Arch Capital Q3 Net Income $1.0B; EPS $3.00 vs $3.56 YoY
Arch Capital Group Ltd. announced its third quarter 2026 results, reporting a net income of $1.0 billion, or $3.00 per share, a decrease from $1.3 billion, or $3.56 per share, in the same quarter last year. The company also noted a decrease in after-tax operating income to $910 million ($2.67 per share) from $1.0 billion ($2.77 per share) in Q3 2025. Despite a higher combined ratio of 82.5% (81.2% excluding catastrophe and prior year development), the company executed $1.4 billion in share repurchases. The results were impacted by $234 million in pre-tax catastrophic losses, partially offset by $179 million in favorable prior year loss reserve development.
Key Highlights
- Arch Capital Group Ltd. reported Q3 2026 net income of $1.0 billion, or $3.00 per share, down from $1.3 billion, or $3.56 per share, in Q3 2025.
- After-tax operating income available to common shareholders was $910 million ($2.67 per share) for Q3 2026, compared to $1.0 billion ($2.77 per share) in Q3 2025.
- The company reported pre-tax catastrophic losses of $234 million and favorable development in prior year loss reserves of $179 million for Q3 2026.
- Combined ratio for Q3 2026 was 82.5%, compared to 79.8% in Q3 2025. Excluding catastrophe and prior year development, the combined ratio was 81.2% vs. 80.5%.
- Share repurchases totaled $1.4 billion in Q3 2026.
- Book value per common share decreased by 0.2% to $67.90 from June 30, 2026 to September 30, 2026.
- Insurance segment underwriting income decreased 16.3% to $108 million, while Reinsurance segment underwriting income decreased 18.5% to $393 million.
- Mortgage segment underwriting income decreased 22.7% to $201 million.
Price Impact
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