Arch Capital Q4 2024 Earnings Report

Key Takeaways

Arch Capital Group Ltd. reported a strong Q4 2024 performance with net income of $925 million and after-tax operating income of $866 million. However, catastrophic losses of $393 million from Hurricanes Milton and Helene impacted results. The company repurchased $24 million in shares and paid a special dividend of $1.9 billion.

Total Revenue

$4.41B

Previous year: $3.87B

+13.7%

EPS

$2.26

Previous year: $2.49

-9.2%

Loss Ratio

57.5%

Previous year: 49%

+17.3%

Combined Ratio

85%

Previous year: 78.9%

+7.7%

Free Cash Flow

$1.56B

Total Assets

$60.2B

Previous year: $58.9B

+2.2%

Arch Capital Revenue

Arch Capital EPS

Arch Capital Revenue by Segment

Forward Guidance

Arch Capital remains optimistic about its growth prospects but acknowledges continued catastrophe risks and macroeconomic uncertainties.

Positive Outlook

Strong premium growth in insurance and reinsurance segments.
Resilient underwriting results despite catastrophe losses.
Continued expansion of new business opportunities.
Effective capital management, including share repurchases.
Strategic acquisitions, including Allianz U.S. MidCorp and Entertainment business, contributing to segment growth.

Challenges Ahead

Elevated catastrophe losses affecting profitability.
Potential market volatility impacting investment returns.
Ongoing macroeconomic uncertainties and inflationary pressures.
Regulatory changes in Bermuda's tax regime impacting financials.
Foreign exchange fluctuations impacting reported earnings.