Arch Capital Reports Q1 2025 Earnings: Resilient Performance Despite Wildfire Losses

Arch Capital Group reported Q1 2025 net income of $564 million, or $1.48 per share, down from $1.1 billion a year earlier. After-tax operating income stood at $587 million ($1.54 per share), yielding an annualized operating ROE of 11.5%. Results were impacted by $547 million in pre-tax catastrophe losses, primarily from California wildfires, though these were partially offset by $167 million in favorable reserve development.

The combined ratio rose to 90.1% from 78.8% in Q1 2024, largely due to elevated loss ratios in the insurance (66.0%) and reinsurance (66.9%) segments. The mortgage segment maintained strong profitability with a combined ratio of 16.1%. Net investment income was $378 million, with book value per share rising 3.8% to $55.15. Arch also repurchased $196 million of shares during the quarter.

Despite increased market competition and catastrophe activity, Arch emphasized its underwriting discipline and long-term value creation potential.

On February 4, 2025, Arch Capital Group Ltd. (ACGL) announced that its Board of Directors appointed Alexander Moczarski as a Class III director, effective immediately. Mr. Moczarski has not been assigned to any Board committees at this time. There are no arrangements or understandings related to his selection as a director, and he is not involved in any material transactions with ACGL. Mr. Moczarski will receive the same compensation as other non-employee directors, which includes cash and equity. For further details on the compensation, refer to the 2024 Annual General Meeting of Shareholders proxy statement.