Arch Capital Group Ltd. (ACGL), the Bermuda-based insurer, posted net income available to common shareholders of $1.0 billion, or $3.00 a share, for the three months ended June 30, 2026, down from $1.2 billion, or $3.23 a share, a year earlier, with annualized net income return on average common equity at 18.0% versus 22.9%.

After-tax operating income available to Arch common shareholders was $893 million, or $2.56 a share, versus $979 million, or $2.58 a share, a year earlier, with annualized operating return on average common equity at 15.3% versus 18.2%.

Consolidated underwriting income fell 19.7% to $657 million from $818 million a year earlier. The combined ratio rose 2.3 points to 83.5% from 81.2%, and the combined ratio excluding catastrophic activity and prior-year development rose 1.6 points to 82.5% from 80.9%.

Gross premiums written were $6.126 billion, down 1.1% from $6.196 billion a year earlier. Net premiums written fell 6.9% to $4.049 billion from $4.348 billion, and net premiums earned fell 8.1% to $3.985 billion from $4.337 billion.

The insurance segment was the inflection point. Underwriting income there fell 79.1% to $27 million from $129 million a year earlier. The combined ratio rose 5.1 points to 98.5% from 93.4%, and the combined ratio excluding catastrophic activity and prior-year development rose 1.0 point to 91.6% from 90.6%.

Insurance gross premiums written were $2.603 billion, down 2.9% from $2.681 billion. Net premiums written fell 5.1% to $1.933 billion from $2.036 billion, and net premiums earned fell 4.5% to $1.880 billion from $1.969 billion. Adjusting for non-renewal of certain programs related to the MCE Acquisition, net premiums written would have decreased 1.8%.

The insurance loss ratio rose 3.2 points to 63.0% from 59.8%, reflecting 7.6 points of current-year catastrophic activity versus 2.9 points a year earlier and 1.4 points of net favorable prior-year development versus 0.4 points. The underwriting expense ratio rose 1.9 points to 35.5% from 33.6%. The 2026 second-quarter ratio reflected transitional expenses associated with the MCE Acquisition and a lower level of net premiums earned.

Pre-tax current accident year catastrophic losses for the insurance and reinsurance segments, net of reinsurance and reinstatement premiums, were $201 million, versus $174 million in the prior quarter. Favorable development in prior-year loss reserves, net of related adjustments, was $165 million, versus $200 million in the prior quarter.

Reinsurance underwriting income fell 9.1% to $410 million from $451 million a year earlier. The combined ratio improved 1.0 point to 77.5% from 78.5%, while the combined ratio excluding catastrophic activity and prior-year development rose 2.7 points to 79.9% from 77.2%.

Reinsurance gross premiums written were $3.202 billion, up 0.2% from $3.196 billion. Net premiums written fell 10.4% to $1.844 billion from $2.059 billion, and net premiums earned fell 12.8% to $1.820 billion from $2.087 billion, due in part to non-renewals, share reductions and targeted increased retrocessions.

The reinsurance loss ratio rose 0.5 point to 54.6% from 54.1%, reflecting 3.0 points of current-year catastrophic activity versus 5.5 points a year earlier and 5.3 points of net favorable prior-year development versus 3.9 points. The underwriting expense ratio fell 1.5 points to 22.9% from 24.4%, with the decrease primarily reflecting higher profit commissions on retrocessions.

Mortgage underwriting income fell 7.6% to $220 million from $238 million a year earlier. The combined ratio rose 7.6 points to 22.8% from 15.2%, and the combined ratio excluding prior-year development rose 0.5 point to 39.8% from 39.3%.

Mortgage gross premiums written were $324 million, up 0.3% from $323 million, with growth in international business offset by a reduction in U.S. monthly premium volume. Net premiums written rose 7.5% to $272 million from $253 million, reflecting termination of certain Bellemeade and quota share agreements on U.S. primary business, and net premiums earned rose 1.4% to $285 million from $281 million.

The mortgage loss ratio rose 7.7 points to 6.5% from (1.2)%, with net favorable prior-year development reducing the loss ratio by 15.7 points versus 22.8 points a year earlier. The underwriting expense ratio was 16.3% versus 16.4%.

Pre-tax net investment income rose to $417 million, or $1.20 a share, from $405 million, or $1.07 a share, a year earlier. Equity in net income of investments accounted for using the equity method was $196 million, or $0.56 a share, versus $162 million, or $0.43 a share.

Pre-tax investment income yield at amortized cost declined to 3.91% from 4.25% a year earlier, and total return on investments was 1.62% versus 3.09%.

Net realized losses were $17 million, compared with net realized gains of $229 million a year earlier. Corporate expenses were $12 million versus $29 million, and amortization of intangible assets was $30 million versus $48 million.

On June 9, 2026, the company completed a $2.0 billion public offering of senior notes ($600 million of 5.250% notes due 2036 and $1.4 billion of 5.950% notes due 2056), and on June 16, 2026, completed cash tender offers repurchasing $218.7 million of 5.144% notes due 2043 and $199.1 million of 5.031% notes due 2046, producing a $16 million pre-tax realized gain. Interest expense was $44 million versus $38 million a year earlier.

Share repurchases were $1.2 billion, versus $783 million in the prior quarter. Book value per common share was $68.04 at June 30, 2026, a 2.8% increase from $66.19 at March 31, 2026.