ARCH CAPITAL GROUP LTD. (ACGL) · Material Event (8-K) SEC Filing

EX-99.1 2 ex-991release63026.htm EX-99.1 Document EXHIBIT 99.1 PRESS RELEASE Arch Capital Group Ltd. NASDAQ Symbol ACGL Waterloo House, Ground Floor For Immediate Release 100 Pitts Bay Road July 28, 2026 Pembroke HM 08 Bermuda ARCH CAPITAL GROUP LTD. REPORTS 2026 SECOND QUARTER RESULTSPEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ ACGL Arch, our or the Company ) announces its 2026 second quarter results. The results included Net income available to Arch common shareholders of $1.0 billion, or $3.00 per share, representing an 18.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.2 billion, or $3.23 per share, for the 2025 second quarter. After-tax operating income available to Arch common shareholders(1) of $893 million, or $2.56 per share, representing a 15.3% annualized operating return on average common equity(1), compared to $979 million, or $2.58 per share, for the 2025 second quarter. Pre-tax current accident year catastrophic losses for the Company s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $201 million. Favorable development in prior year loss reserves, net of related adjustments, of $165 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.5%, compared to 80.9% for the 2025 second quarter. Share repurchases of $1.2 billion. Book value per common share of $68.04 at June 30, 2026, a 2.8% increase from March 31, 2026. We delivered a strong quarter, driven by solid underwriting performance across our three segments, reflecting the continued strength of our diversified platform and disciplined execution across the enterprise, said Arch CEO Nicolas Papadopoulo. Our leadership positions in Specialty Insurance, including our Mortgage and Reinsurance operations, provide us with a meaningful competitive advantage. Clients not only come to us for capacity, but also for our underwriting expertise, claims capabilities, creative solutions and valuable perspectives that help them better manage risk. All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company s underwriting results (U.S. Dollars in millions) Three Months Ended June 30, 2026 2025 % Change Gross premiums written $ 6,126 $ 6,196 (1.1) Net premiums written 4,049 4,348 (6.9) Net premiums earned 3,985 4,337 (8.1) Underwriting income (1) 657 818 (19.7) Underwriting Ratios % Point Change Loss ratio 55.1 % 53.1 % 2.0 Underwriting expense ratio (2) 28.4 % 28.1 % 0.3 Combined ratio 83.5 % 81.2 % 2.3 Combined ratio excluding catastrophic activity and prior year development (1) 82.5 % 80.9 % 1.6 (1) See Comments on Non-GAAP Financial Measures for further details.(2) The Underwriting expense ratio includes Other underwriting income. See Comments on Non-GAAP Financial Measures for further details.1The following table summarizes the Company s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see Comments on Non-GAAP Financial Measures for further details) (U.S. Dollars in millions, except per share data) Three Months Ended June 30, 2026 2025 Net income available to Arch common shareholders $ 1,047 $ 1,227 Net realized (gains) losses (1) 17 (229) Equity in net (income) of investments accounted for using the equity method (196) (162) Net foreign exchange (gains) losses (10) 88 Transaction costs and other 32 18 Income tax expense (benefit) (2) 3 37 After-tax operating income available to Arch common shareholders $ 893 $ 979 Diluted per common share results Net income available to Arch common shareholders $ 3.00 $ 3.23 Net realized (gains) losses (1) 0.05 (0.60) Equity in net (income) of investments accounted for using the equity method (0.56) (0.43) Net foreign exchange (gains) losses (0.03) 0.23 Transaction costs and other 0.09 0.05 Income tax expense (benefit) (2) 0.01 0.10 After-tax operating income available to Arch common shareholders $ 2.56 $ 2.58 Weighted average common shares and common share equivalents outstanding diluted 348.8 379.9 Beginning common shareholders equity $ 23,358 $ 20,715 Ending common shareholders equity 23,200 22,211 Average common shareholders equity $ 23,279 $ 21,463 Annualized net income return on average common equity 18.0 % 22.9 % Annualized operating return on average common equity 15.3 % 18.2 % (1) Net realized gains or losses include, but are not limited to, 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.(2) Income tax expense (benefit) on net realized gains or losses, equity in net income of investments 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. 2Segment Information The following section provides analysis on the Company s 2026 second quarter performance by reportable segments. For additional details regarding the Company s reportable segments, please refer to the Company s Financial Supplement dated June 30, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see Comments on Non-GAAP Financial Measures for further details).Insurance Segment Three Months Ended June 30, (U.S. Dollars in millions) 2026 2025 % Change Gross premiums written $ 2,603 $ 2,681 (2.9) Net premiums written 1,933 2,036 (5.1) Net premiums earned 1,880 1,969 (4.5) Other underwriting income 15 13 15.4 Underwriting income $ 27 $ 129 (79.1) Underwriting Ratios % Point Change Loss ratio 63.0 % 59.8 % 3.2 Underwriting expense ratio 35.5 % 33.6 % 1.9 Combined ratio 98.5 % 93.4 % 5.1 Catastrophic activity and prior year development Current accident year catastrophic events, net of reinsurance and reinstatement premiums 8.0 % 2.9 % 5.1 Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (1.4) % (0.4) % (1.0) Underwriting expense ratio impact 0.3 % 0.3 % Total impact (1.1) % (0.1) % (1.0) Combined ratio excluding catastrophic activity and prior year development 91.6 % 90.6 % 1.0 Gross premiums written by the insurance segment in the 2026 second quarter were 2.9% lower than in the 2025 second quarter, while net premiums written were 5.1% lower than in the 2025 second quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have decreased by 1.8% compared to the same quarter one year ago. Net premiums earned in the 2026 second quarter were 4.5% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters. The 2026 second quarter loss ratio reflected 7.6 points of current year catastrophic activity, compared to 2.9 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 1.4 points in the 2026 second quarter, compared to 0.4 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.The underwriting expense ratio was 35.5% in the 2026 second quarter, compared to 33.6% in the 2025 second quarter. The 2026 second quarter ratio reflected transitional expenses associated with the MCE Acquisition, and a lower level of net premiums earned compared to the 2025 second quarter. In the 2025 second quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 0.6 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs.3Reinsurance Segment Three Months Ended June 30, (U.S. Dollars in millions) 2026 2025 % Change Gross premiums written $ 3,202 $ 3,196 0.2 Net premiums written 1,844 2,059 (10.4) Net premiums earned 1,820 2,087 (12.8) Other underwriting income 37 46 (19.6) Underwriting income $ 410 $ 451 (9.1) Underwriting Ratios % Point Change Loss ratio 54.6 % 54.1 % 0.5 Underwriting expense ratio 22.9 % 24.4 % (1.5) Combined ratio 77.5 % 78.5 % (1.0) Catastrophic activity and prior year development Current accident year catastrophic events, net of reinsurance and reinstatement premiums 2.8 % 4.6 % (1.8) Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (5.3) % (3.9) % (1.4) Underwriting expense ratio impact 0.1 % 0.6 % (0.5) Total impact (5.2) % (3.3) % (1.9) Combined ratio excluding catastrophic activity and prior year development 79.9 % 77.2 % 2.7 Gross premiums written by the reinsurance segment in the 2026 second quarter were 0.2% higher than in the 2025 second quarter, while net premiums written were 10.4% lower than in the 2025 second quarter. Reductions in net premiums written this quarter were due, in part, to non-renewals, share reductions as well as targeted increased retrocessions. Net premiums earned in the 2026 second quarter were 12.8% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters. The 2026 second quarter loss ratio reflected 3.0 points of current year catastrophic activity, compared to 5.5 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 5.3 points in the 2026 second quarter, compared to 3.9 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.The underwriting expense ratio was 22.9% in the 2026 second quarter, compared to 24.4% in the 2025 second quarter, with the decrease primarily reflecting the impact of higher profit commissions on retrocessions.4Mortgage Segment Three Months Ended June 30, (U.S. Dollars in millions) 2026 2025 % Change Gross premiums written $ 324 $ 323 0.3 Net premiums written 272 253 7.5 Net premiums earned 285 281 1.4 Other underwriting income 5 3 66.7 Underwriting income $ 220 $ 238 (7.6) Underwriting Ratios % Point Change Loss ratio 6.5 % (1.2) % 7.7 Underwriting expense ratio 16.3 % 16.4 % (0.1) Combined ratio 22.8 % 15.2 % 7.6 Prior year development Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (15.7) % (22.8) % 7.1 Underwriting expense ratio impact (1.3) % (1.3) % Total impact (17.0) % (24.1) % 7.1 Combined ratio excluding prior year development 39.8 % 39.3 % 0.5 Gross premiums written by the mortgage segment in the 2026 second quarter were 0.3% higher than in the 2025 second quarter, with growth in international business offset by a reduction in U.S. monthly premium volume. Net premiums written were 7.5% higher than in the 2025 second quarter, reflecting the termination of certain Bellemeade and quota share agreements on U.S. primary business. Net premiums earned were relatively flat, increasing 1.4%.Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 15.7 points, compared to 22.8 points in the 2025 second quarter. Such amounts were primarily related to better than expected cure rates. The 2026 second quarter loss ratio, excluding net favorable development, was relatively flat compared to the 2025 second quarter.The underwriting expense ratio was 16.3% in the 2026 second quarter, consistent with the 16.4% ratio reported in the 2025 second quarter.5Corporate The Company s results include net investment income, net realized gains or losses (which include, but are not limited to, 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 investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company s non-cumulative preferred shares.Investment returns were as follows (U.S. Dollars in millions, except per share data) Three Months Ended June 30, March 31, June 30, 2026 2026 2025 Pre-tax net investment income $ 417 $ 408 $ 405 Per share $ 1.20 $ 1.13 $ 1.07 Equity in net income of investments accounted for using the equity method $ 196 $ 160 $ 162 Per share $ 0.56 $ 0.44 $ 0.43 Pre-tax investment income yield, at amortized cost (1) 3.91 % 3.99 % 4.25 % Total return on investments (2) 1.62 % 0.10 % 3.09 % (1) 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.(2) See Comments on Non-GAAP Financial Measures for further details.Net investment income for the 2026 second quarter, compared to the 2025 second quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $17 million for the 2026 second quarter, compared to net realized gains of $229 million in the 2025 second quarter.Corporate expenses for the 2026 second quarter were $12 million, compared to $29 million for the 2025 second quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 second quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.Amortization of intangible assets was $30 million for the 2026 second quarter, compared to $48 million for the 2025 second quarter. On June 9, 2026, the Company completed a public offering of $2.0 billion of senior notes, consisting of $600 million of 5.250% senior notes due in 2036 and $1.4 billion of 5.950% senior notes due in 2056. The Company expects to use the net proceeds from this offering to repay its 4.011% senior notes due in 2026, fund purchases from the cash tender offers described below, and for general corporate purposes. On June 16, 2026, the Company completed the cash tender offers for certain outstanding senior notes, with Arch Capital Group (U.S.) Inc. repurchasing $218.7 million of its 5.144% senior notes due in 2043, and Arch Capital Finance LLC repurchasing $199.1 million of its 5.031% senior notes due in 2046. This resulted in a total pre-tax realized gain of $16 million for the 2026 second quarter. Interest expense for the 2026 second quarter was $44 million, compared to $38 million for the 2025 second quarter, with the increase resulting from the Company s capital raising activity.On a pre-tax basis, net foreign exchange gains were $10 million for the 2026 second quarter, compared to net foreign exchange losses of $88 million for the 2025 second quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders equity and are not included in the consolidated statements of income.The Company s effective tax rate on income before income taxes (based on the Company s annual effective tax rate) was 13.4% for the 2026 second quarter, compared to 14.7% for the 2025 second quarter. The Company s effective tax rate on pre-tax operating income available to Arch common shareholders was 15.1% for the 2026 second quarter, compared to 15.2% for the 2025 second quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction. 6Income from operating affiliates for the 2026 second quarter was $46 million, or $0.13 per share, compared to $40 million, or $0.11 per share, for the 2025 second quarter, and primarily reflects amounts related to the Company s investment in Somers Group Holdings Ltd. and Coface SA.Conference Call The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on July 29, 2026. A live webcast of this call will be available via the Investors section of the Company s website at http www.archgroup.com investors. A recording of the webcast will be available in the Investors section of the Company s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.Please refer to the Company s Financial Supplement dated June 30, 2026, which is available via the Investors section of the Company s website at http www.archgroup.com investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company s website regularly for additional information regarding the Company.Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $28.3 billion in capital at June 30, 2026. Arch, which is part of the S P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.Comments on Non-GAAP Financial Measures Throughout this release, 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 and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company s overall financial performance.This presentation includes the use of after-tax operating income or loss available to Arch common shareholders, which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, 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 investments 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 return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on 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 return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release. The Company believes that net realized gains or losses, equity in net income or loss of investments 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 performance. Although net realized gains or losses, equity in net income or loss of investments 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 7and the timing of the recognition of equity in net income or loss of investments 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 integration, advisory, financing, legal, severance, incentive compensation and all other costs directly 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 its 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 the following pages. 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, income from operating affiliates and other items are not allocated to each underwriting segment. 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. The Other operating expense ratio includes Other underwriting income. Total return on investments includes investment income, equity in net income or loss of investments 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 Arch s investment portfolio. Total return is 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 return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company s investment portfolio against benchmark returns during the periods presented.8The following tables summarize the Company s results by segment for the 2026 second quarter and 2025 second quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders (U.S. Dollars in millions) Three Months Ended June 30, 2026 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 2,603 $ 3,202 $ 324 $ 6,126 Premiums ceded (1) (670) (1,358) (52) (2,077) Net premiums written 1,933 1,844 272 4,049 Change in unearned premiums (53) (24) 13 (64) Net premiums earned 1,880 1,820 285 3,985 Other underwriting income (2) 15 37 5 57 Losses and loss adjustment expenses (1,185) (992) (19) (2,196) Acquisition expenses (375) (341) (2) (718) Other operating expenses (308) (114) (49) (471) Underwriting income (loss) $ 27 $ 410 $ 220 657 Net investment income 417 Net realized gains (losses) (17) Equity in net income of investments accounted for using the equity method 196 Other income (loss) 30 Corporate benefit (expenses) (3) (12) Transaction costs and other (3) (32) Amortization of intangible assets (30) Interest expense (44) Net foreign exchange gains (losses) 10 Income (loss) before income taxes and income (loss) from operating affiliates 1,175 Income tax benefit (expense) (164) Income (loss) from operating affiliates 46 Net income (loss) available to Arch 1,057 Preferred dividends (10) Net income (loss) available to Arch common shareholders $ 1,047 Underwriting Ratios Loss ratio 63.0 % 54.6 % 6.5 % 55.1 % Acquisition expense ratio 19.9 % 18.7 % 0.9 % 18.0 % Other operating expense ratio (4) 15.6 % 4.2 % 15.4 % 10.4 % Combined ratio 98.5 % 77.5 % 22.8 % 83.5 % Net premiums written to gross premiums written 74.3 % 57.6 % 84.0 % 66.1 % (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from Corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 9 (U.S. Dollars in millions) Three Months Ended June 30, 2025 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 2,681 $ 3,196 $ 323 $ 6,196 Premiums ceded (1) (645) (1,137) (70) (1,848) Net premiums written 2,036 2,059 253 4,348 Change in unearned premiums (67) 28 28 (11) Net premiums earned 1,969 2,087 281 4,337 Other underwriting income (2) 13 46 3 62 Losses and loss adjustment expenses (1,178) (1,128) 3 (2,303) Acquisition expenses (387) (436) (1) (824) Other operating expenses (288) (118) (48) (454) Underwriting income (loss) $ 129 $ 451 $ 238 818 Net investment income 405 Net realized gains (losses) 229 Equity in net income of investments accounted for using the equity method 162 Other income (loss) 18 Corporate benefit (expenses) (3) (29) Transaction costs and other (3) (18) Amortization of intangible assets (48) Interest expense (38) Net foreign exchange gains (losses) (88) Income (loss) before income taxes and income (loss) from operating affiliates 1,411 Income tax benefit (expense) (214) Income (loss) from operating affiliates 40 Net income (loss) available to Arch 1,237 Preferred dividends (10) Net income (loss) available to Arch common shareholders $ 1,227 Underwriting Ratios Loss ratio 59.8 % 54.1 % (1.2) % 53.1 % Acquisition expense ratio 19.6 % 20.9 % 0.4 % 19.0 % Other operating expense ratio (4) 14.0 % 3.5 % 16.0 % 9.1 % Combined ratio 93.4 % 78.5 % 15.2 % 81.2 % Net premiums written to gross premiums written 75.9 % 64.4 % 78.3 % 70.2 % (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from Corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 10Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 ( PSLRA ) provides a safe harbor for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company 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, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as may, will, expect, intend, estimate, anticipate, believe or continue and similar statements of a future or forward-looking nature or their negative or variations or similar terminology. Forward-looking statements involve the Company s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company s periodic reports filed with the Securities and Exchange Commission (the SEC ), and include the Company s ability to successfully implement its business strategy during soft as well as hard markets acceptance of the Company s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds the Company s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations the Company s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies existing or new policies and practices, as well as other factors described herein general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors developments in the world s financial and capital markets and the Company s access to such markets the Company s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business the loss and addition of key personnel material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements accuracy of those estimates and judgments utilized in the preparation of the Company s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting greater than expected loss ratios on business written by the Company and adverse development on claim and or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries the adequacy of the Company s loss reserves severity and or frequency of losses greater frequency or severity of unpredictable natural and man-made catastrophic events claims for natural catastrophic events or severe economic events in the Company s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company s results of operations availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company the Company s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company s investments 11 changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company s business, financial condition and results of operations 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 the effect of climate change on the Company s business the effect of contagious diseases or a pandemic on the Company s business acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans the volatility of the Company s shareholders equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company s projected liabilities in foreign currencies with investments in the same currencies changes in accounting principles or policies or in the Company s application of such accounting principles or policies changes in the political environment of certain countries in which the Company operate or underwrite business statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and or Bermuda-based insurers or reinsurers and or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development ( OECD ) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax and the other matters set forth under Item 1A Risk Factors , Item 7 Management s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company s other documents on file with the SEC, and management s response to any of the aforementioned factors. 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. Contacts Arch Capital Group Ltd. Investor Relations Fran ois Morin (441) 278-9250 Donald Watson (914) 872-3616 dwatson archgroup.com Source Arch Capital Group Ltd. arch-corporate 12

EX-99.2 3 ex-992supplement63026.htm EX-99.2 DocumentEXHIBIT 99.2 Arch Capital Group Ltd. Waterloo House, Ground Floor 100 Pitts Bay Road Pembroke HM 08 Bermuda Financial Supplement June 30, 2026 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 www.archgroup.com for further information describing Arch. Arch Capital Group Ltd. Investor Relations Fran ois Morin (441) 278-9250 Donald Watson (914) 872-3616 dwatson archgroup.com Arch Capital Group Ltd. and SubsidiariesTable of Contents 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 13 d. Reinsurance Segment Results 15 e. Mortgage Segment Results 17 f. Segment Consolidated Results 22 g. Selected Information on Losses and Loss Adjustment Expenses 23 IV. Investment Information a. Investable Asset Summary and Investment Portfolio Metrics 24 b. Composition of Net Investment Income, Yield and Total Return 25 c. Composition of Fixed Maturities 26 d. Credit Quality Distribution and Maturity Profile 27 e. Analysis of Corporate Exposures 28 f. Structured Securities 29 V. Other a. Comments on Non-GAAP Financial Measures 30 b. Operating Income Reconciliation and Annualized Operating Return on Average Common Equity 31 c. Operating Income and Effective Tax Rate Calculations 32 d. Capital Structure and Share Repurchase Activity 33 1 Arch Capital Group Ltd. and SubsidiariesBasis of PresentationBasis of PresentationAll financial information contained herein is unaudited, however, certain information relating to the consolidated balance sheet at December 31, 2025 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 StatementsThe 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 matters set forth under Item 1A Risk Factors , Item 7 Management s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company s other documents on file with the SEC, and management s response to any of the aforementioned factors. 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. 2 Arch Capital Group Ltd. and SubsidiariesFinancial HighlightsThe following table presents financial highlights (U.S. Dollars and shares in millions, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 Change 2026 2025 Change Underwriting results Gross premiums written $ 6,126 $ 6,196 (1.1) % $ 12,551 $ 12,659 (0.9) % Net premiums written 4,049 4,348 (6.9) % 8,397 8,863 (5.3) % Net premiums earned 3,985 4,337 (8.1) % 7,971 8,525 (6.5) % Underwriting income (loss) (1) 657 818 (19.7) % 1,385 1,235 12.1 % Loss ratio 55.1 % 53.1 % 2.0 53.8 % 57.4 % (3.6) Acquisition expense ratio 18.0 % 19.0 % (1.0) 18.2 % 18.6 % (0.4) Other operating expense ratio (2) 10.4 % 9.1 % 1.3 10.7 % 9.5 % 1.2 Combined ratio 83.5 % 81.2 % 2.3 82.7 % 85.5 % (2.8) Pre-tax net investment income $ 417 $ 405 3.0 % $ 825 $ 783 5.4 % Per diluted share $ 1.20 $ 1.07 12.1 % $ 2.33 $ 2.06 13.1 % Net income available to Arch common shareholders $ 1,047 $ 1,227 (14.7) % $ 2,084 $ 1,791 16.4 % Per diluted share $ 3.00 $ 3.23 (7.1) % $ 5.88 $ 4.70 25.1 % After-tax operating income available to Arch common shareholders (1) $ 893 $ 979 (8.8) % $ 1,794 $ 1,566 14.6 % Per diluted share $ 2.56 $ 2.58 (0.8) % $ 5.06 $ 4.11 23.1 % Comprehensive income (loss) available to Arch $ 977 $ 1,597 (38.8) % $ 1,686 $ 2,483 (32.1) % Net cash provided by operating activities $ 1,322 $ 1,124 17.6 % $ 2,510 $ 2,582 (2.8) % Weighted average common shares and common share equivalents outstanding diluted 348.8 379.9 (8.2) % 354.2 380.8 (7.0) % Financial measures Change in book value per common share during period 2.8 % 7.3 % (4.5) 4.5 % 11.4 % (6.9) Annualized net income return on average common equity 18.0 % 22.9 % (4.9) 17.9 % 17.0 % 0.9 Annualized operating return on average common equity (1) 15.3 % 18.2 % (2.9) 15.4 % 14.8 % 0.6 Total return on investments (3) 1.62 % 3.09 % -148 bps 1.72 % 5.17 % -345 bps (1)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 return on average common equity.(2)The Other operating expense ratio includes Other underwriting income. (3)Total return on investments includes investment income, equity in net income of investments 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 return on investments. 3 Arch Capital Group Ltd. and SubsidiariesConsolidated Statements of Income (U.S. Dollars and shares in millions, except per share data) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Revenues Net premiums earned $ 3,985 $ 3,986 $ 4,255 $ 4,285 $ 4,337 $ 7,971 $ 8,525 Net investment income 417 408 434 408 405 825 783 Net realized gains (losses) (17) (87) 22 210 229 (104) 232 Other underwriting income (1) 57 59 52 50 62 116 115 Equity in net income of investments accounted for using the equity method 196 160 155 134 162 356 215 Other income (loss) 30 (5) 16 22 18 25 16 Total revenues 4,668 4,521 4,934 5,109 5,213 9,189 9,886 Expenses Losses and loss adjustment expenses (2,196) (2,089) (2,280) (2,200) (2,303) (4,285) (4,890) Acquisition expenses (718) (730) (779) (786) (824) (1,448) (1,588) Other operating expenses (471) (498) (421) (478) (454) (969) (927) Corporate benefit (expenses) (44) (49) 24 (49) (47) (93) (107) Amortization of intangible assets (30) (30) (47) (49) (48) (60) (97) Interest expense (44) (37) (38) (37) (38) (81) (73) Net foreign exchange gains (losses) 10 21 (6) (7) (88) 31 (115) Total expenses (3,493) (3,412) (3,547) (3,606) (3,802) (6,905) (7,797) Income (loss) before income taxes and income (loss) from operating affiliates 1,175 1,109 1,387 1,503 1,411 2,284 2,089 Income tax (expense) benefit (164) (98) (210) (215) (214) (262) (335) Income (loss) from operating affiliates 46 36 61 62 40 82 57 Net income (loss) attributable to Arch 1,057 1,047 1,238 1,350 1,237 2,104 1,811 Preferred dividends (10) (10) (10) (10) (10) (20) (20) Net income (loss) available to Arch common shareholders $ 1,047 $ 1,037 $ 1,228 $ 1,340 $ 1,227 $ 2,084 $ 1,791 Comprehensive income (loss) available to Arch $ 977 $ 709 $ 1,243 $ 1,398 $ 1,597 $ 1,686 $ 2,483 Net income (loss) per common share and common share equivalent Basic $ 3.05 $ 2.94 $ 3.42 $ 3.63 $ 3.30 $ 5.99 $ 4.81 Diluted $ 3.00 $ 2.88 $ 3.35 $ 3.56 $ 3.23 $ 5.88 $ 4.70 Weighted average common shares and common share equivalents outstanding Basic 343.2 353.2 359.4 369.0 372.2 348.2 372.6 Diluted 348.8 359.7 366.6 376.1 379.9 354.2 380.8 (1) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. 4 Arch Capital Group Ltd. and SubsidiariesConsolidated Balance Sheets (U.S. Dollars and shares in millions, except per share data) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Assets Investments Fixed maturities available for sale, at fair value $ 33,155 $ 32,399 $ 32,426 $ 31,908 $ 30,332 Short-term investments available for sale, at fair value 3,298 2,638 2,625 2,351 2,788 Equity securities, at fair value 2,280 1,766 1,864 1,805 1,715 Other investments 3,381 3,331 3,136 3,027 2,892 Investments accounted for using the equity method 6,852 6,652 6,453 6,232 6,566 Total investments 48,966 46,786 46,504 45,323 44,293 Cash 1,109 914 993 1,063 983 Accrued investment income 325 302 338 307 329 Investment in operating affiliates 1,323 1,330 1,313 1,417 1,356 Premiums receivable 7,160 6,526 5,723 6,450 7,067 Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses 9,964 9,732 9,526 9,070 9,044 Contractholder receivables 2,264 2,253 2,270 2,287 2,280 Ceded unearned premiums 3,669 3,183 2,659 3,079 3,229 Deferred acquisition costs 1,794 1,774 1,717 1,786 1,814 Receivable for securities sold 564 643 180 695 390 Goodwill and intangible assets 1,163 1,190 1,222 1,268 1,319 Other assets 6,878 6,813 6,796 6,440 6,684 Total assets $ 85,179 $ 81,446 $ 79,241 $ 79,185 $ 78,788 Liabilities Reserve for losses and loss adjustment expenses $ 34,775 $ 34,105 $ 33,547 $ 32,822 $ 32,089 Unearned premiums 11,493 10,939 10,100 11,124 11,625 Reinsurance balances payable 3,234 2,737 2,320 2,638 2,841 Contractholder payables 2,270 2,260 2,277 2,293 2,286 Collateral held for insured obligations 240 260 237 239 225 Senior notes 4,286 2,729 2,729 2,728 2,728 Payable for securities purchased 1,136 798 308 335 728 Other liabilities 3,715 3,430 3,517 3,287 3,225 Total liabilities 61,149 57,258 55,035 55,466 55,747 Shareholders equity Non-cumulative preferred shares 830 830 830 830 830 Common shares 1 1 1 1 1 Additional paid-in capital 2,873 2,831 2,735 2,682 2,660 Retained earnings 29,129 28,082 27,045 25,817 24,477 Accumulated other comprehensive income (loss), net of deferred income tax (413) (333) 5 (48) Common shares held in treasury, at cost (8,390) (7,223) (6,410) (5,611) (4,879) Total shareholders equity 24,030 24,188 24,206 23,719 23,041 Total liabilities and shareholders equity $ 85,179 $ 81,446 $ 79,241 $ 79,185 $ 78,788 Common shares and common share equivalents outstanding, net of treasury shares 341.0 352.9 359.0 367.3 375.4 Book value per common share (1) $ 68.04 $ 66.19 $ 65.11 $ 62.32 $ 59.17 (1) Excludes the effects of stock options and restricted stock units outstanding. 5 Arch Capital Group Ltd. and SubsidiariesConsolidated Statements of Changes in Shareholders Equity (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Non-cumulative preferred shares Balance at beginning and end of period $ 830 $ 830 $ 830 $ 830 $ 830 $ 830 $ 830 Common shares Balance at beginning and end of period 1 1 1 1 1 1 1 Additional paid-in capital Balance at beginning of period 2,831 2,735 2,682 2,660 2,588 2,735 2,510 Amortization of share-based compensation 15 82 24 25 25 97 99 All other 27 14 29 (3) 47 41 51 Balance at end of period 2,873 2,831 2,735 2,682 2,660 2,873 2,660 Retained earnings Balance at beginning of period 28,082 27,045 25,817 24,477 23,250 27,045 22,686 Net income 1,057 1,047 1,238 1,350 1,237 2,104 1,811 Preferred share dividends (10) (10) (10) (10) (10) (20) (20) Balance at end of period 29,129 28,082 27,045 25,817 24,477 29,129 24,477 Accumulated other comprehensive income (loss), net of deferred income tax Balance at beginning of period (333) 5 (48) (408) 5 (720) Change in unrealized appreciation (decline) in value of available-for-sale investments (71) (338) 12 47 296 (409) 582 Change in foreign currency translation adjustments (9) (7) 1 64 (9) 90 Balance at end of period (413) (333) 5 (48) (413) (48) Common shares held in treasury, at cost Balance at beginning of period (7,223) (6,410) (5,611) (4,879) (4,716) (6,410) (4,487) Shares repurchased for treasury (1,167) (813) (799) (732) (163) (1,980) (392) Balance at end of period (8,390) (7,223) (6,410) (5,611) (4,879) (8,390) (4,879) Total shareholders equity $ 24,030 $ 24,188 $ 24,206 $ 23,719 $ 23,041 $ 24,030 $ 23,041 6 Arch Capital Group Ltd. and SubsidiariesConsolidated Statements of Cash Flows (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Operating Activities Net income (loss) $ 1,057 $ 1,047 $ 1,238 $ 1,350 $ 1,237 $ 2,104 $ 1,811 Adjustments to reconcile net income to net cash provided by operating activities Net realized (gains) losses (134) 91 (7) (202) (225) (43) (231) Equity in net (income) of investments accounted for using the equity method and other income or loss (126) (137) (194) (158) (95) (263) (107) Amortization of intangible assets 30 30 47 49 48 60 97 Share-based compensation 15 82 24 25 25 97 99 Changes in Reserve for losses and loss adjustment expenses, net 499 540 330 634 560 1,039 1,386 Unearned premiums, net 64 362 (606) (321) 11 426 338 Premiums receivable (630) (820) 731 601 (352) (1,450) (1,294) Deferred acquisition costs 4 (48) 53 14 33 (44) 19 Reinsurance balances payable 496 419 (319) (207) 159 915 663 Deferred income tax assets, net 59 20 19 46 80 79 109 Other items, net (12) (398) 88 355 (357) (410) (308) Net cash provided by operating activities 1,322 1,188 1,404 2,186 1,124 2,510 2,582 Investing Activities Purchases of fixed maturity investments (9,875) (9,288) (8,293) (10,619) (8,150) (19,163) (17,568) Purchases of equity securities (472) (185) (184) (277) (179) (657) (987) Purchases of other investments (453) (499) (493) (513) (535) (952) (1,232) Proceeds from sales of fixed maturity investments 8,383 7,984 7,055 8,435 6,522 16,367 13,823 Proceeds from sales of equity securities 253 202 183 281 223 455 1,043 Proceeds from sales, redemptions and maturities of other investments 306 240 759 336 431 546 1,091 Proceeds from redemptions and maturities of fixed maturity investments 1,082 957 693 475 568 2,039 1,326 Net settlements of derivative instruments (80) (26) 35 35 147 (106) 240 Net (purchases) sales of short-term investments (644) (11) (272) 478 (242) (655) 52 Purchases of fixed assets (14) (8) (11) (12) (12) (22) (21) Other (21) (5) 111 (2) (1) (26) (3) Net cash provided by (used for) investing activities (1,535) (639) (417) (1,383) (1,228) (2,174) (2,236) Financing Activities Purchases of common shares under share repurchase program (1,166) (783) (798) (732) (163) (1,949) (359) Proceeds from common shares issued, net 26 (17) 30 1 47 9 19 Proceeds from borrowings 1,977 1,977 Repayments of borrowings (398) (398) Common dividends paid (5) (2) (5) (7) Preferred dividends paid (10) (10) (10) (10) (10) (20) (20) Other (12) (2) (12) (2) Net cash provided by (used for) financing activities 429 (827) (778) (743) (128) (398) (369) Effects of exchange rate changes on foreign currency cash and restricted cash 9 (8) 4 (14) 55 1 71 Increase (decrease) in cash and restricted cash 225 (286) 213 46 (177) (61) 48 Cash and restricted cash, beginning of period 1,781 2,067 1,854 1,808 1,985 2,067 1,760 Cash and restricted cash, end of period $ 2,006 $ 1,781 $ 2,067 $ 1,854 $ 1,808 $ 2,006 $ 1,808 Income taxes paid (received) $ 169 $ 22 $ 143 $ 166 $ 131 $ 191 $ 149 Interest paid $ 65 $ $ 63 $ $ 64 $ 65 $ 64 7 Arch Capital Group Ltd. and SubsidiariesSegment Information OverviewThe 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 return on 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 SegmentThe 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 SegmentThe 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 SegmentThe 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 include, but are not limited to, 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 investments accounted for using the equity method, other income (loss), corporate benefit (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. 8 Arch Capital Group Ltd. and SubsidiariesSegment Information (U.S. Dollars in millions) Three Months Ended June 30, 2026 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 2,603 $ 3,202 $ 324 $ 6,126 Premiums ceded (1) (670) (1,358) (52) (2,077) Net premiums written 1,933 1,844 272 4,049 Change in unearned premiums (53) (24) 13 (64) Net premiums earned 1,880 1,820 285 3,985 Other underwriting income (2) 15 37 5 57 Losses and loss adjustment expenses (1,185) (992) (19) (2,196) Acquisition expenses (375) (341) (2) (718) Other operating expenses (308) (114) (49) (471) Underwriting income (loss) $ 27 $ 410 $ 220 657 Net investment income 417 Net realized gains (losses) (17) Equity in net income of investments accounted for using the equity method 196 Other income (loss) 30 Corporate benefit (expenses) (3) (12) Transaction costs and other (3) (32) Amortization of intangible assets (30) Interest expense (44) Net foreign exchange gains (losses) 10 Income (loss) before income taxes and income (loss) from operating affiliates 1,175 Income tax (expense) benefit (164) Income (loss) from operating affiliates 46 Net income (loss) available to Arch 1,057 Preferred dividends (10) Net income (loss) available to Arch common shareholders $ 1,047 Underwriting Ratios Loss ratio 63.0 % 54.6 % 6.5 % 55.1 % Acquisition expense ratio 19.9 % 18.7 % 0.9 % 18.0 % Other operating expense ratio (4) 15.6 % 4.2 % 15.4 % 10.4 % Combined ratio 98.5 % 77.5 % 22.8 % 83.5 % Net premiums written to gross premiums written 74.3 % 57.6 % 84.0 % 66.1 % Total investable assets $ 49,503 Total assets 85,179 Total liabilities 61,149 (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from Corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 9 Arch Capital Group Ltd. and SubsidiariesSegment Information (U.S. Dollars in millions) Three Months Ended June 30, 2025 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 2,681 $ 3,196 $ 323 $ 6,196 Premiums ceded (1) (645) (1,137) (70) (1,848) Net premiums written 2,036 2,059 253 4,348 Change in unearned premiums (67) 28 28 (11) Net premiums earned 1,969 2,087 281 4,337 Other underwriting income (2) 13 46 3 62 Losses and loss adjustment expenses (1,178) (1,128) 3 (2,303) Acquisition expenses (387) (436) (1) (824) Other operating expenses (288) (118) (48) (454) Underwriting income (loss) $ 129 $ 451 $ 238 818 Net investment income 405 Net realized gains (losses) 229 Equity in net income of investments accounted for using the equity method 162 Other income (loss) 18 Corporate benefit (expenses) (3) (29) Transaction costs and other (3) (18) Amortization of intangible assets (48) Interest expense (38) Net foreign exchange gains (losses) (88) Income (loss) before income taxes and income (loss) from operating affiliates 1,411 Income tax (expense) benefit (214) Income (loss) from operating affiliates 40 Net income (loss) available to Arch 1,237 Preferred dividends (10) Net income (loss) available to Arch common shareholders $ 1,227 Underwriting Ratios Loss ratio 59.8 % 54.1 % (1.2) % 53.1 % Acquisition expense ratio 19.6 % 20.9 % 0.4 % 19.0 % Other operating expense ratio (4) 14.0 % 3.5 % 16.0 % 9.1 % Combined ratio 93.4 % 78.5 % 15.2 % 81.2 % Net premiums written to gross premiums written 75.9 % 64.4 % 78.3 % 70.2 % Total investable assets $ 44,938 Total assets 78,788 Total liabilities 55,747 (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from Corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 10 Arch Capital Group Ltd. and SubsidiariesSegment Information (U.S. Dollars in millions) Six Months Ended June 30, 2026 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 5,300 $ 6,616 $ 640 $ 12,551 Premiums ceded (1) (1,461) (2,596) (102) (4,154) Net premiums written 3,839 4,020 538 8,397 Change in unearned premiums (88) (369) 31 (426) Net premiums earned 3,751 3,651 569 7,971 Other underwriting income (2) 26 74 16 116 Losses and loss adjustment expenses (2,311) (1,940) (34) (4,285) Acquisition expenses (750) (688) (10) (1,448) Other operating expenses (623) (246) (100) (969) Underwriting income (loss) $ 93 $ 851 $ 441 1,385 Net investment income 825 Net realized gains (losses) (104) Equity in net income of investments accounted for using the equity method 356 Other income (loss) 25 Corporate benefit (expenses) (3) (43) Transaction costs and other (3) (50) Amortization of intangible assets (60) Interest expense (81) Net foreign exchange gains (losses) 31 Income (loss) before income taxes and income (loss) from operating affiliates 2,284 Income tax (expense) benefit (262) Income (loss) from operating affiliates 82 Net income (loss) available to Arch 2,104 Preferred dividends (20) Net income (loss) available to Arch common shareholders $ 2,084 Underwriting Ratios Loss ratio 61.6 % 53.1 % 5.9 % 53.8 % Acquisition expense ratio 20.0 % 18.8 % 1.9 % 18.2 % Other operating expense ratio (4) 15.9 % 4.7 % 14.8 % 10.7 % Combined ratio 97.5 % 76.6 % 22.6 % 82.7 % Net premiums written to gross premiums written 72.4 % 60.8 % 84.1 % 66.9 % (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from Corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 11 Arch Capital Group Ltd. and SubsidiariesSegment Information (U.S. Dollars in millions) Six Months Ended June 30, 2025 Insurance Reinsurance Mortgage Total Gross premiums written (1) $ 5,326 $ 6,690 $ 649 $ 12,659 Premiums ceded (1) (1,357) (2,315) (130) (3,796) Net premiums written 3,969 4,375 519 8,863 Change in unearned premiums (140) (260) 62 (338) Net premiums earned 3,829 4,115 581 8,525 Other underwriting income (2) 16 85 14 115 Losses and loss adjustment expenses (2,406) (2,484) (4,890) Acquisition expenses (730) (853) (5) (1,588) Other operating expenses (582) (245) (100) (927) Underwriting income (loss) $ 127 $ 618 $ 490 1,235 Net investment income 783 Net realized gains (losses) 232 Equity in net income of investments accounted for using the equity method 215 Other income (loss) 16 Corporate benefit (expenses) (3) (79) Transaction costs and other (3) (28) Amortization of intangible assets (97) Interest expense (73) Net foreign exchange gains (losses) (115) Income (loss) before income taxes and income (loss) from operating affiliates 2,089 Income tax (expense) benefit (335) Income (loss) from operating affiliates 57 Net income (loss) available to Arch 1,811 Preferred dividends (20) Net income (loss) available to Arch common shareholders $ 1,791 Underwriting Ratios Loss ratio 62.8 % 60.4 % % 57.4 % Acquisition expense ratio 19.1 % 20.7 % 0.9 % 18.6 % Other operating expense ratio (4) 14.8 % 3.9 % 14.9 % 9.5 % Combined ratio 96.7 % 85.0 % 15.8 % 85.5 % Net premiums written to gross premiums written 74.5 % 65.4 % 80.0 % 70.0 % (1) 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.(2) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (3) Certain expenses have been excluded from corporate benefit (expenses) and reflected in Transaction costs and other. See Comments on Non-GAAP Financial Measures for a further discussion of such items.(4) The Other operating expense ratio includes Other underwriting income. 12 Arch Capital Group Ltd. and SubsidiariesSegment Information Insurance Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Gross premiums written $ 2,603 $ 2,697 $ 2,542 $ 2,567 $ 2,681 $ 5,300 $ 5,326 Premiums ceded (670) (791) (666) (614) (645) (1,461) (1,357) Net premiums written 1,933 1,906 1,876 1,953 2,036 3,839 3,969 Change in unearned premiums (53) (35) 97 16 (67) (88) (140) Net premiums earned 1,880 1,871 1,973 1,969 1,969 3,751 3,829 Other underwriting income (1) 15 11 11 9 13 26 16 Losses and loss adjustment expenses (1,185) (1,126) (1,196) (1,162) (1,178) (2,311) (2,406) Acquisition expenses (375) (375) (380) (386) (387) (750) (730) Other operating expenses (308) (315) (289) (301) (288) (623) (582) Underwriting income (loss) $ 27 $ 66 $ 119 $ 129 $ 129 $ 93 $ 127 Underwriting Ratios Loss ratio 63.0 % 60.2 % 60.6 % 59.0 % 59.8 % 61.6 % 62.8 % Acquisition expense ratio 19.9 % 20.0 % 19.3 % 19.6 % 19.6 % 20.0 % 19.1 % Other operating expense ratio (2) 15.6 % 16.3 % 14.1 % 14.8 % 14.0 % 15.9 % 14.8 % Combined ratio 98.5 % 96.5 % 94.0 % 93.4 % 93.4 % 97.5 % 96.7 % Catastrophic activity and prior year development Current accident year catastrophic events, net of reinsurance and reinstatement premiums 8.0 % 4.2 % 3.3 % 2.2 % 2.9 % 6.1 % 6.1 % Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (1.4) % (0.7) % (0.2) % (0.7) % (0.4) % (1.1) % (0.6) % Acquisition expense ratio impact 0.3 % 0.3 % 0.1 % 0.6 % 0.3 % 0.3 % 0.3 % Total impact (1.1) % (0.4) % (0.1) % (0.1) % (0.1) % (0.8) % (0.3) % Combined ratio excluding catastrophic activity and prior year development (3) 91.6 % 92.7 % 90.8 % 91.3 % 90.6 % 92.2 % 90.9 % Net premiums written to gross premiums written 74.3 % 70.7 % 73.8 % 76.1 % 75.9 % 72.4 % 74.5 % (1) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (2)The Other operating expense ratio includes Other underwriting income. (3)See Comments on Non-GAAP Financial Measures for further discussion. 13 Arch Capital Group Ltd. and SubsidiariesSegment Information Insurance Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net Premiums Written by Line of Business North America Other liability - occurrence $ 364 18.8 % $ 315 16.5 % $ 309 16.5 % $ 297 15.2 % $ 366 18.0 % $ 679 17.7 % $ 696 17.5 % Property and short-tail specialty 362 18.7 % 322 16.9 % 273 14.6 % 339 17.4 % 369 18.1 % 684 17.8 % 717 18.1 % Other liability - claims made 212 11.0 % 175 9.2 % 229 12.2 % 209 10.7 % 206 10.1 % 387 10.1 % 355 8.9 % Commercial automobile 158 8.2 % 149 7.8 % 126 6.7 % 150 7.7 % 165 8.1 % 307 8.0 % 326 8.2 % Commercial multi-peril 130 6.7 % 173 9.1 % 184 9.8 % 194 9.9 % 205 10.1 % 303 7.9 % 403 10.2 % Workers compensation 121 6.3 % 157 8.2 % 142 7.6 % 151 7.7 % 130 6.4 % 278 7.2 % 283 7.1 % Other 87 4.5 % 74 3.9 % 90 4.8 % 86 4.4 % 89 4.4 % 161 4.2 % 165 4.2 % Total North America $ 1,434 74.2 % $ 1,365 71.6 % $ 1,353 72.1 % $ 1,426 73.0 % $ 1,530 75.1 % $ 2,799 72.9 % $ 2,945 74.2 % International Property and short-tail specialty $ 280 14.5 % $ 282 14.8 % $ 251 13.4 % $ 284 14.5 % $ 296 14.5 % $ 562 14.6 % $ 567 14.3 % Casualty and other 219 11.3 % 259 13.6 % 272 14.5 % 243 12.4 % 210 10.3 % 478 12.5 % 457 11.5 % Total International $ 499 25.8 % $ 541 28.4 % $ 523 27.9 % $ 527 27.0 % $ 506 24.9 % $ 1,040 27.1 % $ 1,024 25.8 % Total $ 1,933 100.0 % $ 1,906 100.0 % $ 1,876 100.0 % $ 1,953 100.0 % $ 2,036 100.0 % $ 3,839 100.0 % $ 3,969 100.0 % Net Premiums Earned by Line of Business North America Other liability - occurrence $ 289 15.4 % $ 300 16.0 % $ 325 16.5 % $ 329 16.7 % $ 338 17.2 % $ 589 15.7 % $ 667 17.4 % Property and short-tail specialty 334 17.8 % 315 16.8 % 338 17.1 % 339 17.2 % 363 18.4 % 649 17.3 % 696 18.2 % Other liability - claims made 199 10.6 % 200 10.7 % 203 10.3 % 205 10.4 % 186 9.4 % 399 10.6 % 378 9.9 % Commercial automobile 148 7.9 % 146 7.8 % 146 7.4 % 143 7.3 % 147 7.5 % 294 7.8 % 292 7.6 % Commercial multi-peril 185 9.8 % 195 10.4 % 193 9.8 % 195 9.9 % 203 10.3 % 380 10.1 % 404 10.6 % Workers compensation 135 7.2 % 135 7.2 % 153 7.8 % 160 8.1 % 147 7.5 % 270 7.2 % 278 7.3 % Other 76 4.0 % 69 3.7 % 78 4.0 % 70 3.6 % 71 3.6 % 145 3.9 % 143 3.7 % Total North America $ 1,366 72.7 % $ 1,360 72.7 % $ 1,436 72.8 % $ 1,441 73.2 % $ 1,455 73.9 % $ 2,726 72.7 % $ 2,858 74.6 % International Property and short-tail specialty $ 277 14.7 % $ 279 14.9 % $ 283 14.3 % $ 292 14.8 % $ 278 14.1 % $ 556 14.8 % $ 524 13.7 % Casualty and other 237 12.6 % 232 12.4 % 254 12.9 % 236 12.0 % 236 12.0 % 469 12.5 % 447 11.7 % Total International $ 514 27.3 % $ 511 27.3 % $ 537 27.2 % $ 528 26.8 % $ 514 26.1 % $ 1,025 27.3 % $ 971 25.4 % Total $ 1,880 100.0 % $ 1,871 100.0 % $ 1,973 100.0 % $ 1,969 100.0 % $ 1,969 100.0 % $ 3,751 100.0 % $ 3,829 100.0 % 14 Arch Capital Group Ltd. and SubsidiariesSegment Information Reinsurance Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Gross premiums written $ 3,202 $ 3,414 $ 1,944 $ 2,515 $ 3,196 $ 6,616 $ 6,690 Premiums ceded (1,358) (1,238) (438) (778) (1,137) (2,596) (2,315) Net premiums written 1,844 2,176 1,506 1,737 2,059 4,020 4,375 Change in unearned premiums (24) (345) 486 278 28 (369) (260) Net premiums earned 1,820 1,831 1,992 2,015 2,087 3,651 4,115 Other underwriting income (1) 37 37 36 38 46 74 85 Losses and loss adjustment expenses (992) (948) (1,086) (1,040) (1,128) (1,940) (2,484) Acquisition expenses (341) (347) (393) (398) (436) (688) (853) Other operating expenses (114) (132) (91) (133) (118) (246) (245) Underwriting income (loss) $ 410 $ 441 $ 458 $ 482 $ 451 $ 851 $ 618 Underwriting Ratios Loss ratio 54.6 % 51.7 % 54.5 % 51.6 % 54.1 % 53.1 % 60.4 % Acquisition expense ratio 18.7 % 19.0 % 19.7 % 19.8 % 20.9 % 18.8 % 20.7 % Other operating expense ratio (2) 4.2 % 5.2 % 2.8 % 4.7 % 3.5 % 4.7 % 3.9 % Combined ratio 77.5 % 75.9 % 77.0 % 76.1 % 78.5 % 76.6 % 85.0 % Catastrophic activity and prior year development Current accident year catastrophic events, net of reinsurance and reinstatement premiums 2.8 % 5.2 % 5.0 % 1.5 % 4.6 % 4.0 % 11.3 % Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (5.3) % (8.3) % (3.5) % (2.6) % (3.9) % (6.8) % (4.9) % Acquisition expense ratio impact 0.1 % 0.9 % 0.6 % 0.4 % 0.6 % 0.5 % 1.0 % Total impact (5.2) % (7.4) % (2.9) % (2.2) % (3.3) % (6.3) % (3.9) % Combined ratio excluding catastrophic activity and prior year development (3) 79.9 % 78.1 % 74.9 % 76.8 % 77.2 % 78.9 % 77.6 % Net premiums written to gross premiums written 57.6 % 63.7 % 77.5 % 69.1 % 64.4 % 60.8 % 65.4 % (1) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (2)The Other operating expense ratio includes Other underwriting income. (3)See Comments on Non-GAAP Financial Measures for further discussion. 15 Arch Capital Group Ltd. and SubsidiariesSegment Information Reinsurance Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net Premiums Written by Line of Business Specialty $ 563 30.5 % $ 687 31.6 % $ 587 39.0 % $ 633 36.4 % $ 729 35.4 % $ 1,250 31.1 % $ 1,323 30.2 % Property excluding property catastrophe 451 24.5 % 548 25.2 % 475 31.5 % 557 32.1 % 430 20.9 % 999 24.9 % 1,011 23.1 % Property catastrophe 392 21.3 % 307 14.1 % 48 3.2 % 64 3.7 % 484 23.5 % 699 17.4 % 961 22.0 % Casualty 312 16.9 % 478 22.0 % 301 20.0 % 399 23.0 % 308 15.0 % 790 19.7 % 807 18.4 % Marine and aviation 58 3.1 % 78 3.6 % 52 3.5 % 60 3.5 % 68 3.3 % 136 3.4 % 189 4.3 % Other 68 3.7 % 78 3.6 % 43 2.9 % 24 1.4 % 40 1.9 % 146 3.6 % 84 1.9 % Total $ 1,844 100.0 % $ 2,176 100.0 % $ 1,506 100.0 % $ 1,737 100.0 % $ 2,059 100.0 % $ 4,020 100.0 % $ 4,375 100.0 % Net Premiums Earned by Line of Business Specialty $ 617 33.9 % $ 586 32.0 % $ 700 35.1 % $ 719 35.7 % $ 760 36.4 % $ 1,203 32.9 % $ 1,487 36.1 % Property excluding property catastrophe 489 26.9 % 519 28.3 % 536 26.9 % 581 28.8 % 587 28.1 % 1,008 27.6 % 1,135 27.6 % Property catastrophe 208 11.4 % 226 12.3 % 246 12.3 % 253 12.6 % 260 12.5 % 434 11.9 % 566 13.8 % Casualty 367 20.2 % 353 19.3 % 392 19.7 % 360 17.9 % 355 17.0 % 720 19.7 % 680 16.5 % Marine and aviation 71 3.9 % 70 3.8 % 78 3.9 % 77 3.8 % 82 3.9 % 141 3.9 % 162 3.9 % Other 68 3.7 % 77 4.2 % 40 2.0 % 25 1.2 % 43 2.1 % 145 4.0 % 85 2.1 % Total $ 1,820 100.0 % $ 1,831 100.0 % $ 1,992 100.0 % $ 2,015 100.0 % $ 2,087 100.0 % $ 3,651 100.0 % $ 4,115 100.0 % Net Premiums Written by Underwriting Location Bermuda $ 997 54.1 % $ 962 44.2 % $ 697 46.3 % $ 761 43.8 % $ 1,060 51.5 % $ 1,959 48.7 % $ 2,214 50.6 % United States 389 21.1 % 512 23.5 % 386 25.6 % 488 28.1 % 447 21.7 % 901 22.4 % 924 21.1 % Europe and other 458 24.8 % 702 32.3 % 423 28.1 % 488 28.1 % 552 26.8 % 1,160 28.9 % 1,237 28.3 % Total $ 1,844 100.0 % $ 2,176 100.0 % $ 1,506 100.0 % $ 1,737 100.0 % $ 2,059 100.0 % $ 4,020 100.0 % $ 4,375 100.0 % 16 Arch Capital Group Ltd. and SubsidiariesSegment Information Mortgage Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Gross premiums written $ 324 $ 316 $ 326 $ 330 $ 323 $ 640 $ 649 Premiums ceded (52) (50) (59) (56) (70) (102) (130) Net premiums written 272 266 267 274 253 538 519 Change in unearned premiums 13 18 23 27 28 31 62 Net premiums earned 285 284 290 301 281 569 581 Other underwriting income (1) 5 11 5 3 3 16 14 Losses and loss adjustment expenses (19) (15) 2 2 3 (34) Acquisition expenses (2) (8) (6) (2) (1) (10) (5) Other operating expenses (49) (51) (41) (44) (48) (100) (100) Underwriting income $ 220 $ 221 $ 250 $ 260 $ 238 $ 441 $ 490 Underwriting Ratios Loss ratio 6.5 % 5.3 % (0.8) % (0.5) % (1.2) % 5.9 % % Acquisition expense ratio 0.9 % 2.9 % 1.9 % 0.7 % 0.4 % 1.9 % 0.9 % Other operating expense ratio (2) 15.4 % 14.1 % 12.6 % 13.3 % 16.0 % 14.8 % 14.9 % Combined ratio 22.8 % 22.3 % 13.7 % 13.5 % 15.2 % 22.6 % 15.8 % Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (15.7) % (19.2) % (19.4) % (18.1) % (22.8) % (17.4) % (21.6) % Acquisition expense ratio impact (1.3) % (0.7) % (0.9) % (1.1) % (1.3) % (1.1) % (1.3) % Total impact (17.0) % (19.9) % (20.3) % (19.2) % (24.1) % (18.5) % (22.9) % Combined ratio excluding prior year development (3) 39.8 % 42.2 % 34.0 % 32.7 % 39.3 % 41.1 % 38.7 % Net premiums written to gross premiums written 84.0 % 84.2 % 81.9 % 83.0 % 78.3 % 84.1 % 80.0 % (1) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (2)The Other operating expense ratio includes Other underwriting income. (3) See Comments on Non-GAAP Financial Measures for further discussion. 17 Arch Capital Group Ltd. and SubsidiariesSegment Information Mortgage Segment (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net Premiums Written by Underwriting Unit U.S. primary mortgage insurance $ 202 74.3 % $ 204 76.7 % $ 195 73.0 % $ 197 71.9 % $ 184 72.7 % $ 406 75.5 % $ 387 74.6 % U.S. credit risk transfer (CRT) and other 35 12.9 % 37 13.9 % 51 19.1 % 55 20.1 % 51 20.2 % 72 13.4 % 101 19.5 % International mortgage insurance reinsurance 35 12.9 % 25 9.4 % 21 7.9 % 22 8.0 % 18 7.1 % 60 11.2 % 31 6.0 % Total $ 272 100.0 % $ 266 100.0 % $ 267 100.0 % $ 274 100.0 % $ 253 100.0 % $ 538 100.0 % $ 519 100.0 % Net Premiums Earned by Underwriting Unit U.S. primary mortgage insurance $ 206 72.3 % $ 209 73.6 % $ 201 69.3 % $ 204 67.8 % $ 188 66.9 % $ 415 72.9 % $ 397 68.3 % U.S. credit risk transfer (CRT) and other 35 12.3 % 37 13.0 % 51 17.6 % 55 18.3 % 51 18.1 % 72 12.7 % 101 17.4 % International mortgage insurance reinsurance 44 15.4 % 38 13.4 % 38 13.1 % 42 14.0 % 42 14.9 % 82 14.4 % 83 14.3 % Total $ 285 100.0 % $ 284 100.0 % $ 290 100.0 % $ 301 100.0 % $ 281 100.0 % $ 569 100.0 % $ 581 100.0 % Net Premiums Written by Underwriting Location United States $ 202 74.3 % $ 204 76.7 % $ 196 73.4 % $ 197 71.9 % $ 184 72.7 % $ 406 75.5 % $ 387 74.6 % Other 70 25.7 % 62 23.3 % 71 26.6 % 77 28.1 % 69 27.3 % 132 24.5 % 132 25.4 % Total $ 272 100.0 % $ 266 100.0 % $ 267 100.0 % $ 274 100.0 % $ 253 100.0 % $ 538 100.0 % $ 519 100.0 % (U.S. Dollars in millions) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Insurance In Force (IIF) (1) U.S. primary mortgage insurance $ 286,399 59.8 % $ 286,523 59.7 % $ 286,318 59.1 % $ 286,785 57.9 % $ 286,410 57.7 % U.S. credit risk transfer (CRT) and other 128,228 26.8 % 128,338 26.7 % 132,205 27.3 % 141,889 28.7 % 145,883 29.4 % International mortgage insurance reinsurance 64,254 13.4 % 65,223 13.6 % 66,084 13.6 % 66,277 13.4 % 64,374 13.0 % Total $ 478,881 100.0 % $ 480,084 100.0 % $ 484,607 100.0 % $ 494,951 100.0 % $ 496,667 100.0 % Risk In Force (RIF) (2) U.S. primary mortgage insurance $ 73,978 84.3 % $ 74,281 84.8 % $ 74,679 85.0 % $ 74,952 84.9 % $ 74,948 85.1 % U.S. credit risk transfer and other 5,194 5.9 % 5,214 6.0 % 5,358 6.1 % 5,688 6.4 % 5,892 6.7 % International mortgage insurance reinsurance 8,599 9.8 % 8,120 9.3 % 7,864 8.9 % 7,633 8.6 % 7,221 8.2 % Total $ 87,771 100.0 % $ 87,615 100.0 % $ 87,901 100.0 % $ 88,273 100.0 % $ 88,061 100.0 % (1) The aggregate dollar amount of each insured mortgage loan s current principal balance. Such amounts are shown before external reinsurance. (2) 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. 18 Arch Capital Group Ltd. and SubsidiariesSegment Information Mortgage SegmentThe following table provides supplemental disclosures for the Company s U.S. primary mortgage insurance operations (U.S. Dollars in millions) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Total RIF by credit quality 740 $ 48,123 65.1 % $ 47,842 64.4 % $ 47,757 63.9 % $ 47,575 63.5 % $ 47,261 63.1 % 680-739 22,351 30.2 % 22,861 30.8 % 23,271 31.2 % 23,638 31.5 % 23,880 31.9 % 620-679 3,208 4.3 % 3,274 4.4 % 3,340 4.5 % 3,419 4.6 % 3,479 4.6 % 620 296 0.4 % 304 0.4 % 311 0.4 % 320 0.4 % 328 0.4 % Total $ 73,978 100.0 % $ 74,281 100.0 % $ 74,679 100.0 % $ 74,952 100.0 % $ 74,948 100.0 % Weighted average credit score 751 750 749 749 749 Total RIF by Loan-To-Value (LTV) 95.01% and above $ 7,417 10.0 % $ 7,436 10.0 % $ 7,314 9.8 % $ 7,362 9.8 % $ 7,361 9.8 % 90.01% to 95.00% 43,944 59.4 % 44,147 59.4 % 44,494 59.6 % 44,720 59.7 % 44,711 59.7 % 85.01% to 90.00% 19,727 26.7 % 19,951 26.9 % 20,195 27.0 % 20,251 27.0 % 20,293 27.1 % 85.00% and below 2,890 3.9 % 2,747 3.7 % 2,676 3.6 % 2,619 3.5 % 2,583 3.4 % Total $ 73,978 100.0 % $ 74,281 100.0 % $ 74,679 100.0 % $ 74,952 100.0 % $ 74,948 100.0 % Weighted average LTV 93.2 % 93.2 % 93.2 % 93.2 % 93.2 % Total RIF by State California $ 5,945 8.0 % $ 5,922 8.0 % $ 5,901 7.9 % $ 5,892 7.9 % $ 5,894 7.9 % Texas 5,385 7.3 % 5,376 7.2 % 5,382 7.2 % 5,393 7.2 % 5,432 7.2 % North Carolina 3,266 4.4 % 3,285 4.4 % 3,343 4.5 % 3,358 4.5 % 3,347 4.5 % Minnesota 3,099 4.2 % 3,100 4.2 % 3,129 4.2 % 3,137 4.2 % 3,147 4.2 % Illinois 3,067 4.1 % 3,037 4.1 % 3,042 4.1 % 3,046 4.1 % 3,033 4.0 % Georgia 2,927 4.0 % 2,966 4.0 % 3,005 4.0 % 3,043 4.1 % 3,063 4.1 % Michigan 2,766 3.7 % 2,785 3.7 % 2,816 3.8 % 2,822 3.8 % 2,816 3.8 % Florida 2,678 3.6 % 2,659 3.6 % 2,672 3.6 % 2,690 3.6 % 2,714 3.6 % Ohio 2,648 3.6 % 2,670 3.6 % 2,666 3.6 % 2,697 3.6 % 2,702 3.6 % Massachusetts 2,635 3.6 % 2,704 3.6 % 2,780 3.7 % 2,829 3.8 % 2,841 3.8 % Other 39,562 53.5 % 39,777 53.5 % 39,943 53.5 % 40,045 53.4 % 39,959 53.3 % Total $ 73,978 100.0 % $ 74,281 100.0 % $ 74,679 100.0 % $ 74,952 100.0 % $ 74,948 100.0 % Weighted average coverage (end of period RIF divided by IIF) 25.8 % 25.9 % 26.1 % 26.1 % 26.2 % U.S. mortgage insurance total RIF, net of reinsurance (1) $ 61,982 $ 62,366 $ 60,259 $ 60,662 $ 60,436 Analysts persistency (2) 79.9 % 80.7 % 81.8 % 82.3 % 81.9 % Risk-to-capital ratio Arch MI U.S. (3) 8.8 1 8.4 1 8.2 1 7.9 1 8.3 1 PMIER sufficiency ratio Arch MI U.S. (4) 165 % 175 % 179 % 176 % 168 % (1) Total RIF for the U.S. mortgage insurance operations after external reinsurance. (2) Represents the % of IIF at the beginning of a 12 month period that remained in force at the end of the period. (3) Represents current (non-delinquent) RIF, net of reinsurance, divided by statutory capital (estimate for June 30, 2026). (4) 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 June 30, 2026, the changes would have reduced the available assets by 3% and resulted in a pro-forma PMIERs Sufficiency Ratio of 162%. 19 Arch Capital Group Ltd. and SubsidiariesSegment Information Mortgage SegmentThe following table provides supplemental disclosures for the Company s U.S. primary mortgage insurance operations (U.S. Dollars in millions, except policy loan claim count) Three Months Ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Total new insurance written (NIW) (1) $ 15,624 $ 14,812 $ 14,296 $ 12,965 $ 12,254 Total NIW by credit quality 740 $ 12,637 80.9 % $ 11,720 79.1 % $ 11,239 78.6 % $ 9,850 76.0 % $ 9,411 76.8 % 680-739 2,619 16.8 % 2,698 18.2 % 2,759 19.3 % 2,753 21.2 % 2,527 20.6 % 620-679 357 2.3 % 371 2.5 % 293 2.0 % 359 2.8 % 313 2.6 % 620 11 0.1 % 23 0.2 % 5 0.0 % 3 0.0 % 3 0.0 % Total $ 15,624 100.0 % $ 14,812 100.0 % $ 14,296 100.0 % $ 12,965 100.0 % $ 12,254 100.0 % Total NIW by LTV 95.01% and above $ 1,108 7.1 % $ 2,064 13.9 % $ 779 5.4 % $ 1,038 8.0 % $ 814 6.6 % 90.01% to 95.00% 6,560 42.0 % 5,804 39.2 % 5,894 41.2 % 5,668 43.7 % 5,632 46.0 % 85.01% to 90.00% 5,359 34.3 % 4,690 31.7 % 5,337 37.3 % 4,323 33.3 % 3,945 32.2 % 85.00% and below 2,597 16.6 % 2,254 15.2 % 2,286 16.0 % 1,936 14.9 % 1,863 15.2 % Total $ 15,624 100.0 % $ 14,812 100.0 % $ 14,296 100.0 % $ 12,965 100.0 % $ 12,254 100.0 % Total NIW monthly vs. single Monthly $ 14,941 95.6 % $ 14,273 96.4 % $ 13,653 95.5 % $ 12,267 94.6 % $ 11,779 96.1 % Single 683 4.4 % 539 3.6 % 643 4.5 % 698 5.4 % 475 3.9 % Total $ 15,624 100.0 % $ 14,812 100.0 % $ 14,296 100.0 % $ 12,965 100.0 % $ 12,254 100.0 % Total NIW purchase vs. refinance Purchase $ 13,854 88.7 % $ 11,754 79.4 % $ 11,640 81.4 % $ 12,319 95.0 % $ 11,633 94.9 % Refinance 1,770 11.3 % 3,058 20.6 % 2,656 18.6 % 646 5.0 % 621 5.1 % Total $ 15,624 100.0 % $ 14,812 100.0 % $ 14,296 100.0 % $ 12,965 100.0 % $ 12,254 100.0 % Ending number of policies in force (PIF) (2) 1,039,751 1,049,661 1,058,907 1,067,147 1,073,477 Rollforward of insured loans in default Beginning delinquent number of loans 21,606 22,985 21,821 20,762 21,299 Plus new notices 11,122 11,938 12,825 12,168 10,856 Less cures (10,824) (12,969) (11,337) (10,715) (11,085) Less paid claims (385) (348) (324) (394) (308) Ending delinquent number of loans (2) 21,519 21,606 22,985 21,821 20,762 Ending percentage of loans in default (2) 2.07 % 2.06 % 2.17 % 2.04 % 1.93 % Losses Number of claims paid 385 348 324 394 308 Total paid claims (in thousands) $ 19,091 $ 15,557 $ 15,917 $ 12,934 $ 12,703 Average paid per claim (in thousands) $ 49.6 $ 44.7 $ 49.1 $ 32.8 $ 41.2 Severity (3) 78.8 % 77.9 % 81.6 % 73.2 % 75.3 % Average case reserve per default (in thousands) $ 16.9 $ 16.6 $ 15.3 $ 16.1 $ 16.8 (1) The original principal balance of all loans that received coverage during the period.(2) Includes first lien primary and pool policies. (3) Represents total direct first lien paid claims divided by RIF of loans for which claims were paid, excluding paid claim settlements. 20 Arch Capital Group Ltd. and SubsidiariesSegment Information Mortgage SegmentThe following table provides supplemental disclosures for the Company s U.S. primary mortgage insurance operations (U.S. Dollars in millions) June 30, 2026 December 31, 2025 Loss Reserves, Net (1) Primary IIF (2) Primary RIF (3) Delinquency Rate Loss Reserves, Net (1) Primary IIF (2) Primary RIF (3) Delinquency Rate % of Total Total % of Total Total % of Total % of Total Total % of Total Total % of Total Policy year 2016 and prior 19.8 % $ 18,210 6.4 % $ 4,632 6.3 % 4.72 % 24.9 % $ 19,384 6.8 % $ 4,923 6.6 % 5.08 % 2017 3.3 % 3,188 1.1 % 825 1.1 % 4.48 % 3.9 % 4,250 1.5 % 1,127 1.5 % 3.87 % 2018 5.5 % 4,956 1.7 % 1,293 1.7 % 4.46 % 6.1 % 5,673 2.0 % 1,479 2.0 % 4.48 % 2019 6.4 % 9,003 3.1 % 2,374 3.2 % 2.97 % 7.3 % 10,553 3.7 % 2,770 3.7 % 3.08 % 2020 11.5 % 26,603 9.3 % 7,338 9.9 % 1.88 % 12.3 % 30,968 10.8 % 8,487 11.4 % 1.85 % 2021 17.1 % 45,079 15.7 % 12,454 16.8 % 1.92 % 17.4 % 50,141 17.5 % 13,767 18.4 % 1.88 % 2022 17.0 % 45,532 15.9 % 12,290 16.6 % 1.94 % 14.5 % 49,492 17.3 % 13,236 17.7 % 1.87 % 2023 10.4 % 27,590 9.6 % 7,125 9.6 % 2.09 % 7.9 % 31,049 10.8 % 8,006 10.7 % 1.93 % 2024 6.9 % 35,074 12.2 % 8,807 11.9 % 1.45 % 5.0 % 39,306 13.7 % 9,840 13.2 % 1.17 % 2025 1.9 % 41,632 14.5 % 10,106 13.7 % 0.45 % 0.7 % 45,502 15.9 % 11,044 14.8 % 0.20 % 2026 0.1 % 29,532 10.3 % 6,734 9.1 % 0.06 % Total 100.0 % $ 286,399 100.0 % $ 73,978 100.0 % 2.07 % 100.0 % $ 286,318 100.0 % $ 74,679 100.0 % 2.17 % (1) Total reserves for losses and loss adjustment expenses, net of recoverables, was $340.6 million at June 30, 2026, compared to $320.6 million at December 31, 2025.(2) The aggregate dollar amount of each insured mortgage loan s current principal balance.(3) 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. 21 Arch Capital Group Ltd. and SubsidiariesSegment Information Consolidated (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Gross premiums written $ 6,126 $ 6,425 $ 4,809 $ 5,410 $ 6,196 $ 12,551 $ 12,659 Premiums ceded (2,077) (2,077) (1,160) (1,446) (1,848) (4,154) (3,796) Net premiums written 4,049 4,348 3,649 3,964 4,348 8,397 8,863 Change in unearned premiums (64) (362) 606 321 (11) (426) (338) Net premiums earned 3,985 3,986 4,255 4,285 4,337 7,971 8,525 Other underwriting income (1) 57 59 52 50 62 116 115 Losses and loss adjustment expenses (2,196) (2,089) (2,280) (2,200) (2,303) (4,285) (4,890) Acquisition expenses (718) (730) (779) (786) (824) (1,448) (1,588) Other operating expenses (471) (498) (421) (478) (454) (969) (927) Underwriting income (loss) (2) $ 657 $ 728 $ 827 $ 871 $ 818 $ 1,385 $ 1,235 Underwriting Ratios Loss ratio 55.1 % 52.4 % 53.6 % 51.4 % 53.1 % 53.8 % 57.4 % Acquisition expense ratio 18.0 % 18.3 % 18.3 % 18.4 % 19.0 % 18.2 % 18.6 % Other operating expense ratio (3) 10.4 % 11.0 % 8.7 % 10.0 % 9.1 % 10.7 % 9.5 % Combined ratio 83.5 % 81.7 % 80.6 % 79.8 % 81.2 % 82.7 % 85.5 % Catastrophic activity and prior year development Current accident year catastrophic events, net of reinsurance and reinstatement premiums 5.1 % 4.4 % 3.9 % 1.7 % 3.5 % 4.7 % 8.2 % Net (favorable) adverse development in prior year loss reserves, net of related adjustments Loss ratio impact (4.2) % (5.5) % (3.0) % (2.8) % (3.5) % (4.9) % (4.1) % Acquisition expense ratio impact 0.1 % 0.5 % 0.2 % 0.4 % 0.3 % 0.3 % 0.5 % Total impact (4.1) % (5.0) % (2.8) % (2.4) % (3.2) % (4.6) % (3.6) % Combined ratio excluding catastrophic activity and prior year development (2) 82.5 % 82.3 % 79.5 % 80.5 % 80.9 % 82.6 % 80.9 % Components of losses and loss adjustment expenses incurred Paid losses and loss adjustment expenses $ 1,697 $ 1,549 $ 1,951 $ 1,569 $ 1,744 $ 3,246 $ 3,505 Change in unpaid losses and loss adjustment expenses 499 540 329 631 559 1,039 1,385 Total losses and loss adjustment expenses $ 2,196 $ 2,089 $ 2,280 $ 2,200 $ 2,303 $ 4,285 $ 4,890 Net premiums written to gross premiums written 66.1 % 67.7 % 75.9 % 73.3 % 70.2 % 66.9 % 70.0 % (1) Other underwriting income includes revenue earned from underwriting-related activities covered under existing service contracts. (2)See Comments on Non-GAAP Financial Measures for further discussion.(3)The Other operating expense ratio includes Other underwriting income. 22 Arch Capital Group Ltd. and SubsidiariesSegment Information Selected Information on Losses and Loss Adjustment Expenses (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments Net impact on underwriting results Insurance $ (21) $ (8) $ (1) $ (2) $ (2) $ (29) $ (12) Reinsurance (95) (136) (58) (44) (69) (231) (161) Mortgage (49) (56) (59) (57) (68) (105) (133) Total $ (165) $ (200) $ (118) $ (103) $ (139) $ (365) $ (306) Impact on losses and loss adjustment expenses Insurance $ (27) $ (14) $ (4) $ (14) $ (8) $ (41) $ (25) Reinsurance (97) (152) (69) (53) (81) (249) (200) Mortgage (45) (54) (56) (54) (64) (99) (125) Total $ (169) $ (220) $ (129) $ (121) $ (153) $ (389) $ (350) Impact on acquisition expenses Insurance $ 6 $ 6 $ 3 $ 12 $ 6 $ 12 $ 13 Reinsurance 2 16 11 9 12 18 39 Mortgage (4) (2) (3) (3) (4) (6) (8) Total $ 4 $ 20 $ 11 $ 18 $ 14 $ 24 $ 44 Impact on combined ratio Insurance (1.1) % (0.4) % (0.1) % (0.1) % (0.1) % (0.8) % (0.3) % Reinsurance (5.2) % (7.4) % (2.9) % (2.2) % (3.3) % (6.3) % (3.9) % Mortgage (17.0) % (19.9) % (20.3) % (19.2) % (24.1) % (18.5) % (22.9) % Total (4.1) % (5.0) % (2.8) % (2.4) % (3.2) % (4.6) % (3.6) % Impact on loss ratio Insurance (1.4) % (0.7) % (0.2) % (0.7) % (0.4) % (1.1) % (0.6) % Reinsurance (5.3) % (8.3) % (3.5) % (2.6) % (3.9) % (6.8) % (4.9) % Mortgage (15.7) % (19.2) % (19.4) % (18.1) % (22.8) % (17.4) % (21.6) % Total (4.2) % (5.5) % (3.0) % (2.8) % (3.5) % (4.9) % (4.1) % Impact on acquisition expense ratio Insurance 0.3 % 0.3 % 0.1 % 0.6 % 0.3 % 0.3 % 0.3 % Reinsurance 0.1 % 0.9 % 0.6 % 0.4 % 0.6 % 0.5 % 1.0 % Mortgage (1.3) % (0.7) % (0.9) % (1.1) % (1.3) % (1.1) % (1.3) % Total 0.1 % 0.5 % 0.2 % 0.4 % 0.3 % 0.3 % 0.5 % Estimated net losses incurred from current accident year catastrophic events (1) Insurance $ 151 $ 79 $ 64 $ 43 $ 58 $ 230 $ 235 Reinsurance 50 95 100 29 96 145 466 Total $ 201 $ 174 $ 164 $ 72 $ 154 $ 375 $ 701 Impact on combined ratio Insurance 8.0 % 4.2 % 3.3 % 2.2 % 2.9 % 6.1 % 6.1 % Reinsurance 2.8 % 5.2 % 5.0 % 1.5 % 4.6 % 4.0 % 11.3 % Total 5.1 % 4.4 % 3.9 % 1.7 % 3.5 % 4.7 % 8.2 % (1)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. 23 Arch Capital Group Ltd. and SubsidiariesInvestment Information Investable Asset Summary and Investment Portfolio MetricsThe following table summarizes the Company s investable assets and portfolio metrics (U.S. Dollars in millions) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Investable assets Fixed maturities available for sale, at fair value $ 33,155 67.0 % $ 32,399 68.1 % $ 32,426 68.5 % $ 31,908 68.3 % $ 30,332 67.5 % Fixed maturities fair value option (1) 1,175 2.4 % 1,129 2.4 % 1,110 2.3 % 1,050 2.2 % 1,009 2.2 % Total fixed maturities 34,330 69.3 % 33,528 70.5 % 33,536 70.8 % 32,958 70.5 % 31,341 69.7 % Equity securities, at fair value 2,280 4.6 % 1,766 3.7 % 1,864 3.9 % 1,805 3.9 % 1,715 3.8 % Equity securities fair value option (1) 5 0.0 % 4 0.0 % 5 0.0 % 5 0.0 % 5 0.0 % Total equity securities 2,285 4.6 % 1,770 3.7 % 1,869 3.9 % 1,810 3.9 % 1,720 3.8 % Other investments fair value option (1) 2,144 4.3 % 2,129 4.5 % 1,957 4.1 % 1,911 4.1 % 1,810 4.0 % Investments accounted for using the equity method (2) 6,852 13.8 % 6,652 14.0 % 6,453 13.6 % 6,232 13.3 % 6,566 14.6 % Short-term investments available for sale, at fair value 3,298 6.7 % 2,638 5.5 % 2,625 5.5 % 2,351 5.0 % 2,788 6.2 % Short-term investments fair value option (1) 57 0.1 % 69 0.1 % 64 0.1 % 61 0.1 % 68 0.2 % Total short-term investments 3,355 6.8 % 2,707 5.7 % 2,689 5.7 % 2,412 5.2 % 2,856 6.4 % Cash 1,109 2.2 % 914 1.9 % 993 2.1 % 1,063 2.3 % 983 2.2 % Securities transactions entered into but not settled at the balance sheet date (572) (1.2) % (155) (0.3) % (128) (0.3) % 360 0.8 % (338) (0.8) % Total investable assets held by the Company $ 49,503 100.0 % $ 47,545 100.0 % $ 47,369 100.0 % $ 46,746 100.0 % $ 44,938 100.0 % Average effective duration of fixed maturities (in years) 3.50 3.43 3.34 3.24 3.48 Average S P Moody s credit ratings (3) AA- Aa3 AA- Aa3 AA- Aa3 AA- Aa3 AA- Aa3 (1) Included in other investments on the balance sheet.(2) Changes in the carrying value of investments accounted for using the equity method are recorded as equity in net income of investments accounted for using the equity method rather than as an unrealized gain or loss component of accumulated other comprehensive income.(3) 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 ). 24 Arch Capital Group Ltd. and SubsidiariesInvestment Information Composition of Net Investment Income, Yield and Total ReturnThe 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 Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Composition of pre-tax net investment income Fixed maturities $ 386 $ 384 $ 384 $ 379 $ 360 $ 770 $ 702 Short-term investments 26 24 27 25 24 50 50 Equity securities (dividends) 9 8 10 10 10 17 21 Other (1) 21 21 27 19 35 42 63 Gross investment income 442 437 448 433 429 879 836 Investment expenses (25) (29) (14) (25) (24) (54) (53) Pre-tax net investment income $ 417 $ 408 $ 434 $ 408 $ 405 $ 825 $ 783 Per share $ 1.20 $ 1.13 $ 1.18 $ 1.08 $ 1.07 $ 2.33 $ 2.06 Pre-tax equity in net income of investments accounted for using the equity method 196 160 155 134 162 356 215 Per share $ 0.56 $ 0.44 $ 0.42 $ 0.36 $ 0.43 $ 1.01 $ 0.56 Investment income yield, at amortized cost (2) Pre-tax 3.91 % 3.99 % 4.22 % 4.07 % 4.25 % 3.98 % 4.19 % After-tax 3.19 % 3.26 % 3.45 % 3.32 % 3.43 % 3.25 % 3.38 % Total return on investments (3) 1.62 % 0.10 % 1.36 % 1.80 % 3.09 % 1.72 % 5.17 % (1)Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other.(2)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.(3)Total return on investments includes investment income, equity in net income or loss of investments 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 return on investments. 25 Arch Capital Group Ltd. and SubsidiariesInvestment Information Composition of Fixed Maturities The following table summarizes the Company s fixed maturities (U.S. Dollars in millions) FairValue GrossUnrealizedGains GrossUnrealizedLosses NetUnrealizedGains (Losses) Allowance for Credit Losses AmortizedCost Fair Value Amortized Cost Fair Value % of Total At June 30, 2026 Corporates $ 15,399 $ 102 $ (198) $ (96) $ (6) $ 15,501 99.3 % 44.9 % U.S. government and government agencies 8,064 8 (64) (56) 8,120 99.3 % 23.5 % Asset-backed securities 3,677 6 (26) (20) (9) 3,706 99.2 % 10.7 % Non-U.S. government securities 2,879 26 (77) (51) (1) 2,931 98.2 % 8.4 % Residential mortgage-backed securities 2,643 11 (38) (27) 2,670 99.0 % 7.7 % Commercial mortgage-backed securities 1,549 5 (7) (2) 1,551 99.9 % 4.5 % Municipal bonds 119 (4) (4) 123 96.7 % 0.3 % Total $ 34,330 $ 158 $ (414) $ (256) $ (16) $ 34,602 99.2 % 100.0 % At December 31, 2025 Corporates $ 15,160 $ 265 $ (142) $ 123 $ (10) $ 15,047 100.8 % 45.2 % U.S. government and government agencies 7,450 23 (21) 2 7,448 100.0 % 22.2 % Asset-backed securities 3,574 20 (15) 5 (8) 3,577 99.9 % 10.7 % Non-U.S. government securities 3,273 53 (81) (28) (1) 3,302 99.1 % 9.8 % Residential mortgage-backed securities 2,705 34 (21) 13 2,692 100.5 % 8.1 % Commercial mortgage-backed securities 1,212 11 (5) 6 (1) 1,207 100.4 % 3.6 % Municipal bonds 162 (4) (4) 166 97.6 % 0.5 % Total $ 33,536 $ 406 $ (289) $ 117 $ (20) $ 33,439 100.3 % 100.0 % 26 Arch Capital Group Ltd. and SubsidiariesInvestment Information Credit Quality Distribution and Maturity ProfileThe following table summarizes the credit quality distribution and maturity profile of the Company s fixed maturities (U.S. Dollars in millions) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Credit quality distribution of total fixed maturities (1) U.S. government and government agencies (2) $ 10,011 29.2 % $ 9,665 28.8 % $ 9,561 28.5 % $ 8,409 25.5 % $ 8,355 26.7 % AAA 5,580 16.3 % 5,769 17.2 % 5,667 16.9 % 5,425 16.5 % 4,745 15.1 % AA 2,638 7.7 % 2,554 7.6 % 2,564 7.6 % 2,449 7.4 % 2,491 7.9 % A 6,526 19.0 % 6,405 19.1 % 6,448 19.2 % 6,904 20.9 % 6,645 21.2 % BBB 6,698 19.5 % 6,526 19.5 % 6,533 19.5 % 7,167 21.7 % 6,673 21.3 % BB 1,391 4.1 % 1,340 4.0 % 1,330 4.0 % 1,175 3.6 % 1,110 3.5 % B 818 2.4 % 806 2.4 % 734 2.2 % 685 2.1 % 657 2.1 % Lower than B 42 0.1 % 35 0.1 % 35 0.1 % 29 0.1 % 30 0.1 % Not rated 626 1.8 % 428 1.3 % 664 2.0 % 715 2.2 % 635 2.0 % Total fixed maturities, at fair value $ 34,330 100.0 % $ 33,528 100.0 % $ 33,536 100.0 % $ 32,958 100.0 % $ 31,341 100.0 % Maturity profile of total fixed maturities Due in one year or less $ 740 2.2 % $ 582 1.7 % $ 412 1.2 % $ 570 1.7 % $ 518 1.7 % Due after one year through five years 17,498 51.0 % 17,540 52.3 % 17,680 52.7 % 17,379 52.7 % 17,632 56.3 % Due after five years through ten years 7,522 21.9 % 6,659 19.9 % 7,149 21.3 % 7,047 21.4 % 6,350 20.3 % Due after 10 years 701 2.0 % 727 2.2 % 804 2.4 % 798 2.4 % 847 2.7 % 26,461 77.1 % 25,508 76.1 % 26,045 77.7 % 25,794 78.3 % 25,347 80.9 % Residential mortgage-backed securities 2,643 7.7 % 2,892 8.6 % 2,705 8.1 % 2,766 8.4 % 2,386 7.6 % Commercial mortgage-backed securities 1,549 4.5 % 1,391 4.1 % 1,212 3.6 % 1,249 3.8 % 838 2.7 % Asset-backed securities 3,677 10.7 % 3,737 11.1 % 3,574 10.7 % 3,149 9.6 % 2,770 8.8 % Total fixed maturities, at fair value $ 34,330 100.0 % $ 33,528 100.0 % $ 33,536 100.0 % $ 32,958 100.0 % $ 31,341 100.0 % (1) 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.(2) Includes U.S. government-sponsored agency mortgage backed securities and agency commercial mortgage backed securities. 27 Arch Capital Group Ltd. and SubsidiariesInvestment Information Analysis of Corporate ExposuresThe following table summarizes the Company s corporate bonds by sector (U.S. Dollars in millions) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Sector Industrials $ 8,439 54.8 % $ 8,286 55.5 % $ 7,840 51.7 % $ 8,262 51.5 % $ 7,974 51.7 % Financials 5,623 36.5 % 5,450 36.5 % 6,066 40.0 % 6,251 39.0 % 5,939 38.5 % Utilities 1,054 6.8 % 942 6.3 % 949 6.3 % 1,225 7.6 % 1,201 7.8 % All other (1) 283 1.8 % 251 1.7 % 305 2.0 % 306 1.9 % 303 2.0 % Total $ 15,399 100.0 % $ 14,929 100.0 % $ 15,160 100.0 % $ 16,044 100.0 % $ 15,417 100.0 % Credit quality distribution (2) AAA $ 185 1.2 % $ 176 1.2 % $ 195 1.3 % $ 195 1.2 % $ 180 1.2 % AA 1,220 7.9 % 1,093 7.3 % 968 6.4 % 807 5.0 % 953 6.2 % A 5,286 34.3 % 5,173 34.7 % 5,315 35.1 % 5,882 36.7 % 5,712 37.1 % BBB 6,256 40.6 % 6,111 40.9 % 6,210 41.0 % 6,891 43.0 % 6,392 41.5 % BB 1,315 8.5 % 1,266 8.5 % 1,262 8.3 % 1,128 7.0 % 1,054 6.8 % B 815 5.3 % 800 5.4 % 728 4.8 % 676 4.2 % 652 4.2 % Lower than B 42 0.3 % 35 0.2 % 35 0.2 % 29 0.2 % 30 0.2 % Not rated 280 1.8 % 275 1.8 % 447 2.9 % 436 2.7 % 444 2.9 % Total $ 15,399 100.0 % $ 14,929 100.0 % $ 15,160 100.0 % $ 16,044 100.0 % $ 15,417 100.0 % (1) Includes sovereign securities, supranational securities and other.(2) 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 June 30, 2026 (U.S. Dollars in millions) FairValue % of Asset Class % of Investable Assets Credit Quality (1) Issuer Morgan Stanley $ 482 3.1 % 1.0 % A A1 The Goldman Sachs Group, Inc. 293 1.9 % 0.6 % BBB+ A2 JPMorgan Chase Co. 261 1.7 % 0.5 % A A1 Citigroup Inc. 256 1.7 % 0.5 % A- A2 Bank of America Corporation 255 1.7 % 0.5 % A- A1 Amazon.com, Inc. 221 1.4 % 0.4 % AA A1 The Toronto-Dominion Bank 213 1.4 % 0.4 % A- A2 UBS Group AG 175 1.1 % 0.4 % A A1 Hyundai Motor Company 155 1.0 % 0.3 % A- A3 Oracle Corporation 146 0.9 % 0.3 % BBB Baa2 Total $ 2,457 16.0 % 5.0 % (1) Average credit ratings assigned by S P and Moody s, respectively. 28 Arch Capital Group Ltd. and SubsidiariesInvestment Information Structured SecuritiesThe following table provides the composition of the Company s structured securities (U.S. Dollars in millions) Agencies AAA AA A BBB Non-Investment Grade Total At June 30, 2026 Residential mortgage-backed securities $ 1,942 $ 697 $ $ $ $ 4 $ 2,643 Commercial mortgage-backed securities 6 1,009 138 32 252 112 1,549 Asset-backed securities 1,891 244 1,052 189 301 3,677 Total $ 1,948 $ 3,597 $ 382 $ 1,084 $ 441 $ 417 $ 7,869 At December 31, 2025 Residential mortgage-backed securities $ 2,105 $ 598 $ 2 $ $ $ $ 2,705 Commercial mortgage-backed securities 6 730 159 47 193 77 1,212 Asset-backed securities 2,026 310 904 128 206 3,574 Total $ 2,111 $ 3,354 $ 471 $ 951 $ 321 $ 283 $ 7,491 29 Arch Capital Group Ltd. and SubsidiariesComments on Non-GAAP Financial MeasuresThroughout 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 include, but are not limited to, 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 investments 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 return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on 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 return on 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 investments 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 investments 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 investments 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 12.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. Total return on investments includes investment income, equity in net income or loss of investments 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 return is 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 return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company s investment portfolio against benchmark returns during the periods presented. 30 Arch Capital Group Ltd. and SubsidiariesOperating Income Reconciliation and Annualized Operating Return on Average Common EquityThe 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 Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net income available to Arch common shareholders $ 1,047 $ 1,037 $ 1,228 $ 1,340 $ 1,227 $ 2,084 $ 1,791 Net realized (gains) losses (1) 17 87 (22) (210) (229) 104 (232) Equity in net (income) of investments accounted for using the equity method (196) (160) (155) (134) (162) (356) (215) Net foreign exchange (gains) losses (10) (21) 6 7 88 (31) 115 Transaction costs and other 32 18 26 21 18 50 28 Income tax expense (benefit) (2) 3 (60) 9 18 37 (57) 79 After-tax operating income available to Arch common shareholders $ 893 $ 901 $ 1,092 $ 1,042 $ 979 $ 1,794 $ 1,566 Diluted per common share results Net income available to Arch common shareholders $ 3.00 $ 2.88 $ 3.35 $ 3.56 $ 3.23 $ 5.88 $ 4.70 Net realized (gains) losses (1) 0.05 0.24 (0.06) (0.56) (0.60) 0.29 (0.61) Equity in net (income) of investments accounted for using the equity method (0.56) (0.44) (0.42) (0.36) (0.43) (1.00) (0.57) Net foreign exchange (gains) losses (0.03) (0.06) 0.02 0.02 0.23 (0.09) 0.30 Transaction costs and other 0.09 0.05 0.07 0.06 0.05 0.14 0.08 Income tax expense (benefit) (2) 0.01 (0.17) 0.02 0.05 0.10 (0.16) 0.21 After-tax operating income available to Arch common shareholders $ 2.56 $ 2.50 $ 2.98 $ 2.77 $ 2.58 $ 5.06 $ 4.11 Weighted average common shares and common share equivalents outstanding - diluted 348.8 359.7 366.6 376.1 379.9 354.2 380.8 Beginning common shareholders equity $ 23,358 $ 23,376 $ 22,889 $ 22,211 $ 20,715 $ 23,376 $ 19,990 Ending common shareholders equity 23,200 23,358 23,376 22,889 22,211 23,200 22,211 Average common shareholders equity $ 23,279 $ 23,367 $ 23,133 $ 22,550 $ 21,463 $ 23,288 $ 21,101 Annualized net income return on average common equity 18.0 % 17.8 % 21.2 % 23.8 % 22.9 % 17.9 % 17.0 % Annualized operating return on average common equity 15.3 % 15.4 % 18.9 % 18.5 % 18.2 % 15.4 % 14.8 % (1) Net realized gains or losses include, but are not limited to, 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.(2) Income tax expense (benefit) on net realized gains or losses, equity in net income of investments 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. 31 Arch Capital Group Ltd. and SubsidiariesOperating Income and Effective Tax Rate CalculationsThe following table provides a reconciliation of income (loss) before income taxes to after-tax operating income (loss) available to Arch common shareholders and an analysis of the effective tax rate on pre-tax operating income (loss) available to Arch common shareholders (U.S. Dollars in millions) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Arch Operating Income Components Income (loss) before income taxes and income (loss) from operating affiliates $ 1,175 $ 1,109 $ 1,387 $ 1,503 $ 1,411 $ 2,284 $ 2,089 Net realized (gains) losses 17 87 (22) (210) (229) 104 (232) Equity in net (income) of investments accounted for using the equity method (196) (160) (155) (134) (162) (356) (215) Net foreign exchange (gains) losses (10) (21) 6 7 88 (31) 115 Transaction costs and other 32 18 26 21 18 50 28 Income (loss) from operating affiliates 46 36 61 62 40 82 57 Pre-tax operating income available to Arch (b) 1,064 1,069 1,303 1,249 1,166 2,133 1,842 Income tax (expense) benefit (a) (161) (158) (201) (197) (177) (319) (256) After-tax operating income available to Arch 903 911 1,102 1,052 989 1,814 1,586 Preferred dividends (10) (10) (10) (10) (10) (20) (20) After-tax operating income available to Arch common shareholders $ 893 $ 901 $ 1,092 $ 1,042 $ 979 $ 1,794 $ 1,566 Effective tax rate on pre-tax operating income (loss) available to Arch (a) (b) 15.1 % 14.8 % 15.4 % 15.8 % 15.2 % 15.0 % 13.9 % 32 Arch Capital Group Ltd. and SubsidiariesCapital Structure and Share Repurchase ActivityThe following table provides an analysis of the Company s capital structure (U.S. Dollars and shares in millions, except per share data) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 Debt Arch 7.350% senior notes, due May 1, 2034 $ 300 $ 300 $ 300 $ 300 $ 300 Arch 5.250% senior notes, due June 15, 2036 600 Arch 3.635% senior notes, due June 30, 2050 1,000 1,000 1,000 1,000 1,000 Arch 5.950% senior notes, due June 15, 2056 1,400 Arch-U.S. 5.144% senior notes, due November 1, 2043 (1) 281 500 500 500 500 Arch Finance 4.011% senior notes, due December 15, 2026 (2) 500 500 500 500 500 Arch Finance 5.031% senior notes, due December 15, 2046 (2) 251 450 450 450 450 Deferred debt costs on senior notes (46) (21) (21) (22) (22) Revolving credit agreement borrowings, due August 23, 2028 Total debt $ 4,286 $ 2,729 $ 2,729 $ 2,728 $ 2,728 Shareholders equity available to Arch Series F non-cumulative preferred shares (5.45%) 330 330 330 330 330 Series G non-cumulative preferred shares (4.55%) 500 500 500 500 500 Common shareholders equity (a) 23,200 23,358 23,376 22,889 22,211 Total shareholders equity available to Arch $ 24,030 $ 24,188 $ 24,206 $ 23,719 $ 23,041 Total capital available to Arch $ 28,316 $ 26,917 $ 26,935 $ 26,447 $ 25,769 Common shares outstanding, net of treasury shares (b) 341.0 352.9 359.0 367.3 375.4 Book value per common share (3) (a) (b) $ 68.04 $ 66.19 $ 65.11 $ 62.32 $ 59.17 Leverage ratios Senior notes total capital available to Arch 15.1 % 10.1 % 10.1 % 10.3 % 10.6 % Revolving credit agreement borrowings total capital available to Arch % % % % % Debt total capital available to Arch 15.1 % 10.1 % 10.1 % 10.3 % 10.6 % Preferred total capital available to Arch 2.9 % 3.1 % 3.1 % 3.1 % 3.2 % Debt and preferred total capital available to Arch 18.1 % 13.2 % 13.2 % 13.5 % 13.8 % (1) Issued by Arch Capital Group (U.S.) Inc. ( Arch-U.S. ), a wholly owned subsidiary of Arch, and fully and unconditionally guaranteed by Arch.(2) Issued by Arch Capital Finance LLC ( Arch Finance ), a wholly owned subsidiary of Arch U.S. MI Holdings Inc., and fully and unconditionally guaranteed by Arch.(3) Excludes the effects of stock options, restricted and performance stock units outstanding.The following table provides the impact of share repurchases under the Company s share repurchase program (U.S. Dollars and shares in millions, except per share data) Three Months Ended Cumulative June 30, March 31, December 31, September 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 Effect of share repurchases Aggregate cost of shares repurchased $ 1,165.8 $ 783.0 $ 797.9 $ 732.3 $ 163.2 $ 9,731.8 Shares repurchased 12.4 8.3 8.9 8.2 1.9 475.7 Average price per share repurchased $ 94.38 $ 94.01 $ 90.04 $ 88.82 $ 87.94 $ 20.46 Remaining share repurchase authorization (1) $ 2,158.2 (1) Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions. On April 19, 2026, the Company increased its authorization for its existing share repurchase program by $3.0 billion. 33