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Jun 30, 2025
Arch Capital Q2 2025 Earnings Report
Arch Capital reported strong earnings in Q2 2025 with $1.2 billion in net income and solid contributions from its reinsurance and mortgage segments.
Key Takeaways
Arch Capital delivered robust Q2 2025 results, achieving $1.2 billion in net income and $979 million in operating income. The reinsurance and mortgage segments saw strong underwriting income, while overall underwriting and investment income contributed positively despite catastrophe losses.
Net income reached $1.227 billion, or $3.23 per diluted share.
After-tax operating income was $979 million, or $2.58 per share.
Combined ratio excluding catastrophic activity and prior year development was 80.9%.
Total underwriting income reached $818 million, led by reinsurance and mortgage segments.
Revenue by Segment
Forward Guidance
Arch Capital remains optimistic with a focus on disciplined underwriting and growth in core segments, while noting headwinds from foreign exchange volatility and regulatory impacts.
Positive Outlook
- Solid underwriting profitability across all segments
- Reinsurance segment grew premiums and maintained a low combined ratio
- Stable mortgage insurance performance with favorable reserve development
- Strong investment returns driven by market performance
- Continued capital return through share repurchases
Challenges Ahead
- Foreign exchange losses of $88 million impacted results
- Higher underwriting loss ratio in the insurance segment due to MCE acquisition
- Lower premiums in the mortgage segment reflecting market conditions
- Slightly higher expense ratios in reinsurance and mortgage segments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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