Arch Capital Group has reported net income available to common shareholders of $1.0bn for the third quarter of 2026, or $3.00 per share, compared with $1.3bn, or $3.56 per share, a year earlier. The annualised net income return on average common equity was 18.1%.
After-tax operating income available to common shareholders, a non-GAAP measure, was $910m, or $2.67 per share, against $1.0bn, or $2.77 per share, in the third quarter of 2025. The annualised operating return on average common equity was 16.0%.
Gross premiums written were $5,391m, down 0.4% from $5,410m, and net premiums written fell 3.0% to $3,845m. Underwriting income, a non-GAAP measure, was $702m, down 19.4% from $871m.
The combined ratio was 82.5%, compared with 79.8% a year earlier. Excluding catastrophic activity and prior year development, the combined ratio was 81.2%, against 80.5%. The loss ratio was 55.0%, compared with 51.4%, and the underwriting expense ratio was 27.5%, compared with 28.4%.
The quarter included pre-tax current accident year catastrophic losses, net of reinsurance and reinstatement premiums, of $234m, and favourable development in prior year loss reserves of $179m. Arch repurchased $1.4bn of shares in the quarter. Book value per common share was $67.90 at 30 September 2026, a 0.2% decrease from 30 June.
"We delivered a strong quarter, driven by solid underwriting performance across our three segments and continued strength from our investment portfolio," said Arch CEO Nicolas Papadopoulo. "We are operating in a transitioning market where conditions are increasingly uneven, but we are prepared and welcome the challenge. The market will continue to evolve, but our core principles will not, and we remain focused on producing superior risk-adjusted returns over the long term."
Arch Capital Group is a Bermuda-based company writing insurance, reinsurance, and mortgage insurance through its three segments.
