	-	-	852	-	-
Purchases of fixed assets	(9)	(13)	(12)	(11)	(15)
Other	(2)	(1)	(32)	57	(54)
Net cash provided by (used for) investing activities	(1,008)	420	(1,963)	(1,509)	(1,409)
Financing Activities
Purchases of common shares under share repurchase program	(196)	(24)	-	-	-
Proceeds from common shares issued, net	(28)	9	6	24	(32)
Common dividends paid	(5)	(1,866)	-	-	-
Preferred dividends paid	(10)	(10)	(10)	(10)	(10)
Other	(2)	1	(3)	-	-
Net cash provided by (used for) financing activities	(241)	(1,890)	(7)	14	(42)
Effects of exchange rate changes on foreign currency cash and restricted cash	16	(55)	37	4	(11)
Increase (decrease) in cash and restricted cash	225	48	85	27	102
Cash and restricted cash, beginning of period	1,760	1,712	1,627	1,600	1,498
Cash and restricted cash, end of period	$ 1,985	$ 1,760	$ 1,712	$ 1,627	$ 1,600
Income taxes paid (received)	$ 18	$ 157	$ 76	$ 151	$ (6)
Interest paid	$ -	$ 64	$ -	$ 63	$ -

‌The Company's Insurance, Reinsurance and Mortgage segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company's chief operating decision makers, the Chief Executive Officer and the Chief Financial Officer and Treasurer. The chief operating decision makers do not assess performance, measure retuon equity or make resource allocation decisions on a line of business basis. Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income is not allocated to each underwriting segment.

The Company determined its reportable operating segments using the management approach described in accounting guidance regarding disclosures about segments of an enterprise and related information. The accounting policies of the segments are the same as those used for the preparation of the Company's consolidated financial statements. Intersegment business is allocated to the segment accountable for the underwriting results.

Insurance Segment

The Company's insurance segment primarily consists of commercial insurance lines of business, with a focus on specialty insurance products. These products are mainly offered in North America, Bermuda, the United Kingdom, continental Europe and Australia. 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.

Reinsurance Segment

The Company's reinsurance segment offers reinsurance products on a worldwide basis. Lines of business include: casualty; marine and aviation; specialty; property catastrophe; property excluding property catastrophe; and other.

Mortgage Segment

The Company's mortgage segment consists of U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), each a government sponsored entity ("GSE") and also through non GSE approved entities (combined "Arch MI U.S."); reinsurance and underwriting services related to U.S. credit-risk transfer ("CRT") business which are predominately with the GSEs and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans primarily in Australia and Europe.

The Company's results also include net investment income, net realized gains or losses (which includes realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from acquisition or disposition of subsidiaries), equity in net income or 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 or losses, income taxes items, income or loss from operating affiliates and items related to the Company's non cumulative preferred shares.

	‌Insurance	Reinsurance	Mortgage	Total
Gross premiums written (1)	$ 2,645	$ 3,494	$ 326	$ 6,463
Premiums ceded (1)	(712)	(1,178)	(60)	(1,948)
Net premiums written	1,933	2,316	266	4,515
Change in unearned premiums	(73)	(288)	34	(327)
Net premiums earned	1,860	2,028	300	4,188
Other underwriting income (loss) (2)	3	39	11	53
Losses and loss adjustment expenses	(1,228)	(1,356)	(3)	(2,587)
Acquisition expenses	(343)	(417)	(4)	(764)
Other operating expenses	(294)	(127)	(52)	(473)
Underwriting income (loss)	$ (2)	$ 167	$ 252	417
Net investment income				378
Net realized gains (losses)				3
Equity in net income (loss) of investment funds accounted for using the equity method				53
Other income (loss)				(2)
Corporate expenses (3)				(50)
Transaction costs and other (3)				(10)
Amortization of intangible assets				(49)
Interest expense				(35)
Net foreign exchange gains (losses)				(27)
Income (loss) before income taxes and income (loss) from operating affiliates				678
Income tax (expense) benefit				(121)
Income (loss) from operating affiliates				17
Net income (loss) available to Arch				574
Preferred dividends				(10)
Net income (loss) available to Arch common shareholders				$ 564
Underwriting Ratios
Loss ratio	66.0 %	66.9 %	1.1 %	61.8 %
Acquisition expense ratio	18.5 %	20.6 %	1.3 %	18.3 %
Other operating expense ratio (4)	15.6 %	4.3 %	13.7 %	10.0 %
Combined ratio	100.1 %	91.8 %	16.1 %	90.1 %
Net premiums written to gross premiums written	73.1 %	66.3 %	81.6 %	69.9 %
Total investable assets				$ 43,054
Total assets				75,176
Total liabilities				53,631

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
'Other underwriting income (loss)' includes revenue earned from underwriting-related activities covered under existing service contracts.
Certain expenses have been excluded from 'Corporate expenses' and reflected in 'Transaction costs and other.' See 'Comments on Non-GAAP Financial Measures' for a further discussion of such items.
The 'Other operating expense ratio' for the 2025 period includes 'Other underwriting income (loss).'

	Insurance	Reinsurance	Mortgage	Total
Gross premiums written (1)	$ 2,126	$ 3,467	$ 341	$ 5,933
Premiums ceded (1)	(584)	(1,201)	(64)	(1,848)
Net premiums written	1,542	2,266	277	4,085
Change in unearned premiums	(91)	(600)	28	(663)
Net premiums earned	1,451	1,666	305	3,422
Other underwriting income (loss)	-	2	10	12
Losses and loss adjustment expenses	(854)	(883)	9	(1,728)
Acquisition expenses	(276)	(331)	-	(607)
Other operating expenses	(235)	(75)	(53)	(363)
Underwriting income (loss)	$ 86	$ 379	$ 271	736
Net investment income				327
Net realized gains (losses)				67
Equity in net income (loss) of investment funds accounted for using the equity method				99
Other income (loss)				14
Corporate expenses (2)				(46)
Transaction costs and other (2)				(7)
Amortization of intangible assets				(21)
Interest expense				(34)
Net foreign exchange gains (losses)				31
Income (loss) before income taxes and income (loss) from operating affiliates				1,166
Income tax (expense) benefit				(101)
Income (loss) from operating affiliates				55
Net income (loss) available to Arch				1,120
Preferred dividends				(10)
Net income (loss) available to Arch common shareholders				$ 1,110
Underwriting Ratios
Loss ratio	58.9 %	53.0 %	(3.0)%	50.5 %
Acquisition expense ratio	19.0 %	19.9 %	- %	17.7 %
Other operating expense ratio	16.2 %	4.5 %	17.5 %	10.6 %
Combined ratio	94.1 %	77.4 %	14.5 %	78.8 %
Net premiums written to gross premiums written	72.5 %	65.4 %	81.2 %	68.9 %
Total investable assets				$ 35,944
Total assets				62,768
Total liabilities				43,411

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
Certain expenses have been excluded from 'Corporate expenses' and reflected in 'Transaction costs and other.' See 'Comments on Non-GAAP Financial Measures' for a further discussion of such items.

‌(U.S. Dollars in millions)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Gross premiums written	$ 2,645	$ 2,484	$ 2,341	$ 2,102	$ 2,126
Premiums ceded	(712)	(530)	(521)	(544)	(584)
Net premiums written	1,933	1,954	1,820	1,558	1,542
Change in unearned premiums	(73)	(21)	(55)	(80)	(91)
Net premiums earned	1,860	1,933	1,765	1,478	1,451
Other underwriting income (loss) (1)	3	-	-	-	-
Losses and loss adjustment expenses	(1,228)	(1,281)	(1,087)	(848)	(854)
Acquisition expenses	(343)	(345)	(308)	(288)	(276)
Other operating expenses	(294)	(277)	(250)	(233)	(235)
Underwriting income (loss)	$ (2)	$ 30	$ 120	$ 109	$ 86

Underwriting Ratios
Loss ratio	66.0 %	66.3 %	61.6 %	57.3 %	58.9 %
Acquisition expense ratio	18.5 %	17.9 %	17.4 %	19.5 %	19.0 %
Other operating expense ratio (2)	15.6 %	14.3 %	14.1 %	15.8 %	16.2 %
Combined ratio	100.1 %	98.5 %	93.1 %	92.6 %	94.1 %

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums		9.5 %	8.3 %	4.9 %	2.0 %	1.9 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments		(0.5)%	(0.1)%	(0.7)%	(0.2)%	(0.5)%
Combined ratio excluding catastrophic activity and prior year development (3)		91.1 %	90.3 %	88.9 %	90.8 %	92.7 %

Net premiums written to gross premiums written		73.1 %	78.7 %	77.7 %	74.1 %	72.5 %
'Other underwriting income (loss)' includes revenue earned from underwriting-related activities covered under existing service contracts. The 'Other operating expense ratio' for the 2025 period includes 'Other underwriting income (loss).' See 'Comments on Non-GAAP Financial Measures' for further discussion.

(U.S. Dollars in millions)							Three Months Ended
	March 31,		December 31,				September 30,			June 30,		March 31,
	2025		2024				2024			2024		2024
Net Premiums Written by Line of Business
North America
Property and short-tail specialty	$	348	18.0 %	$	364	18.6 %	$	296	16.3 %	$	276	17.7 %	$	284	18.4 %
Other liability - occurrence		330	17.1 %		342	17.5 %		253	13.9 %		224	14.4 %		183	11.9 %
Commercial multi-peril		198	10.2 %		195	10.0 %		163	9.0 %		62	4.0 %		41	2.7 %
Commercial automobile		161	8.3 %		116	5.9 %		134	7.4 %		123	7.9 %		112	7.3 %
Workers compensation		153	7.9 %		153	7.8 %		147	8.1 %		112	7.2 %		143	9.3 %
Other liability - claims made		149	7.7 %		215	11.0 %		228	12.5 %		215	13.8 %		200	13.0 %
Other		76	3.9 %		63	3.2 %		81	4.5 %		75	4.8 %		69	4.5 %
Total North America	$	1,415	73.2 %	$	1,448	74.1 %	$	1,302	71.5 %	$	1,087	69.8 %	$	1,032	66.9 %

International

Property and short-tail specialty $ 267 13.8 % $ 260 13.3 % $ 277 15.2 % $ 260 16.7 % $ 268 17.4 %

Casualty and other 251 13.0 % 246 12.6 % 241 13.2 % 211 13.5 % 242 15.7 %

Total International $ 518 26.8 % $ 506 25.9 % $ 518 28.5 % $ 471 30.2 % $ 510 33.1 %

Total $ 1,933 100.0 % $ 1,954 100.0 % $ 1,820 100.0 % $ 1,558 100.0 % $ 1,542 100.0 %

Net Premiums Earned by Line of Business

North America

Property and short-tail specialty $ 333 17.9 % $ 332 17.2 % $ 306 17.3 % $ 264 17.9 % $ 263 18.1 %

Other liability - occurrence 329 17.7 % 327 16.9 % 265 15.0 % 175 11.8 % 175 12.1 %

Commercial multi-peril 201 10.8 % 189 9.8 % 146 8.3 % 57 3.9 % 43 3.0 %

Commercial automobile 145 7.8 % 130 6.7 % 122 6.9 % 106 7.2 % 101 7.0 %

Workers compensation 131 7.0 % 155 8.0 % 135 7.6 % 132 8.9 % 127 8.8 %

Other liability - claims made 192 10.3 % 210 10.9 % 213 12.1 % 208 14.1 % 212 14.6 %

Other 72 3.9 % 74 3.8 % 79 4.5 % 75 5.1 % 81 5.6 %

$ 1,403 75.4 % $ 1,417 73.3 % $ 1,266 71.7 % $ 1,017 68.8 % $ 1,002 69.1 %

Total North America

International

Property and short-tail specialty $ 236 12.7 % $ 288 14.9 % $ 276 15.6 % $ 248 16.8 % $ 238 16.4 %

Casualty and other 221 11.9 % 228 11.8 % 223 12.6 % 213 14.4 % 211 14.5 %

Total International $ 457 24.6 % $ 516 26.7 % $ 499 28.3 % $ 461 31.2 % $ 449 30.9 %

Total $ 1,860 100.0 % $ 1,933 100.0 % $ 1,765 100.0 % $ 1,478 100.0 % $ 1,451 100.0 %

‌(U.S. Dollars in millions)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Gross premiums written	$ 3,494	$ 1,941	$ 2,763	$ 2,941	$ 3,467
Premiums ceded	(1,178)	(353)	(818)	(994)	(1,201)
Net premiums written	2,316	1,588	1,945	1,947	2,266
Change in unearned premiums	(288)	316	(53)	(167)	(600)
Net premiums earned	2,028	1,904	1,892	1,780	1,666
Other underwriting income (loss) (1)	39	4	2	1	2
Losses and loss adjustment expenses	(1,356)	(1,121)	(1,317)	(1,006)	(883)
Acquisition expenses	(417)	(382)	(374)	(345)	(331)
Other operating expenses	(127)	(77)	(54)	(64)	(75)
Underwriting income (loss)	$ 167	$ 328	$ 149	$ 366	$ 379

Underwriting Ratios
Loss ratio	66.9 %	58.9 %	69.6 %	56.5 %	53.0 %
Acquisition expense ratio	20.6 %	20.0 %	19.8 %	19.4 %	19.9 %
Other operating expense ratio (2)	4.3 %	4.1 %	2.9 %	3.6 %	4.5 %
Combined ratio	91.8 %	83.0 %	92.3 %	79.5 %	77.4 %

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums		18.3 %	12.2 %	19.3 %	9.4 %	1.8 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments		(4.5)%	(4.0)%	(1.9)%	(1.8)%	(2.5)%
Combined ratio excluding catastrophic activity and prior year development (3)		78.0 %	74.8 %	74.9 %	71.9 %	78.1 %

Net premiums written to gross premiums written		66.3 %	81.8 %	70.4 %	66.2 %	65.4 %
'Other underwriting income (loss)' includes revenue earned from underwriting-related activities covered under existing service contracts. The 'Other operating expense ratio' for the 2025 period includes 'Other underwriting income (loss).' See 'Comments on Non-GAAP Financial Measures' for further discussion.

(U.S. Dollars in millions)					Three Months Ended
	March 31,		December 31,		September 30,		June 30	, March 31,
	2025		2024		2024		2024	2024
Net Premiums Written by Line of Business
Specialty	$ 594	25.6 %	$ 701	44.1 %	$ 769	39.5 %	$ 539	27.7 %	$ 840	37.1 %
Property excluding property catastrophe	581	25.1 %	441	27.8 %	671	34.5 %	585	30.0 %	567	25.0 %
Casualty	499	21.5 %	279	17.6 %	339	17.4 %	261	13.4 %	343	15.1 %
Property catastrophe	477	20.6 %	84	5.3 %	52	2.7 %	472	24.2 %	350	15.4 %
Marine and aviation	121	5.2 %	43	2.7 %	69	3.5 %	59	3.0 %	129	5.7 %
Other	44	1.9 %	40	2.5 %	45	2.3 %	31	1.6 %	37	1.6 %
Total	$ 2,316	100.0 %	$ 1,588	100.0 %	$ 1,945	100.0 %	$ 1,947	100.0 %	$ 2,266	100.0 %

Net Premiums Earned by Line of Business
Specialty	$ 727	35.8 %	$ 685	36.0 %	$ 688	36.4 %	$ 659	37.0 %	$ 587	35.2 %
Property excluding property catastrophe	548	27.0 %	602	31.6 %	540	28.5 %	520	29.2 %	486	29.2 %
Casualty	325	16.0 %	290	15.2 %	282	14.9 %	269	15.1 %	247	14.8 %
Property catastrophe	306	15.1 %	223	11.7 %	256	13.5 %	246	13.8 %	234	14.0 %
Marine and aviation	80	3.9 %	62	3.3 %	80	4.2 %	60	3.4 %	74	4.4 %
Other	42	2.1 %	42	2.2 %	46	2.4 %	26	1.5 %	38	2.3 %
Total	$ 2,028	100.0 %	$ 1,904	100.0 %	$ 1,892	100.0 %	$ 1,780	100.0 %	$ 1,666	100.0 %

Net Premiums Written by Underwriting Location
Bermuda	$ 1,154	49.8 %	$ 672	42.3 %	$ 671	34.5 %	$ 1,043	53.6 %	$ 1,039	45.9 %
United States	477	20.6 %	478	30.1 %	744	38.3 %	429	22.0 %	484	21.4 %
Europe and other	685	29.6 %	438	27.6 %	530	27.2 %	475	24.4 %	743	32.8 %
Total	$ 2,316	100.0 %	$ 1,588	100.0 %	$ 1,945	100.0 %	$ 1,947	100.0 %	$ 2,266	100.0 %

‌(U.S. Dollars in millions)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Gross premiums written	$ 326	$ 331	$ 339	$ 340	$ 341
Premiums ceded	(60)	(54)	(57)	(64)	(64)
Net premiums written	266	277	282	276	277
Change in unearned premiums	34	29	31	31	28
Net premiums earned	300	306	313	307	305
Other underwriting income (1)	11	2	3	2	10
Losses and loss adjustment expenses	(3)	18	1	27	9
Acquisition expenses	(4)	(3)	1	-	-
Other operating expenses	(52)	(56)	(49)	(49)	(53)
Underwriting income	$ 252	$ 267	$ 269	$ 287	$ 271

Underwriting Ratios
Loss ratio		1.1 %	(5.9)%	(0.4)%	(8.6)%	(3.0)%
Acquisition expense ratio		1.3 %	1.0 %	(0.4)%	0.1 %	- %
Other operating expense ratio (2)		13.7 %	18.3 %	15.6 %	15.9 %	17.5 %
Combined ratio		16.1 %	13.4 %	14.8 %	7.4 %	14.5 %

Net (favorable) adverse development in prior year loss reserves, net of related adjustments		(21.8)%	(22.3)%	(22.8)%	(29.0)%	(25.7)%
Combined ratio excluding prior year development (3)		37.9 %	35.7 %	37.6 %	36.4 %	40.2 %

Net premiums written to gross premiums written		81.6 %	83.7 %	83.2 %	81.2 %	81.2 %
'Other underwriting income (loss)' includes revenue earned from underwriting-related activities covered under existing service contracts. The 'Other operating expense ratio' for the 2025 period includes 'Other underwriting income (loss).' See 'Comments on Non-GAAP Financial Measures' for further discussion.

(U.S. Dollars in millions)							Three Months Ended
	March 31		December 31,				September 30,			June 30		, March 31,
	2025		2024				2024			2024		2024
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance	$	203	76.3 %	$	208	75.1 %	$	209	74.1 %	$	201	72.8 %	$	202	72.9 %
U.S. credit risk transfer (CRT) and other		50	18.8 %		51	18.4 %		54	19.1 %		51	18.5 %		56	20.2 %
International mortgage insurance/reinsurance		13	4.9 %		18	6.5 %		19	6.7 %		24	8.7 %		19	6.9 %
Total	$ 266		100.0 %	$ 277		100.0 %	$ 282		100.0 %	$ 276		100.0 %	$ 277		100.0 %

Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance	$ 209	69.7 %	$ 215	70.3 %	$ 215	68.7 %	$ 209	68.1 %	$ 206	67.5 %
U.S. credit risk transfer (CRT) and other	50	16.7 %	51	16.7 %	55	17.6 %	51	16.6 %	56	18.4 %
International mortgage insurance/reinsurance	41	13.7 %	40	13.1 %	43	13.7 %	47	15.3 %	43	14.1 %
Total	$ 300	100.0 %	$ 306	100.0 %	$ 313	100.0 %	$ 307	100.0 %	$ 305	100.0 %

Net Premiums Written by Underwriting Location
United States	$ 203	76.3 %	$ 208	75.1 %	$ 210	74.5 %	$ 202	73.2 %	$ 203	73.3 %
Other	63	23.7 %	69	24.9 %	72	25.5 %	74	26.8 %	74	26.7 %
Total	$ 266	100.0 %	$ 277	100.0 %	$ 282	100.0 %	$ 276	100.0 %	$ 277	100.0 %

(U.S. Dollars in millions)

March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024

Insurance In Force (IIF) (1)
U.S. primary mortgage insurance	$ 287,768	58.2 %	$ 290,435	58.0 %	$ 292,313	57.2 %	$ 292,512	57.0 %	$ 288,385	56.9 %
U.S. credit risk transfer (CRT) and other	144,517	29.2 %	145,892	29.1 %	148,417	29.0 %	151,437	29.5 %	148,623	29.3 %
International mortgage insurance/reinsurance	62,487	12.6 %	64,822	12.9 %	70,380	13.8 %	68,986	13.4 %	69,811	13.8 %
Total	$ 494,772	100.0 %	$ 501,149	100.0 %	$ 511,110	100.0 %	$ 512,935	100.0 %	$ 506,819	100.0 %
Risk In Force (RIF) (2)
U.S. primary mortgage insurance	$ 75,300	85.5 %	$ 76,034	85.3 %	$ 76,448	84.6 %	$ 76,351	84.6 %	$ 75,194	84.7 %
U.S. credit risk transfer and other	5,842	6.6 %	5,876	6.6 %	6,011	6.7 %	6,206	6.9 %	6,112	6.9 %
International mortgage insurance/reinsurance	6,896	7.8 %	7,215	8.1 %	7,887	8.7 %	7,666	8.5 %	7,430	8.4 %
Total	$ 88,038	100.0 %	$ 89,125	100.0 %	$ 90,346	100.0 %	$ 90,223	100.0 %	$ 88,736	100.0 %

The aggregate dollar amount of each insured mortgage loan's current principal balance. Such amounts are shown before external reinsurance.
The aggregate dollar amount of each insured mortgage loan's current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing or reinsurance transactions. Such amounts are shown before external reinsurance.

(U.S. Dollars in millions)

March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024

Total RIF by credit quality (FICO score):
>=740	$ 47,130	62.6 %	$ 47,360	62.3 %	$ 47,414	62.0 %	$ 47,190	61.8 %	$ 46,693	62.1 %
680-739	24,274	32.2 %	24,688	32.5 %	24,974	32.7 %	25,053	32.8 %	24,827	33.0 %
620-679	3,558	4.7 %	3,638	4.8 %	3,701	4.8 %	3,735	4.9 %	3,439	4.6 %
<620	338	0.4 %	348	0.5 %	359	0.5 %	373	0.5 %	235	0.3 %
Total	$ 75,300	100.0 %	$ 76,034	100.0 %	$ 76,448	100.0 %	$ 76,351	100.0 %	$ 75,194	100.0 %
Weighted average FICO score	748		748		748		747		748
Total RIF by Loan-To-Value (LTV):
95.01% and above	$ 7,383	9.8 %	$ 7,420	9.8 %	$ 7,415	9.7 %	$ 7,384	9.7 %	$ 7,005	9.3 %
90.01% to 95.00%	44,901	59.6 %	45,311	59.6 %	45,509	59.5 %	45,331	59.4 %	44,742	59.5 %
85.01% to 90.00%	20,420	27.1 %	20,637	27.1 %	20,746	27.1 %	20,668	27.1 %	20,352	27.1 %
85.00% and below	2,596	3.4 %	2,666	3.5 %	2,778	3.6 %	2,968	3.9 %	3,095	4.1 %
Total	$ 75,300	100.0 %	$ 76,034	100.0 %	$ 76,448	100.0 %	$ 76,351	100.0 %	$ 75,194	100.0 %
Weighted average LTV	93.2 %		93.2 %		93.1 %		93.1 %		93.1 %
Total RIF by State:
California	$ 5,909	7.8 %	$ 5,989	7.9 %	$ 6,052	7.9 %	$ 6,110	8.0 %	$ 6,105	8.1 %
Texas	5,506	7.3 %	5,613	7.4 %	5,699	7.5 %	5,803	7.6 %	5,859	7.8 %
North Carolina	3,340	4.4 %	3,355	4.4 %	3,353	4.4 %	3,320	4.3 %	3,245	4.3 %
Georgia	3,104	4.1 %	3,143	4.1 %	3,145	4.1 %	3,099	4.1 %	3,043	4.0 %
Minnesota	3,085	4.1 %	3,108	4.1 %	3,111	4.1 %	3,110	4.1 %	3,056	4.1 %
Illinois	3,025	4.0 %	3,056	4.0 %	3,085	4.0 %	3,086	4.0 %	2,979	4.0 %
Massachusetts	2,853	3.8 %	2,885	3.8 %	2,896	3.8 %	2,891	3.8 %	2,852	3.8 %
Michigan	2,838	3.8 %	2,855	3.8 %	2,876	3.8 %	2,852	3.7 %	2,796	3.7 %
Florida	2,758	3.7 %	2,824	3.7 %	2,880	3.8 %	2,943	3.9 %	2,929	3.9 %
Ohio	2,701	3.6 %	2,716	3.6 %	2,717	3.6 %	2,668	3.5 %	2,583	3.4 %
Other	40,181	53.4 %	40,490	53.3 %	40,634	53.2 %	40,469	53.0 %	39,747	52.9 %
Total	$ 75,300	100.0 %	$ 76,034	100.0 %	$ 76,448	100.0 %	$ 76,351	100.0 %	$ 75,194	100.0 %
Weighted average coverage (end of period RIF divided by IIF)	26.2 %		26.2 %		26.2 %		26.1 %		26.1 %
U.S. mortgage insurance total RIF, net of reinsurance (1)	$ 60,226		$ 60,085		$ 60,421		$ 58,920		$ 57,882
Analysts' persistency (2)	81.9 %		82.1 %		82.9 %		83.3 %		83.6 %
Risk-to-capital ratio -- Arch MI U.S. (3)	7.8:1		7.8:1		7.3:1		7.4:1		7.0:1
PMIER sufficiency ratio -- Arch MI U.S. (4)	186 %		186 %		205 %		196 %		223 %

Total RIF for the U.S. mortgage insurance operations after external reinsurance.
Represents the % of IIF at the beginning of a 12-mo. period that remained in force at the end of the period.
Represents current (non-delinquent) RIF, net of reinsurance, divided by statutory capital (estimate for March 31, 2025).
On August 21, 2024, Fannie Mae and Freddie Mac (collectively the GSEs) each updated their Private Mortgage Insurer Eligibility Requirements (PMIERs) to incorporate new deductions to available assets for investment risk. This update became effective on March 31, 2025; but the impact will be phased in through September 30, 2026. If the GSEs had fully implemented this update to PMIERs as of March 31, 2025, the changes would have reduced available assets by 17% and resulted in a pro-forma PMIERs Sufficiency Ratio of 163% compared with a reported PMIERs Sufficiency Ratio of 186%.

(U.S. Dollars in millions, except policy/loan/claim count) Three Months Ended

	March 31,	2025	December 3	1, 2024	September 3	0, 2024	June 30, 2	024	March 31,	2024
Total new insurance written (NIW) (1)	$ 9,190		$ 11,818		$ 13,526		$ 13,799		$ 9,336
Total NIW by credit quality (FICO score):
>=740	$ 6,835	74.4 %	$ 8,495	71.9 %	$ 9,438	69.8 %	$ 9,726	70.5 %	$ 6,364	68.2 %
680-739	2,103	22.9 %	2,920	24.7 %	3,584	26.5 %	3,641	26.4 %	2,660	28.5 %
620-679	249	2.7 %	401	3.4 %	502	3.7 %	430	3.1 %	311	3.3 %
<620	3	0.0 %	2	0.0 %	2	0.0 %	2	0.0 %	1	0.0 %
Total	$ 9,190	100.0 %	$ 11,818	100.0 %	$ 13,526	100.0 %	$ 13,799	100.0 %	$ 9,336	100.0 %
Total NIW by LTV:
95.01% and above	$ 756	8.2 %	$ 919	7.8 %	$ 1,089	8.1 %	$ 1,014	7.3 %	$ 542	5.8 %
90.01% to 95.00%	4,374	47.6 %	5,743	48.6 %	6,620	48.9 %	7,234	52.4 %	5,240	56.1 %
85.01% to 90.00%	2,920	31.8 %	3,771	31.9 %	4,293	31.7 %	4,047	29.3 %	2,624	28.1 %
85.00% and below	1,140	12.4 %	1,385	11.7 %	1,524	11.3 %	1,504	10.9 %	930	10.0 %
Total	$ 9,190	100.0 %	$ 11,818	100.0 %	$ 13,526	100.0 %	$ 13,799	100.0 %	$ 9,336	100.0 %

Total NIW monthly vs. single:
Monthly	$ 8,497	92.5 %	$ 11,328	95.9 %	$ 12,581	93.0 %	$ 12,764	92.5 %	$ 8,916	95.5 %
Single	693	7.5 %	490	4.1 %	945	7.0 %	1,035	7.5 %	420	4.5 %
Total	$ 9,190	100.0 %	$ 11,818	100.0 %	$ 13,526	100.0 %	$ 13,799	100.0 %	$ 9,336	100.0 %
Total NIW purchase vs. refinance:
Purchase	$ 8,795	95.7 %	$ 11,020	93.2 %	$ 13,177	97.4 %	$ 13,588	98.5 %	$ 9,167	98.2 %
Refinance	395	4.3 %	798	6.8 %	349	2.6 %	211	1.5 %	169	1.8 %
Total	$ 9,190	100.0 %	$ 11,818	100.0 %	$ 13,526	100.0 %	$ 13,799	100.0 %	$ 9,336	100.0 %

Ending number of policies in force (PIF) (2)	1,085,927		1,100,653		1,114,251		1,123,698		1,104,746
Rollforward of insured loans in default:
Beginning delinquent number of loans	22,982		21,878		20,422		18,269		19,457
Plus: new notices	11,529		12,738		12,613		10,063		10,371
Less: cures	(12,920)		(11,264)		(10,819)		(10,170)		(11,253)
Less: paid claims	(292)		(370)		(338)		(265)		(306)
Plus: acquired delinquent loans	-		-		-		2,525		-
Ending delinquent number of loans (2)	21,299		22,982		21,878		20,422		18,269

Ending percentage of loans in default (2)	1.96 %		2.09 %		1.96 %		1.82 %		1.65 %
Losses:
Number of claims paid	292		370		338		265		306
Total paid claims (in thousands)	$ 11,950		$ 12,679		$ 12,874		$ 7,557		$ 10,785
Average paid per claim (in thousands)	$ 40.9		$ 34.3		$ 38.1		$ 28.5		$ 35.2
Severity (3)	76.8 %		77.7 %		71.9 %		56.6 %		78.6 %
Average case reserve per default (in thousands)	$ 16.7		$ 15.3		$ 15.9		$ 17.1		$ 18.2

The original principal balance of all loans that received coverage during the period.
Includes first lien primary and pool policies.
Represents total direct first lien paid claims divided by RIF of loans for which claims were paid, excluding paid claim settlements.

(U.S. Dollars in millions)

Reserves,

March 31, 2025 December 31, 2024

Reserves,

Net (1) Primary IIF (2) Primary RIF (3) Delinquency Net (1) Primary IIF (2) Primary RIF (3) Delinquency

% of Total Total % of Total Total % of Total

Rate

% of Total Total % of Total Total % of Total

Rate

Policy year:
2015 and prior	34.8 %	$ 17,808	6.2 %	$ 4,537	6.0 %	5.48 %	36.1 %	$ 18,329	6.3 %	$ 4,670	6.1 %	5.85 %
2016	3.1 %	4,364	1.5 %	1,117	1.5 %	3.38 %	3.4 %	5,240	1.8 %	1,371	1.8 %	3.23 %
2017	4.5 %	5,225	1.8 %	1,399	1.9 %	3.34 %	4.7 %	5,554	1.9 %	1,489	2.0 %	3.52 %
2018	6.5 %	6,761	2.3 %	1,760	2.3 %	3.95 %	7.0 %	7,081	2.4 %	1,843	2.4 %	4.31 %
2019	7.2 %	12,323	4.3 %	3,232	4.3 %	2.66 %	7.6 %	12,919	4.4 %	3,386	4.5 %	2.85 %
2020	10.6 %	37,419	13.0 %	10,192	13.5 %	1.41 %	10.9 %	39,426	13.6 %	10,718	14.1 %	1.52 %
2021	14.5 %	59,315	20.6 %	15,922	21.1 %	1.45 %	14.2 %	62,382	21.5 %	16,620	21.9 %	1.52 %
2022	11.8 %	55,401	19.3 %	14,686	19.5 %	1.50 %	10.8 %	57,175	19.7 %	15,113	19.9 %	1.51 %
2023	5.2 %	35,836	12.5 %	9,229	12.3 %	1.17 %	4.4 %	36,827	12.7 %	9,479	12.5 %	1.12 %
2024	1.9 %	44,203	15.4 %	11,024	14.6 %	0.47 %	0.9 %	45,502	15.7 %	11,345	14.9 %	0.30 %
2025	0.0 %	9,113	3.2 %	2,202	2.9 %	0.01 %
Total	100.0 %	$ 287,768	100.0 %	$ 75,300	100.0 %	1.96 %	100.0 %	$ 290,435	100.0 %	$ 76,034	100.0 %	2.09 %

Total reserves for losses and loss adjustment expenses, net of recoverables, was $331.5 million at March 31, 2025, compared to $332.6 million at December 31, 2024.
The aggregate dollar amount of each insured mortgage loan's current principal balance.
The aggregate dollar amount of each insured mortgage loan's current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing transactions.

	‌March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Gross premiums written	$ 6,463	$ 4,756	$ 5,440	$ 5,382	$ 5,933
Premiums ceded	(1,948)	(937)	(1,393)	(1,601)	(1,848)
Net premiums written	4,515	3,819	4,047	3,781	4,085
Change in unearned premiums	(327)	324	(77)	(216)	(663)
Net premiums earned	4,188	4,143	3,970	3,565	3,422
Other underwriting income (loss)	53	6	5	3	12
Losses and loss adjustment expenses	(2,587)	(2,384)	(2,403)	(1,827)	(1,728)
Acquisition expenses	(764)	(730)	(681)	(633)	(607)
Other operating expenses	(473)	(410)	(353)	(346)	(363)
Underwriting income (loss) (1)	$ 417	$ 625	$ 538	$ 762	$ 736

Underwriting Ratios
Loss ratio	61.8 %	57.5 %	60.5 %	51.2 %	50.5 %
Acquisition expense ratio	18.3 %	17.6 %	17.2 %	17.8 %	17.7 %
Other operating expense ratio	10.0 %	9.9 %	8.9 %	9.7 %	10.6 %
Combined ratio	90.1 %	85.0 %	86.6 %	78.7 %	78.8 %

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	13.1 %	9.5 %	11.3 %	5.5 %	1.7 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments	(4.0)%	(3.5)%	(3.0)%	(3.5)%	(3.7)%
Combined ratio excluding catastrophic activity and prior year development (1)	81.0 %	79.0 %	78.3 %	76.7 %	80.8 %

Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses	$ 1,638	$ 1,554	$ 1,329	$ 1,120	$ 1,070
Change in unpaid losses and loss adjustment expenses	949	830	1,074	707	658
Total losses and loss adjustment expenses	$ 2,587	$ 2,384	$ 2,403	$ 1,827	$ 1,728

Net premiums written to gross premiums written (1) See 'Comments on Non-GAAP Financial Measures' for further discussion.	69.9 %	80.3 %	74.4 %	70.3 %	68.9 %

	‌March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance	$ (10)	$ (2)	$ (12)	$ (4)	$ (7)
Reinsurance	(92)	(76)	(36)	(31)	(41)
Mortgage	(65)	(68)	(71)	(89)	(78)
Total	$ (167)	$ (146)	$ (119)	$ (124)	$ (126)
Impact on losses and loss adjustment expenses:
Insurance	$ (17)	$ (6)	$ (16)	$ (5)	$ (10)
Reinsurance	(119)	(73)	(41)	(34)	(40)
Mortgage	(61)	(62)	(64)	(82)	(74)
Total	$ (197)	$ (141)	$ (121)	$ (121)	$ (124)
Impact on acquisition expenses:
Insurance	$ 7	$ 4	$ 4	$ 1	$ 3
Reinsurance	27	(3)	5	3	(1)
Mortgage	(4)	(6)	(7)	(7)	(4)
Total	$ 30	$ (5)	$ 2	$ (3)	$ (2)
Impact on combined ratio:
Insurance	(0.5)%	(0.1)%	(0.7)%	(0.2)%	(0.5)%
Reinsurance	(4.5)%	(4.0)%	(1.9)%	(1.8)%	(2.5)%
Mortgage	(21.8)%	(22.3)%	(22.8)%	(29.0)%	(25.7)%
Total	(4.0)%	(3.5)%	(3.0)%	(3.5)%	(3.7)%
Impact on loss ratio:
Insurance	(0.9)%	(0.3)%	(0.9)%	(0.3)%	(0.7)%
Reinsurance	(5.9)%	(3.8)%	(2.2)%	(1.9)%	(2.4)%
Mortgage	(20.4)%	(20.2)%	(20.5)%	(26.9)%	(24.4)%
Total	(4.7)%	(3.4)%	(3.1)%	(3.4)%	(3.6)%
Impact on acquisition expense ratio:
Insurance	0.4 %	0.2 %	0.2 %	0.1 %	0.2 %
Reinsurance	1.4 %	(0.2)%	0.3 %	0.1 %	(0.1)%
Mortgage	(1.4)%	(2.1)%	(2.3)%	(2.1)%	(1.3)%
Total	0.7 %	(0.1)%	0.1 %	(0.1)%	(0.1)%
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance	$ 177	$ 161	$ 86	$ 30	$ 27
Reinsurance	370	232	364	166	31
Total	$ 547	$ 393	$ 450	$ 196	$ 58
Impact on combined ratio:
Insurance	9.5 %	8.3 %	4.9 %	2.0 %	1.9 %
Reinsurance	18.3 %	12.2 %	19.3 %	9.4 %	1.8 %
Total	13.1 %	9.5 %	11.3 %	5.5 %	1.7 %

Equals estimated losses from catastrophic events occurring in the current accident year (e.g. natural catastrophes, man-made events, pandemic events), net of reinsurance and reinstatement premiums. As regards the natural catastrophe estimates included within, amounts shown for the insurance and reinsurance segments generally include (i) North American events with a Property Claim Services ("PCS") code and (ii) named catastrophic events outside of North America. Amounts not applicable for the mortgage segment.

‌The following table summarizes the Company's investable assets and portfolio metrics:

(U.S. Dollars in millions)	March 31, 2025	December 31, 2024			September 30, 2024		June 30, 2024	March 31, 2024
Investable assets:
Fixed maturities available for sale, at fair value	$ 28,798	66.9 %	$ 27,035	65.3 %	$ 28,434	66.5 %	$ 25,202	66.7 %	$ 23,628	65.7 %
Fixed maturities-fair value option (1)	913	2.1 %	854	2.1 %	1,097	2.6 %	973	2.6 %	930	2.6 %
Total fixed maturities	29,711	69.0 %	27,889	67.4 %	29,531	69.1 %	26,175	69.2 %	24,558	68.3 %

Equity securities, at fair value	1,618	3.8 %	1,675	4.0 %	1,623	3.8 %	1,397	3.7 %	1,720	4.8 %
Equity securities-fair value option (1)	5	0.0 %	7	0.0 %	7	0.0 %	7	0.0 %	7	0.0 %
Total equity securities	1,623	3.8 %	1,682	4.1 %	1,630	3.8 %	1,404	3.7 %	1,727	4.8 %

Other investments-fair value option (1)	1,866	4.3 %	2,135	5.2 %	2,096	4.9 %	2,189	5.8 %	1,914	5.3 %

Investments accounted for using the equity method (2)	6,340	14.7 %	5,980	14.4 %	5,244	12.3 %	4,983	13.2 %	4,842	13.5 %

Short-term investments available for sale, at fair value	2,477	5.8 %	2,784	6.7 %	3,341	7.8 %	2,297	6.1 %	2,142	6.0 %
Short-term investments-fair value option (1)	104	0.2 %	70	0.2 %	61	0.1 %	37	0.1 %	35	0.1 %
Total short-term investments	2,581	6.0 %	2,854	6.9 %	3,402	8.0 %	2,334	6.2 %	2,177	6.1 %

Cash	1,187	2.8 %	979	2.4 %	1,025	2.4 %	1,020	2.7 %	993	2.8 %

Securities transactions entered into but not settled at the balance sheet date	(254)	(0.6)%	(131)	(0.3)%	(177)	(0.4)%	(294)	(0.8)%	(267)	(0.7)%
Total investable assets held by the Company	$ 43,054	100.0 %	$ 41,388	100.0 %	$ 42,751	100.0 %	$ 37,811	100.0 %	$ 35,944	100.0 %

Average effective duration of fixed maturities (in years) (3)	3.32		3.31		3.14		3.32		3.23
Average S&P/Moody's credit ratings (4)	AA-/Aa3		AA-/Aa3		AA-/Aa3		AA-/Aa3		AA-/Aa3

Included in "other investments" on the balance sheet.
Changes in the carrying value of investment funds accounted for using the equity method are recorded as "equity in net income (loss) of investment funds accounted for using the equity method" rather than as an unrealized gain or loss component of accumulated other comprehensive income.
During the 2024 fourth quarter, the Company changed its presentation from a total portfolio duration to a duration on fixed maturities and short-term investments.
Average credit ratings on the Company's investment portfolio on securities with ratings assigned by Standard & Poor's ("S&P") and Moody's Investors Service ("Moody's").

Investment Information - Composition of Net Investment Income, Yield and Total Return

‌The following table summarizes the Company's net investment income, yield and total return:
(U.S. Dollars in millions, except per share data)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Composition of pre-tax net investment income:
Fixed maturities	$ 342	$ 340	$ 340	$ 306	$ 280
Short-term investments	26	42	38	35	29
Equity securities (dividends)	11	13	9	10	8
Other (1)	28	33	35	35	33
Gross investment income	407	428	422	386	350
Investment expenses	(29)	(23)	(23)	(22)	(23)
Pre-tax net investment income	$ 378	$ 405	$ 399	$ 364	$ 327
Per share	$ 0.99	$ 1.06	$ 1.04	$ 0.95	$ 0.86

Pre-tax equity in net income (loss) of investment funds accounted for using the equity method	53	143	171	167	99
Per share	$ 0.14	$ 0.37	$ 0.45	$ 0.44	$ 0.26

Investment income yield, at amortized cost (2):
Pre-tax	4.16 %	4.32 %	4.40 %	4.39 %	4.14 %
After-tax	3.35 %	3.83 %	3.88 %	3.87 %	3.61 %

Total retuon investments (3)	2.02 %	(1.05)%	3.97 %	1.33 %	0.80 %

Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other.
Presented on an annualized basis and excluding the impact of investments for which returns are not included within investment income, such as investments accounted for using the equity method and certain equities.
Total retuon investments includes investment income, equity in net income or loss of investment funds accounted for using the equity method, net realized gains and losses (excluding changes in allowance for credit losses on non-investment related financial assets) and the change in unrealized gains or losses and is calculated on a pre-tax basis and before investment expenses. See 'Comments on Non-GAAP Financial Measures' for a further discussion of the presentation of total retuon investments.

Investment Information - Composition of Fixed Maturities

‌The following table summarizes the Company's fixed maturities:

(U.S. Dollars in millions)

Fair Value

Gross Unrealized Gains

Gross Unrealized Losses

Net Unrealized Gains (Losses)

Allowance for Credit Losses

Amortized Cost

Fair Value / Amortized Cost

Fair Value

% of Total

At March 31, 2025
Corporates	$ 14,589	$ 153	$ (267)	$ (114)	$ (12)	$ 14,715	99.1 %	49.1 %
U.S. government and government agencies	6,535	36	(53)	(17)	-	6,552	99.7 %	22.0 %
Asset-backed securities	3,087	11	(30)	(19)	(8)	3,114	99.1 %	10.4 %
Non-U.S. government securities	2,625	31	(81)	(50)	(1)	2,676	98.1 %	8.8 %
Residential mortgage-backed securities	1,755	16	(26)	(10)	-	1,765	99.4 %	5.9 %
Commercial mortgage-backed securities	931	5	(9)	(4)	-	935	99.6 %	3.1 %
Municipal bonds	189	-	(8)	(8)	-	197	95.9 %	0.6 %
Total	$ 29,711	$ 252	$ (474)	$ (222)	$ (21)	$ 29,954	99.2 %	100.0 %

At December 31, 2024
Corporates	$ 13,319	$ 110	$ (346)	$ (236)	$ (12)	$ 13,567	98.2 %	47.8 %
U.S. government and government agencies	6,724	8	(149)	(141)	-	6,865	97.9 %	24.1 %
Asset-backed securities	2,900	19	(32)	(13)	(8)	2,921	99.3 %	10.4 %
Non-U.S. government securities	2,546	30	(107)	(77)	(1)	2,624	97.0 %	9.1 %
Residential mortgage-backed securities	1,079	6	(31)	(25)	-	1,104	97.7 %	3.9 %
Commercial mortgage-backed securities	1,058	6	(11)	(5)	(1)	1,064	99.4 %	3.8 %
Municipal bonds	263	-	(16)	(16)	-	279	94.3 %	0.9 %
Total	$ 27,889	$ 179	$ (692)	$ (513)	$ (22)	$ 28,424	98.1 %	100.0 %

‌The following table summarizes the credit quality distribution and maturity profile of the Company's fixed maturities:

(U.S. Dollars in millions)	March 31, 2025		December 31 2024	,	September 2024	30,	June 30, 2024		March 31, 2024
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)	$ 7,827	26.3 %	$ 7,498	26.9 %	$ 6,725	22.8 %	$ 6,041	23.1 %	$ 5,106	20.8 %
AAA	4,698	15.8 %	4,330	15.5 %	4,876	16.5 %	4,599	17.6 %	4,495	18.3 %
AA	2,287	7.7 %	2,285	8.2 %	2,552	8.6 %	2,507	9.6 %	2,405	9.8 %
A	5,931	20.0 %	5,138	18.4 %	5,664	19.2 %	4,854	18.5 %	4,912	20.0 %
BBB	6,625	22.3 %	6,467	23.2 %	7,361	24.9 %	6,144	23.5 %	5,672	23.1 %
BB	1,051	3.5 %	978	3.5 %	1,097	3.7 %	979	3.7 %	920	3.7 %
B	605	2.0 %	458	1.6 %	534	1.8 %	521	2.0 %	484	2.0 %
Lower than B	26	0.1 %	28	0.1 %	37	0.1 %	29	0.1 %	30	0.1 %
Not rated	661	2.2 %	707	2.5 %	685	2.3 %	501	1.9 %	534	2.2 %
Total fixed maturities, at fair value	$ 29,711	100.0 %	$ 27,889	100.0 %	$ 29,531	100.0 %	$ 26,175	100.0 %	$ 24,558	100.0 %

Maturity profile of total fixed maturities:
Due in one year or less	$ 533	1.8 %	$ 486	1.7 %	$ 506	1.7 %	$ 672	2.6 %	$ 580	2.4 %
Due after one year through five years	16,570	55.8 %	15,880	56.9 %	16,255	55.0 %	14,036	53.6 %	13,582	55.3 %
Due after five years through ten years	6,179	20.8 %	5,993	21.5 %	6,760	22.9 %	5,852	22.4 %	4,816	19.6 %
Due after 10 years	656	2.2 %	493	1.8 %	562	1.9 %	469	1.8 %	440	1.8 %
	23,938	80.6 %	22,852	81.9 %	24,083	81.6 %	21,029	80.3 %	19,418	79.1 %
Residential mortgage-backed securities	1,755	5.9 %	1,079	3.9 %	1,313	4.4 %	1,186	4.5 %	1,179	4.8 %
Commercial mortgage-backed securities	931	3.1 %	1,058	3.8 %	1,146	3.9 %	1,160	4.4 %	1,197	4.9 %
Asset-backed securities	3,087	10.4 %	2,900	10.4 %	2,989	10.1 %	2,800	10.7 %	2,764	11.3 %
Total fixed maturities, at fair value	$ 29,711	100.0 %	$ 27,889	100.0 %	$ 29,531	100.0 %	$ 26,175	100.0 %	$ 24,558	100.0 %

For individual fixed maturities, S&P ratings are used. In the absence of an S&P rating, ratings from Moody's are used, followed by ratings from Fitch Ratings.
Includes U.S. government-sponsored agency mortgage backed securities and agency commercial mortgage backed securities.

‌The following table summarizes the Company's corporate bonds by sector:

(U.S. Dollars in millions)		March 31, 2025			December 31 2024			September 30 2024			June 30, 2024			March 31, 2024
Sector:
Industrials	$	7,157	49.1 %	$	6,673	50.1 %	$	8,145	54.0 %	$	6,886	53.0 %	$	6,691	53.1 %
Financials		5,881	40.3 %		5,207	39.1 %		5,208	34.5 %		4,573	35.2 %		4,477	35.5 %
Utilities		1,039	7.1 %		951	7.1 %		1,237	8.2 %		1,135	8.7 %		1,065	8.4 %
All other (1)		512	3.5 %		488	3.7 %		491	3.3 %		401	3.1 %		375	3.0 %
Total	$	14,589	100.0 %	$	13,319	100.0 %	$	15,081	100.0 %	$	12,995	100.0 %	$	12,608	100.0 %

, ,

Credit quality distribution (2):

AAA $ 194 1.3 % $ 196 1.5 % $ 241 1.6 % $ 213 1.6 % $ 229 1.8 %

AA 915 6.3 % 918 6.9 % 1,002 6.6 % 1,061 8.2 % 1,067 8.5 %

A 5,092 34.9 % 4,248 31.9 % 4,771 31.6 % 4,092 31.5 % 4,217 33.4 %

BBB 6,308 43.2 % 6,119 45.9 % 7,022 46.6 % 5,819 44.8 % 5,362 42.5 %

BB 1,001 6.9 % 900 6.8 % 1,019 6.8 % 909 7.0 % 856 6.8 %

B 604 4.1 % 454 3.4 % 529 3.5 % 516 4.0 % 481 3.8 %

Lower than B 26 0.2 % 28 0.2 % 37 0.2 % 29 0.2 % 30 0.2 %

Not rated 449 3.1 % 456 3.4 % 460 3.1 % 356 2.7 % 366 2.9 %

Total $ 14,589 100.0 % $ 13,319 100.0 % $ 15,081 100.0 % $ 12,995 100.0 % $ 12,608 100.0 %

Includes sovereign securities, supranational securities and other.
For individual fixed maturities, S&P ratings are used. In the absence of an S&P rating, ratings from Moody's are used, followed by ratings from Fitch Ratings.

The following table summarizes the Company's top ten exposures to fixed income corporate issuers by fair value at March 31, 2025:

(U.S. Dollars in millions)	Fair Value	% of Asset Class	% of Investable Assets	Credit Quality (1)
Issuer:
JPMorgan Chase & Co.	$ 431	3.0 %	1.0 %	A/A1
Morgan Stanley	400	2.7 %	0.9 %	A/A1
Bank of America Corporation	350	2.4 %	0.8 %	A-/A1
The Goldman Sachs Group, Inc.	253	1.7 %	0.6 %	A-/A2
Citigroup Inc.	244	1.7 %	0.6 %	BBB+/A3
Hyundai Motor Company	233	1.6 %	0.5 %	A-/A3
Blue Owl Capital Inc.	231	1.6 %	0.5 %	BBB-/Baa3
Canada	181	1.2 %	0.4 %	AA-/Aa2
Blackstone Inc.	178	1.2 %	0.4 %	BBB-/Baa2
Wells Fargo & Company	177	1.2 %	0.4 %	BBB+/A1
Total	$ 2,678	18.4 %	6.2 %

Average credit ratings assigned by S&P and Moody's, respectively.

‌The following table provides the composition of the Company's structured securities:

(U.S. Dollars in millions)

	Agencies	AAA	AA	A	BBB	Grade	Total
At March 31, 2025
Residential mortgage-backed securities	$ 1,286	$ 468	$ 1	$ -	$ -	$ -	$ 1,755
Commercial mortgage-backed securities	7	446	188	49	151	90	931
Asset-backed securities	-	1,717	362	707	137	164	3,087
Total	$ 1,293	$ 2,631	$ 551	$ 756	$ 288	$ 254	$ 5,773

At December 31, 2024
Residential mortgage-backed securities	$ 769	$ 309	$ -	$ 1	$ -	$ -	$ 1,079
Commercial mortgage-backed securities	7	556	193	63	147	92	1,058
Asset-backed securities	-	1,432	336	715	184	233	2,900
Total	$ 776	$ 2,297	$ 529	$ 779	$ 331	$ 325	$ 5,037

Non-Investment

‌Throughout this financial supplement, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company's financial information in evaluating the performance of the Company. This presentation includes the use of after-tax operating income available to Arch common shareholders, which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which includes realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investment funds accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating retuon average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating retuon average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income retuon average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on the following page.

The Company believes that net realized gains or losses, equity in net income or loss of investment funds accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company's business. Although net realized gains or losses, equity in net income or loss of investment funds accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company's operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company's financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company's investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

The use of the equity method on certain of the Company's investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company's proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investment funds accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.

Transaction costs and other include advisory, financing, legal, severance, incentive compensation and other transaction costs related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company's business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company's business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company's financial information to analyze the Company's performance in a manner similar to how the Company's management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company's financial information to compare the Company's performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.

The Company's segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of the Company's underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company's individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company's Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on pages 9 to 10.

In addition, the Company's segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company's management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the 'Other operating expense ratio' includes 'Other underwriting income (loss).'

Total retuon investments includes investment income, equity in net income or loss of investment funds accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by the Company's investment portfolio. Total retuis calculated on a pre-tax basis and before investment expenses, and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total retuon investments as a key measure of the retugenerated to Arch common shareholders, and compares the retugenerated by the Company's investment portfolio against benchmark returns during the periods presented.

Arch Capital Group Ltd. and Subsidiaries

Operating Income Reconciliation and Annualized Operating Retuon Average Common Equity

‌The following table summarizes the Company's consolidated financial data, including a reconciliation of net income (loss) available to Arch common shareholders to after-tax operating income (loss) available to Arch common shareholders and related diluted per share results:

(U.S. Dollars and shares in millions, except per share data)			Three Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2025	2024	2024	2024	2024
Net income available to Arch common shareholders	$ 564	$ 925	$ 978	$ 1,259	$ 1,110
Net realized (gains) losses (1)	(3)	161	(169)	(122)	(67)
Equity in net (income) loss of investment funds accounted for using the equity method	(53)	(143)	(171)	(167)	(99)
Net foreign exchange (gains) losses	27	(106)	63	(1)	(31)
Transaction costs and other	10	26	30	18	7
Income tax expense (benefit) (2)	42	3	31	(6)	13
After-tax operating income available to Arch common shareholders	$ 587	$ 866	$ 762	$ 981	$ 933

Diluted per common share results:
Net income available to Arch common shareholders	$ 1.48	$ 2.42	$ 2.56	$ 3.30	$ 2.92
Net realized (gains) losses (1)	(0.01)	0.41	(0.44)	(0.32)	(0.18)
Equity in net (income) loss of investment funds accounted for using the equity method	(0.14)	(0.37)	(0.45)	(0.44)	(0.26)
Net foreign exchange (gains) losses	0.07	(0.28)	0.16	0.00	(0.08)
Transaction costs and other	0.03	0.07	0.08	0.05	0.02
Income tax expense (benefit) (2)	0.11	0.01	0.08	(0.02)	0.03
After-tax operating income available to Arch common shareholders	$ 1.54	$ 2.26	$ 1.99	$ 2.57	$ 2.45

Weighted average common shares and common share equivalents outstanding - diluted	381.9	382.8	382.3	381.6	380.5

Beginning common shareholders' equity	$ 19,990	$ 21,444	$ 19,835	$ 18,525	$ 17,523
Ending common shareholders' equity	20,715	19,990	21,444	19,835	18,525
Average common shareholders' equity	$ 20,353	$ 20,717	$ 20,640	$ 19,180	$ 18,024

Annualized net income retuon average common equity	11.1 %	17.9 %	19.0 %	26.3 %	24.6 %
Annualized operating retuon average common equity	11.5 %	16.7 %	14.8 %	20.5 %	20.7 %

Net realized gains or losses include realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries.
Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.

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Arch Capital Group Ltd. published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2025 at 20:13 UTC.

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Operating Income Reconciliation and Annualized Operating Retuon Average Common Equity

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