Mar 31

Arch Capital Q1 2025 Earnings Report

Arch Capital Group Ltd. reported its 2025 first quarter results.

Key Takeaways

Arch Capital Group Ltd. reported solid results this quarter despite losses from California wildfires. The annualized operating return on equity was 11.5%.

Net income available to Arch common shareholders of $564 million, or $1.48 per share

After-tax operating income available to Arch common shareholders of $587 million, or $1.54 per share

Pre-tax current accident year catastrophic losses for the Company's insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $547 million

Combined ratio excluding catastrophic activity and prior year development of 81.0%

Total Revenue
$4.19B
Previous year: $3.84B
+9.0%
EPS
$1.54
Previous year: $2.45
-37.1%
Loss ratio
61.8%
Combined ratio
90.1%
Combined ratio excl. cat/PYD
81%

Arch Capital

Arch Capital

Arch Capital Revenue by Segment

Forward Guidance

We delivered solid results this quarter despite the losses arising from the California wildfires, resulting in an annualized operating return on equity of 11.5%.

Positive Outlook

  • Although the market has generally become more competitive, we remain optimistic about our prospects to deliver long-term shareholder value.
  • For a company with a strong underwriting culture like Arch, this is a market where we can stand out.