Arch earns $1.03bn in the third quarter as reinsurance premiums fall 8% and insurance grows 7.8%

Arch Capital Group reported net income available to common shareholders of $1,025m, or $3.00 a diluted share, for the third quarter of 2026, against $1,340m, or $3.56, a year earlier. After-tax operating income fell to $910m from $1,042m. The annualised net income return on average common equity was 18.1%, down from 23.8%.

The group combined ratio rose to 82.5% from 79.8%. Current accident year catastrophe losses were $234m, net of reinsurance and reinstatement premiums, and favourable prior-year reserve development, net of related adjustments, was $179m. Excluding both items, the combined ratio was 81.2%, compared with 80.5% a year before.

The segments moved in opposite directions. Insurance gross premiums written rose 7.8% to $2,766m, with net written premiums up 2.7% to $2,006m. Reinsurance gross written premiums fell 8.0% to $2,313m and net written premiums 9.3% to $1,576m. Mortgage gross written premiums declined 4.2% to $316m. In total, gross written premiums were $5,391m, down 0.4%, and net written premiums fell 3.0% to $3,845m.

Arch repurchased $1.4bn of its shares during the quarter. Book value per common share was $67.90 at 30 September, 0.2% lower than at 30 June. Chief executive Nicolas Papadopoulo said the quarter was driven by "solid underwriting performance across our three segments".