Arch Capital Reports Strong Q3 2025 Financial Results

Arch Capital ( (ACGL) ) has released its Q3 earnings. Here is a breakdown of the information Arch Capital presented to its investors.

Arch Capital Group Ltd., a Bermuda-based company listed on NASDAQ, operates in the insurance, reinsurance, and mortgage insurance sectors globally through its subsidiaries.

Arch Capital Group Ltd. reported strong financial results for the third quarter of 2025, with significant increases in net income and operating income compared to the same period last year. The company highlighted a favorable environment with fewer natural catastrophes, contributing to its robust performance.

Key financial metrics for the quarter included a net income of $1.3 billion, or $3.56 per share, marking a 23.8% annualized return on average common equity. The after-tax operating income was $1.0 billion, or $2.77 per share, showing an 18.5% return on average common equity. The company also reported a combined ratio of 79.8%, reflecting improved underwriting results. Notably, Arch Capital repurchased approximately $732 million in shares, and its book value per common share rose by 5.3% to $62.32.

The insurance segment saw a 9.7% increase in gross premiums written, driven by the acquisition of U.S. MidCorp and Entertainment insurance businesses. The reinsurance segment experienced a decline in gross premiums written but improved its underwriting income significantly. Meanwhile, the mortgage segment reported a slight decrease in gross premiums written but maintained a low combined ratio, indicating strong profitability.

Looking ahead, Arch Capital remains optimistic about its ability to deliver strong financial results, supported by a stable market environment and strategic initiatives. The management expressed confidence in continuing to enhance shareholder value through disciplined underwriting and strategic growth opportunities.