Arch Capital Group Ltd (ACGLN) Q3 2025 Earnings Report

Arch Capital Group Ltd reported a record quarter for Q3 2025, delivering after-tax operating income per share of $2.77 and net income per share of $3.63 (non-diluted) driven by robust performance across all three segments: Property & Casualty Insurance, Reinsurance, and Mortgage. Management highlighted a 23.8% annualized net income return on average common equity and a quarterly book value per share increase of 5.3%, underscoring the effectiveness of Arch's diversified platform and capital-generating capabilities. The consolidated quarter featured a strong 79.8% combined ratio, with ex-cat margins notably healthy at 80.5% across the three segments, reflecting disciplined underwriting and favorable catastrophe activity. Investable assets reached $46.7 billion, and net investment income posted a quarterly record of $408 million, contributing to broadly stable earnings and cash generation despite market cyclicality. Arch also reinforced its capital deployment framework by buying back $732 million of shares in the quarter, signaling an active approach to returning capital while maintaining a robust balance sheet to pursue attractive underwriting opportunities.

Management emphasized a long-term, playbook-based strategy to allocate capital to high-return opportunities, pursue profitable growth, and optimize renewals that meet return thresholds. While near-term market pricing remains soft in some lines, the company expects to grow premium income in a way that outpaces the overall market through selective rate actions in casualty, disciplined risk selection, and a targeted expansion in middle-market and specialist lines. The quarters ahead will hinge on macro dynamics, regulatory developments (including Bermuda tax-related considerations), and potential event risk from hurricanes, but Arch positioned itself with a strong capital base and disciplined capital return cadence.