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Sep 30, 2025
Arch Capital Q3 2025 Earnings Report
Arch Capital reported strong Q3 2025 results, with record operating income and robust underwriting profitability across all segments.
Key Takeaways
Arch Capital delivered a solid performance in Q3 2025, posting $1.34 billion in net income and $1.04 billion in operating income, supported by improved underwriting income and lower catastrophe losses.
Net income rose to $1.34 billion, with EPS of $3.56, driven by favorable underwriting and investment results.
Operating income hit $1.04 billion, with strong contributions from reinsurance and mortgage segments.
Loss ratio decreased significantly year-over-year to 51.4%, reflecting lower catastrophic losses.
Combined ratio improved to 79.8%, with all three segments posting underwriting profits.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Arch Capital is optimistic about sustained performance as market conditions remain favorable, with strong underwriting discipline and investment results expected to continue supporting profitability.
Positive Outlook
- Reinsurance segment delivered a 76.1% combined ratio with strong underwriting income.
- Insurance segment benefited from the full impact of the MCE Acquisition.
- Favorable development of prior year reserves across all segments.
- Investment income increased to $408 million, aided by strong cash flows.
- Book value per share increased 5.3% sequentially to $62.32.
Challenges Ahead
- Insurance underwriting expense ratio increased due to integration and acquisition effects.
- Net premiums written in reinsurance declined due to fewer large transactions.
- Mortgage segment saw a drop in earned premiums amid softer U.S. volume.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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