Arch Capital Reports Mixed Q1 2025 Results Amid Challenges

Arch Capital ( (ACGL) ) has released its Q1 earnings. Here is a breakdown of the information Arch Capital presented to its investors.

Arch Capital Group Ltd., a Bermuda-based company listed on NASDAQ, operates in the insurance, reinsurance, and mortgage insurance sectors globally, known for its strong underwriting culture.

In the first quarter of 2025, Arch Capital reported a net income of $564 million, or $1.48 per share, marking a decrease from the previous year’s $1.1 billion. Despite facing significant losses from the California wildfires, the company maintained an annualized operating return on equity of 11.5%.

Key financial metrics showed mixed results, with gross premiums written increasing by 8.9% to $6.463 billion and net premiums written rising by 10.5%. However, underwriting income fell by 43.3% to $417 million, and the combined ratio increased to 90.1% from 78.8% the previous year, primarily due to catastrophic losses. The company also repurchased shares worth $196 million, and its book value per share rose by 3.8% to $55.15.

Looking ahead, Arch Capital remains optimistic about its ability to deliver long-term shareholder value, despite a competitive market environment. The management’s focus on leveraging its strong underwriting capabilities is expected to help the company navigate future challenges effectively.