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Arch Capital Group (ACGL) FY2025 results: revenue $19.9 billion, up 14.3% on the year

Arch Capital Group Ltd. (ACGL) reported revenue of $19.9 billion for fiscal 2025, the year ended 31 December 2025, up 14.3% on the year before. Net income was $4.4 billion, up 2.0%, and diluted earnings per share $11.60. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2026.

Revenue
$19.9 billion
+14.3% on the year
FY2018FY2025
Operating margin
25.0%
25.7% a year earlier
FY2018FY2025
Net income
$4.4 billion
+2.0% on the year
FY2018FY2025
Diluted EPS
$11.60
+3.7% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Net income rose to $1.2 billion: Net income available to common shareholders was $1.2 billion, or $3.35 per diluted share, against $925 million, or $2.42, a year earlier. Annualized return on average common equity was 21.2%, against 17.9%.
  • After-tax operating income reached $1.1 billion: After-tax operating income available to common shareholders was $1.1 billion, or $2.98 per diluted share, against $866 million, or $2.26. Annualized operating return on average common equity was 18.9%, against 16.7%.
  • Insurance premiums grew gross, shrank net: Insurance gross premiums written rose 2.3% and net premiums written fell 4.0%. Underwriting income was $119 million, against $30 million a year earlier, with the combined ratio at 94.0%, against 98.5%.
  • Insurance catastrophe loss ratio fell: Current year catastrophe activity added 3.3 points to the insurance loss ratio, against 8.3 points a year earlier. Insurance combined ratio excluding catastrophes and prior year development was 90.8%, against 90.3%.
  • Combined ratio ex-catastrophe edged higher: Combined ratio excluding catastrophic activity and prior year development was 79.5%, against 79.0% a year earlier. Consolidated underwriting income was $827 million, against $625 million.
Read the Q4 FY2025 earnings call summary

From this 10-K

Arch Capital is a Bermuda company that writes insurance, reinsurance and mortgage insurance around the world through wholly owned subsidiaries, and focuses on writing specialty lines. It was formed in September 2000 and launched its underwriting business in October 2001. Its registered office is in Hamilton and its executive offices are in Pembroke, Bermuda.

Arch Capital Group Ltd., the 10-K for 2025

Arch Capital is a Bermuda company that writes insurance, reinsurance and mortgage insurance around the world through wholly owned subsidiaries, and focuses on writing specialty lines. It was formed in September 2000 and launched its underwriting business in October 2001. Its registered office is in Hamilton and its executive offices are in Pembroke, Bermuda.

Three books that behave differently

Arch reports three underwriting segments: insurance, reinsurance and mortgage. The first two are property and casualty. The third is not: the filing says the mortgage insurance market runs on a distinct underwriting cycle, with demand driven mainly by the housing market and general economic conditions, and that the mortgage group therefore gives the company a more diverse revenue stream.

The insurance book

Written in Bermuda, the United States, the United Kingdom, Europe, Canada and Australia. In the US the group writes specialty lines both on an admitted basis and as excess and surplus lines, through Arch Insurance, an admitted insurer in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam; Arch Specialty, an approved excess and surplus lines insurer in 50 states; and Arch Indemnity Insurance and Arch Wilsure, both admitted in 50 states. It also owns McNeil & Company, a specialist risk manager and program administrator in Cortland, New York, bought in 2018. The US support operations sit in Jersey City, with five regional underwriting offices in Alpharetta, Chicago, New York, San Francisco and Dallas.

On 1 August 2024 Arch bought Allianz's U.S. middle-market property and casualty business and its US entertainment insurance business. The filing calls the entertainment line a new niche for the group and says the deal enhanced its capabilities in the US middle market.

Outside the US, Arch Insurance Canada is authorised in every Canadian province and territory and sits in Toronto. Arch Insurance (EU), in Dublin, took over all the group's European Union business from the UK carrier in 2021 after Brexit and has branches in Italy, Spain, France, the Netherlands and the UK. The UK is written through Arch Insurance (UK) and two Lloyd's syndicates, 2012 and 1955, run by the group's own managing agency, which also acts as managing agent for third-party members of syndicate 1955.

Products reach the buyer through licensed independent retail and wholesale brokers, managing general agencies and program administrators. Arch has no commitment to accept business from any particular broker, and brokers cannot bind the group except where underwriting authority has been delegated by contract to a program administrator.

The reinsurance book

Conducted worldwide through Arch Re Bermuda, which is dual-licensed in Bermuda as a general business and a long-term insurer; Arch Re U.S. in Morristown, New Jersey, licensed or approved in 50 states and in Ontario and Quebec; the Lloyd's syndicates; and Arch Re Europe in Dublin. The group writes both proportional business, where it takes a set share of the original premium and losses, and non-proportional business, and both treaty and facultative. It operates primarily as a broker market reinsurer and says that, with tight control of its staffing, this keeps its operating costs low relative to its capital and premiums.

Mortgage insurance

Arch entered US mortgage insurance in 2014 and expanded it in December 2016 by buying United Guaranty. Two of its US carriers are approved as eligible mortgage insurers by Fannie Mae and Freddie Mac; a third insures loans that lenders intend to keep or place in non-agency securitisations, and is therefore not approved by either as an eligible mortgage insurer. The group also takes mortgage risk through Fannie Mae and Freddie Mac credit risk-sharing programmes, writes mortgage insurance in Europe and the UK through the Dublin carrier, and is a provider of lenders' mortgage insurance in Australia through a business bought from Westpac in 2021.

Stakes in other insurers

Arch holds 30 percent of Greysbridge, the parent of Somers, a multi-line Bermuda insurer and reinsurer with its own management and board; about 25 percent of Premia, which reinsures or acquires run-off property and casualty reserve portfolios; and 29.5 percent of Coface, the French trade credit insurer, bought from Natixis in 2021.

From Arch Capital's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 26 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue19,92917,44013,634+14.3%
Operating income4,9794,4743,385+11.3%
Operating margin25.0%25.7%24.8%
Interest expense148141133+5.0%
Pre-tax income5,1594,6743,570+10.4%
Income tax760362-873+109.9%
Effective tax rate14.7%7.7%-24.5%
Net income4,3994,3124,443+2.0%
Net margin22.1%24.7%32.6%
Diluted EPS$11.60$11.19$11.62+3.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow6,1726,6735,749-7.5%
Capital expenditure44.051.052.0-13.7%
Free cash flow6,1286,6225,697-7.5%
Free cash flow margin30.7%38.0%41.8%
Cash from investing-4,036-4,461-5,468
Cash from financing-1,890-1,925-69.0
Share-based compensation14813393.0+11.3%
Buybacks1,88924.00.0+7,770.8%
Dividend per share$5.00$5.00n/a0.0%
Diluted shares, weighted376m382m379m-1.5%
Shares outstanding at period end359m376m373m-4.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity24,20620,82018,353+16.3%
Redeemable equityn/a0.02.0
Debt2,7292,7282,726+0.0%
Other liabilities52,30647,35837,825+10.4%
Total liabilities and equity79,24170,90658,906+11.8%
Goodwill607571345+6.3%
Intangible assets534701316-23.8%
Securities held for sale or to maturity35,05129,81925,616+17.5%
Cash and equivalents993979917+1.4%
Other assets42,05638,83631,712+8.3%
Total assets79,24170,90658,906+11.8%

10-K for the year ended 31 December 2025, filed 26 February 2026: the filing.