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Sep 30, 2023

Arch Capital Q3 2023 Earnings Report

Arch Capital reported strong third-quarter results driven by excellent underwriting performance and improved investment returns.

Key Takeaways

Arch Capital Group Ltd. reported a net income of $713 million, or $1.88 per share, and an after-tax operating income of $876 million, or $2.31 per share, for the third quarter of 2023. The company's performance was boosted by strong underwriting results across its insurance, reinsurance, and mortgage segments, as well as improved investment returns.

Net income available to Arch common shareholders was $713 million, or $1.88 per share.

After-tax operating income available to Arch common shareholders was $876 million, or $2.31 per share.

The combined ratio excluding catastrophic activity and prior year development was 77.0%.

Book value per common share was $38.62 at September 30, 2023, a 4.3% increase from June 30, 2023.

Total Revenue
$3.25B
Previous year: $2.47B
+31.4%
EPS
$2.31
Previous year: $0.28
+725.0%
Loss Ratio
50.7%
Previous year: 68.1%
-25.6%
Combined Ratio
77.9%
Previous year: 97.3%
-19.9%
Gross Profit
$2.96B
Previous year: $2.19B
+34.8%
Cash and Equivalents
$859M
Previous year: $814M
+5.6%
Free Cash Flow
$1.96B
Total Assets
$46B
Previous year: $46.3B
-0.8%

Arch Capital

Arch Capital

Arch Capital Revenue by Segment

Forward Guidance

The report does not contain specific forward guidance. It highlights strong underwriting performance and growth in net premiums written.

Positive Outlook

  • Not Applicable

Challenges Ahead

  • Not Applicable

Revenue & Expenses

Visualization of income flow from segment revenue to net income