Dec 31, 2024

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

Arch Capital

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.