ARCH CAPITAL GROUP LTD. Q1 FY26 Results

Summary

Arch Capital Group Ltd. delivered a strong performance in the first quarter of 2026, with net income available to common shareholders soaring by 83.9% to $1.0 billion, or $2.88 per share. After-tax operating income also saw a substantial increase of 53.5% to $901 million, or $2.50 per share, reflecting a 15.4% annualized operating return on average common equity. The company achieved a robust combined ratio of 81.7%, an 8.4 percentage point improvement year-over-year, driven by a significant 74.6% rise in underwriting income to $728 million. CEO Nicolas Papadopoulo highlighted the excellent start to the year, attributing the results to disciplined underwriting and capital allocation, which continue to differentiate Arch and position it for best-in-class returns.

Key Highlights

1. 1

   Net income available to Arch common shareholders surged by 83.9% to $1.0 billion, or $2.88 per share, for the first quarter of 2026, compared to $564 million, or $1.48 per share, in the prior year's first quarter.

2. 2

   After-tax operating income available to common shareholders increased by 53.5% to $901 million, or $2.50 per share, for Q1 2026, up from $587 million, or $1.54 per share, in Q1 2025.

3. 3

   The Company reported a strong combined ratio of 81.7% for the first quarter of 2026, an improvement of 8.4 percentage points from 90.1% in the same period last year.

4. 4

   Underwriting income saw a significant increase of 74.6% to $728 million in Q1 2026, compared to $417 million in the 2025 first quarter.

5. 5

   Book value per common share rose by 1.7% to $66.19 at March 31, 2026, from December 31, 2025.

6. 6

   Arch repurchased $783 million of its shares during the first quarter of 2026.

7. 7

   Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments were $174 million, alongside $200 million in favorable development in prior year loss reserves.