Arch Capital Group
Annual Report 2024

Arch Capital Group Ltd.
2024 ANNUAL REPORT

GROSS PREMIUMS WRITTEN
$21.5B
NET LOSS RESERVES
$21.5B
FINANCIAL HIGHLIGHTS
©2025 Arch Capital Group Ltd. All rights reserved.
Growth in Book Value per Common Share + Common Dividends
* We use non-GAAP financial measures in this report. The first mention of each non-GAAP financial measure is referenced by an asterisk (*). See Additional Information for a reconciliation to the most 
comparable GAAP financial measures.
† Annualized growth rate from Dec. 31, 2001 to Dec. 31, 2024. Excludes the effects of stock options, restricted and performance stock units outstanding.
(Amounts in U.S. $ million, except percentages and per share data)
2024
2023
Change
Book value per common share at year end
$53.11
$46.94
13.1%
Net income available to common shareholders
$4,272
$4,403
-3.0%
   Per share
$11.19 
$11.62 
-3.7%
Annualized net income return on average common equity
22.8%
29.7%
Gross premiums written
$21,511 
$18,403 
16.9%
Underwriting income*
$2,661 
$2,612 
1.9%
After-tax operating income*
$3,542
$3,201
10.7%
   Per share*
$9.28
$8.45
9.8%
Annualized operating return on average common equity*
18.9%
21.6%
TOTAL CAPITALIZATION
$23.5B
TOTAL ASSETS
$70.9B

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K 
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______to _______
Commission File No. 001-16209
ARCH CAPITAL GROUP LTD. 
 (Exact name of registrant as specified in its charter)
Bermuda
98-0374481
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
Waterloo House, Ground Floor
100 Pitts Bay Road, Pembroke HM 08, Bermuda
(441)
278-9250
(Address of principal executive offices)
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
Trading Symbol (s)
Name of each exchange on 
which registered
Common Shares, $0.0011 par value per share
ACGL
Nasdaq
Stock Market
Depositary shares, each representing a 1/1,000th interest in a 5.45% Series F preferred share
ACGLO
Nasdaq
Stock Market
Depositary shares, each representing a 1/1,000th interest in a 4.55% Series G preferred share
ACGLN
Nasdaq
Stock Market
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. 
Yes ☐ 
 No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during 
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to 
Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was 
required to submit such files). Yes ☑ No ☐ 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting 
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” 
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated Filer ☑  Accelerated Filer ☐  Non-accelerated Filer ☐  Smaller reporting company ☐  Emerging Growth Company ☐ 
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying 
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant 
included in the filing reflect the correction of an error to previously issued financial statements. ☐ 
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based 
compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
The aggregate market value of the voting and non-voting common equity held by non-affiliates, computed by reference to the closing 
price as reported by the Nasdaq Stock Market as of the last business day of the Registrant’s most recently completed second fiscal 
quarter, was approximately $36.6 billion.
As of February 21, 2025, there were 375,357,236 of the registrant’s common shares outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Part III incorporate by reference our definitive proxy statement for the 2025 annual meeting of shareholders to be filed with the 
Securities and Exchange Commission pursuant to Regulation 14A within 120 days after December 31, 2024.

ARCH CAPITAL GROUP LTD.
TABLE OF CONTENTS
Item
Page
PART I
ITEM 1.
BUSINESS
3
ITEM 1A.
RISK FACTORS 
43
ITEM 1B.
UNRESOLVED STAFF COMMENTS
63
ITEM 1C.
CYBERSECURITY
63
ITEM 2.
PROPERTIES
64
ITEM 3.
LEGAL PROCEEDINGS
65
ITEM 4.
MINE SAFETY DISCLOSURES
65
PART II
ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER 
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
65
ITEM 6.
[RESERVED]
66
ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS
67
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
98
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
99
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING 
AND FINANCIAL DISCLOSURE
171
ITEM 9A.
CONTROLS AND PROCEDURES
171
ITEM 9B.
OTHER INFORMATION
172
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT 
INSPECTIONS
172
PART III
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
172
ITEM 11.
EXECUTIVE COMPENSATION
172
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT 
AND RELATED STOCKHOLDER MATTERS
173
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR 
INDEPENDENCE
173
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
173
PART IV
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
174
ITEM 16.
FORM 10-K SUMMARY
185

Cautionary Note Regarding Forward-Looking Statements 
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This 
report or any other written or oral statements made by or on behalf of us may include forward-looking statements, which reflect 
our current views with respect to future events and financial performance. All statements other than statements of historical fact 
included in or incorporated by reference in this report are forward-looking statements. Forward-looking statements, for 
purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” 
“will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-
looking nature or their negative or variations or similar terminology.
Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ 
materially from those expressed or implied in these statements. Important factors that could cause actual events or results to 
differ materially from those indicated in such statements are discussed below and elsewhere in this report and in our periodic 
reports filed with the Securities and Exchange Commission (“SEC”), and include:
•
our ability to successfully implement our business strategy during “soft” as well as “hard” markets;
•
acceptance of our business strategy, security and financial condition by rating agencies and regulators, as well as by brokers 
and our insureds and reinsureds;
•
our ability to consummate acquisitions and integrate the business we have acquired or may acquire into our existing 
operations;
•
our ability to maintain or improve our ratings, which may be affected by our ability to raise additional equity or debt 
financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein;
•
general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency 
exchange rates, prevailing credit terms, tariffs and the depth and duration of a recession) and conditions specific to the 
reinsurance and insurance markets in which we operate;
•
competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), 
coverage terms, or other factors;
•
developments in the world’s financial and capital markets and our access to such markets;
•
our ability to successfully enhance, integrate and maintain operating procedures (including information technology) to 
effectively support our current and new business;
•
the loss and addition of key personnel;
•
material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements;
•
accuracy of those estimates and judgments utilized in the preparation of our financial statements, including those related to 
revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad 
debts, income taxes, deferred income tax assets, contingencies and litigation, and any determination to use the deposit 
method of accounting;
•
greater than expected loss ratios on business written by us and adverse development on claim and/or claim expense 
liabilities related to business written by our insurance, reinsurance and mortgage subsidiaries;
•
the adequacy of the Company’s loss reserves;
•
severity and/or frequency of losses;
•
greater frequency or severity of unpredictable natural and man-made catastrophic events;
•
claims for natural or man-made catastrophic events or severe economic events in our insurance, reinsurance and mortgage 
businesses could cause large losses and substantial volatility in our results of operations;
•
availability to us of reinsurance to manage our net exposure and the cost of such reinsurance;
•
the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to us;
•
the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by us;
ARCH CAPITAL
1
2024 FORM 10-K

•
our investment performance, including legislative or regulatory developments that may adversely affect the fair value of our 
investments;
•
changes in general economic conditions, including sovereign debt concerns or downgrades of U.S. securities by credit rating 
agencies, which could affect our business, financial condition and results of operations;
•
an incident, disruption in operations or other cyber event caused by a cyber attack, inadvertent error, the use of artificial 
intelligence technologies or other technology on our systems or those of our business partners and service providers, which 
could negatively impact our business and/or expose us to litigation;
•
the effect of climate change on our business;
•
the effect of contagious diseases on our business;
•
acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events;
•
the volatility of our shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching 
portions of our projected liabilities in foreign currencies with investments in the same currencies;
•
changes in accounting principles or policies or in our application of such accounting principles or policies;
•
changes in the political environment of certain countries in which we operate or underwrite business;
•
statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the 
adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or 
changes in regulations or tax laws applicable to us, our subsidiaries, brokers or customers, including the implementation of 
the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiatives and the enactment 
of Bermuda corporate income tax; and
•
the other matters set forth under Item 1A “Risk Factors,” Item 7 “Management’s Discussion and Analysis of Financial 
Condition and Results of Operations” and other sections of this Annual Report on Form 10-K, as well as the other factors set 
forth in Arch Capital Group Ltd.’s other documents on file with the SEC, and management’s response to any of the 
aforementioned factors. 
All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly 
qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as 
exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The 
Company’s forward-looking statements speak only as of the date of this report or as of the date they are made, and we 
undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, 
future events or otherwise.
ARCH CAPITAL
2
2024 FORM 10-K

PART I
ITEM 1. BUSINESS
As used in this report, references to “we,” “us,” “our,” 
“Arch” or the “Company” refer to the consolidated 
operations of Arch Capital Group Ltd. (“Arch Capital”) and 
its subsidiaries. All amounts are in millions, except per share 
amounts, unless otherwise noted. We refer you to Item 1A 
“Risk Factors” for a discussion of risk factors relating to our 
business.
OUR COMPANY
General
Arch Capital is a publicly listed Bermuda exempted company 
with approximately $23.5 billion in capital at December 31, 
2024 and is part of the S&P 500 index. Arch provides 
insurance, reinsurance and mortgage insurance on a 
worldwide basis through its wholly owned subsidiaries. 
While we are positioned to provide a full range of property, 
casualty and mortgage insurance and reinsurance lines, we 
focus on writing specialty lines of insurance and reinsurance. 
For 2024, we wrote $15.7 billion of net premiums and 
reported net income available to Arch common shareholders 
of $4.3 billion. Book value per share was $53.11 at 
December 31, 2024, compared to $46.94 per share at 
December 31, 2023.
Arch Capital’s registered office is located at Clarendon 
House, 2 Church Street, Hamilton HM 11, Bermuda 
(telephone number: (441) 295-1422), and its principal 
executive offices are located at Waterloo House, Ground 
Floor, 100 Pitts Bay Road, Pembroke HM 08, Bermuda 
(telephone number: (441) 278-9250). Arch Capital makes 
available free of charge through its website, located at 
www.archgroup.com, its annual reports on Form 10-K, 
quarterly reports on Form 10-Q, current reports on Form 8-K, 
and all amendments to those reports as soon as reasonably 
practicable after such material is electronically filed with, or 
furnished to, the U.S. Securities and Exchange Commission 
(“SEC”). The SEC maintains an Internet site that contains 
reports, proxy and information statements, and other 
information regarding issuers that file electronically with the 
SEC (such as Arch Capital) and the address of that site is 
www.sec.gov.
Our History
Arch Capital was formed in September 2000 and became the 
sole shareholder of Arch Capital Group (U.S.) Inc. (“Arch-
U.S.”) pursuant to an internal reorganization transaction 
completed in November 2000. In October 2001, Arch Capital 
launched an underwriting initiative to meet current and future 
demand in the global insurance and reinsurance markets that 
included the recruitment of new management teams and an 
equity capital infusion of $763.2 million, which created a 
strong capital base that was unencumbered by significant 
pre-2002 risks. Since then, we have attracted a proven 
management team with extensive industry experience and 
continued to build our global underwriting platform for our 
insurance, reinsurance and mortgage insurance businesses.
Our insurance underwriting platform initially consisted of our 
Bermuda and U.S. operations, followed by the establishment 
of our United Kingdom-based carrier, Arch Insurance (UK) 
Limited (“Arch Insurance (U.K.)”) in 2004 and Canadian 
operations in 2005. In 2009, we established a managing 
agency and syndicate at Lloyd’s of London (“Lloyd’s”) and 
significantly expanded our U.K. presence in 2019 through the 
acquisition of Barbican Group Holdings Limited (“Barbican 
Holdings”) and its subsidiaries (collectively, “Barbican”). 
Our Ireland-based carrier, Arch Insurance (EU) Designated 
Activity Company (“Arch Insurance (EU)”) writes primarily 
European Union (“EU”) business and expanded its presence 
across Europe in 2023 with branch offices in Spain and 
France. 
On August 1, 2024 we expanded our U.S. insurance middle 
market presence with the acquisition of Allianz’s U.S. 
Middle Market Property and Casualty insurance business and 
U.S. Entertainment Property and Casualty insurance 
business, representing an important part of our growth 
strategy in the U.S. See “Operations—Insurance Operations” 
for further details on our insurance operations.
Our reinsurance underwriting platform initially consisted of 
Arch Reinsurance Ltd. in Bermuda (“Arch Re Bermuda”) 
and Arch Reinsurance Company (“Arch Re U.S.”), our U.S.-
licensed reinsurer. In 2006, we commenced our European 
reinsurance operations with Arch Reinsurance Europe 
Underwriting Designated Activity Company (“Arch Re 
Europe”), our Ireland-headquartered reinsurance company 
with offices in Switzerland, the U.K. and, as of 2024, France. 
Our Danish underwriting agency was formed in 2007 with a 
focus on Accident & Health business. The acquisition of 
ARCH CAPITAL
3
2024 FORM 10-K

Barbican in 2019 also contributed to our reinsurance 
operations in the London market.
Our property facultative reinsurance underwriting operations 
write business in the U.S., Canada and Europe. In 2021, Arch 
Re Bermuda completed the acquisition of Somerset Bridge 
Group Limited, Southern Rock Holdings Limited and 
affiliates (“Somerset Group”). The acquisition included 
Somerset Group’s motor insurance managing general agent, 
distribution capabilities through direct and aggregator 
channels, affiliated insurer and fully integrated claims 
operation. See “Operations—Reinsurance Operations” for 
further details on our reinsurance operations.
Our mortgage operations include U.S. and international 
mortgage insurance and reinsurance operations, as well as 
participation in government sponsored enterprise (“GSE”) 
credit risk-sharing transactions. The U.S. mortgage platform 
was established in 2014 and expanded greatly in 2016 
through the acquisition of United Guaranty Corporation 
(“UGC”). Our U.S. primary mortgage operations provide 
mortgage insurance products and services to the U.S. market. 
These operations include providers which are approved as 
eligible mortgage insurers by Federal National Mortgage 
Association (“Fannie Mae”) and Federal Home Loan 
Mortgage Corporation (“Freddie Mac”), each a GSE. The 
mortgage operations also include participation in GSE credit 
risk-sharing transactions and direct mortgage insurance to 
U.S. mortgage lenders with respect to mortgages that lenders 
intend to retain in portfolio or include in non-agency 
securitizations 
along 
with 
mortgage 
insurance 
and 
reinsurance on a global basis. The majority of our European 
business is written through our Ireland-based carrier, Arch 
Insurance (EU), which was authorized in 2011 to provide 
mortgage insurance products and services to the European 
and U.K. markets. In 2019, Arch LMI Pty Ltd. (“Arch LMI”) 
was authorized by the Australian Prudential Regulation 
Authority (“APRA”) to write lenders’ mortgage insurance 
(“LMI”) on a direct basis in Australia. We expanded our 
presence in Australia in August 2021 by acquiring Westpac 
Lenders Mortgage Insurance Limited, another APRA 
approved writer of lenders mortgage insurance, which has 
since been renamed Arch Lenders Mortgage Indemnity Ltd. 
(“Arch Indemnity”). In December 2022, we converted Arch 
LMI into a services company for our Australian LMI 
operations and the company relinquished its APRA 
authorization. See “Operations—Mortgage Operations” for 
further details on our mortgage operations.
It is our belief that our underwriting platform, our 
experienced management team and our strong capital base 
have enabled us to create a diversified, specialty-focused 
company targeting areas where we can best apply our 
specialized underwriting expertise, distribution and customer 
capabilities.
In 2014, we acquired approximately 11% of Somers 
Holdings Ltd. (formerly Watford Holdings Ltd.). Somers 
Holdings Ltd. is the parent of Somers Re Ltd. (formerly 
Watford Re Ltd.), a multi-line Bermuda (re)insurance 
company (together with Somers Holdings Ltd., “Somers”). In 
the 2020 fourth quarter, Arch Capital, Somers, and 
Greysbridge Ltd., a wholly-owned subsidiary of Arch 
Capital, entered into an Agreement and Plan of Merger (as 
amended, the “Merger Agreement”). Arch Capital assigned 
its rights under the Merger Agreement to Greysbridge 
Holdings Ltd. (“Greysbridge”). The merger and the related 
Greysbridge equity financing closed on July 1, 2021. Somers 
is wholly owned by Greysbridge, and Greysbridge is owned 
40% by Arch, and the balance is owned by certain funds 
managed by Kelso & Company (“Kelso”) and certain funds 
managed by Warburg Pincus LLC (“Warburg”). Under the 
terms of the Greysbridge shareholder agreement, beginning 
January 1, 2024, Arch Capital has a call right (but not the 
obligation) and Warburg and Kelso each have a put right (but 
not the obligation) to buy/sell a certain amount of each of 
Warburg and Kelso’s initial shares annually at the current 
year end tangible book value per share of Greysbridge. In 
2024, Warburg and Kelso both delivered a put option notice 
to sell a certain amount of their initial shares. The transaction, 
which will involve third-party purchasers of such shares, is 
expected to close in the 2025 calendar year, subject to any 
required regulatory approvals and other closing conditions. In 
2017, Arch and certain co-investors acquired approximately 
25% of Premia Holdings Ltd. Premia Holdings Ltd. is the 
parent of Premia Reinsurance Ltd., a multi-line Bermuda 
reinsurance company (together with Premia Holdings Ltd., 
“Premia”). In 2021, the Company completed the share 
purchase agreement with Natixis, a French financial services 
firm, to purchase 29.5% of the common equity of Coface SA 
(“Coface”), a France-based leader in the global trade credit 
insurance market. See “Operations—Other Operations” for 
further details on Somers, Premia and Coface.
The Board of Directors of Arch Capital (the “Board”) has 
approved common share repurchase authorizations under our 
share repurchase program. Repurchases under the share 
repurchase program may be effected from time to time in 
open market or privately negotiated transactions. Since the 
inception of the share repurchase program in February 2007 
through December 31, 2024, Arch Capital has repurchased 
433.8 million common shares for an aggregate purchase price 
of $5.9 billion. At December 31, 2024, the total remaining 
authorization under the share repurchase program was $996.8 
million. The timing and amount of the repurchase 
transactions under this program will depend on a variety of 
factors, including results of operations, market conditions and 
the development of the economy, as well as other factors. We 
will consider share repurchases on an opportunistic basis. 
During the 2024 fiscal year, we repurchased approximately 
$24 million worth of ACGL common shares.
ARCH CAPITAL
4
2024 FORM 10-K

OPERATIONS
We classify our businesses into three underwriting segments 
– insurance, reinsurance and mortgage. For an analysis of our 
underwriting results by segment, see note 4, “Segment 
Information,” to our consolidated financial statements in Item 
8 and “Management’s Discussion and Analysis of Financial 
Condition 
and 
Results 
of 
Operations—Results 
of 
Operations.”
Insurance Operations
Our insurance operations are conducted in Bermuda, the 
U.S., the U.K., Europe, Canada, and Australia. Our insurance 
operations in Bermuda are conducted through Arch Insurance 
(Bermuda), a division of Arch Re Bermuda, and Alternative 
Re Limited. 
In the U.S., we focus on various specialty lines on both an 
admitted and non-admitted basis. Our insurance group’s 
principal insurance subsidiaries are Arch Insurance Company 
(“Arch Insurance”), Arch Specialty Insurance Company 
(“Arch Specialty”), Arch Indemnity Insurance Company 
(“Arch Indemnity Insurance”) and Arch Property Casualty 
Insurance Company (“Arch P&C”). Arch Insurance is an 
admitted insurer in 50 states, the District of Columbia, Puerto 
Rico, the U.S. Virgin Islands and Guam. Arch Specialty is an 
approved excess and surplus lines insurer in 50 states, the 
District of Columbia, Puerto Rico and the U.S. Virgin Islands 
and an authorized insurer in one state. Arch Indemnity 
Insurance is an admitted insurer in 50 states and the District 
of Columbia. Arch P&C, which is not currently writing 
business, is an admitted insurer in 47 states and the District 
of Columbia and is filing applications for admission in all 
remaining states where it is not yet admitted. In 2024, we 
acquired Watford Insurance Company (“WIC”) from Somers. 
WIC is an admitted insurer in all 50 states and the District of 
Columbia. Our insurance group also operates McNeil & 
Company, Inc., a specialized risk manager and a program 
administrator we acquired in 2018 based in Cortland, New 
York. The headquarters for our insurance group’s U.S. 
support operations (excluding underwriting units) are in 
Jersey City, New Jersey. The insurance group has offices 
throughout the U.S., including five regional offices located in 
Alpharetta, Georgia; Chicago, Illinois; New York, New 
York; San Francisco, California; Dallas, Texas and additional 
branch offices.
On August 1, 2024, the Company completed the acquisition 
of Allianz’s U.S Middle Market Property & Casualty 
Insurance and U.S. Entertainment Property and Casualty 
Insurance Business (“MCE Acquisition”). This business is 
written by Fireman’s Fund Insurance Company, an affiliate 
of Allianz, and its subsidiaries (collectively, the “Business 
Entities”), in each case, relating to relevant policies with 
accident years 2016 and onwards (collectively, the 
“Business”), as well as certain assets of Allianz and its 
affiliates related to the Business. In connection with the 
acquisition of the Business, the Company also entered into 
certain reinsurance agreements relating to the Business and 
the Business Entities and other agreements providing for 
administration and other services for the Business Entities by 
the Company for the applicable policies being reinsured 
following the closing. The acquisition of the Business is an 
important part of the Company’s growth strategy, and 
provides a ballast to our existing insurance business. It 
further enhances the Company’s capabilities in the U.S. 
middle markets and represents an attractive way to enter a 
new niche entertainment insurance market.
Our insurance operations in Canada are conducted through 
Arch Insurance Canada Ltd. (“Arch Insurance Canada”), a 
Canada domestic company which is authorized in all 
Canadian provinces and territories. Arch Insurance Canada is 
headquartered in Toronto, Ontario. 
Arch Insurance (EU), based in Dublin, Ireland, received 
authorization from the Central Bank of Ireland (“CBI”) to 
expand its authorized classes of business as part of our plan 
to address the U.K.’s departure from the EU (“Brexit”). At 
the end of 2020, Arch Insurance (U.K.) received court 
approval in the U.K. to transfer its legacy book of business 
written in the European Economic Area (“EEA”) to Arch 
Insurance (EU) under Part VII of the U.K. Financial Services 
and Markets Act 2000. From January 2021, all of the 
insurance business in the EU previously written by Arch 
Insurance (U.K.) is now written through Arch Insurance 
(EU). Arch Insurance (EU) has branches in Italy, France, 
Spain and the U.K. 
We conduct insurance operations on several platforms in the 
U.K., including Arch Insurance (U.K.) and our Lloyd’s 
syndicates: Arch Syndicate 2012 (“Arch Syndicate 2012”) 
and Arch Syndicate 1955 (“Arch Syndicate 1955” and, 
together 
with 
Arch 
Syndicate 
2012, 
our 
“Lloyd’s 
Syndicates”). Arch Managing Agency Limited (“AMAL”) is 
the managing agent of our Lloyd’s Syndicates. These 
operations provide us access to Lloyd’s extensive distribution 
network and worldwide licenses. AMAL also acts as 
managing agent for third party members of Arch Syndicate 
1955. Arch Underwriting at Lloyd’s (Australia) Pty Ltd, 
based in Sydney, Australia, is a Lloyd’s services company 
which underwrites exclusively for our Lloyd’s Syndicates. 
Collectively, the U.K. insurance operations are referred to as 
“Arch U.K.” Arch U.K. conducts its operations from London 
and other locations in the U.K. On May 1, 2024, we 
completed the sale of Castel Underwriting Agencies Limited, 
a managing general agency in the U.K. that we acquired as 
part of the Barbican acquisition. 
ARCH CAPITAL
5
2024 FORM 10-K

Strategy. Our insurance group’s strategy is to operate in lines 
of business in which underwriting expertise can make a 
meaningful difference in operating results. The insurance 
group focuses on talent-intensive rather than labor-intensive 
business and seeks to operate profitably (on both a gross and 
net basis) across all of its product lines. To achieve these 
objectives, our insurance group’s operating principles are to:
•
Capitalize on profitable underwriting opportunities. Our 
insurance 
group 
believes 
that 
its 
experienced 
management and underwriting teams are positioned to 
locate and identify business with attractive risk/reward 
characteristics. As profitable underwriting opportunities 
are identified, our insurance group will continue to grow 
its product portfolio in order to take advantage of market 
trends. This includes adding underwriting and other 
professionals with specific expertise in specialty lines of 
insurance.
• 
Centralize responsibility for underwriting. Our insurance 
group consists of a range of product lines. The 
underwriting executive in charge of each product line 
oversees all aspects of the underwriting product 
development process within such product line. Our 
insurance group believes that centralizing control of such 
product line with the respective underwriting executive 
allows for tight management of underwriting and creates 
clear accountability for results. Our U.S. insurance group 
has five regional offices, and the executive in charge of 
each region is primarily responsible for all aspects of the 
marketing and distribution of our insurance group’s 
products, including the management of broker and other 
producer relationships, in the executive’s respective 
region. In our non-U.S. offices, a similar philosophy is 
observed, with responsibility for the management of 
each product line residing with the senior underwriting 
executive in charge of the relevant product line.
• 
Maintain disciplined underwriting standards using our 
experience and strategic analytics to drive decisions. 
Our insurance group’s underwriting philosophy is to 
generate an underwriting profit through prudent risk 
selection and proper pricing. Our insurance group 
believes that the key to this approach is adherence to 
uniform underwriting standards across all types of 
business. Our insurance group’s senior management 
closely monitors the underwriting process. This strategy 
is underpinned by our belief in using data and strategic 
analytics to assess business through hard and soft 
underwriting conditions.
• 
Focus on providing superior claims management. Our 
insurance group believes that claims handling is an 
integral component of credibility in the market for 
insurance products. We believe our ability to handle 
claims expeditiously and satisfactorily is a key to our 
success. Our insurance group employs experienced 
claims professionals and also utilizes experienced 
external claims managers (third party administrators) 
where appropriate.
• 
Promote and utilize an efficient distribution system. Our 
insurance group believes that promoting and utilizing a 
multi-channel distribution system provides efficient 
access to its broad customer base. We work with select 
international, national and regional retail and wholesale 
brokers and leading managing general agencies and 
program administrators, to distribute our insurance 
products.
•
Grow strategic partnerships, acquire or build strategic 
businesses in niche areas or lines of business. Our 
insurance group aims to build more integrated long-term 
alignment with strategic partners offering superior access 
to niche opportunities, quality scalable businesses, or 
lines with reliable defensive qualities. We may grow 
existing partnerships or look to acquire businesses which 
further this strategy, such as our MCE Acquisition.
•
Create or acquire scalable and diversified underwriting 
platforms which can flex depending on the underwriting 
cycle. 
Our 
experience 
as 
cycle 
managers 
is 
complemented by scalable underwriting platforms 
enabling us to increase or decrease our business as 
market conditions demand. The MCE platform enhances 
our U.S. focus on middle market companies using our 
strategic analytics capabilities and continued focus on 
customer solutions. We continue to focus on specialty 
risks as we build out a diversified platform across the 
insurance segment. Outside of the U.S., we are focused 
on continued expansion in continental Europe and 
optimizing opportunities in the London Market.
Underwriting 
Philosophy. 
We 
seek 
to 
generate 
an 
underwriting profit based on our careful analysis across each 
product line that focuses on the following:
• 
risk selection;
• 
desired attachment point; 
• 
limits and retention management; 
• 
due diligence, including financial condition, claims 
history, management, and product, class and territorial 
exposure; 
• 
underwriting authority and appropriate approvals; and 
• 
collaborative decision making. 
We employ analytic capabilities to support this philosophy.
Marketing. Our insurance group’s products are marketed 
principally through a group of licensed independent retail and 
wholesale brokers. Clients (insureds) are referred to our 
insurance group through a large number of international, 
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national and regional brokers and captive managers who 
receive from the insured or insurer a set fee or brokerage 
commission usually equal to a percentage of gross premiums. 
Our insurance group may enter into contingent commission 
arrangements with some brokers that provide for the payment 
of additional commissions based on volume or profitability 
of business. It is the practice for the brokers and producers to 
make the client aware of any contingent commission 
arrangements that may be in place with us. We have also 
entered into service agreements with select international 
brokers that provide access to their proprietary industry 
analytics. In general, our insurance group has no implied or 
explicit commitments to accept business from any particular 
broker and neither brokers nor any other third parties have 
the authority to bind our insurance group, except in the case 
where underwriting authority may be delegated contractually 
to select program administrators. Such administrators are 
subject to a financial and operational due diligence review 
prior to any such delegation of authority and ongoing reviews 
and audits are carried out as deemed necessary by our 
insurance group to assure the continuing integrity of 
underwriting and related business operations. See “Risk 
Factors—Risks Relating to Our Industry, Business and 
Operations—We could be materially adversely affected to 
the extent that important third parties with whom we do 
business do not adequately or appropriately manage their 
risks, commit fraud or otherwise breach obligations owed to 
us.” For information on major brokers, see note 18, 
“Commitments and Contingencies—Concentrations of Credit 
Risk,” to our consolidated financial statements in Item 8.
Risk Management and Reinsurance. In the normal course of 
business, our insurance group may cede a portion of its 
premium on a quota share or excess of loss basis through 
treaty or facultative reinsurance agreements. Reinsurance 
arrangements do not relieve our insurance group from its 
primary obligations to insureds. Reinsurance recoverables are 
recorded as assets, predicated on the reinsurers’ ability to 
meet their obligations under the reinsurance agreements. If 
the reinsurers are unable to satisfy their obligations under the 
agreements, our insurance subsidiaries would be liable for 
such defaulted amounts. Our principal insurance subsidiaries, 
with oversight by a group-wide reinsurance steering 
committee (“RSC”), are selective with regard to reinsurers, 
seeking to place reinsurance with only those reinsurers which 
meet and maintain specific standards of established criteria 
for financial strength. The RSC evaluates the financial 
viability of its reinsurers through financial analysis, research 
and review of rating agencies’ reports and also monitors 
reinsurance recoverables and collateral with unauthorized 
reinsurers. 
The 
financial 
analysis 
includes 
ongoing 
qualitative and quantitative assessments of reinsurers, 
including a review of the financial stability, appropriate 
licensing, reputation, claims paying ability and underwriting 
philosophy of each reinsurer. See note 8, “Reinsurance,” to 
our consolidated financial statements in Item 8.
For catastrophe-exposed insurance business, our insurance 
group seeks to limit the amount of exposure to catastrophic 
losses it assumes through a combination of managing 
aggregate limits, underwriting guidelines and reinsurance. 
For a discussion of our risk management policies, see 
“Management’s Discussion and Analysis of Financial 
Condition and Results of Operations—Summary of Critical 
Accounting Estimates—Ceded Reinsurance” and “Risk 
Factors—Risks Relating to Our Industry, Business and 
Operations—The failure of any of the loss limitation methods 
we employ could have a material adverse effect on our 
financial condition or results of operations.”
Claims 
Management. 
Our 
insurance 
group’s 
claims 
management function is performed by claims professionals, 
as well as experienced external claims managers (third party 
administrators), 
where 
appropriate. 
In 
addition 
to 
investigating, evaluating and resolving claims, members of 
our insurance group’s claims departments work with 
underwriting professionals to develop products and services 
desired by the group’s clients.
Reinsurance Operations
Our reinsurance operations are conducted on a worldwide 
basis through our reinsurance subsidiaries, Arch Re 
Bermuda, Arch Re U.S., our Lloyd’s Syndicates, and Arch 
Re Europe. Arch Re Bermuda is dual-licensed as a Class 4 
general business insurer and Class C long-term insurer and is 
headquartered in Hamilton, Bermuda. Arch Re Bermuda has 
been approved as a “certified reinsurer,” which allows 
reduced collateral for reinsurance ceded to such reinsurers. 
Arch Re Bermuda has also been approved as a “reciprocal 
jurisdiction reinsurer,” which allows ceding companies to 
eliminate regulatory collateral requirements for reinsurance 
ceded to such reinsurers and still take credit for that 
reinsurance. In October 2024, the U.S. Department of the 
Treasury, Bureau of Fiscal Services (“BFS”) recognized Arch 
Re Bermuda as an “Alien Reinsurer” (except on excess risks 
running to the U.S.), which allows T-Listed ceding 
companies to eliminate regulatory collateral requirements 
under the U.S. Treasury rules. Arch Re U.S. is licensed or is 
an accredited or otherwise approved reinsurer in 50 states, the 
District of Columbia and Puerto Rico, the provinces of 
Ontario and Quebec in Canada with its principal U.S. offices 
in Morristown, New Jersey. Treaty and facultative operations 
in Canada are conducted through the Canadian branch of 
Arch Re U.S. (“Arch Re Canada”). Arch Re U.S. is also an 
authorized insurer in Guam. Our property facultative 
reinsurance operations are conducted primarily through Arch 
Re U.S. The property facultative reinsurance operations have 
offices throughout the U.S., Canada, Europe and the U.K. 
Arch Re Europe, licensed and authorized as a non-life 
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reinsurer and a life reinsurer, is headquartered in Dublin, 
Ireland with branch offices in France, Switzerland and the 
U.K. AMAL is the managing agent for the reinsurance 
operations of our Lloyd’s Syndicates.
Arch Group Reinsurance Ltd. (“AGRL”), formed in 
December 2022, is a registered Class 3A general business 
insurer carrying on affiliated reinsurance business pursuant to 
the Insurance Act of 1978 of Bermuda. AGRL, a wholly-
owned subsidiary of Arch-U.S., was established to provide 
internal reinsurance covering certain U.S. lines of business. 
AGRL is a U.S. taxpayer through a section 953(d) voluntary 
election under the Internal Revenue Code of 1986, as 
amended.
Strategy. Our reinsurance group’s strategy is to capitalize on 
our financial capacity, experienced management and 
operational flexibility to offer multiple products through our 
operations. The reinsurance group’s operating principles are 
to:
•
Actively select and manage risks. Our reinsurance group 
only underwrites business that meets certain profitability 
criteria, and it emphasizes disciplined underwriting over 
premium growth. To this end, our reinsurance group 
maintains 
centralized 
control 
over 
reinsurance 
underwriting guidelines and authorities.
•
Maintain flexibility and respond to changing market 
conditions. Our reinsurance group’s organizational 
structure and philosophy allows it to take advantage of 
increases or changes in demand or favorable pricing 
trends. Our reinsurance group believes that its existing 
platforms, broad underwriting expertise and substantial 
capital facilitate adjustments to its mix of business 
geographically and by line and type of coverage. Our 
reinsurance group believes that this flexibility allows it 
to participate in those market opportunities that provide 
the greatest potential for underwriting profitability.
•
Maintain a low cost structure. Our reinsurance group 
believes that maintaining tight control over its staffing 
level and operating primarily as a broker market 
reinsurer permits it to maintain low operating costs 
relative to its capital and premiums.
Our reinsurance group writes business on both a proportional 
and non-proportional basis and writes both treaty and 
facultative 
business. 
In 
a 
proportional 
reinsurance 
arrangement (also known as pro rata reinsurance, quota share 
reinsurance or participating reinsurance), the reinsurer shares 
a proportional part of the original premiums and losses of the 
reinsured. The reinsurer pays the cedent a commission which 
is generally based on the cedent’s cost of acquiring the 
business being reinsured (including commissions, premium 
taxes, 
assessments 
and 
miscellaneous 
administrative 
expenses) and may also include a profit factor. Non-
proportional (or excess of loss) reinsurance indemnifies the 
reinsured against all or a specified portion of losses on 
underlying insurance policies in excess of a specified 
amount, which is called a “retention.” Non-proportional 
business is written in layers and a reinsurer or group of 
reinsurers accepts a band of coverage up to a specified 
amount. The total coverage purchased by the cedent is 
referred to as a “program.” Any liability exceeding the upper 
limit of the program reverts to the cedent.
The reinsurance group’s treaty operations generally seek to 
write significant lines on less commoditized classes of 
coverage, such as specialty property and casualty reinsurance 
treaties. However, with respect to other classes of coverage, 
such as property catastrophe and casualty clash, the 
reinsurance group’s treaty operations participate in a 
relatively large number of treaties where they believe that 
they can underwrite and process the business efficiently. The 
reinsurance group’s casualty facultative and property 
facultative underwriters write reinsurance on a facultative 
basis whereby they assume part of the risk under primarily 
single insurance contracts. Facultative reinsurance is 
typically purchased by ceding companies for individual risks 
not covered by their reinsurance treaties, for unusual risks or 
for amounts in excess of the limits on their reinsurance 
treaties.
For additional information regarding the business written by 
the reinsurance group, please refer to note 4, “Segment 
Information,” to our consolidated financial statements in Item 
8.
Underwriting Philosophy. Our reinsurance group employs a 
disciplined, analytical approach to underwriting reinsurance 
risks that is designed to specify an adequate premium for a 
given exposure commensurate with the amount of capital it 
anticipates placing at risk. A number of our reinsurance 
group’s underwriters are also actuaries. It is our reinsurance 
group’s belief that employing actuaries on the front-end of 
the underwriting process gives it an advantage in evaluating 
risks and constructing a high quality book of business.
As part of the underwriting process, our reinsurance group 
typically assesses a variety of factors, including:
•
adequacy of underlying rates for a specific class of 
business and territory;
•
the reputation of the proposed cedent and the likelihood 
of establishing a long-term relationship with the cedent, 
the geographic area in which the cedent does business, 
together with its catastrophe exposures, and our 
aggregate exposures in that area;
•
historical loss data for the cedent and, where available, 
for the industry as a whole in the relevant regions, in 
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order to compare the cedent’s historical loss experience 
to industry averages; 
•
projections of future loss frequency and severity; and 
•
the perceived financial strength of the cedent. 
Marketing. Our reinsurance group generally markets its 
reinsurance products through brokers, except our property 
facultative reinsurance group, which generally deals directly 
with the ceding companies. Brokers do not have the authority 
to bind our reinsurance group with respect to reinsurance 
agreements, nor does our reinsurance group commit in 
advance to accept any portion of the business that brokers 
submit to them. Our reinsurance group generally pays 
brokerage fees to brokers based on negotiated percentages of 
the premiums written through such brokers. For information 
on major brokers, see note 18, “Commitments and 
Contingencies—Concentrations of Credit Risk,” to our 
consolidated financial statements in Item 8.
Risk Management and Retrocession. Our reinsurance group 
currently purchases a combination of per event excess of 
loss, per risk excess of loss, proportional retrocessional 
agreements and other structures that are available in the 
market. Such arrangements reduce the effect of individual or 
aggregate losses on, and in certain cases may also increase 
the underwriting capacity of, our reinsurance group. Our 
reinsurance group will continue to evaluate its retrocessional 
requirements based on its net appetite for risk. See note 8, 
“Reinsurance,” to our consolidated financial statements in 
Item 8.
For 
catastrophe 
exposed 
reinsurance 
business, 
our 
reinsurance group seeks to limit the amount of exposure it 
assumes from any one reinsured and the amount of the 
aggregate exposure to catastrophe losses from a single event 
in any one geographic zone. For a discussion of our risk 
management policies, see “Management’s Discussion and 
Analysis of Financial Condition and Results of Operations—
Summary 
of 
Critical 
Accounting 
Estimates—Ceded 
Reinsurance” and “Risk Factors—Risks Relating to Our 
Industry, Business and Operations—The failure of any of the 
loss limitation methods we employ could have a material 
adverse effect on our financial condition or results of 
operations.”
Claims Management. Claims management includes the 
receipt of initial loss reports, creation of claim files, 
determination of whether further investigation is required, 
establishment and adjustment of case reserves and payment 
of claims. Additionally, audits are conducted for both specific 
claims and overall claims procedures at the offices of 
selected ceding companies. Our reinsurance group makes use 
of outside consultants for claims work from time to time.
Mortgage Operations
Our mortgage operations include mortgage insurance and 
reinsurance in the U.S. and internationally, as well as 
participation in GSE credit risk-sharing transactions. Our 
mortgage group includes direct mortgage insurance in the 
U.S. primarily through Arch Mortgage Insurance Company 
(“AMIC”), United Guaranty Residential Insurance Company 
(“UGRIC”), and Arch Mortgage Guaranty Company 
(“AMG” and together with AMIC and UGRIC, “Arch MI 
U.S.”); mortgage reinsurance primarily through Arch Re 
Bermuda on both a proportional and non-proportional basis 
globally; mortgage insurance and reinsurance in the EEA and 
U.K. primarily through Arch Insurance (EU), and in 
Australia through Arch Indemnity; and participation in 
various GSE credit risk-sharing products primarily through 
Arch Re Bermuda.
In 2014, we entered the U.S. mortgage insurance 
marketplace, underwriting on the AMIC platform. AMIC is 
licensed and operates in all 50 states, the District of 
Columbia, Puerto Rico and Guam. In December 2016, we 
completed the acquisition of UGC and its primary operating 
subsidiary, UGRIC, which is licensed and operates in all 50 
states, the District of Columbia and the U.S. Virgin Islands.
AMIC and UGRIC have each been approved as an eligible 
mortgage insurer by Fannie Mae and Freddie Mac, subject to 
maintaining 
certain 
ongoing 
requirements 
(“eligible 
mortgage insurer”). AMG offers direct mortgage insurance to 
U.S. mortgage lenders with respect to mortgages that lenders 
intend to retain in portfolio or include in non-agency 
securitizations. AMG, which is licensed in all 50 states and 
the District of Columbia, insures mortgages that are not 
intended to be sold to the GSEs, and it is therefore not 
approved by either GSE as an eligible mortgage insurer.
In 2019, Arch LMI was authorized by APRA to write 
lenders’ mortgage insurance. In August 2021, we acquired 
Arch Indemnity, which is also authorized by APRA to write 
lenders’ mortgage insurance. In December 2022, we 
converted Arch LMI to a services company for our 
Australian lenders mortgage insurance operations and the 
company relinquished its APRA authorization. Arch LMI 
and Arch Indemnity are headquartered in Sydney, Australia. 
Following the conversion of Arch LMI, Arch Indemnity is 
the primary provider of direct lenders’ mortgage insurance 
and reinsurance to the Australian market. 
Strategy. The mortgage insurance market operates on a 
distinct underwriting cycle, with demand driven mainly by 
the housing market and general economic conditions. As a 
result, the creation of the mortgage group provides us with a 
more diverse revenue stream. Our mortgage group’s strategy 
is to capitalize on its financial capacity, mortgage insurance 
technology platform, operational flexibility and experienced 
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management to offer mortgage insurance, reinsurance and 
other risk-sharing products in the U.S., Europe, the U.K. and 
Australia.
Our mortgage group’s operating principles and goals are to:
•
Capitalize on profitable underwriting opportunities. Our 
mortgage 
group 
believes 
that 
its 
experienced 
management, analytics and underwriting teams are 
positioned to identify and evaluate business with 
attractive risk/reward characteristics.
•
Maintain a disciplined credit risk philosophy. Our 
mortgage group’s credit risk philosophy is to generate 
underwriting profit through disciplined credit risk 
analysis and proper pricing. Our mortgage group 
believes that the key to this approach is maintaining 
discipline across all phases of the applicable housing and 
mortgage lending cycles.
•
Provide superior and innovative mortgage products and 
services. Our mortgage group believes that it can 
leverage its financial capacity, experience across 
insurance product lines and the mortgage finance 
industry, and its analytics and technology to provide 
innovative products and superior service. The mortgage 
group believes that its delivery of tailored products that 
meet the specific, evolving needs of its customers will be 
a key to the group’s success.
•
Maintain our position as a leading provider of U.S. 
mortgage insurance business. We have been a leading 
provider of mortgage insurance products and services to 
national and regional banks and mortgage originators for 
most of the last decade, and this position has helped us 
generate significant business opportunities for Arch. 
•
Diversify revenues by capitalizing on international 
opportunities. With the acquisition of Arch Indemnity in 
Australia in 2021, and continued growth insuring and 
reinsuring European banks, we believe diversifying 
revenues on a global basis is a key operating principle.
Our mortgage group focuses on the following areas:
•
Direct mortgage insurance in the United States. Under 
their monoline insurance licenses, each of Arch’s 
eligible mortgage insurers may only offer private 
mortgage insurance covering first lien, one-to-four 
family residential mortgages. Nearly all of our mortgage 
insurance written provides first loss protection on loans 
originated by mortgage lenders and sold to the GSEs. 
Each GSE’s Congressional charter generally prohibits it 
from purchasing a mortgage where the principal balance 
of the mortgage is in excess of 80% of the value of the 
property securing the mortgage unless the excess portion 
of the mortgage is protected against default by lender 
recourse, participation or by a qualified insurer. As a 
result, such “high loan-to-value mortgages” purchased 
by Fannie Mae or Freddie Mac generally are insured 
with private mortgage insurance.
Mortgage insurance protects the insured lender, investor 
or GSE against loss in the event of a borrower’s default. 
If a borrower defaults on mortgage payments, private 
mortgage insurance reduces, and may eliminate, losses to 
the insured. Private mortgage insurance may also 
facilitate the sale of mortgage loans in the secondary 
mortgage market because of the credit enhancement it 
provides. Our primary U.S. mortgage insurance policies 
predominantly cover individual loans and are effective at 
the time the loan is originated. We also may enter into 
insurance transactions with lenders and investors, under 
which we insure a portfolio of loans at or after 
origination. Although not currently a significant product, 
we may offer mortgage insurance on a “pool” basis in 
the future. Under pool insurance, the mortgage insurer 
provides coverage on a group of specified loans, 
typically for 100% of all contractual or policy-defined 
losses on every loan in the portfolio, subject to an agreed 
aggregate loss limit. Pool insurance may be in a first loss 
position with respect to loans that do not have primary 
mortgage insurance policies, or it may be in a second 
loss position, covering losses in excess of those covered 
by the primary mortgage insurance policy. 
•
Mortgage insurance and reinsurance in Europe and 
other 
countries 
where 
we 
identify 
profitable 
underwriting opportunities. Since 2011, Arch Insurance 
(EU) has offered mortgage insurance to European 
mortgage lenders in order to reduce lenders’ credit risk 
and regulatory capital requirements associated with the 
insured mortgages. In certain European countries, 
lenders purchase mortgage insurance to facilitate 
regulatory compliance with respect to high loan-to-value 
residential lending. Arch Insurance (EU) offers mortgage 
insurance on both a “flow” basis to cover new 
originations and through structured transactions to cover 
one or more portfolios of previously originated 
residential loans. Increasingly, Arch Insurance (EU) and 
Arch Re Bermuda are providing protection to European 
banks on structured capital relief transactions. In 
Australia, Arch Indemnity provides lenders’ mortgage 
insurance on a flow basis to cover new originations and 
offers coverage through structured transactions to cover 
one or more portfolios of previously originated 
residential loans.
•
Reinsurance. Arch Re Bermuda provides quota share 
and excess of loss reinsurance covering U.S. and 
international mortgages. 
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•
Other credit risk-sharing products. In addition to 
providing 
traditional 
mortgage 
insurance 
and 
reinsurance, we offer various credit risk-sharing products 
to government agencies and mortgage lenders. The GSEs 
have reduced their exposure to mortgage risk by shifting 
a portion of it to the private sector, creating opportunities 
for insurers to assume additional mortgage risk. Arch Re 
Bermuda and its affiliates have regularly participated in 
both Fannie Mae and Freddie Mac single family and 
multifamily risk sharing programs since their inception 
over 10 years ago.
In 2019, we established Arch Credit Risk Services (Bermuda) 
Ltd. (“Arch CRS”). Arch CRS is licensed by the Bermuda 
Monetary Authority (“BMA”) as an insurance agent in 
Bermuda. Arch CRS offers mortgage credit assessment and 
underwriting advisory services with respect to participation 
in GSE credit risk transfer transactions. 
Underwriting Philosophy. Our mortgage group believes in a 
disciplined, analytical approach to underwriting mortgage 
risks by utilizing proprietary and third-party models, 
including forecasting delinquency and future home price 
movements with the goal of ensuring that premiums are 
adequate for the risk being insured. Experienced actuaries 
and statistical modelers are engaged in analytics to inform the 
underwriting process. As part of the underwriting process, 
our mortgage group typically assesses a variety of factors, 
including the:
•
ability and willingness of the mortgage borrower to pay 
its obligations under the mortgage loan being insured;
•
characteristics of the mortgage loan being insured and 
the value of the collateral securing the mortgage loan;
•
financial strength, quality of operations and reputation of 
the lender originating the mortgage loan;
•
home price trends and expected future home price 
movements which vary by geography;
•
projections of future loss frequency and severity; and
•
adequacy of premium rates.
Sales and Distribution. In the U.S., we employ a sales force 
to directly sell mortgage insurance products and services to 
our customers, which include mortgage originators such as 
mortgage bankers, mortgage brokers, commercial banks, 
savings institutions, credit unions and community banks. Our 
largest single mortgage insurance customer in the U.S. 
(including branches and affiliates) accounted for 6.2% and 
7.3% of our gross premiums written for the years ending 
December 31, 2024 and 2023, respectively. No other 
customer accounted for greater than 3.2% and 2.9% of the 
gross premiums written for the years ending December 31, 
2024 and 2023, respectively. The percentage of gross 
premiums written on our top 10 customers was 25.2% and 
24.6% as of December 31, 2024 and 2023, respectively. In 
Europe, Bermuda and Australia, our products and services 
are distributed on a direct basis and through brokers. Each 
country represents a unique set of opportunities and 
challenges that require knowledge of market conditions and 
client needs to develop effective solutions.
Risk Management. Exposure to mortgage risk is monitored 
globally and managed through underwriting guidelines, 
pricing, reinsurance, utilization of proprietary risk models, 
concentration limits and limits on net probable loss resulting 
from a severe economic downturn in the housing market. 
Exposure to climate risk has also been incorporated into the 
risk management framework of our mortgage group to 
monitor and manage our exposure to potential (i) losses 
related to the direct physical impact of extreme weather 
conditions or events in certain transactions; and/or (ii) 
adverse economic or housing market conditions caused by 
the physical impact of extreme weather conditions or events 
on a region or the financial impact of transitioning to a zero 
or low carbon economy on a region. Generally, mortgage 
insurance policies exclude direct physical losses resulting 
from physical damages, such as damage caused by extreme 
weather events, though we do have some exposure to 
physical damage in certain GSE credit risk transfer (“CRT”) 
and European structured financial transactions. Additionally, 
we actively monitor developments in the housing market, 
financial regulation and public policy in the geographies 
where 
our 
mortgage 
group 
operates 
to 
facilitate 
implementation of laws, regulations and policies which 
support sustainable environmental behavior and mitigate the 
effects of climate change. For a discussion of our risk 
management policies, see “Management’s Discussion and 
Analysis of Financial Condition and Results of Operations—
Summary 
of 
Critical 
Accounting 
Estimates—Ceded 
Reinsurance” and “Risk Factors—Risks Relating to Our 
Industry, Business and Operations—The failure of any of the 
loss limitation methods we employ could have a material 
adverse effect on our financial condition or results of 
operations.” 
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Our mortgage group has ceded a portion of its premium 
through quota share and aggregate excess of loss reinsurance 
agreements 
which 
provide 
reinsurance 
coverage 
for 
delinquencies on portfolios of in-force policies issued 
between certain periods. See note 8, “Reinsurance,” to our 
consolidated financial statements in Item 8 for further details.
Reinsurance arrangements do not relieve our mortgage group 
from its primary obligations to insured parties. Reinsurance 
recoverables are recorded as assets, predicated on the 
reinsurers’ ability to meet their obligations under the 
reinsurance agreements. If the reinsurers are unable to satisfy 
their obligations under the agreements, our mortgage 
subsidiaries would be liable for such defaulted amounts. For 
our U.S. mortgage insurance business, in addition to utilizing 
reinsurance, we have developed a proprietary risk model that 
simulates the maximum loss resulting from severe economic 
events impacting the housing market. See “Management’s 
Discussion and Analysis of Financial Condition and Results 
of Operations—Catastrophic Events and Severe Economic 
Events.”
Claims Management. With respect to our direct mortgage 
insurance business, the claims process generally begins with 
notification by the insured or servicer to us of a default on an 
insured loan. The insured is generally required to notify us of 
a default after the borrower misses two consecutive monthly 
payments. Borrowers default for a variety of reasons, 
including a reduction of income, unemployment, divorce, 
illness, inability to manage credit, rising interest rate levels 
and declining home prices. Upon notice of a default, in 
certain cases we may coordinate with loan servicers to 
facilitate and enhance retention workouts on insured loans. 
Retention workouts include payment deferral or forbearance, 
loan modifications and other loan repayment options, which 
may enable borrowers to cure mortgage defaults and retain 
ownership of their homes. If a retention workout is not viable 
for a borrower, our loss on a loan may be mitigated through a 
liquidation workout option, including a pre-foreclosure sale 
or a deed-in-lieu of foreclosure. 
In the U.S., our master policies generally provide that within 
60 days of the perfection of a primary insurance claim, we 
have the option of: 
•
paying the insurance coverage percentage specified in 
the certificate of insurance multiplied by the loss 
amount; 
•
in the event the property is sold pursuant to an approved 
prearranged sale, paying the lesser of (i) 100% of the 
loss amount less the proceeds of sale of the property, or 
(ii) the specified coverage percentage multiplied by the 
loss amount; or 
•
paying 100% of the loss amount in exchange for the 
insured’s conveyance to us of good and marketable title 
to the property, with us then selling the property for our 
own account. 
While we select the claim settlement option that best 
mitigates the amount of our claim payment, in the U.S. we 
generally pay the coverage percentage multiplied by the loss 
amount.
Other Operations
In 2014, we and HPS Investment Partners, LLC (formerly 
Highbridge Principal Strategies, LLC) (“HPS”) sponsored the 
formation of Somers. Arch Re Bermuda invested $100.0 
million in Somers common equity. Somers’ strategy is to 
combine a diversified reinsurance and insurance business 
with a disciplined investment strategy. Somers’ own 
management and board of directors are responsible for its 
results and profitability. Arch Re Bermuda has appointed 
three directors to serve on the seven person board of directors 
of Somers. In the 2020 fourth quarter, Arch Capital, Somers 
and Greysbridge, a wholly-owned subsidiary of Arch Capital, 
entered into a Merger Agreement pursuant to which, among 
other things, Arch Capital agreed to acquire all of the 
common shares of Somers not owned by Arch for a cash 
purchase price of $35.00 per common share. Arch Capital has 
assigned its rights under the Merger Agreement to 
Greysbridge. The merger and the related Greysbridge equity 
financing closed on July 1, 2021. Effective July 1, 2021, 
Somers is wholly owned by Greysbridge, and Greysbridge is 
owned 40% by Arch, 30% by certain investment funds 
managed by Kelso and 30% by certain investment funds 
managed by Warburg. See note 16, “Transactions with 
Related Parties,” to our consolidated financial statements in 
Item 8 for further details.
In 2017, we and Kelso sponsored the formation of Premia. 
Premia’s strategy is to reinsure or acquire companies or 
reserve portfolios in the non-life property and casualty 
insurance and reinsurance run-off market. Arch Re Bermuda 
and certain Arch co-investors invested $100.0 million and 
acquired approximately 25% of Premia as well as warrants to 
purchase additional common equity. Arch Re Bermuda is 
providing a quota share reinsurance treaty on certain business 
written by Premia, and subsidiaries of Arch Capital are 
providing certain administrative and support services to 
Premia, in each case pursuant to separate multi-year 
agreements. Arch has appointed two directors to serve on the 
seven person board of directors of Premia. 
ARCH CAPITAL
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In 2021, the Company completed the share purchase 
agreement with Natixis to purchase 29.5% of the common 
equity of Coface. This is a long-term, strategic investment in 
Coface, and fits with Arch’s efforts to develop uncorrelated 
sources of underwriting income. Our companies share a focus 
on specialty underwriting where knowledge and expertise 
create value for our clients, and trade credit contributes to 
Arch’s specialty-driven business model. Arch has appointed 
four directors to serve on the ten person board of directors of 
Coface. 
Climate Change Considerations
We are taking steps to mitigate the effects of climate change 
in our underwriting segments. We seek to identify business 
opportunities associated with environmentally friendly trends 
and incentivize responsible environmental behaviors. We 
have adopted a thermal coal policy in our global insurance 
operations and provide environmentally sustainable insurance 
solutions in certain product lines.
Artificial Intelligence
Artificial intelligence (“AI”) encompasses a range of 
machine-based capabilities, including traditional rule-based 
and machine learning AI as well as generative AI. We 
incorporate AI to assist with tasks such as catastrophe 
modeling and predictive analytics to help mitigate losses and 
enhance our product offerings. We also use AI in our 
insurance operations in particular to provide more 
information about past experiences and submissions, thus 
allowing our professionals to make more data driven 
underwriting 
decisions. 
The 
use 
of 
generative 
AI 
technologies is reviewed and monitored very closely with 
approval required for each new generative AI technology 
proposed for use in our operations. We consider AI 
capabilities invaluable opportunities to assist with our goal of 
making data-driven decisions part of our business strategy.
HUMAN CAPITAL
We are driven by our common purpose of “Enabling 
Possibility” for our customers, our communities and our 
employees. This purpose is supported by our collaborative, 
results-driven culture which relies on our dedicated, engaged 
and talented people. By continuously working to offer a 
meaningful and engaging employee experience, we not only 
seek to help people perform at their best among colleagues 
who care, but also aim to support our strategy of delivering 
specialty products and innovative solutions to our customers 
in each of our business segments. As of February 20, 2025, 
we had just over 7,200 employees globally, compared to 
around 6,400 last year, which directly speaks to our ability to 
sustain our strong and unique culture as we grow, which is a 
key enabler to top talent retention. We have approximately 
4,100 employees in North America (U.S., Canada, Bermuda 
and Cayman Islands), 1,700 employees in Europe and the 
U.K. and 1,400 employees in the Philippines, Australia and 
the rest of the world. 
Our People and Culture. An important aspect of our culture 
is sustaining an engaged and talented workforce. We strive to 
leverage the best contributions and ideas of our employees 
across our Company. To this end, we are committed to 
embedding these principles in our operations. In 2024, our 
six employee networks provided a forum for over 1,400 
employees to share ideas, build community, provide 
leadership opportunities for members and contribute 
meaningfully to business outcomes. These networks are open 
to all our employees, fostering deeper connections with 
colleagues.
Talent Acquisition, Development, Rewards and Retention. 
Our employees are integral to the Company, and we maintain 
a sharp focus on enhancing the ways we attract, develop and 
retain our high-performing talent. In 2023, we launched a 
new talent acquisition model that modernized our approach to 
the talent market. This aims to maximize our ability to find 
and hire top talent across multiple talent pools and 
proactively source pipelines of key talent.
We provide career growth opportunities through a 
combination of on-the-job training and experience, exposure 
to top-notch colleagues who coach and mentor, and education 
and training programs designed to accelerate learning and 
applying new skills and behaviors. We offer competitive 
compensation 
and 
comprehensive 
benefits 
packages, 
including an employee share purchase plan, parental leave, 
contributions to retirement savings plans and programs to 
support employee mental and physical well-being. We 
recognize the financial burden of educational loans in the 
U.S. and have supported our employees with a student debt 
assistance program. Since the inception of the program in 
2018, we have contributed approximately $5 million to this 
ARCH CAPITAL
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2024 FORM 10-K

program, including $0.9 million in 2024. We also match 
eligible contributions to qualified charitable organizations 
and employees are offered two paid volunteer time-off days 
per calendar year with an eligible non-profit organization. 
Our Arch Achieve program has recognized over 500 
employees for excellence since its inception in 2009, and 
each recipient is awarded a cash bonus to recognize their 
accomplishments.
We continue to see high engagement with our global 
recognition program, with over 65,000 awards received by 
employees in 2024 (over 100,000 awards since inception in 
February 2023). Awards are tied to Arch values and are used 
to recognize effort and impact associated with those values. 
The program directly supports our collaborative and results-
driven culture, as well as our focus on employee engagement 
and retention. Approximately 70% of all awards in 2024 
were peer to peer with “Embracing the power of teamwork” 
trending as the top award reason followed by “Striving to 
make a difference”.
We also encourage employees to continue their educational 
and professional development through tuition reimbursement 
plans. To attract the best talent to our industry, we offer 
internship programs and an Early Career Program with an 
Underwriting Track which provides participants with a robust 
introduction and real technical skills to build a successful 
career at Arch. Experienced professionals at Arch may 
participate in manager and leadership development programs 
and, for our mortgage insurance segment employees, we 
offer the opportunity to seek a Mortgage Bankers Association 
Certified Banker designation. 
RESERVES
Reserves for losses and loss adjustment expenses (“Loss 
Reserves”) represent estimates of what the insurer or 
reinsurer ultimately expects to pay on claims at a given time, 
based on the facts and circumstances then known, and it is 
probable that the ultimate liability may exceed or be less than 
such estimates. Even actuarially sound methods can lead to 
subsequent adjustments to reserves that are both significant 
and irregular due to the nature of the risks written. Loss 
Reserves are inherently subject to uncertainty. 
For detail on our Loss Reserves by segment and potential 
variability in the reserving process, see the Loss Reserves 
section of “Summary of Critical Accounting Estimates” in 
Item 7. For an analysis of losses and loss adjustment 
expenses and a reconciliation of the beginning and ending 
Loss Reserves and information about prior year reserve 
development, see note 5, “Reserve for Losses and Loss 
Adjustment Expenses,” to our consolidated financial 
statements in Item 8. For information on our reserving 
process, see note 6, “Short Duration Contracts,” to our 
consolidated financial statements in Item 8.
Unpaid and paid losses and loss adjustment expenses 
recoverable were approximately $8.3 billion at December 31, 
2024. For detail on our unpaid and paid losses and loss 
adjustment expenses, see the Reinsurance Recoverables 
section of “Financial Condition, Reinsurance Recoverables” 
in Item 7. 
INVESTMENTS
At December 31, 2024, total investable assets held by Arch 
were $41.4 billion. Our current investment guidelines and 
approach stress preservation of capital, market liquidity and 
diversification of risk. Our investments are subject to market-
wide risks and fluctuations, as well as to risks inherent in 
particular securities. While maintaining our emphasis on 
preservation of capital and liquidity, we expect our portfolio 
to grow and, in the future, may expand into areas that are not 
part of our current investment strategy. For detail on our 
investments, see the Investable Assets Held by Arch section 
of “Financial Condition” in Item 7 and note 9, “Investment 
Information,” to our consolidated financial statements in Item 
8. 
RATINGS
Our ability to underwrite business is affected by the quality 
of our claims paying ability and financial strength ratings as 
evaluated by independent agencies. Such ratings from third 
party 
internationally 
recognized 
statistical 
rating 
organizations or agencies are instrumental in establishing the 
financial security of companies in our industry. We believe 
that the primary users of such ratings include commercial and 
investment banks, policyholders, brokers, ceding companies 
and investors. Insurance ratings are also used by insurance 
and reinsurance intermediaries as an important means of 
assessing the financial strength and quality of insurers and 
reinsurers, and are often an important factor in the decision 
by an insured or intermediary of whether to place business 
with a particular insurance or reinsurance provider. 
The financial strength ratings of our operating insurance and 
reinsurance subsidiaries are subject to periodic review as 
rating agencies evaluate us to confirm that we continue to 
meet their criteria for ratings they have assigned to us. Such 
ratings may be revised or revoked at the discretion of such 
ratings agencies in response to a variety of factors, including 
capital 
adequacy, 
management, 
earnings, 
forms 
of 
capitalization and risk profile. A.M. Best Company (“A.M. 
Best”), Fitch Ratings (“Fitch”), Moody’s Investors Service 
(“Moody’s”) and Standard & Poor’s (“S&P”) are ratings 
agencies which have assigned financial strength and/or issuer 
ratings to Arch Capital and/or one or more of its subsidiaries. 
ARCH CAPITAL
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The ratings issued on our companies by these agencies are 
announced publicly and are available on our website and 
directly from the agencies. 
COMPETITION
The worldwide insurance markets are highly competitive. We 
compete with major U.S. and non-U.S. insurers and 
reinsurers, some of which have greater financial, marketing 
and management resources and longer-term relationships 
with insureds and brokers than us. We compete primarily on 
the basis of overall financial strength, ratings assigned by 
independent rating agencies, geographic scope of business, 
strength of client relationships, premiums charged, contract 
terms and conditions, products and services offered, speed of 
claims payment, reputation, employee experience, and 
qualifications and local presence. See “Risk Factors—Risks 
Relating to Our Industry, Business and Operations—“We 
operate in a highly competitive environment, and we may not 
be able to compete successfully in our industry.”
In our property casualty insurance and reinsurance 
businesses, we compete with insurers and reinsurers that 
provide specialty, property, and casualty lines of insurance, 
including, but not limited to Allianz, American Financial 
Group, Inc., American International Group, Inc., Aviva, 
AXA XL, AXIS Capital Holdings Limited, Berkshire 
Hathaway, Inc., Chubb Limited, CNA Financial Corp., 
Convex Group Limited, Everest Group Ltd., Fairfax 
Financial Holdings Limited, Hannover Rück SE, The 
Hartford Financial Services Group, Inc., Liberty Mutual 
Group, Lloyd’s, Markel Corporation, Munich Re Group, 
PartnerRe Ltd., RenaissanceRe Holdings Ltd., RLI Corp., 
SCOR, Sompo International, Swiss Reinsurance Company, 
Tokio Marine, The Travelers Companies, Inc., W.R. Berkley 
Corp. and Zurich Insurance Group. 
In our mortgage business, we compete with insurers and 
reinsurers that provide mortgage insurance, including the U.S 
mortgage insurance subsidiaries of Essent Group Ltd., Enact 
Holdings Inc., MGIC Investment Corporation, NMI Holdings 
Inc. and Radian Group Inc. The private mortgage insurance 
industry is highly competitive. Private mortgage insurers 
generally compete on the basis of underwriting guidelines, 
pricing, terms and conditions, financial strength, product and 
service offerings, customer relationships, reputation, the 
strength of management, technology, and innovation in the 
delivery and servicing of insurance products. Arch MI U.S. 
and other private mortgage insurers compete with federal and 
state government agencies that sponsor their own mortgage 
insurance programs. The private mortgage insurers’ principal 
government 
competitor 
is 
the 
Federal 
Housing 
Administration (“FHA”) and, to a lesser degree, the U.S. 
Department of Veterans Affairs (“VA”). Future changes to 
the FHA program, including any reduction to premiums 
charged, may impact the demand for private mortgage 
insurance.
In addition, Arch MI U.S. and other private mortgage 
insurers increasingly compete with multi-line reinsurers and 
capital markets alternatives to private mortgage insurance. 
The GSEs continued their respective mortgage CRT 
programs, including the use of front and back-end 
transactions with multi-line reinsurers, with approximately 25 
unique (re)insurers that regularly participate in transactions in 
addition to funded credit investors. These transactions 
continue to create opportunities for multi-line property 
casualty reinsurance groups and capital markets participants. 
In our non-U.S. mortgage insurance businesses, we compete 
with insurance subsidiaries of Helia Group Ltd. and QBE 
Insurance Group, Ltd. in Australia as well as the Australian 
Government’s Home Guarantee Scheme that provides 
coverage to participating lenders for first time homebuyers 
and other eligible borrowers; in Europe, our competitors on 
structured capital relief transactions include approximately 
10-15 highly rated multi-line (re)insurers in addition to over 
30 funded credit investors.
ENTERPRISE RISK MANAGEMENT
General. Enterprise Risk Management (“ERM”) is a key 
element in our philosophy, strategy and culture. We employ 
an ERM framework that includes underwriting, reserving, 
investment, credit, group and operational risks. Risk appetite 
and exposure limits are set by our executive management 
team, reviewed with the Board and its committees and 
routinely discussed with business unit management. These 
limits are articulated in our risk appetite statement, which 
details risk appetite, tolerances and limits for each major risk 
category, and are integrated into our operating guidelines. 
Exposures are aggregated and monitored periodically by our 
corporate risk management team. The reporting, review and 
approval of risk management information is integrated into 
our annual planning process, capital modeling and allocation, 
and reinsurance purchasing strategy. Such information is 
reviewed at insurance business reviews, reinsurance 
underwriting meetings and board level committees.
Risk Management Process and Procedures. The following 
narrative provides an overview of our risk management 
framework and our methodology for identifying, measuring, 
managing and reporting on the key risks affecting us. It 
outlines our approach to risk identification and assessment 
and provides an overview of our risk appetite and tolerance 
for each of the following major risks: underwriting 
(insurance) risk including pricing, reserving and catastrophe; 
investment risk including market and liquidity risks; group 
risk including strategic, governance, rating agency and 
capital market risk; credit risk; and operational risk including 
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2024 FORM 10-K

regulatory, cyber security, investor relations (reputational 
risk) and outsourcing risks. We view sustainability related 
risks not as standalone risks but as an integral part of our 
enterprise-wide risk management strategy. Consequently, 
evaluations of these risks are embedded throughout our risk 
management framework.
The framework includes details of our risk philosophy and 
policies to address the material risks confronting us and the 
approach and procedures to control and or mitigate these 
risks. The actions and policies implemented to meet our 
business management and regulatory obligations form the 
core of this framework. We have adopted a holistic approach 
to risk management by analyzing risk from both a top-down 
and bottom-up perspective.
Risk Identification and Assessment. The Finance, Investment 
and Risk Committee (“FIR Committee”), Audit Committee 
and Underwriting Oversight Committee of the Board oversee 
the top-down and bottom-up review of our risks. Given the 
nature and scale of our operations, these committees consider 
all aforementioned risks within the scope of the assessment. 
Arch Capital’s Chief Risk Officer (“CRO”) assists these 
committees in the identification and assessment of all key 
risks. The CRO is responsible for maintaining Arch Capital’s 
risk register and continually reviewing and challenging risk 
assessments, including the impact of emerging risks and 
significant business developments. Any new high-level risks 
or changes in inherent or residual designations are brought to 
the Board’s or the relevant committee’s attention.
Risk 
Monitoring 
and 
Control. 
Arch 
Capital’s 
risk 
management framework requires risk owners to monitor key 
risks on a continuous basis. The highest residual risks are 
actively managed by the Board and relevant committees. The 
remaining risks are managed and monitored at a process level 
by the risk owners and/or the CRO. Risk owners have 
ultimate responsibility for the day-to-day management of 
each designated risk, reporting to the CRO on the satisfactory 
management and control of the risk and timely escalation of 
significant issues that may arise in relation to that risk. The 
CRO is responsible for overseeing the monitoring of all risks 
across the business and for communicating to the relevant 
risk owners if she becomes aware of issues, or potential and 
actual breaches of risk appetite, relevant to the assigned risks. 
A key element of these monitoring activities is the periodic 
evaluation of our position relative to risk tolerances and 
limits approved by the Board.
Risk Reporting. Quarterly, the CRO compiles the results of 
the key risk review process into a report to the Board and 
relevant committees for review and discussion at their next 
meeting. The report includes an overview of selected key 
risks; a risk dashboard that depicts the status of risk limit and 
tolerance metrics; changes in the rating of high-level risks in 
the Arch Capital risk register; and summaries of our largest 
exposures and reinsurance recoverables. If necessary, risk 
management matters reviewed at the committee meetings are 
presented for discussion by the Board. The CRO is 
responsible for immediately escalating any significant risk 
matters to executive management, the respective Board 
Committee and/or the Board for approval of the required 
remediation. As part of our corporate governance, the Board 
and certain of its committees hold regular executive sessions 
with members of our management team. These sessions are 
intended to ensure an open and frank dialogue exists about 
various forms of risk across the organization.
Implementation and Integration. We believe that an 
integrated approach to developing, measuring and reporting 
our Own Risk and Solvency Assessment (“ORSA”) is an 
important part of the risk management framework. The 
ORSA process provides the link between Arch Capital’s risk 
profile, its board-approved risk appetite including approved 
risk tolerances and limits, its business strategy and its overall 
solvency requirements. The ORSA is the entirety of the 
processes and procedures employed to identify, assess, 
monitor, manage, and report the short and long-term risks we 
face or may face and to determine the capital necessary to 
ensure that our overall solvency needs are met at all times. 
The ORSA also makes the link between actual reported 
results and the capital assessment.
The ORSA is the basis for risk reporting to the Board and its 
committees and acts as a mechanism to embed the risk 
management framework within our decision making 
processes and operations. The Board has delegated 
responsibility for supervision and oversight of the ORSA to 
the FIR Committee. This oversight includes regular reviews 
of the ORSA process and output. An ORSA report is 
produced at least annually, and the results of each assessment 
are reported to the Board. The Board actively participates in 
the ORSA process by steering how the assessment is 
performed and challenging its results. This assessment is also 
taken into account when formulating strategic decisions.
The ORSA process and reporting are also important parts of 
our business strategy, tailored specifically to fit into our 
organizational structure and risk management system with 
the appropriate techniques in place to assess our overall 
solvency needs, taking into consideration the nature, scale 
and complexity of the risks inherent in the business.
We also take the results of the ORSA into account within our 
system 
of 
governance, 
including 
long-term 
capital 
management, 
business 
planning 
and 
new 
product 
development. The results of the ORSA also contribute to 
various elements of our strategic decision-making including 
how best to optimize capital management, establish the most 
appropriate premium levels and decide whether to retain or 
transfer risks. 
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2024 FORM 10-K

For further discussion of our risk management policies, see 
the Ceded Reinsurance section of “Summary of Critical 
Accounting Estimates” in Item 7.
REGULATION
General
Our insurance and reinsurance subsidiaries are subject to 
varying degrees of regulation and supervision in the various 
jurisdictions in which they operate. The current material 
regulations under which we operate are described below. We 
may become subject in the future to regulation in new 
jurisdictions or to additional regulations in existing 
jurisdictions.
Bermuda
General. Our main Bermuda insurance operating subsidiary, 
Arch Re Bermuda, is dual licensed as a Class 4 general 
business insurer and a Class C long-term insurer and is 
subject to the Insurance Act 1978 of Bermuda and related 
regulations, as amended (“Insurance Act”). AGRL, a Class 
3A general insurer in Bermuda, is also subject to the 
Insurance Act. Among other matters, the Insurance Act 
imposes certain solvency and liquidity standards, auditing 
and reporting requirements, the submission of certain period 
examinations of its financial conditions and grants the BMA 
powers to supervise, investigate, require information and 
demand the production of documents and intervene in the 
affairs of insurance companies. Significant requirements 
include the appointment of an independent auditor, the 
appointment of a loss reserve specialist, the appointment of a 
principal representative in Bermuda, the filing of annual 
Statutory Financial Returns, the filing of annual financial 
statements in accordance with U.S. generally accepted 
accounting principles (“GAAP”), the filing of an annual 
capital and solvency return, compliance with minimum and 
enhanced capital requirements, compliance with certain 
restrictions on reductions of capital and the payment of 
dividends and distributions, compliance with group solvency 
and supervision rules, if applicable, and compliance with the 
Insurance Code of Conduct (relating to corporate governance, 
risk management and internal controls). 
The Insurance Act provides a minimum liquidity ratio for 
Bermuda insurers engaged in general business, such as 
AGRL and Arch Re Bermuda. AGRL is required to maintain 
the value of its relevant assets at not less than 75% of the 
amount of its relevant liabilities. Arch Re Bermuda must also 
comply with the same minimum liquidity ratio and minimum 
solvency margin in respect of its general business, only. The 
minimum solvency margin, which varies depending on the 
class of the insurer, is determined as a percentage of either 
net reserves for losses and loss adjustment expenses (“LAE”) 
or premiums or pursuant to a risk-based capital measure. 
Arch Re Bermuda and AGRL are also subject to an enhanced 
capital requirement (“ECR”) which is established by 
reference 
to 
either 
the 
Bermuda 
Solvency 
Capital 
Requirement model (“BSCR”) or an approved internal capital 
model. The BSCR model is a risk-based capital model which 
provides a method for determining an insurer’s capital 
requirements (statutory capital and surplus) by taking into 
account the risk characteristics of different aspects of the 
insurer’s business. The BMA has established a target capital 
level for each Class 3A and Class 4 insurer equal to 120% of 
its ECR. While a Class 3A and/or Class 4 insurer is not 
currently required to maintain its available statutory 
economic capital and surplus at this level, the target capital 
level serves as an early warning tool for the BMA, and failure 
to maintain statutory capital at least equal to the target capital 
level will likely result in increased regulatory oversight. As a 
Class C insurer, Arch Re Bermuda is also required to 
maintain available statutory economic capital and surplus in 
respect of its long-term business at a level equal to or in 
excess of its long-term enhanced capital requirement that is 
established by reference to either the Class C BSCR model or 
an approved internal capital model.
Arch Re Bermuda is prohibited from declaring or paying any 
dividends during any financial year if it is in breach of its 
general business or long-term business enhanced capital 
requirements, minimum solvency margins or its general 
business minimum liquidity ratio or if the declaration or 
payment of such dividends would cause such a breach. As a 
general business insurer, AGRL is also prohibited from 
declaring or paying any dividends during any financial year if 
it is in breach of its capital requirements, solvency margins or 
its minimum liquidity ratio or if the declaration or payment 
thereof would cause such a breach. If either Arch Re 
Bermuda and/or AGRL has failed to meet its minimum 
solvency margins or minimum liquidity ratio on the last day 
of any financial year, it will be prohibited, without the 
approval of the BMA, from declaring or paying any 
dividends during the next financial year. In addition, each of 
Arch Re Bermuda and AGRL is prohibited from declaring or 
paying in any financial year dividends of more than 25% of 
its total statutory capital and surplus (as shown on its 
previous financial year’s statutory balance sheet) unless it 
files (at least seven days before payment of such dividends) 
with the BMA an affidavit stating that it will continue to 
meet the required margins. Without the approval of the 
BMA, each of Arch Re Bermuda and AGRL are prohibited 
from reducing by 15% or more its total statutory capital as set 
out in its previous year’s financial statements and any 
application for such approval must include an affidavit 
stating that it will continue to meet the required margins. 
Where such an affidavit is filed, it shall be available for 
public inspection at the offices of the BMA. Under the 
Bermuda Companies Act of 1981, as amended (the 
“Companies Act”), Arch Re Bermuda and AGRL may each 
ARCH CAPITAL
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2024 FORM 10-K

declare or pay a dividend out of distributable reserves only if 
the company has reasonable grounds for believing that it is, 
or would after the payment be, able to pay its liabilities as 
they become due and if the realizable value of its assets 
would thereby not be less than its liabilities. 
Policyholder Priority. The Insurance Amendment (No. 2) 
Act 2018 amended the Insurance Act to provide for the prior 
payment of policyholders’ liabilities ahead of general 
unsecured creditors in the event of the liquidation or winding 
up of an insurer. The amendments provide inter alia that, 
subject to certain statutorily preferred debts, the insurance 
debts of an insurer must be paid in priority to all other 
unsecured debts of the insurer. Insurance debt is defined as a 
debt to which an insurer is or may become liable pursuant to 
an insurance contract excluding debts owed to an insurer 
under an insurance contract where the insurer is the person 
insured.
Group Supervision. The BMA acts as group supervisor of our 
group of insurance and reinsurance companies (“Group”) and 
has designated Arch Re Bermuda as the designated insurer 
(“Designated Insurer”). As our Group supervisor, the BMA 
performs a number of functions including: (i) coordinating 
the gathering and dissemination of relevant or essential 
information for going concerns and emergency situations, 
including the dissemination of information which is of 
importance for the supervisory task of other competent 
authorities; (ii) carrying out supervisory reviews and 
assessments of our Group; (iii) carrying out assessments of 
our Group's compliance with the rules on solvency, risk 
concentration, intra-group transactions and good governance 
procedures; (iv) planning and coordinating through regular 
meetings held at least annually (or by other appropriate 
means) with other competent authorities, supervisory 
activities in respect of our Group; both as a going concern 
and 
in 
emergency 
situations 
(v) 
coordinating 
any 
enforcement action that may need to be taken against our 
Group or any Group member(s); and (vi) planning and 
coordinating meetings of colleges of supervisors in order to 
facilitate the carrying out of these functions. As Designated 
Insurer, Arch Re Bermuda is required to facilitate compliance 
by our Group with the group insurance solvency and 
supervision rules.
On an annual basis, the Group is required to file the Group 
statutory financial statements, a Group statutory financial 
return, a Group capital and solvency return, audited Group 
financial statements, a Group Solvency Self-Assessment 
(“GSSA”), and a financial condition report with the BMA. 
The GSSA is designed to document our perspective on the 
capital resources necessary to achieve our business strategies 
and remain solvent, and to provide the BMA with insights on 
our 
risk 
management, 
governance 
procedures 
and 
documentation related to this process. In addition, the 
Designated Insurer is required to file quarterly group 
financial returns with the BMA. The Group is also required 
to maintain available Group statutory economic capital and 
surplus in an amount that is at least equal to the group 
enhanced capital requirement (“Group ECR”) and the BMA 
has established a group target capital level equal to 120% of 
the Group ECR.
International Association of Insurance Supervisors (“IAIS”). 
The IAIS is a voluntary membership organization of 
insurance supervisors and regulators from more than 200 
jurisdictions, including Bermuda and the U.S. states (through 
the National Association of Insurance Commissioners, or 
“NAIC”). In November 2019, the IAIS adopted the Holistic 
Framework for Systemic Risk in the Insurance Sector 
(“Holistic Framework”) and the Common Framework for 
Supervision of Internationally Active Insurance Groups 
(“ComFrame”).
The Holistic Framework is an enhanced set of supervisory 
policy measures for macroprudential purposes, designed to 
mitigate systemic risk and increase resilience through a 
sector-wide approach. ComFrame establishes supervisory 
standards and guidance focusing on the effective group-wide 
supervision of large Internationally Active Insurance Groups 
(“IAIGs”). Among other things, ComFrame prescribes a risk-
based, global insurance capital standard (“ICS”) for IAIGs 
for the purpose of creating a common framework for 
comparing and assessing IAIGs’ group-wide capital 
adequacy. While IAIS standards currently have no legal 
effect, IAIS members, including the BMA and the NAIC, are 
required to implement certain IAIS standards to maintain 
good standing and prevent retaliatory measures from other 
IAIS members. On that basis, IAIS members are required to 
implement ICS, or an alternative group-wide capital 
requirement that provides comparable outcomes, for IAIGs, 
beginning in 2025.
The BMA is expected to embed ComFrame and the Holistic 
Framework standards, including the ICS, into the Bermuda 
commercial regulatory regime (particularly for IAIGs) 
effective as of May 1, 2025. The new standards aim to ensure 
that insurers prepare for a range of possible adverse situations 
ahead of any severe stress condition, including the creation 
and adoption of recovery plans through Arch Re Bermuda’s 
internal governance. These standards are expected to apply to 
Arch Re Bermuda as a commercial insurer. Additional 
guidance from the BMA in relation to recovery planning is 
expected to be consulted and published in 2025.
On October 30, 2024, the IAIS released a public register of 
59 IAIGs that have been disclosed by relevant supervisors. 
Arch Capital was formally designated as an IAIG by the 
BMA, its group-wide supervisor, in 2024 and listed by the 
BMA on the aforementioned public register. As such, Arch is 
subject to international oversight coordinated by the BMA. 
Consultation remains ongoing between Arch Re Bermuda 
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and the BMA on the requirements applicable to the Group 
under Bermuda law and in line with the proposed 
modifications to the BMA’s prudential framework as 
ComFrame and the Holistic Framework develop.
Fit and Proper Controllers. The BMA maintains supervision 
over the controllers of all Bermuda registered insurers, 
brokers, agents and insurance marketplace providers. For so 
long as the shares of Arch Capital are listed on the Nasdaq or 
another recognized stock exchange, any person who, directly 
or indirectly, becomes a holder of at least 10%, 20%, 33% or 
50% of our common shares must notify the BMA in writing 
within 45 days of becoming such a holder (or ceasing to be 
such a holder). The BMA may object to such a person and 
require the holder to reduce its holding of common shares 
and direct, among other things, that voting rights attaching to 
the common shares shall not be exercisable.
Economic Substance Act. In December 2018, Bermuda 
enacted the Economic Substance Act 2018 (as amended) of 
Bermuda and its related regulations (together, the “ES Act”). 
The ES Act came into force on January 1, 2019, and provides 
that a registered entity other than an entity which is resident 
for tax purposes in certain jurisdictions outside Bermuda 
(“non-resident entity”) that carries on as a business any one 
or more of the “relevant activities” referred to in the ES Act 
must comply with economic substance requirements. The list 
of “relevant activities” includes carrying on any one or more 
of the following activities: banking, insurance, fund 
management, financing, leasing, headquarters, shipping, 
distribution and service center, intellectual property and 
holding entities. Under the ES Act, if a company is engaged 
in one or more “relevant activities”, it is required to maintain 
a substantial economic presence in Bermuda and to comply 
with the economic substance requirements set forth in the ES 
Act. A company will comply with those economic substance 
requirements if it: (a) is managed and directed in Bermuda; 
(b) undertakes “core income generating activities” (as may be 
prescribed under the ES Act) in Bermuda in respect of the 
relevant activity; (c) maintains adequate physical presence in 
Bermuda; (d) has adequate full time employees in Bermuda 
with suitable qualifications; and (e) incurs adequate operating 
expenditure in Bermuda in relation to the relevant activity 
undertaken by it.
Companies that are licensed under the Insurance Act and 
thereby carry on insurance as a relevant activity are generally 
considered to operate in Bermuda with adequate substance if 
they comply with the existing provisions of (a) the 
Companies Act relating to corporate governance; and (b) the 
Insurance Act, that are applicable to the economic substance 
requirements, and the Registrar will have regard to such 
companies’ compliance in his assessment of compliance with 
the economic substance requirements. That being said, such 
companies are still required to complete and file a 
Declaration Form, with the Bermuda Registrar of Companies 
and the Registrar will also have regard to the information 
provided in that Declaration Form in making his assessment 
of compliance with the ES Act.
Insurance Sector Operational Cyber Risk Management Code 
of Conduct (“Cyber Risk Management Code of Conduct”). 
The BMA recognized that cyber incidents can cause 
significant financial losses and/or reputational impacts across 
the insurance industry and implemented the Cyber Risk 
Management Code of Conduct in October 2020. All Bermuda 
insurers, insurance managers and intermediaries registered 
under the Insurance Act are required to comply with the 
BMA’s Cyber Risk Management Code of Conduct, which 
established duties, requirements and standards to be complied 
by each registrant in relation to operational cyber risk 
management. This requires Arch Re Bermuda to develop a 
cyber risk policy, which is to be delivered pursuant to an 
operational cyber risk management program and appoint an 
appropriately qualified member of staff or outsourced 
resource to the role of Chief Information Security Officer. 
The role of the Chief Information Security Officer is to 
deliver the operational cyber risk management program.
It is expected that the cyber risk policy will be approved by 
the Arch Re Bermuda board of directors at least annually. 
The BMA will assess Arch Re Bermuda’s compliance with 
the Cyber Risk Management Code of Conduct in a 
proportionate manner relative to the nature, scale and 
complexity of its business. Failure to comply with the 
requirements of the Cyber Risk Management Code of 
Conduct will be taken into account by the BMA in 
determining whether Arch Re Bermuda is conducting its 
business in a sound and prudent manner as prescribed by the 
Insurance Act and may result in the BMA exercising its 
powers of intervention and investigation.
Notification of Cyber Reporting Events. Every Bermuda 
insurer is required to notify the BMA forthwith on it coming 
to the knowledge of the insurer, or where the insurer has 
reason to believe that a Cyber Reporting Event has occurred. 
Within fourteen (14) days of such notification, the insurer 
must also furnish the BMA with a written report setting out 
all of the particulars of the Cyber Reporting Event that are 
available to it. A Cyber Reporting Event includes any act that 
results in the unauthorized access to, disruption, or misuse of 
electronic systems or information stored on such systems of 
an insurer, including breach of security leading to the loss or 
unlawful destruction or unauthorized disclosure of or access 
to such systems or information where there is a likelihood of 
an adverse impact to policyholders, clients or the insurer’s 
insurance business, or an event that has occurred for which 
notice is required to be provided to a regulatory body or 
government agency.
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Personal Information Protection Act 2016. Bermuda’s 
principal data protection and privacy legislation is the 
Personal Information Protection Act 2016 (“PIPA”). On 
January 1, 2025, PIPA was fully implemented. PIPA applies 
to every organization (which includes any individual, entity 
or public authority) that uses personal information in 
Bermuda where that personal information is used by 
automated or other means which form, or are intended to 
form, part of a structured filing system. PIPA does not define 
privacy explicitly but rather defines “personal information” 
and sets out privacy rules for institutions to follow for the 
collection, use, disclosure, maintenance, retention, security 
and disposal of personal information. For the purposes of 
PIPA, “personal information” means any information about 
an identified or identifiable individual (meaning a natural 
person), and “use” or “using” are very broadly defined and 
means carrying out any operation on personal information, 
including collecting, obtaining, recording, holding, storing, 
organizing, adapting, altering, retrieving, transferring, 
consulting, disclosing, disseminating or otherwise making 
available, combining, blocking, erasing or destroying it. 
Personal information used by an insurer in Bermuda would 
include 
(without 
limitation) 
information 
relating 
to 
policyholders, employees, consultants, service providers, 
officers, employees, consultants or any other third party of 
the insurer. Our Bermuda entities are subject to PIPA 
requirements.
Corporate Income Tax Act 2023 (the “Bermuda CIT Act”). 
On December 27, 2023, Bermuda enacted the Bermuda CIT 
Act. Entities subject to tax under the Bermuda CIT Act are 
the Bermuda constituent entities of multi-national groups. A 
multi-national group is defined under the Bermuda CIT Act 
as a group with entities in more than one jurisdiction with 
consolidated revenues of at least €750 million for two of the 
four previous fiscal years. If Bermuda constituent entities of a 
multi-national group are subject to tax under the Bermuda 
CIT Act, such tax is charged at a rate of 15% of the net 
income of such constituent entities (as determined in 
accordance with the Bermuda CIT Act, including after 
adjusting for any relevant foreign tax credits applicable to the 
Bermuda constituent entities). Although the commencement 
date of the Bermuda CIT Act is January 1, 2024, no tax is 
chargeable under the Bermuda CIT Act until tax years 
starting on or after January 1, 2025. All Arch Bermuda 
operations are subject to the requirements of the Bermuda 
CIT Act.
United States
General. Our U.S. based insurance operating subsidiaries are 
subject to extensive governmental regulation and supervision 
by the states and jurisdictions in which they are domiciled, 
licensed and/or approved to conduct business. The insurance 
laws and regulations of the state of domicile have the most 
significant impact on operations. We currently have U.S. 
insurance and/or reinsurance subsidiaries domiciled in 
Delaware, North Carolina, Missouri, Wisconsin, Kansas and 
the District of Columbia and we may acquire insurers 
domiciled in other states in the future. State insurance 
regulation 
and 
supervision 
is 
designed 
to 
protect 
policyholders 
rather 
than 
investors. 
Generally, 
state 
regulatory authorities have broad regulatory powers over 
such matters as licenses, standards of solvency, premium 
rates, policy forms, marketing practices, claims practices, 
investments, methods of accounting, form and content of 
financial statements, certain aspects of governance, ERM, 
amounts we are required to hold as reserves for future 
payments, minimum capital and surplus requirements, annual 
and other report filings and transactions among affiliates. Our 
U.S. based subsidiaries are required to file detailed quarterly 
and audited annual statutory financial statements with state 
insurance regulators. In addition, regulatory authorities 
conduct periodic financial, claims and market conduct 
examinations. Certain insurance regulatory requirements are 
highlighted below. In addition to regulation applicable 
generally to U.S. insurance and reinsurance companies, our 
U.S. mortgage insurance operations are affected by federal 
and state regulation relating to mortgage insurers, mortgage 
lenders, and the origination, purchase and sale of residential 
mortgages. Arch Insurance (U.K.) is also subject to certain 
governmental regulation and supervision in the states where 
it writes excess and surplus lines insurance.
Holding Company Regulation. All states have enacted 
legislation that regulates insurance holding company systems. 
These regulations generally provide that each insurance 
company in the system is required to register with the 
insurance department of its state of domicile and furnish 
information concerning the operations of companies within 
the holding company system which may materially affect the 
operations, management or financial condition of the insurers 
within the system. Notice to the state insurance departments 
is required prior to the consummation of certain material 
transactions between an insurer and any entity in its holding 
company system and certain transactions may not be 
consummated without the applicable insurance department’s 
prior approval or non-disapproval after receiving notice. The 
holding company acts also prohibit any person from directly 
or indirectly acquiring control of a U.S. insurance or 
reinsurance company unless that person has filed an 
application with specified information with such company’s 
domiciliary 
commissioner 
and 
has 
obtained 
the 
commissioner’s prior approval. Under most states’ statutes 
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acquiring 10% or more of the voting securities of an 
insurance company or its parent company is presumptively 
considered an acquisition of control of the insurance 
company, although such presumption may be rebutted. 
State holding company acts and regulations also impose 
extensive informational requirements on parents and other 
affiliates of licensed insurers or reinsurers with the purpose 
of protecting them from enterprise risk, including requiring 
an annual enterprise risk report by the ultimate controlling 
person identifying the material risks within the insurance 
holding company system that could pose enterprise risk to the 
licensed companies and requiring a person divesting its 
controlling interest to make a confidential advance notice 
filing.
The NAIC Insurance Holding Company System Model Act 
and Model Regulation (“Insurance Holding Company 
Models”) include provisions that require the ultimate 
controlling person of an insurance holding company system 
to file an annual group capital calculation (“GCC”), unless 
the ultimate controlling person or its insurance holding 
company system is exempt from the filing requirement. The 
GCC amendments to the Insurance Holding Company 
Models aim to streamline group-wide supervision by 
leveraging U.S. regulators’ existing risk and solvency 
measures and applying them on a group-wide basis. Arch’s 
U.S. lead state regulator, the Missouri Department of 
Commerce & Insurance (“MDCI”), adopted the GCC 
provisions of the Insurance Holding Company Models in 
2021.
In November 2024, the form of group capital calculation set 
forth 
in 
the 
Insurance 
Holding 
Company 
Models 
(“aggregation method”) was deemed by the IAIS to be an 
acceptable alternative group-wide capital requirement to the 
IAIS-developed ICS, meaning that the U.S.-developed 
aggregation method will be considered an outcome-
equivalent approach to the ICS. The Company has been 
advised by the MDCI that it has no current intention of 
requiring Arch to submit a GCC report.
Regulation of Dividends and Other Payments from Insurance 
Subsidiaries. The ability of an insurer to pay dividends or 
make other distributions is subject to insurance regulatory 
limitations of the insurer’s state of domicile. Such laws 
generally limit the payment of dividends or other 
distributions above a specified level. Dividends or other 
distributions in excess of such thresholds are “extraordinary” 
and are subject to prior notice and approval, or non-
disapproval after receiving notice.
Credit for Reinsurance. A U.S. primary insurer ordinarily 
will enter into a reinsurance agreement only if it is able to 
obtain credit for the reinsurance ceded on its U.S. statutory-
basis financial statements. As a result of the requirements 
relating to the provision of credit for reinsurance, Arch Re 
U.S., Arch Re Bermuda and AGRL are indirectly subject to 
certain regulatory requirements imposed by U.S. jurisdictions 
in which ceding companies are domiciled. In general, credit 
for reinsurance is allowed if the reinsurer is licensed or 
“accredited” in the state in which the primary insurer is 
domiciled; or if none of the above applies, to the extent that 
the reinsurance obligations of the reinsurer are collateralized 
appropriately, typically through the posting of a letter of 
credit for the benefit of the primary insurer or the deposit of 
assets into a trust fund established for the benefit of the 
primary insurer. 
U.S. primary insurers also may receive credit for reinsurance 
ceded to unauthorized reinsurers without collateral or with 
less than 100% collateral under revisions to the NAIC Credit 
for Reinsurance Model Law (#785) and the Credit for 
Reinsurance Model Regulation (#786) (collectively, the 
“NAIC Model Law and Regulation”). All U.S. states, the 
District of Columbia and Puerto Rico have adopted revisions 
to the NAIC Model Law and Regulation that allow full credit 
to U.S. ceding insurers for reinsurance ceded to reinsurers 
that have been approved as “certified reinsurers” based upon 
less than 100% collateralization. As of January 24, 2025, 
Arch Re Bermuda is approved as a “certified reinsurer” for 
the 2025 calendar year in 47 states with applications pending 
in 6 additional states and territories. In addition, 2019 
amendments to the NAIC Model Law and Regulation 
eliminate reinsurance collateral requirements for reinsurers 
that (1) have their head office or are domiciled in EU 
Member States, the U.K., NAIC accredited U.S. jurisdictions 
and other jurisdictions deemed “reciprocal jurisdictions” by 
the NAIC (although individual states may approve or reject 
the designation of such other jurisdictions as a “reciprocal 
jurisdiction”), and (2) have been approved as a “reciprocal 
jurisdiction reinsurer.” The NAIC list of approved reciprocal 
jurisdictions includes Bermuda, Japan and Switzerland. All 
U.S. states, the District of Columbia and Puerto Rico have 
adopted the 2019 amendments to the NAIC Model Law and 
Regulation. As of January 24, 2025, Arch Re Bermuda is 
approved as a “reciprocal jurisdiction reinsurer” for the 2025 
calendar year in 49 states with applications pending in 4 
additional states and territories. In addition, as of January 24, 
2025, AGRL is approved as a “reciprocal jurisdiction 
reinsurer” in its lead state of Missouri and an additional four 
states for the 2025 calendar year. In October 2024, the U.S. 
Department of the Treasury recognized Arch Re Bermuda as 
an Alien Reinsurer (except on excess risks running to the 
U.S.), which allows T-Listed ceding companies to eliminate 
regulatory collateral requirements under the U.S. Treasury 
rules.
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Risk Management and ORSA. The NAIC Risk Management 
and Own Risk Solvency Assessment Model Act (“ORSA 
Model Act”) provides that domestic insurers, or their 
insurance group, must regularly conduct an ORSA consistent 
with a process comparable to the ORSA Guidance Manual 
process. The ORSA Model Act also provides that, no more 
than once a year, an insurer’s domiciliary regulator may 
request that an insurer submit an ORSA summary report, or 
any combination of reports that together contain the 
information described in the ORSA Guidance Manual, with 
respect to the insurer and/or the insurance group of which it 
is a member. States may impose additional internal review 
and regulatory filing requirements on licensed insurers and 
their parent companies. All states have enacted the ORSA 
Model Act or substantially similar legislation.
Cybersecurity and Privacy. The SEC maintains cybersecurity 
disclosure rules (“SEC Cybersecurity Rules”) mandating 
cybersecurity incident and risk management disclosure for 
public companies such as Arch. The SEC Cybersecurity 
Rules became effective in December 2023 and mandate that 
public companies report a cybersecurity incident on a Form 
8-K within four days after they determine that the incident is 
material. Additional disclosure by registrants in the Form 10-
K annual report should describe their processes for assessing, 
identifying and managing material risks from cybersecurity 
threats, the material impacts of cybersecurity threats and 
previous 
cybersecurity 
incidents. 
See 
Item 
1C, 
“Cybersecurity” 
for 
further 
information 
about 
our 
disclosures. 
In March 2022, the U.S. government passed the Cyber 
Incident Reporting for Critical Infrastructure Act of 2022, 
which will require companies deemed to be part of U.S. 
critical infrastructure to report any substantial cybersecurity 
incidents or ransom payments to the federal government 
within 72 and 24 hours, respectively. The Cybersecurity & 
Infrastructure Security Agency considers financial services, 
which 
includes 
insurance 
companies, 
as 
a 
critical 
infrastructure sector. The implementing regulations are not 
expected on or before October 4, 2025.
The NAIC adopted an Insurance Data Security Model Law in 
2017 that requires insurers, insurance producers and other 
entities required to be licensed under state insurance laws to 
comply with certain requirements under state insurance laws, 
such as developing and maintaining a written information 
security program, conducting risk assessments overseeing the 
data security practices of third-party service providers and 
meeting expanded breach notification requirements. This 
model law has been adopted in states in which our U.S. 
subsidiaries are licensed and operate. In addition, certain state 
insurance regulators, such as the New York Department of 
Financial Services (“NYDFS”), continue to issue regulations 
and guidance that impose regulatory requirements relating to 
privacy and cybersecurity. 
Privacy legislation and regulation also exists in many of the 
U.S. states. The California Consumer Privacy Act of 2018 
(“CCPA”), effective since January 1, 2023, grants California 
consumers certain rights to, among other things, access, 
correct and delete data about them subject to certain 
exceptions, as well as a private right of action related to 
cybersecurity breaches with statutory penalties. The CCPA 
created a new privacy-focused California regulatory agency 
with enforcement authority, the California Privacy Protection 
Agency (“CPPA”) and certain rules regarding cybersecurity 
audits and privacy risk assessments that have been proposed 
by the CPPA may be adopted in the future. 
In addition, a range of new cybersecurity and privacy laws 
have been passed or are under consideration in other states, 
as well as by the federal government. Twenty states have 
passed comprehensive state data privacy laws and such laws 
are effective in thirteen of those states. These state laws 
provide consumer privacy rights and protections like those in 
the CCPA and CPRA, although many of them exempt 
entities subject to the Gramm-Leach-Bliley Act from their 
requirements.
Artificial Intelligence. The increased use of automated 
processes by insurers, including algorithms, artificial 
intelligence (generative and predictive) (“AI”) and predictive 
models that make use of large datasets and data analytics, has 
led to additional regulatory attention to insurer practices 
including in relation to risk selection, pricing and claims, as 
well as governance and oversight of AI and predictive 
models.
In 2023, the NAIC adopted a model bulletin entitled “Use of 
Artificial Intelligence Systems by Insurers” that sets forth 
state insurance regulators’ expectations on how insurers 
should govern the use of advanced analytical and 
computational technologies used to make or support 
decisions impacting consumers. Such expectations include 
implementation of a written program for the responsible use 
of AI systems that make or support decisions related to 
regulated insurance practices, which program should be 
designed to mitigate certain risks. As of February 1, 2025, at 
least 20 states have adopted the bulletin and we expect more 
states to do the same.
States with specific AI guidance or regulations impacting our 
U.S. insurance companies include California, Colorado and 
New York. NYDFS expects insurers doing business in New 
York to observe their 2024 Insurance Circulator Letter No.7 
regarding the use of AI systems which adopts a risk-based 
approach to evaluating their AI systems used for 
underwriting and pricing of insurance products. AI systems 
should be assessed to ensure that they do not produce 
disproportionate adverse effects in underwriting or pricing 
for similarly situated individuals and tested regularly to 
ensure that they do not produce unfair or unlawful outcomes. 
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The NYDFS also issued guidance regarding cybersecurity 
risks arising from AI requiring us to continuously assess 
these risks and implement appropriate cybersecurity 
measures to mitigate these threats.
California passed several AI statutes in 2024 (Assembly Bills 
2885 and 1008, Senate Bill 1223 California AI Transparency 
Act and the Training Date Transparency Act) which may 
impact our U.S. underwriting entities. While some of these 
laws do not take effect until January 1, 2026, the 
requirements are comprehensive.
On November 8, 2024, the CPPA formally proposed draft 
amendments to regulations under the CCPA that would create 
new rules governing consumer notice, access, and opt-out 
rights 
with 
respect 
to 
Automated 
decision-making 
Technology 
(“ADMT”). 
Under 
the 
proposed 
rules, 
businesses would also have to make significant disclosures 
about their implementation of ADMT. The proposed 
language broadly defines ADMT to include any technologies 
that processes personal information and uses computation to 
execute a decision, replace human decision-making, or 
substantially 
facilitate 
human 
decision-making” 
and 
explicitly includes artificial intelligence, machine learning, 
and profiling.
On the federal level, on January 23, 2025 President Donald 
Trump issued an executive order on artificial intelligence 
requiring a review of existing AI policies and directives that 
act as barriers to American AI innovation. It is difficult to 
know how the Trump administration will address AI at a 
federal level, and any changes to laws and regulations 
regarding how we may use AI could prevent or limit our use 
of AI. On the state level, hundreds of a new proposed AI 
laws have been proposed this year across the U.S., including 
proposed bills in Connecticut, Massachusetts, New Mexico, 
New York and Virginia.
Globally, many new AI laws are being proposed or have 
taken effect, the most significant of which is in the EU. See 
“Regulation—Europe” for further details on our insurance 
operations.
Risk-Based Capital Requirements. Licensed U.S. property 
and casualty insurance and reinsurance companies are subject 
to risk-based capital requirements that are designed to assess 
capital adequacy and to raise the level of protection that 
statutory surplus provides for policyholder obligations. The 
risk-based capital model for property and casualty insurance 
companies measures three major areas of risk facing property 
and casualty insurers: underwriting, which encompasses the 
risk of adverse loss developments and inadequate pricing; 
declines in asset values arising from credit risk; and declines 
in asset values arising from investment risks. An insurer will 
be subject to varying degrees of regulatory action depending 
on how its statutory surplus compares to its risk-based capital 
calculation. Under the approved formula, an insurer’s total 
adjusted capital is compared to its authorized control level 
risk-based capital. If this ratio is above a minimum threshold, 
no company or regulatory action is necessary. Below this 
threshold are four distinct action levels at which an insurer’s 
domiciliary state regulator can intervene with increasing 
degrees of authority over an insurer as the ratio of surplus to 
risk-based capital requirement decreases. The mildest 
regulatory action requires an insurer to submit a plan for 
corrective action; the most severe requires an insurer to be 
rehabilitated or liquidated. 
Our mortgage insurance operations are not currently subject 
to state risk-based capital requirements, but rather are subject 
to state risk to capital or minimum policyholder position 
requirements. The NAIC adopted a revised Mortgage 
Guaranty Insurance Model Act in 2023. Wisconsin is the 
only state that has begun the process to replace its current 
mortgage guaranty insurance regulations to more closely 
align with the revised Mortgage Guaranty Insurance Model 
Act.
Guaranty Funds and Market Restrictions. Most states require 
all admitted insurance companies to participate in their 
respective guaranty funds which cover certain claims against 
insolvent insurers. Solvent insurers licensed in these states 
are required to cover the losses paid on behalf of insolvent 
insurers by the guaranty funds and are generally subject to 
annual assessments in the states by the guaranty funds to 
cover these losses. Mortgage guaranty insurance, among 
other lines of business, is typically exempt from participation 
in guaranty funds.
States also limit the ability of insurers to manage risk by 
restricting their ability to withdraw from or otherwise reduce 
their exposure based on a change in market conditions. Some 
states’ laws also require or give regulators the discretion to 
take action in the aftermath of certain events, such as natural 
catastrophes, including the ability to impose moratoria on 
policy cancellations or nonrenewals, and to impose “grace 
periods” on premium payments. These restrictions and 
requirements are generally limited to the personal lines 
insurance markets, but may affect our business as well.
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Climate Change and Financial Risks. Some U.S. state 
insurance regulators have increased their oversight of 
insurance company governance, reporting and disclosure 
relating to the potential risks presented by climate change and 
one or more states may adopt climate-change-related 
requirements that impact our insurance and reinsurance 
companies. In 2020, NYDFS issued a circular letter stating 
that NYDFS expects insurers authorized in New York to 
integrate the consideration of climate risks into their 
governance frameworks, risk management processes and 
business strategies, including the designation of a board 
committee or member and senior management function to be 
accountable for the company’s assessment and management 
of the financial risks from climate change. In 2021, NYDFS 
issued additional guidance for New York Domestic Insurers 
on Managing the Financial Risks from Climate Change that 
reiterates many of the principles outlined in the 2020 circular 
letter. New York and other states also require licensed 
insurers with countrywide premium written of at least $100 
million to annually provide disclosure of their assessment 
and management of climate related risks. 
Other Federal Regulation. Although state regulation is the 
dominant form of regulation for insurance and reinsurance 
business, a number of federal laws currently affect and apply 
to the insurance industry and the landscape of federal 
regulation could change. The Dodd-Frank Wall Street 
Reform and Consumer Protection Act of 2010 (“Dodd-
Frank”) created the FIO, which is not a federal regulator or 
supervisor of insurance, but monitors the insurance industry 
for systemic risk, consults with the states regarding insurance 
matters, develops federal policy on aspects of international 
insurance matters, is authorized to assist the U.S. Secretary of 
the Treasury in negotiating “covered agreements” between 
the U.S. and foreign governments that address insurance 
prudential measures, and administers the Terrorism Risk 
Insurance Program (“TRIP”). The TRIP will expire on 
December 31, 2027 unless reauthorized by Congress.
The U.S. Department of the Treasury, Bureau of Fiscal 
Service (“BFS”), also regulates insurance companies that 
write surety bonds on, or reinsure, federal surety bonds. Arch 
Insurance Company and Arch Reinsurance Company are 
approved by BFS as “Certified Companies” meaning that 
they are permitted to insure and reinsure surety bond 
business, including federal surety bonds, subject to certain 
underwriting restrictions and BFS supervision. In 2024, Arch 
Re Bermuda was approved for “Alien Reinsurer” status by 
the BFS, which subjects it to similar restrictions and 
requirements, but also enables it to provide credit for 
reinsurance to Treasury-authorized insurers and to reinsure 
certain risks without the need to post collateral for the benefit 
of the cedent.
In addition to provisions of Dodd-Frank pertaining to 
underwriting mortgages and a consumer’s ability to repay, 
certain other federal laws also directly or indirectly impact 
mortgage insurers, including the Real Estate Settlement 
Procedures Act of 1974, the Homeowners Protection Act of 
1998, the Equal Credit Opportunity Act, the Fair Housing 
Act, the Truth In Lending Act, the Fair Credit Reporting Act 
of 1970, and the Fair Debt Collection Practices Act. Among 
other things, these laws and their implementing regulations 
prohibit payments for referrals of settlement service business, 
require fairness and non-discrimination in granting or 
facilitating the granting of credit, govern the circumstances 
under which companies may obtain and use consumer credit 
information, define the manner in which companies may 
pursue collection activities, and require disclosures of the 
cost of credit and provide for other consumer protections.
GSE Eligible Mortgage Insurer Requirements. GSEs impose 
requirements on private mortgage insurers so that they may 
be eligible to insure loans sold to the GSEs, known as the 
Private 
Mortgage 
Insurer 
Eligibility 
Requirements 
(“PMIERs”). The PMIERs apply to our eligible mortgage 
insurers, but do not apply to AMG, which is not GSE-
approved. The PMIERs impose limitations on the type of risk 
insured, the forms and insurance policies issued, standards 
for the geographic and customer diversification of risk, 
procedures for claims handling, acceptable underwriting 
practices, standards for certain reinsurance cessions and 
financial requirements, among other things. The financial 
requirements require an eligible mortgage insurer’s available 
assets, which generally include only the most liquid assets of 
an insurer to meet or exceed “minimum required assets” as of 
each quarter end. In August 2024, the GSEs updated PMIERs 
to incorporate new deductions to the definition of available 
assets for investment risk. This update will become effective 
March 31, 2025, but the impact will be phased in through 
September 30, 2026. Minimum required assets are calculated 
from PMIERs tables with several risk dimensions including 
origination year, original loan-to-value, original credit score 
of performing loans, and the delinquency status of non-
performing loans. 
Russian Sanctions. The U.S. first imposed sanctions on the 
Russian Federation following its annexation of Crimea in 
2014. Since February 2022, the U.S. has since imposed 
several new sanctions on Russia in response to the Russian 
invasion of Ukraine and the ongoing hostilities. Recent 2025 
Biden administration sanctions also target the Russian energy 
sector, including Russian and non-Russian companies, 
persons and vessels which are aiding Russia’s production of 
oil. These sanctions may have extra-territorial reach to our 
non-U.S. 
underwriting 
subsidiaries. 
The 
U.S.-Russia 
discussions regarding the war in Ukraine and the use of U.S. 
sanctions is an evolving topic which we continue to review. 
We will evaluate and prepare for any changes in our 
sanctions program and business operations.
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Canada
Arch Insurance Canada and Arch Re Canada are subject to 
federal, as well as provincial and territorial, regulation in 
Canada in the provinces and territories in which they 
underwrite 
insurance/reinsurance. 
The 
Office 
of 
the 
Superintendent of Financial Institutions (“OSFI”) is the 
federal regulatory body that, under the Insurance Companies 
Act (Canada), prudentially regulates federal Canadian and 
non-Canadian 
insurance 
and 
reinsurance 
companies 
operating in Canada. Arch Insurance Canada is licensed to 
carry on insurance business by OSFI and in each province 
and territory. Arch Re Canada is licensed to carry on 
reinsurance business by OSFI and in the provinces of Ontario 
and Quebec.
Under the Insurance Companies Act (Canada), Arch 
Insurance Canada is required to maintain an adequate amount 
of capital in Canada, calculated in accordance with a test 
promulgated by OSFI called the Minimum Capital Test, and 
Arch Re Canada is required to maintain an adequate margin 
of assets over liabilities in Canada, calculated in accordance 
with a test promulgated by OSFI called the Branch Adequacy 
of Assets Test. OSFI has implemented a risk-based 
methodology for assessing insurance/reinsurance companies 
operating in Canada known as its “Supervisory Framework.” 
In applying the Supervisory Framework, OSFI considers the 
inherent risks of the business and the quality of risk 
management for each significant activity of each operating 
entity. Under the Insurance Companies Act (Canada), 
approval of the Minister of Finance (Canada) is required in 
connection with certain acquisitions of shares of, or control 
of, Canadian insurance companies such as Arch Insurance 
Canada, and notice to and/or approval of OSFI is required in 
connection with the payment of dividends by or redemption 
of shares by Canadian insurance companies such as Arch 
Insurance Canada.
United Kingdom 
General. The Prudential Regulation Authority (“PRA”) and 
the Financial Conduct Authority (“FCA”) regulate insurance 
and reinsurance companies and the FCA regulates firms 
carrying on insurance distribution activities operating in the 
U.K. under the Financial Services and Markets Act 2000 (the 
“FSMA”). In May 2004, Arch Insurance (U.K.) was granted 
the relevant permissions for the classes of insurance business 
which it underwrites in the U.K. AMAL currently manages 
our Lloyd’s Syndicates pursuant to its authorizations by the 
U.K. regulators and Lloyd’s. All U.K. companies are also 
subject to a range of statutory provisions, including the laws 
and regulations of the Companies Act 2006 (as amended) 
(the “U.K. Companies Act”).
The objectives of the PRA are to promote the safety and 
soundness of all firms it supervises and to secure an 
appropriate degree of protection for policyholders. The 
objectives of the FCA are to ensure customers receive 
financial services and products that meet their needs, to 
promote sound financial systems and markets and to ensure 
that firms are stable and resilient with transparent pricing 
information and which compete effectively and have the 
interests of their customers and the integrity of the market at 
the heart of how they run their business. Following the 
implementation of the Financial Services and Markets Act 
2023 (“FSMA 2023”), the PRA and the FCA have a new 
secondary 
objective 
to 
facilitate 
the 
international 
competitiveness of the U.K. economy and its medium to 
long-term growth, subject to aligning with relevant 
international standards.
The PRA and the FCA adopt separate methods of assessing 
regulated firms on a periodic basis. Arch Insurance (U.K.) 
and AMAL are subject to periodic assessment by the PRA 
along with all regulated firms. Arch Insurance (U.K.) and 
AMAL are subject to regulation by both the PRA and FCA. 
Lloyd’s Supervision. The operations of AMAL (as managing 
agent of our Lloyd’s Syndicates) and each syndicate’s 
respective corporate members, are subject to the byelaws and 
regulations made by (or on behalf of) the Council of Lloyd’s, 
and requirements made under those byelaws. The Council of 
Lloyd’s, established in 1982 by Lloyd’s Act 1982, has overall 
responsibility and control of Lloyd’s. Those byelaws, 
regulations and requirements provide a framework for the 
regulation of the Lloyd’s market, including specifying 
conditions in relation to underwriting and claims operations 
of Lloyd’s participants. The Council of Lloyd’s has 
discretionary powers to regulate corporate members’ 
underwriting at Lloyd’s. Lloyd’s is also subject to the 
provisions of the FSMA. Lloyd's is authorized by the PRA 
and regulated by the PRA and FCA. Those entities acting 
within the Lloyd’s market are required to comply with the 
requirements of the FSMA and provisions of the PRA’s or 
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FCA's rules, although the PRA has delegated certain of its 
powers, including some of those relating to prudential 
requirements, to Lloyd’s. Each corporate member of Lloyd’s 
is required to contribute a percentage of the member’s 
premium income for each year of account to the Lloyd’s 
Central Fund. The Lloyd’s Central Fund is available if 
members of Lloyd’s assets are not sufficient to meet claims 
for which the member is liable. Each corporate member of 
Lloyd’s may also be required to contribute to the Central 
Fund by way of a supplement to a callable layer of up to 5% 
of the corresponding member’s premium income limit for the 
relevant year of account. 
Principles for doing business at Lloyd’s (the “Principles”) 
replaced the Lloyd’s Minimum Standards (the previous 
regime which set out the Lloyd’s regulatory requirements for 
Lloyd’s managing agents) and became effective from the 
third quarter of 2022. The Principles set out the fundamental 
responsibilities expected of all managing agents, including 
AMAL, and is the basis against which Lloyd’s will review 
and categorize all syndicates and managing agents in terms of 
their capacity and performance. While offering greater 
flexibility, the principles-based oversight requires greater 
reliance on AMAL to interpret and apply the rules.
Financial Resources. The European solvency framework and 
prudential regime for insurers and reinsurers, the Solvency II 
Directive 2009/138/EC (“Solvency II”), took effect in full on 
January 1, 2016. Solvency II, together with European 
Commission “delegated acts” and guidance issued by the 
European Insurance and Occupational Pensions Authority 
(“EIOPA”) 
sets 
out 
classification 
and 
eligibility 
requirements, including the features which capital must 
display in order to qualify as regulatory capital. See 
“European Union—Insurance and Reinsurance Regulatory 
Regime” below for additional details.
Arch Insurance (U.K.), and the corporate members of our 
Lloyd’s Syndicates are required to meet economic risk-based 
solvency requirements based on Solvency II.
On January 31, 2020, the U.K. withdrew from the EU with 
the terms of Brexit set forth in the Withdrawal Agreement 
agreed by the U.K. Parliament and the EU Parliament. At the 
expiration of the transition period from January 31, 2020 
until December 31, 2020 (the “Transition Period”), during 
which time the U.K. remained in the EU customs union and 
single market, the EU (Withdrawal) Act 2018, as amended, 
has transposed all applicable direct EU legislation into 
domestic U.K. law, thus ensuring the continuing application 
of Solvency II under the U.K.’s financial services regulatory 
regime. 
In November 2022, HM Treasury set out the U.K. 
government’s final reform package on the Solvency II 
framework in the U.K. Significant changes to be introduced 
by these reforms included the reduction in risk margin by 
30% for non-life insurers and the proposal to remove branch 
capital requirements. 
FSMA 2023 provides a framework for the revocation of 
retained EU law in financial services and its replacement 
with corresponding regulators’ rules (in the case of Solvency 
II, mainly in the PRA’s Rulebook). 
The Insurance and Reinsurance Undertakings (Prudential 
Requirements) Regulations 2023 came into force on 
December 31, 2023 and modified the current risk margin 
calculation. The other reforms forming part of what will 
eventually be known as “Solvency U.K.” became effective on 
December 31, 2024, on the implementation of the PRA’s 
Policy Statement PS15/24 (Review of Solvency II: 
Restatement of assimilated law). The PRA has stated that 
these reforms to Solvency II and restatement of rules provide 
a new regulatory framework for maintaining the safety and 
soundness 
of 
insurance 
firms 
and 
protecting 
their 
policyholders, and that the PRA will continue to evolve its 
prudential regulatory framework for the insurance sector in 
2025 and beyond.
The implementation of these reforms and potential 
divergence between the U.K. and the EU may have an impact 
on whether the U.K. is granted Solvency II equivalence status 
by the EU in any of the three areas to which equivalence 
applies.
Financial Services Compensation Scheme. The Financial 
Services Compensation Scheme (“FSCS”) is a scheme 
established 
under 
FSMA 
to 
compensate 
eligible 
policyholders of insurance companies who may become 
insolvent. The FSCS is funded by the levies that it has the 
power to impose on all insurers. Arch Insurance (U.K.) could 
be required to pay levies to the FSCS.
Restrictions on Acquisition of Control. Under FSMA, the 
prior consent of the PRA or FCA, as applicable, is required, 
before any person can become a controller or increase its 
control over any regulated company, including Arch 
Insurance (U.K.), or over the parent undertaking of any 
regulated company. Therefore, the PRA's or FCA's prior 
consent, as applicable, is required before any person can 
become a controller of Arch Capital. Prior consent is also 
required from Lloyd’s before any person can become a 
controller or increase its control over a corporate member or 
a managing agent or a parent undertaking of a corporate 
member or managing agent. A controller is defined for these 
purposes as a person who holds (either alone or in concert 
with others) 10% or more of the shares or voting power in the 
relevant company or its parent undertaking.
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Restrictions on Payment of Dividends. Under English law, all 
companies are restricted from declaring a dividend to their 
shareholders unless they have “profits available for 
distribution.” The calculation as to whether a company has 
sufficient profits is based on its accumulated realized profits 
minus its accumulated realized losses. U.K. insurance 
regulatory laws do not prohibit the payment of dividends, but 
the PRA or FCA, as applicable, requires that insurance 
companies, insurance intermediaries and other regulated 
entities maintain certain solvency margins and may restrict 
the payment of a dividend by Arch Insurance (U.K.) or 
AMAL, for example.
EU Considerations. During the Transition Period, there was 
no change in passporting rights for financial institutions in 
the U.K. Under our Brexit plan, since January 2020 nearly all 
of the EEA insurance business of Arch Insurance (U.K.) has 
been conducted by Arch Insurance (EU). As part of our 
Brexit planning, and in advance of the Transition Period 
expiring, a transfer of the EEA legacy business (excluding 
inwards reinsurance) from Arch Insurance (U.K.) to Arch 
Insurance (EU) was completed under Part VII of the U.K. 
Financial Services and Market Act 2000 at the end of 
December 2020 (“Part VII Transfer”).
Despite the loss of passporting rights, AMAL, and our 
Lloyd’s Syndicates are still able to write business in the EEA 
via the Lloyd’s Insurance Company, S.A. (“Lloyd’s 
Brussels”). Lloyd’s continued to engage in discussions with 
the Belgium Financial Services Markets Authority (“Belgium 
FSMA”) and the National Bank of Belgium regarding the 
Lloyd’s Brussels operating model and the activities 
performed for it by managing agents and the question of 
whether it is possible that they could be construed as 
constituent insurance distribution under the Insurance 
Distribution Directive (Directive (EU) 2016/97) (“IDD”), 
which would therefore require them to be authorized within 
the EEA. 
Economic relations between the U.K. and the EU are now 
governed by a Trade and Cooperation Agreement (the 
“TCA”). Following a report published by the European 
Affairs Committee in June 2022, which found that the TCA 
is limited in scope and silent as to EU equivalence in 
decisions over financial services, a Memorandum of 
Understanding (“MoU”) on regulatory cooperation between 
the U.K. and the EU was signed in June 2023. However, the 
MoU does not impose binding substantive commitments nor 
is there any mention of taking forward the commitment in the 
Political Declaration accompanying the TCA regarding 
mutual equivalence. As a result, under the provisions of the 
TCA, EEA financial institutions (including our Irish 
operating subsidiaries) lost their passporting rights into the 
U.K. Absent any future agreement between the U.K. and the 
EU on the provision of financial services into the U.K., the 
post-Brexit status and rules applicable to U.K. branches of 
EEA financial institutions will be primarily driven by U.K. 
law and regulation.
The ability of U.K. firms (including, Arch Insurance (U.K.) 
and AMAL) to continue doing business in the EEA similarly 
depends on applicable EEA state local law and regulation. 
There has been no decision yet made by the European 
Commission on whether or not the U.K.’s financial services 
regulatory regime will be granted third-country equivalence 
for the purposes of reinsurance, solvency calculation and/or 
group supervision under Solvency II. In the absence of such 
declarations, U.K. firms are subject to more stringent 
requirements in carrying out reinsurance business with EEA 
firms. 
Sustainability Considerations. The U.K. government has a 
long-term ambition to “green” the financial system and align 
it with the U.K.’s 2050 “Net Zero” target (i.e.,100% 
greenhouse gas emissions reduction) under the Climate 
Change Act 2008. As part of those efforts, on January 17, 
2022, the U.K. passed mandatory climate related financial 
disclosure requirements under the Companies (Strategic 
Report) (Climate-related Financial Disclosure) Regulations 
2022. The regulations apply to large companies (including 
some of our U.K. entities) for financial years starting on or 
after April 6, 2022. The regulations generally align risk 
disclosures with the recommendations of the Taskforce on 
Climate-related Financial Disclosures (“TCFD”).
In 2021, the U.K. government published its Greening Finance 
Roadmap to Sustainable Investing (the “Roadmap”), which 
announced proposals to extend the scope of the U.K.’s 
sustainable finance framework beyond climate change. 
Further to the Roadmap, the FCA issued its final Policy 
Statement on its sustainability disclosure requirements and 
the investment labels regime. As a part of this regime, the 
FCA introduced, among other things, a general ‘anti-
greenwashing’ rule to clarify that sustainability-related 
claims must be clear, fair and not misleading. The general 
‘anti-greenwashing’ rule came into force on May 31, 2024 
and the FCA also published new guidance (FG24/3) on the 
expectations for FCA-authorized firms subject to the general 
‘anti-greenwashing rule’ which took effect at the same time. 
Consumer protection reforms under the new U.K. Digital 
Markets, Competition and Consumers Act 2024 (“DMCC 
Act”) are expected to take effect in 2025, which will enable 
the U.K.’s competition regulator, the Competition and 
Markets Authority (“CMA”) to pursue enforcement for 
consumer law breaches such as greenwashing, and to directly 
impose fines of up to 10% of a business’s global turnover.
In October 2023, the Green Technical Advisory Group 
("GTAG") published its final advice to the U.K. government 
on the development of the U.K. Green Taxonomy. Whilst not 
binding, the GTAG advice gives a likely indication as to 
what the U.K. Green Taxonomy may look like and how it 
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might differ from the EU Sustainable Finance Taxonomy 
Regulation (“EU Taxonomy”). The GTAG final report 
outlines sustainable governance arrangements for the U.K. 
Green Taxonomy and sets out various options for achieving 
this. The recommended “least regrets” option involves the 
U.K. government establishing an advisory body to facilitate 
implementation and development. If the GTAG advice is 
adopted, the U.K. Green Taxonomy should align with the EU 
Taxonomy except where doing so impact the simplicity or 
usability of the activity classification system or increases the 
risk of greenwashing.
On December 14, 2022, the U.K. government said it would 
delay secondary legislation under the taxonomy regulations 
(originally anticipated by the end of 2022). Instead, the U.K. 
will restate EU law around the taxonomy and take additional 
time to decide the U.K.’s approach. Following the work of 
GTAG, in November 2024, the U.K.’s HM Treasury 
published a consultation to determine whether a U.K. Green 
Taxonomy would be complementary to existing policies, 
with the consultation period due to close on February 4, 
2025.
The PRA’s supervisory statement SS3/19 “Enhancing banks’ 
and insurers’ approaches to managing the financial risks from 
climate change” requires U.K. regulated entities to comply 
with certain sustainability-related requirements. In its January 
2025 letter to CEOs on its 2025 priorities for insurance 
supervision, the PRA has indicated that it is planning to 
consult on an update to SS3/19 to support firms’ progress in 
improving their management of climate-related financial 
risks.
In addition, Lloyd’s has mandated that managing agents 
create a sustainability framework and strategy. Lloyd’s has 
also imposed sustainability focused outcomes by way of the 
Principles with a particular focus on culture, investment and 
underwriting profitability. See “Lloyd’s Supervision” above 
for additional details.
Russian Sanctions. Since the Russian invasion of Ukraine in 
February 2022, the U.K. government has instituted a new 
sanctions regime targeting Russia. The sanctions imposed 
include 
prohibitions 
on 
providing 
financial 
services 
(including insurance and reinsurance) to persons connected 
with Russia in relation to certain restricted goods and 
services, and the freezing of assets owned or controlled by 
designated persons. The U.K., U.S. and EU often consult 
with each other with respect to their respective sanctions 
programs. Given the evolving situation, we are closely 
monitoring developments and the sanctions imposed, to 
ensure our business remains in compliance with any 
applicable sanctions measures imposed.
Privacy and Cybersecurity. The U.K. has implemented the 
European General Data Protection Regulation (“EU GDPR”) 
as the U.K. GDPR which sits alongside the U.K. Data 
Protection Act 2018 (the “U.K. GDPR”). The U.K. GDPR 
has direct effect where an entity is established in the U.K. (as 
applicable) and has extra-territorial effect where an entity 
established outside of the U.K. processes personal data in 
relation to the offering of goods or services to individuals in 
the U.K. or the monitoring of their behavior. The U.K. GDPR 
imposes obligations on controllers, including, among others: 
(i) accountability and transparency requirements, requiring 
controllers to demonstrate and record compliance with the 
GDPR and to provide detailed information to individuals 
regarding the processing of their personal data; (ii) 
requirements to process personal data lawfully including 
specific requirements for obtaining valid consent where 
consent is the legal basis for processing; (iii) obligations to 
consider data protection when any new products or services 
are developed and designed (e.g., to limit the amount of 
personal data processed); (iv) obligations to comply with 
individuals’ data protection rights including a right: (a) of 
access to, erasure of, or rectification of personal data, (b) to 
restriction of processing or to withdraw consent to 
processing, (c) to object to processing or to ask for a copy of 
personal data to be provided to a third party, and (d) not to be 
subject to solely automated decision-making; and (v) an 
obligation to report personal data breaches to: (i) the data 
protection supervisory authority without undue delay (and no 
later than 72 hours) after becoming aware of the personal 
data breach, unless the personal data breach is unlikely to 
result in a risk to the data subjects’ rights and freedoms; and 
(ii) affected individuals, where the personal data breach is 
likely to result in a high risk to their rights and freedoms. 
Processors are required to notify the controller without undue 
delay after becoming aware of a personal data breach.
The U.K. GDPR also imposes similar international data 
transfer restrictions to the EU (see below) on transfers of 
personal data from the U.K. to jurisdictions that the U.K. 
government does not consider adequate, including the U.S. 
The U.K. government has published its own form of the EU 
Standard Contractual Clauses (“SCCs”), known as the 
International Data Transfer Agreement and an International 
Data Transfer Addendum to the new EU SCCs. Further, on 
September 21, 2023, the U.K. Government established a 
U.K.-U.S. data bridge or adequacy decision, through the U.K. 
extension to the EU-U.S. Data Privacy Framework (“DPF”). 
Effective as of October 12, 2023, U.S. organizations which 
self-certify to the DPF can now transfer personal data from 
the U.K. to the U.S. without using SCCs.
The U.K. Information Commissioner’s Office (“ICO”) has 
the power under the GDPR to (amongst other things) impose 
fines for serious breaches of up to the higher of 4% of the 
organization’s annual worldwide turnover or £17.5 million. 
Individuals also have a right to compensation, as a result of 
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an organization’s breach of the U.K. GDPR which has 
affected them, for financial or non-financial losses (e.g., 
distress). 
Cybersecurity requirements are laid down in the U.K. GDPR, 
which requires controllers and processors to implement 
appropriate technical and organizational measures to 
safeguard personal data to a level of security appropriate to 
the data protection risk.
The U.K. GDPR does not provide for a specific set of 
cybersecurity requirements or measures to be implemented, 
but rather requires a controller or processor to implement 
appropriate cyber and data security measures in accordance 
with the then-current risk, the state of the art, the costs of 
implementation and the nature, scope, context and purposes 
of the processing. The U.K. GDPR however does explicitly 
require that controllers notify personal data breaches under 
certain circumstances.
Artificial Intelligence. The U.K. has adopted a (primarily) 
“soft law” approach to AI regulation meaning it has not 
adopted formal legislation to regulate AI but has adopted soft 
law guidelines in the form of a White Paper published on 
March 29, 2023. The U.K. intends to develop a sector-
specific, principle centered approach to AI regulation, with 
the relevant sectors being responsible for enforcement. 
However, in July 2024, the U.K. government announced its 
intention to regulate the most powerful AI models.
Ireland 
General. The CBI regulates insurance and reinsurance 
companies and intermediaries authorized in Ireland. Our 
three Irish operating subsidiaries are Arch Re Europe, Arch 
Insurance (EU) and Arch Underwriters Europe Limited 
(“Arch Underwriters Europe”). Arch Re Europe was licensed 
and authorized by the CBI as a non-life reinsurer in October 
2008 and as a life reinsurer in November 2009. Arch 
Insurance (EU) was licensed and authorized by the CBI as a 
non-life insurer in December 2011. As part of our Brexit 
plan, Arch Insurance (EU) received approval from the CBI to 
expand the nature of its business in 2019 and commenced 
writing expanded insurance lines in the EEA in 2020 with the 
Part VII Transfer completed at the end of December 2020. 
Arch Underwriters Europe was registered by the CBI as an 
insurance and reinsurance intermediary in July 2014. Arch 
Re Europe, Arch Insurance (EU) and Arch Underwriters 
Europe are subject to the supervision of the CBI and must 
comply with Irish insurance acts and regulations as well as 
with directions and guidance issued by the CBI.
Arch Re Europe and Arch Insurance (EU) are required to 
comply with Solvency II requirements. See “European Union 
—Insurance and Reinsurance Regulatory Regime” below for 
additional details. As an intermediary, Arch Underwriters 
Europe is subject to a different regulatory regime and is not 
subject to solvency capital rules but must comply with 
requirements such as to maintain professional indemnity 
insurance and to have directors that are fit and proper. Our 
Irish subsidiaries are also subject to the general body of Irish 
company laws and regulations including the provisions of the 
Companies Act 2014.
The CBI operates a risk-based supervision framework, 
entitled PRISM, in respect to its regulation of Irish regulated 
entities. Under PRISM, the CBI applies an impact rating to 
each entity it regulates, ranging from Low to High, based on 
the nature, scale and complexity of its business. The level of 
supervision applied by the CBI is commensurate with the 
impact rating applied under PRISM with higher rated entities 
subject to more focused supervision engagement from the 
CBI on a more frequent basis. 
Financial Resources. Arch Re Europe and Arch Insurance 
(EU) are required to meet economic risk-based solvency 
requirements imposed under Solvency II. Solvency II, 
together with European Commission “delegated acts” and 
guidance issued by EIOPA sets out classification and 
eligibility requirements, including the features which capital 
must display in order to qualify as regulatory capital.
Restrictions on Acquisitions. Under Irish law, the prior 
consent of the CBI is required before any person can acquire 
or increase a qualifying holding in an Irish insurer or 
reinsurer, including Arch Insurance (EU) and Arch Re 
Europe, or their parent undertakings. A qualifying holding is 
defined for these purposes as a direct or indirect holding that 
represents 10% or more of the capital of, or voting rights, in 
the undertaking or makes it possible to exercise a significant 
influence over the management of the undertaking.
Restrictions on Payment of Dividends. Under Irish company 
law, Arch Re Europe, Arch Insurance (EU) and Arch 
Underwriters Europe are permitted to make distributions only 
out of profits available for distribution. A company’s profits 
available for distribution are its accumulated, realized profits, 
so far as not previously utilized by distribution or 
capitalization, less its accumulated, realized losses, so far as 
not previously written off in a reduction or reorganization of 
capital duly made. Further, the CBI has powers to intervene if 
a dividend payment were to lead to a breach of regulatory 
capital requirements. 
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EU Considerations. As Arch Re Europe, Arch Insurance 
(EU) and Arch Underwriters Europe are authorized by the 
CBI in Ireland, a Member State of the EU, those 
authorizations are recognized throughout the EEA. Subject 
only to certain notification and application requirements, 
Arch Re Europe, Arch Insurance (EU) and Arch 
Underwriters Europe can provide services, or establish a 
branch, in any other Member State of the EEA. Although, in 
doing so, they may be subject to the laws of such Member 
States with respect to the conduct of business in such 
Member State, company law registrations and other matters, 
they will remain subject to financial and operational 
supervision by the CBI only. Arch Insurance (EU) has 
branches in Italy, France, Spain and the U.K. Arch Re 
Underwriting ApS in Denmark (“Arch Re Denmark”) is an 
underwriting agency underwriting accident and health and 
other reinsurance business for Arch Re Europe. Arch Re 
Europe also has branches in the U.K., France and 
Switzerland (“Arch Re Europe Swiss Branch”).
From January 1, 2021, under the provisions of the TCA our 
Irish regulated entities lost their passporting rights into the 
U.K. 
Sustainability Considerations. Sustainability matters have 
been on the CBI's agenda for a number of years. In 
November 2021, the CBI issued its expectations in respect of 
climate and broader sustainability issues for all regulated 
firms in Ireland (including (re)insurers). The CBI's 
expectations focus on five key areas: governance, risk 
management, scenario analysis (including, but not limited to, 
stress testing for the purposes of the ORSA), disclosures and 
strategy and business model risk. The CBI has indicated that 
its expectations will be applied in a proportionate manner. In 
August 2022, the CBI published a Consultation Paper setting 
out its proposed guidance on climate change risk for the 
(re)insurance sector. The finalized guidance was published by 
the CBI in March 2023 and clarifies the CBI’s expectations 
on how (re)insurers should address climate change risks in 
their business and to assist (re)insurers develop their 
governance and risk management frameworks to do this. In 
September 2024, the CBI published key findings from a 
thematic review of (re)insurers’ climate change risk 
materiality assessments. As part of this report, the CBI 
reiterated that climate change risk remains a key strategic 
priority and will continue to be a feature of regular 
supervisory engagement with (re)insurers. It is expected that 
over time, disclosures in respect to sustainability matters may 
be captured in the Solvency and Financial Condition Reports 
of Arch's Irish entities. Arch continues to consider the impact 
of this guidance on its Irish entities. See also “European 
Union – Sustainability Considerations.”
Irish Individual Accountability Framework Act 2023. The 
Central Bank (Individual Accountability Framework) Act 
2023 (the “IAF Act”) was signed into law in March 2023 
with the relevant provisions and obligations under the IAF 
Act coming into effect on a phased basis. The majority of 
provisions came into effect in December 2023, with 
remaining provisions coming into effect on July 1, 2024 and 
July 1, 2025. The IAF Act implements substantive changes to 
the fitness and probity regime maintained by the CBI in 
Ireland and imposes certain additional obligations and 
liability for senior executives in Irish regulated financial 
service entities, including (re)insurance companies. Arch 
considered the impact of the IAF Act on its business and 
implemented the IAF Act requirements accordingly. See Item 
1, “Business—Regulation, European Union – Sustainability 
Considerations.”
Third Country Governance Arrangements. In September 
2023, in response to a supervisory statement issued by 
EIOPA in February 2023 on the use of third country 
governance arrangements (such as branches) by EU 
authorized (re)insurers, the CBI published its formal views 
on the use of third country governance arrangements. The 
CBI’s key expectations are that (i) third country branches 
should primarily serve the market in which they are 
established, with their sole objective to not simply support an 
Irish based (re)insurer and (ii) third country governance 
arrangements should not undermine the substance of Irish 
based (re)insurers. The CBI instructed Irish (re)insurers to 
review their current business models in light of EIOPA’s 
supervisory statement and the CBI’s own expectations. Arch 
reviewed, and continues to consider, the impact of this 
supervisory statement on its Irish and European operations.
FDI Screening. In January 2025, the Screening of Third 
Country Transactions Act 2023 (“FDI Act”) came into effect. 
The FDI Act was developed in accordance with the 
introduction of Regulation (EU) 2019/452 on foreign direct 
investment screening. The FDI Act grants powers to the Irish 
State to review, examine and potentially block investment by 
acquirers from outside the EEA and Switzerland where such 
acquirers pose a risk to national security or public order. 
While it is not anticipated that U.S., U.K. or Bermuda based 
acquirers will be negatively impacted by the FDI Act, we will 
continue to review developments in respect of the FDI Act.
European Union 
Insurance and Reinsurance Regulatory Regime. Solvency II 
took effect in full on January 1, 2016. Solvency II imposes 
economic risk-based solvency requirements across all EU 
Member States and consists of three pillars: Pillar I-
quantitative capital requirements, based on a valuation of the 
entire balance sheet; Pillar II-qualitative regulatory review, 
which includes governance, internal controls, enterprise risk 
management and supervisory review process; and Pillar III-
market discipline, which is accomplished through reporting 
of the insurer’s financial condition to regulators and the 
public. 
Solvency 
II 
is 
supplemented 
by 
European 
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Commission Delegated Regulation (EU) 2015/35 (the 
“Delegated Regulation”), other European Commission 
“delegated acts” and binding technical standards, and 
guidelines issued by EIOPA. The Delegated Regulation sets 
out more detailed requirements for individual insurance and 
reinsurance undertakings, as well as for groups, based on the 
overarching provisions of Solvency II, which together make 
up the core of the single prudential rulebook for insurance 
and reinsurance undertakings in the EU. 
In December 2020, EIOPA provided an opinion to the 
European Commission in relation to the review of the 
Solvency II regime. This review was initiated by the 
European Commission to determine whether the Solvency II 
regime remains fit for purpose. In its opinion, EIOPA 
confirms that the overall Solvency II framework is working 
well from a prudential perspective, suggesting that there are 
no fundamental changes needed but that a number of 
amendments are required to ensure the regime continues as a 
well-functioning risk-based regime. In September 2021, the 
European Commission published legislative proposals for 
amendments to the Solvency II Directive arising out of 
EIOPA's review of the Solvency II regime. The proposed 
amendments 
cover 
a 
number 
of 
areas 
including 
proportionality, quality of supervision, sustainability risks 
and group and cross-border supervision. The European 
Parliament and the Council voted to adopt the amendments to 
the Solvency II Directive in April 2024 and November 2024 
respectively. The amendments to Solvency II entered into 
force on January 28, 2025 and will apply two years from this 
date.
In addition to the above Solvency II reform proposals, the 
European Commission continues to promote the development 
of the Insurance Recovery and Resolution Directive 
(“IRRD”). The IRRD aims to harmonize national laws on 
recovery and resolution of (re)insurance undertakings. The 
European Parliament and the Council voted to adopt the 
IRRD in April 2024 and November 2024 respectively. The 
IRRD entered into force on January 28, 2025 and will apply 
two years from this date. It should be noted that the CBI has 
already introduced certain insurance recovery requirements 
under Irish law that apply to Arch’s Irish operations, 
including the preparation of recovery plans. We will continue 
to monitor the implementation of IRRD and its potential 
impact on our operations.
Following entry into the TCA by the U.K. and the EU, and 
the U.K.’s withdrawal from the EU under the provisions of 
the TCA, U.K. financial institutions have lost their 
passporting rights into the EU. It was originally envisaged 
that there would be a level of cooperation in relation to 
financial services, to be reflected in a MoU between the U.K. 
and the EU. However, the text of the MoU does not impose 
any binding substantive commitments nor is there any 
mention of taking forward the commitment in the Political 
Declaration accompanying the TCA regarding mutual 
equivalence.
In early February 2023, EIOPA issued its finalized 
Supervisory Statement on the use by EU-authorized 
(re)insurers of governance arrangements (such as branches) 
in third countries to perform functions or activities in respect 
of EU policyholders and risks. Arch has incorporated the 
Supervisory Statement in its EU operations and continues to 
monitor similar guidance. 
Arch Re Europe and Arch Insurance (EU), being established 
in Ireland and authorized by the CBI, are able to establish 
branches and provide reinsurance services and, in respect of 
Arch Insurance (EU), insurance services in all EEA states. 
This is subject to certain regulatory notifications and there 
being no objection from the CBI and the Member States 
concerned.
Solvency II does not prohibit EEA insurers from obtaining 
reinsurance from reinsurers licensed outside the EEA, such as 
Arch Re Bermuda. As such, and subject to the specific rules 
in each Member State, Arch Re Bermuda may do business 
from Bermuda with insurers in EEA Member States, but it 
may not directly operate its reinsurance business within the 
EEA. Article 172 of Solvency II provides that reinsurance 
contracts concluded by insurance undertakings in the EEA 
with reinsurers having their head office in a country whose 
solvency regime has been determined to be equivalent to 
Solvency II shall be treated in the same manner as 
reinsurance contracts with undertakings in the EEA 
authorized under Solvency II. From January 1, 2016, 
Bermuda was deemed by the European Commission to be 
equivalent for Solvency II purposes. Solvency II also 
includes specific measures providing for the supervision of 
insurance 
and 
reinsurance 
groups. 
However, 
as 
a 
consequence of the above determination of equivalence, 
pursuant to Article 260 of Solvency II, regulators within the 
EEA are required to rely on the worldwide group supervision 
exercised by the BMA. EIOPA has also indicated that, on a 
case by case basis, groups subject to this worldwide 
supervision may be exempted from any EEA sub-group 
supervision, where this results in more efficient supervision 
of the group and does not impair EEA supervisors in respect 
of their individual responsibilities.
The IDD was published in February 2016. EEA Member 
States were required to transpose the IDD by October 1, 
2018. The IDD replaces the existing Insurance Mediation 
Directive. The IDD applies to all distributors of insurance 
and reinsurance products (including insurers and reinsurers 
selling directly to customers) and strengthens the regulatory 
regime applicable to distribution activities through increased 
transparency, information and conduct requirements. The 
principal impact of the IDD is on the insurance market, 
however, requirements that apply across insurance and 
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reinsurance include more specific conditions regarding 
knowledge and continuing professional development for 
those involved in distribution of (re)insurance products. The 
IDD continues the pre-existing ability of intermediaries 
established in a Member State of the EU to establish branches 
and provide services to all EEA states. Arch Underwriters 
Europe, being established in Ireland and authorized by the 
CBI, is able, subject to regulatory notifications and there 
being no objection from the CBI, to establish branches and 
provide services in all EEA states.
Privacy and Cybersecurity. The EU GDPR came into effect 
on May 25, 2018. The EU GDPR governs the collection, use, 
disclosure, transfer or other processing of personal data. Its 
scope extends to certain entities not established in the EEA if 
they offer goods or services to, or monitor the behavior of, 
EEA data subjects. The EU GDPR contains a number of 
requirements regarding the processing of personal data about 
individuals, including mandatory security breach reporting, 
new and strengthened individual rights, evidenced data 
controller accountability for compliance with the GDPR 
principles (including fairness and transparency), maintenance 
of data processing activity records and the implementation of 
“privacy by design,” including through the completion of 
mandatory 
Data 
Protection 
Impact 
Assessments 
in 
connection with higher risk data processing activities. 
In addition, the EU GDPR increases scrutiny of transfers of 
personal 
data 
to 
jurisdictions 
which 
the 
European 
Commission does not recognize as having “adequate” data 
protection laws. In particular, on July 16, 2020, the Court of 
Justice of the EU (Court of Justice) in Schrems II invalidated 
the European Union-United States (EU-U.S.) Privacy Shield 
on the grounds that the EU-U.S. Privacy Shield failed to offer 
adequate protections to EU personal information transferred 
to the U.S. While the Court of Justice upheld the use of other 
data transfer mechanisms, such as the Standard Contractual 
Clauses (“EU SCCs”), the decision has led to some 
uncertainty regarding the use of such mechanisms for data 
transfers to the U.S., and the Court of Justice made clear that 
reliance on EU SCCs alone may not necessarily be sufficient 
in all circumstances. The European Data Protection Board 
issued additional guidance regarding international transfers 
which may require us to implement additional safeguards to 
further enhance the security of data transferred out of the 
EEA. The European Commission published new versions of 
the EU SCCs in June 2021, which place onerous obligations 
on the parties. On October 7, 2022, the U.S. President 
introduced an Executive Order to facilitate a new Trans-
Atlantic Data Privacy Framework to act as a successor to the 
invalidated EU-U.S. Privacy Shield. On July 10, 2023, the 
European Commission adopted an adequacy decision relating 
to the transfer of personal data from the EU to the U.S. which 
takes place under the DPF. The DPF is the successor to the 
EU-U.S. Privacy Shield and allows companies that are 
subject to the GDPR to transfer personal data to U.S. entities 
that participate in the DPF without the need for alternative 
data protection transfer mechanisms (such as SCCs or 
binding corporate rules).
The EU GDPR imposes substantial fines for breaches and 
violations (up to the greater of €20 million or 4% of global 
turnover). The EU GDPR allows data subjects and consumer 
associations to lodge complaints with supervisory authorities, 
seek judicial remedies and obtain compensation for damages 
resulting from violations of the EU GDPR.
In addition, the EU Data Act (“EUDA”) was published in the 
Official Journal of the EU on December 22, 2023, and is 
scheduled to come into effect on a phased basis from 
September 12, 2025, through to September 12, 2027. EUDA 
creates a harmonized set of rules on fair access to and use of 
data in the interest of fostering data-driven innovation and 
increasing data availability in the EU. EUDA may apply to 
certain insurance activities, primarily relating to the use of 
telemetric and similar devices. Arch is assessing the impact 
of EUDA on its operations.
Cybersecurity and information security are an area of 
increasing focus for the EU. The Digital Operational 
Resilience Act (“DORA”) entered into force in January 2023. 
The core aim of DORA is to prevent and mitigate cyber 
threats and sets uniform requirements for the security of 
network and information systems of financial sector entities 
(including (re)insurers) as well as critical third parties which 
provide ICT (information and communication technology)-
related services, such as cloud platforms or data analytics 
services. Certain of our in-scope Irish entities are required to 
comply with the obligations set out under DORA from 
January 17, 2025.
In addition to the above, EIOPA continues to publish detailed 
guidelines, recommendations and expectations relating to 
cyber matters and how these should be managed and 
considered by the (re)insurance sector.
Artificial Intelligence. The EU Artificial Intelligence Act (the 
“EU AI Act”) came into effect on August 1, 2024. As of 
February 2, 2025, companies are required to cease the use of 
AI systems which pose an unacceptable risk. Further 
compliance obligations applicable to general purpose AI 
models take effect in August 2025, and the remainder of the 
EU AI Act (including compliance rules relating to AI 
systems) takes effect in August 2026. The EU AI Act 
regulates the use of AI systems and general purpose AI 
models in all EU Member States through a risk-based 
framework, and a governance program relating to the use of 
AI systems generally. Certain of the AI systems utilized by 
our (re)insurers will fall within the scope of the EU AI Act. 
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Sustainability Considerations. A comprehensive package of 
measures to facilitate the progression towards sustainable 
economic activities was approved in principle by the 
European Commission in April 2021. In August 2021, two 
delegated regulations (the “EC Regulations”) amending 
sectoral legislation, including the Solvency II Directive and 
the IDD, were published. The EC Regulations focus on the 
integration of sustainability into key activities including 
product oversight and governance, risk management and 
suitability assessment procedures. The EC Regulations apply 
from August 2022. 
The Corporate Sustainability Reporting Directive (“CSRD”), 
which replaces the Non-Financial Reporting Directive 
(“NFRD”), was published in the Official Journal of the EU 
on December 16, 2022 and entered into effect on January 5, 
2023. CSRD was transposed under Irish law pursuant to the 
EU (Corporate Sustainability Reporting) Regulations 2024, 
which came into effect on July 6, 2024 and the EU 
(Corporate Sustainability Reporting) (No. 2) Regulations 
2024, which came into effect on October 1, 2024. Certain of 
our European subsidiaries are subject to NFRD. The CSRD 
expands the scope of sustainability reporting obligations to 
any European listed company or any company (including 
(re)insurers) meeting certain criteria. Companies which are 
already subject to NFRD must start reporting relevant 
information for financial years starting on or after January 1, 
2024, beginning in 2025. Reporting obligations for other 
companies fulfilling certain criteria will commence in 2026 
for financial years starting on or after January 1, 2025. In 
addition, the reporting standards under the CSRD, which 
provide in-scope companies with the technical detail on the 
information that will need to be disclosed and reported, were 
adopted by the European Commission in July 2023. Certain 
of our European entities and non-European entities will fall 
within the scope of certain reporting obligations under the 
CSRD.
An additional environmental sustainability framework, the 
EU Taxonomy, came into force in July 2020, with in-scope 
companies required to comply with certain reporting 
obligations from January 1, 2022. The EU Taxonomy (which 
is a classification standard for reporting) sets out six 
environmental objectives with which companies' economic 
activities must comply if they are to be described as 
environmentally sustainable. These six environmental 
objectives are: (1) climate change mitigation, (2) climate 
change adaptation, (3) sustainable use and protection of water 
and marine resources, (4) transition to a circular economy, 
(5) pollution prevention and control and (6) the protection 
and restoration of biodiversity and ecosystems. In addition, 
reporting obligations apply to in-scope companies regarding 
(1) the financial products they provide and (2) the 
environmental sustainability of an in-scope company's 
activities, which is to be disclosed in non-financial statements 
that are required under the CSRD.
In February 2022, the European Commission adopted a 
proposal for the Corporate Sustainability Due Diligence 
Directive (“CSDDD”). The CSDDD entered into force in 
July 2024 and its obligations will come into effect on a 
phased basis depending on an in-scope entity’s turnover 
threshold, employee count and jurisdiction of incorporation. 
EU and EEA Member States have until July 26, 2026, to 
transpose the CSDDD. The main focus of the CSDDD is for 
in-scope entities to conduct due diligence on human rights 
and environmental impacts within such in-scope entities, 
their subsidiaries and across its value chain. Initially, the 
CSDDD will only apply in respect of financial service 
providers’ 
(including 
(re)insurers) 
upstream 
business 
partners. This means that currently (re)insurers do not need to 
consider any downstream business partners when complying 
with their obligations under CSDDD. However, the CSDDD 
provides scope for this to change upon future review by the 
European Commission, and financial service providers could 
be required in the future to comply with CSDDD in respect 
of both upstream and downstream business partners. We 
continue to monitor the European Commission’s proposals to 
simplify sustainability reporting requirements and their 
impact on CSRD and CSDDD obligations of our European 
and non-European operations.
In tandem with all of the above, EIOPA continues to engage 
with stakeholders in the (re)insurance sector and publish 
detailed guidelines, recommendations and expectations 
relating to sustainability matters and how these should be 
managed and considered by the (re)insurance sector.
Russian Sanctions. Since February 2022, the EU has imposed 
significant sanctions on the Russian Federation in response to 
its invasion of Ukraine. These sanctions are similar to those 
imposed by the U.K. and U.S. Given the evolving situation, 
we are closely monitoring developments and the sanctions 
imposed, to ensure our European entities remain in 
compliance with any sanctions measures imposed.
Inflation. The EU has adopted a range of measures to combat 
unprecedented levels of inflation, with EIOPA issuing a 
supervisory 
statement 
outlining 
its 
expectations 
of 
(re)insurers on inflation-related issues in December 2022. We 
are monitoring ongoing developments and considering the 
impact of EU and EIOPA guidance on inflation on its 
business.
Third Country Governance Arrangements. In February 2023, 
EIOPA published a supervisory statement on the use by EU 
authorized (re)insurers of governance arrangements (such as 
branches) in third countries to perform functions or activities 
in respect of EU policyholders and risks. See also “Ireland – 
Third Country Governance Arrangements.”
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Switzerland
In December 2008, Arch Re Europe opened Arch Re Europe 
Swiss Branch as a branch office. As Arch Re Europe is 
domiciled outside of Switzerland and its activities are limited 
to reinsurance, the Arch Re Europe Swiss Branch in 
Switzerland is not required to be licensed by the Swiss 
insurance regulatory authorities.
In August 2014, Arch Underwriters Europe opened a branch 
office in Zurich (“Arch Underwriters Europe Swiss Branch”) 
to render reinsurance advisory services to certain group 
companies. Arch Underwriters Europe Swiss Branch is 
registered with the commercial register of the Canton of 
Zurich. Since its activities are limited to advisory services for 
reinsurance matters, the Arch Underwriters Europe Swiss 
Branch is not required to be licensed by the Swiss insurance 
regulatory authorities.
Australia
APRA is an independent statutory authority responsible for 
prudential supervision of institutions across banking, 
insurance and superannuation and promotes financial stability 
in Australia. Arch Indemnity has been authorized to conduct 
monoline lenders’ mortgage insurance business in Australia 
since June 2002 and was acquired by Arch Capital on August 
30, 2021. Arch LMI, which was formerly authorized by 
APRA in January 2019 to conduct monoline lenders’ 
mortgage insurance business in Australia, relinquished its 
APRA authorization in December 2022 and has been 
converted to a services company for our Australian lenders 
mortgage 
insurance 
operations. 
Major 
regulatory 
requirements that are applicable to Arch Indemnity as a 
general insurance provider in Australia include requirements 
on minimum capital levels, remuneration practices, risk 
management, 
compliance 
with 
corporate 
governance 
standards, including requirements pursuant to the Financial 
Accountability Act passed in 2023 which take effect on 
March 15, 2025 for general insurers and additional 
operational risk management requirements on and from July 
1, 2025.
In addition to its APRA authorization, Arch Indemnity has 
been licensed by the Australian Securities and Investments 
Commission (“ASIC”) since March 2011 to engage in credit 
activities in Australia. Arch LMI has been licensed by ASIC 
since October 2023 as a Financial Services Licensee in 
Australia.
Our group also conducts property and casualty insurance 
business in Australia through Lloyd’s. This insurance 
business is managed by and distributed through local 
coverholders and is subject to Lloyd’s Supervision. In 
addition, the business is subject to local Australian prudential 
regulatory oversight by APRA, and additional separate 
financial services market conduct regulation by ASIC.
In addition, there are other Australian legislation and 
regulations applicable to the financial services sector in 
which our group operates, such as:
• privacy legislation on the collection, use and storage of 
personal 
information 
and 
sensitive 
information 
of 
individuals and a mandatory data breach notification 
regime, which are overseen by the Office of the Australian 
Information Commissioner;
• cyber security obligations imposed by APRA and ASIC as 
part of their respective licensing regimes for insurers, and 
also on larger insurers in Australia under Australian 
security of critical infrastructure legislation;
• additional obligations under cyber security legislation 
passed in 2024 and expected to come into force in part 
from May 2025, which apply to various entities operating 
in Australia (subject to specific eligibility thresholds to be 
confirmed). The requirements include mandatory reporting 
of cyber security incidents, which involve the payment of a 
ransom, to the Australian Government’s Department of 
Home Affairs and Australian Signals Directorate;
• modern slavery legislation which imposes a statutory 
reporting regime for larger companies operating in 
Australia; and
• anti-money laundering and counter-terrorism financing 
legislation, which is administered by the Australian 
Transaction Reports and Analysis Centre.
Artificial Intelligence. In Australia, businesses which develop 
and use AI are subject to various Australian laws relating to 
privacy, corporations and anti-discrimination which apply 
across all sectors of the economy. There are also financial 
services sector specific laws in Australia administered by 
APRA and ASIC which impact the development and 
deployment of AI in the sector in which our group operates, 
although such existing laws are technology-neutral. 
The 
Australian 
Government 
has 
been 
undertaking 
consultation on “Safe and Responsible AI” regulation in 
Australia since June 2023. In September 2024, the Australian 
Government published a Voluntary AI Safety Standard which 
can be used on a voluntary basis by Australian businesses 
developing or implementing AI systems while the Australian 
Government continues to undertake consultation on proposed 
mandatory AI guardrails for high-risk applications that are to 
be defined following consultation.
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2024 FORM 10-K

Subject to the outcome of the consultation, the proposed 
mandatory AI guardrails for high-risk applications will 
replicate the 10 voluntary guardrails in the Voluntary AI 
Safety Standard, with the exception of the 10th voluntary 
guardrail which is proposed to focus on conformity standards 
under the mandatory guardrails rather than stakeholder 
engagement as set out under the voluntary guardrails.
Climate Change Reporting. A mandatory climate-related risk 
disclosure regime has been introduced with the regime to be 
phased in for 3 groups of large Australian companies 
required to report under Chapter 2M of the Corporations Act 
2001 (Cth) and the relevant commencement date of the 
reporting requirements determined by the Australian 
company (and its controlled entities) meeting certain criteria 
for each group of companies under the regime based on 
consolidated revenue, consolidated gross assets and number 
of employees. The regime is regulated by ASIC and includes 
new sustainability reporting requirements to be phased in 
over 3 years for the first annual reporting period beginning 
on or after January 1, 2025 for Group 1 companies, July 1, 
2026 for Group 2 companies and July 1, 2027 for Group 3 
companies. Our Australia mortgage operations will be 
reporting as a Group 2 company.
Gibraltar
General. The insurance industry is regulated by the Gibraltar 
Financial Services Commission (“GFSC”). We have two 
carriers, Alwyn Insurance Company Limited and Southern 
Rock Insurance Company Limited (“SRICL”), which are 
authorized and regulated by the GFSC. SRICL is no longer 
authorized to enter into new contracts of insurance or renew 
existing contracts of insurance and is no longer writing 
business. Following the departure of the U.K. from the EU, 
Gibraltar is not part of the EU and remains a British Overseas 
Territory. Post-Brexit, Gibraltar’s licensed insurers are able 
to cover risks in the U.K. via the Financial Services 
(Gibraltar) (Amendment) (EU Exit) Regulations, and Alwyn 
Insurance currently writes business for U.K. policyholders. 
Gibraltar is a Solvency II equivalent jurisdiction, and its 
regulatory requirements are similar to those in the U.K. 
requiring compliance with minimum and solvency capital 
requirements and other relevant regulatory requirements.
TAX MATTERS
The following summary of the taxation of Arch Capital and 
the taxation of our shareholders is based upon current law 
and is for general information only. Legislative, judicial or 
administrative changes may be forthcoming that could affect 
this summary.
The following legal discussion (including and subject to the 
matters and qualifications set forth in such summary) of 
certain tax considerations (a) under “—Taxation of Arch 
Capital—Bermuda” and “—Taxation of Shareholders—
Bermuda” is based upon the advice of Conyers Dill & 
Pearman Limited, Hamilton, Bermuda and (b) under “—
Taxation of Arch Capital-United States,” “—Taxation of 
Shareholders-United States Taxation,” “—Taxation of Our 
U.S. Shareholders” and “—United States Taxation of Non-
U.S. Shareholders” is based upon the advice of White & Case 
LLP, New York, New York (the advice of such firms does 
not 
include 
accounting 
matters, 
determinations 
or 
conclusions relating to the business or activities of Arch 
Capital). The summary is based upon current law and is for 
general information only. The tax treatment of a holder of our 
common or preferred shares, or of a person treated as a 
holder of our shares for U.S. federal income, state, local or 
non-U.S. tax purposes, may vary depending on the holder’s 
particular tax situation. Legislative, judicial or administrative 
changes or interpretations may be forthcoming that could be 
retroactive and could affect the tax consequences to us or to 
holders of our shares.
Taxation of Arch Capital
OECD’s Pillar II.
Under Pillar II, the OECD’s Inclusive Framework published 
the “Global Anti-Base Erosion,” or “GloBE” model rules in 
December 2021, which apply to certain in scope entities and 
provide for a coordinated system of taxation that imposes a 
“top-up” tax to ensure that any in scope entity pays a 
minimum rate of 15% tax on its net income in each country 
where it operates. The members of the EU have either 
already adopted domestic legislation implementing the 
minimum tax rules, pursuant to the EU’s minimum tax 
directive, unanimously agreed by the member states in 2022, 
or have exercised their option to postpone implementation on 
the basis of certain exceptions available to countries that have 
a small number of multinational groups to which the rules 
would apply. For many members of the EU, such rules are 
effective for periods beginning on or after December 31, 
2023, with the “under-taxed profit rule” taking effect for 
periods beginning on or after January 1, 2025. 
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2024 FORM 10-K

Legislatures in multiple countries outside of the EU 
(including 
the 
United 
Kingdom, 
Australia, 
Canada, 
Switzerland, Hong Kong, and Bermuda) have enacted, and 
are continuing to enact, legislation to implement the GloBE 
model rules. 
A number of elements of Pillar II remain uncertain. The 
OECD continues to release guidance regarding Pillar II, only 
certain jurisdictions have currently enacted laws to give 
effect to Pillar II, jurisdictions may interpret such laws in 
different manners, and certain elements of such laws are 
currently subject to challenge pursuant to legal proceedings. 
Thus, the overall implementation of Pillar II remains 
uncertain and subject to change, possibly on a retroactive 
basis. Although certain jurisdictions in which we and our 
affiliates do business have enacted an “under-taxed profit 
rule”, the impact of such rule and the extent to which such 
rule will change or be eliminated based on current legal and 
political challenges is uncertain. The adoption of the tax laws 
described above (including, the adoption of an “under-taxed 
profit rule” by certain countries in which we and our affiliates 
do business) are expected to result in an increase to our 
effective tax rate and aggregate tax liability. See Item 1A, 
“Risk Factors – Risk Relating to Taxation” for additional 
information.
Bermuda. Under current Bermuda law, Arch Capital does not 
pay any tax on income or profits and is not subject to 
payment of any tax on withholding, capital gains or capital 
transfers. Arch Capital has obtained from the Minister of 
Finance under the Exempted Undertakings Tax Protection 
Act 1966 of Bermuda, as amended (“EUTP Act”) an 
assurance that, in the event that Bermuda enacts legislation 
imposing tax computed on profits, income, any capital asset, 
gain or appreciation, or any tax in the nature of estate duty or 
inheritance, then the imposition of any such tax shall not be 
applicable to Arch Capital or to any of our operations or our 
shares, debentures or other obligations until March 31, 2035. 
However, in response to the OECD Pillar II initiative, on 
December 27, 2023, the Government of Bermuda enacted the 
Bermuda CIT Act, which will become effective for tax years 
beginning on or after January 1, 2025. In the event Arch 
Capital is subject to tax under the CIT Act, this would 
supersede the assurance received from the Minister of 
Finance under the EUTP Act and such tax would be charged 
at a rate of 15% of the Company’s net taxable income as 
determined in accordance with and subject to the adjustments 
set out in the CIT Act (including in respect of any foreign tax 
credits applicable to us) for tax years starting on or after 
January 1, 2025. The CIT Act does not impose any 
withholding tax, capital transfer tax, estate duty or 
inheritance tax,; and, so there will continue to be no such 
taxes payable by us or by our shareholders in respect of our 
shares following January 1, 2025. See Item 1A.“Risk Factors 
— Risks Relating to Taxation” for additional information. 
We currently pay our Bermuda annual government fee; and, 
our Bermuda insurance and reinsurance subsidiaries also pay 
their respective Bermuda annual government fees and annual 
insurance license fees. In addition, all entities employing 
individuals in Bermuda are required to pay a payroll tax and 
other sundry taxes payable, directly or indirectly, to the 
Bermuda government.
United States. Arch Capital and its non-U.S. subsidiaries 
believe they have conducted their operations and currently 
intend to conduct their operations going forward in a manner 
that has not caused them and will not cause them to be treated 
as engaged in a trade or business in the U.S. and, therefore, 
has not been and will not be required to pay U.S. federal 
income taxes (other than U.S. excise taxes on insurance and 
reinsurance premiums and withholding taxes on dividends 
and certain other U.S. source investment income). However, 
because definitive identification of activities which constitute 
being engaged in a trade or business in the U.S. is not 
provided by the Internal Revenue Code of 1986, as amended 
(the 
“Code”), 
U.S. 
Treasury 
regulations 
(“Treasury 
Regulations”) or court decisions, there can be no assurance 
that our position on being engaged in a trade or business in 
the U.S. is correct. A foreign corporation deemed to be so 
engaged would be subject to U.S. federal income tax, as well 
as the branch profits tax, on its income, which is treated as 
effectively connected with the conduct of that trade or 
business unless the corporation is entitled to relief under a tax 
treaty. Such income tax, if imposed, would be based on 
effectively connected income computed in a manner 
generally analogous to that applied to the income of a 
domestic corporation, except that deductions and credits 
generally are not permitted unless the foreign corporation has 
timely filed a U.S. federal income tax return in accordance 
with applicable Treasury Regulations. Penalties may be 
assessed for failure to file tax returns. In addition, in such 
case, a 30% branch profits tax would be imposed on net 
income after subtracting the regular corporate tax and making 
certain other adjustments.
Under the income tax treaty between Bermuda and the U.S. 
(the 
“Treaty”), 
Arch 
Capital's 
Bermuda 
insurance 
subsidiaries will be subject to U.S. income tax on any 
insurance premium income that is effectively connected with 
a U.S. trade or business only if that trade or business is 
conducted through a permanent establishment in the U.S. No 
Treasury Regulations interpreting the Treaty have been 
issued. While there can be no assurances, Arch Capital does 
not believe that any of its Bermuda insurance subsidiaries has 
a permanent establishment in the U.S. Such subsidiaries 
would not be entitled to the benefits of the Treaty if (i) 50% 
or less of Arch Capital's shares were beneficially owned, 
directly or indirectly, by Bermuda residents or U.S. citizens 
or residents, or (ii) any such subsidiary's income were used in 
substantial part to make disproportionate distributions to, or 
to meet certain liabilities to, persons who are not Bermuda 
residents or U.S. citizens or residents. While Arch Capital 
ARCH CAPITAL
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2024 FORM 10-K

believes that its Bermuda insurance subsidiaries have been 
eligible for Treaty benefits to date, there can be no assurance 
that this is the case or that the Bermuda insurance 
subsidiaries will continue to be eligible for Treaty benefits.
The Treaty clearly applies to premium income but may be 
construed as not protecting investment income. If Arch 
Capital’s Bermuda insurance subsidiaries were considered to 
be engaged in a U.S. trade or business and were entitled to 
the benefits of the Treaty in general, but the Treaty were not 
found to protect investment income, a portion of such 
subsidiaries’ investment income could be subject to U.S. 
federal income tax.
Non-U.S. insurance companies carrying on an insurance 
business within the U.S. have a certain minimum amount of 
effectively connected net investment income, determined in 
accordance with a formula that depends, in part, on the 
amount of U.S. risk insured or reinsured by such companies. 
If any of Arch Capital's non-U.S. insurance subsidiaries is 
considered to be engaged in the conduct of an insurance 
business in the U.S., a significant portion of such subsidiary’s 
investment income could be subject to U.S. federal income 
tax.
Non-U.S. corporations not engaged in a trade or business in 
the U.S. are nonetheless subject to U.S. income tax on certain 
“fixed or determinable annual or periodic gains, profits and 
income” derived from sources within the U.S. as enumerated 
in Section 881(a) of the Code (such as dividends and certain 
interest on investments), subject to exemption under the Code 
or reduction by an applicable treaty.
The U.S. also imposes an excise tax on insurance and 
reinsurance premiums paid to non-U.S. insurers or reinsurers 
with respect to risks located in the U.S. The rates of tax, 
unless reduced by an applicable U.S. tax treaty, are 4% for 
non-life insurance premiums and 1% for life insurance and 
all reinsurance premiums.
The Tax Cuts and Jobs Act of 2017 (the “Tax Cuts Act”) was 
signed into law by the President of the United States in 2017. 
For taxable years beginning after 2017, the Tax Cuts Act 
imposes a 10% minimum base erosion and anti-abuse tax 
(increased to 12.5% for taxable years after 2025) on the 
“modified taxable income” of a U.S. corporation (or a non-
U.S. corporation engaged in a U.S. trade or business) over 
such corporation’s regular U.S. federal income tax, reduced 
by certain tax credits. The “modified taxable income” of a 
corporation is determined without deduction for certain 
payments by such corporation to its non-U.S. affiliates 
(including 
reinsurance 
premiums). 
Final 
Treasury 
Regulations interpreting the base erosion and anti-abuse tax 
were issued in December 2019 and October 2020. 
United Kingdom. Our U.K. subsidiaries are companies that 
are incorporated and have their central management and 
control in the U.K. and are therefore resident in the U.K. for 
corporation tax purposes. As a result, they are subject to U.K. 
corporation tax on their respective profits. The U.K. branches 
of Arch Re Europe and Arch Insurance (EU) are subject to 
U.K. corporation tax on the profits (both income profits and 
chargeable gains) attributable to each branch. The rate of 
U.K. corporation tax for the 2024 financial year is 25%. 
Pillar II has largely been enacted and in force in the U.K. by 
way of a multinational top-up tax and a domestic top-up tax, 
together designed to ensure that any Pillar II taxes which can 
be levied on profits earned in the U.K. will be paid in the 
U.K. and not elsewhere, but broadly these measures are not 
currently expected to significantly adversely impact the 
quantum of taxes payable by the group in the U.K.
Canada. Arch Insurance Canada is taxed on its worldwide 
income. Arch Re U.S. is taxed on its net business income 
earned in Canada. The general federal corporate income tax 
rate in Canada is currently 15%. Provincial and territorial 
corporate income tax rates are added to the general federal 
corporate income tax rate and generally vary between 8% and 
16%. Pillar II has largely been enacted in Canada but should 
not adversely impact taxes payable in Canada.
Ireland. Each of Arch Re Europe, Arch Insurance (EU) and 
Arch Underwriters Europe is incorporated and resident in 
Ireland for corporation tax purposes and will be subject to 
Irish corporate tax on worldwide profits, including the profits 
of the branches of Arch Re Europe, Arch Insurance (EU) and 
Arch Underwriters Europe. Any foreign branch corporate tax 
payable is creditable against Arch Re Europe’s Irish 
corporate tax liability on the results of Arch Re Europe’s 
branches with the same principle applied to Arch Insurance 
(EU)’s branches and Arch Underwriters Europe’s branches. 
The current rate of Irish corporation tax applicable to such 
trading profits is 12.5%. Pillar II has been enacted in Ireland 
which may result in additional taxation in Ireland.
Switzerland. Arch Re Europe Swiss Branch and Arch 
Underwriters Europe Swiss Branch are subject to Swiss 
corporation tax on the profit which is allocated to each 
branch. The effective tax rate is approximately 19.61% for 
Swiss federal, cantonal and communal corporation taxes on 
the profit. The effective tax rate of the annual cantonal and 
communal capital taxes on the equity which is allocated to 
Arch Re Europe Swiss Branch and Arch Underwriters 
Europe Swiss Branch is approximately 0.17%. Pillar II has 
largely been enacted in Switzerland but should not adversely 
impact taxes payable in Switzerland.
ARCH CAPITAL
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2024 FORM 10-K

Denmark. Arch Re Denmark, established as a subsidiary of 
Arch Re Bermuda, is subject to Danish corporation taxes on 
its profits at a rate of 22%. Pillar II has been enacted in 
Denmark but should not adversely impact taxes payable in 
Denmark.
Gibraltar. Our Gibraltar subsidiaries are companies that are 
incorporated and have their central management and control 
in Gibraltar and are therefore resident in Gibraltar for 
corporation tax purposes. As a result, they are subject to 
Gibraltar corporation tax on their respective profits. The rate 
of Gibraltar corporation tax for the 2024 financial year is 
13.8% (the nominal rate increased from 12.5% to 15% with 
effect from July 1, 2024. Pillar II has largely been enacted in 
Gibraltar which may result in additional taxation in Gibraltar 
in respect of 2024.
Hong Kong. Arch MI Asia is subject to Hong Kong corporate 
tax on its assessable profits at a rate of 16.5%. Assessable 
profits are the net profits for the basis period, arising in or 
derived from Hong Kong. Pillar II has largely been enacted 
in Hong Kong but should not adversely impact taxes payable 
in Hong Kong.
Australia. Arch LMI and Arch Indemnity, Australian 
incorporated and tax resident companies, are subject to 
Australian corporate tax on its worldwide profits. The current 
rate of Australian corporation tax applicable to such profits is 
30%. Pillar II has been enacted in Australia but should not 
adversely impact taxes payable in Australia.
Taxation of Shareholders
Bermuda. Currently, there is no Bermuda withholding tax on 
dividends paid by us.
United States—General. The following summary sets forth 
certain U.S. federal income tax considerations related to the 
purchase, ownership and disposition of our common shares 
and our non-cumulative preferred shares (“preferred shares”). 
Unless otherwise stated, this summary deals only with 
shareholders (“U.S. holders”) that are U.S. Persons (as 
defined below) and to common shares and preferred shares 
beneficially owned by such holder and held as capital assets. 
The following discussion is only a general summary of the 
U.S. federal income tax matters described herein and does 
not purport to address all of the U.S. federal income tax 
consequences that may be relevant to a particular shareholder 
in light of such shareholder’s specific circumstances. In 
addition, the following summary (except as to matters 
explicitly discussed therein) does not describe the U.S. 
federal income tax consequences that may be relevant to 
certain types of shareholders, such as banks, insurance 
companies, and other financial institutions, regulated 
investment companies, real estate investment trusts, financial 
asset securitization investment trusts, brokers, dealers or 
traders in securities, entities or arrangements classified as 
partnerships or pass-through entities for U.S. federal income 
tax purposes or holders of equity interests therein, tax exempt 
entities, “individual retirement accounts” or “Roth IRAs”, 
expatriates and former citizens or long-term residents of the 
United States, persons whose functional currency for U.S. 
federal income tax purposes is not the U.S. dollar, persons 
that own, directly, indirectly or constructively, ten percent 
(10%) or more of the total voting power or value of all of our 
outstanding shares, persons owning our common shares or 
preferred shares in connection with a trade or business 
conducted outside the United States, U.S. holders that hold 
our common shares or preferred shares through a non-U.S. 
broker or other non-U.S. intermediary, persons who hold our 
common shares or preferred shares as part of a hedging or 
conversion transaction or as part of a straddle or wash sale, 
who may be subject to special rules or treatment under the 
Code or persons required for U.S. federal income tax 
purposed to recognize income no later than such income is 
reported on such persons’ applicable financial statements, 
and persons subject to the alternative minimum tax. This 
discussion is based upon the Code, the Treasury Regulations 
promulgated there under and any relevant administrative 
rulings or pronouncements or judicial decisions, all as in 
effect on the date of this annual report and as currently 
interpreted and does not take into account possible changes in 
such tax laws or interpretations thereof, which may apply 
retroactively. This discussion does not include any 
description of the tax laws of any state or local governments 
within the U.S., or of any foreign government, that may be 
applicable to our common shares or preferred shares or the 
shareholders. There can be no assurance the U.S. Internal 
Revenue Service (“IRS”) or a court will not take a contrary 
position to that discussed below regarding the tax 
consequences of the purchase, ownership and disposition of 
our common shares and preferred shares. Persons holding or 
considering an investment in the common shares or preferred 
shares should consult their own tax advisors concerning the 
application of the U.S. federal tax laws to their particular 
situations as well as any tax consequences arising under the 
laws of any state, local or foreign taxing jurisdiction prior to 
making such investment.
If an entity that is treated as a partnership holds our common 
shares or preferred shares, the tax treatment of a partner will 
generally depend upon the status of the partner and the 
activities of the partnership. If you are a partnership holding 
or considering an investment in our common shares or 
preferred shares or a partner therein, you should consult your 
tax advisor.
ARCH CAPITAL
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2024 FORM 10-K

For purposes of this discussion, the term “U.S. Person” 
means a person that is, for U.S. federal income tax purposes:
•
an individual who is a citizen or resident of the U.S.; 
•
a corporation created or organized under the laws of the 
U.S., any state thereof or the District of Columbia; 
•
an estate, the income of which is subject to U.S. federal 
income taxation regardless of its source; or 
•
a trust, if either (i) a court within the U.S. is able to 
exercise primary supervision over the administration of 
such trust and one or more U.S. persons have the 
authority to control all substantial decisions of such trust 
or (ii) the trust has a valid election in effect to be treated 
as a U.S. person for U.S. federal income tax purposes.
United States—Taxation of Dividends. The preferred shares 
should be properly classified as equity rather than debt for 
U.S. federal income tax purposes. Subject to the discussions 
below relating to the potential application of the controlled 
foreign corporation (“CFC”), “related person insurance 
income” (“RPII”) and passive foreign investment company 
(“PFIC”) rules, as defined below, cash distributions, if any, 
made with respect to our common shares or preferred shares 
will constitute dividends for U.S. federal income tax 
purposes to the extent paid out of our current or accumulated 
earnings and profits (as computed using U.S. tax principles). 
If a U.S. holder of our common shares or our preferred shares 
is an individual or other non-corporate holder, dividends 
paid, if any, to that holder that constitute qualified dividend 
income generally will be taxable at the rate applicable for 
long-term capital gains (generally up to 20%), provided that 
such person meets a holding period requirement. Generally, 
in order to meet the holding period requirement, the U.S. 
holder must hold the common shares for more than 60 days 
during the 121-day period beginning 60 days before the ex-
dividend date and must hold preferred shares for more than 
90 days during the 181-day period beginning 90 days before 
the ex-dividend date. Dividends paid, if any, with respect to 
common shares or preferred shares generally will be qualified 
dividend income, provided the common shares or preferred 
shares are readily tradable on an established securities market 
in the U.S. in the year in which the shareholder receives the 
dividend (which should be the case for shares that are listed 
on the Nasdaq Stock Market or the New York Stock 
Exchange) and Arch Capital is not considered to be a passive 
foreign investment company in either the year of the 
distribution or the preceding taxable year. No assurance can 
be given that the preferred shares will be considered readily 
tradable on an established securities market in the U.S. See 
“—Taxation of Our U.S. Shareholders” below.
A U.S. holder that is an individual, estate or a trust that does 
not fall into a special class of trusts that is exempt from such 
tax, will be subject to a 3.8% tax on the lesser of (1) the U.S. 
holder’s “net investment income” for the relevant taxable 
year and (2) the excess of the U.S. holder’s modified adjusted 
gross income for the taxable year over a certain threshold 
(which in the case of individual will be between $125,000 
and $250,000, depending on the individual’s circumstances). 
A U.S. holder’s net investment income generally will include 
its dividend income and its net gains from the disposition of 
our common shares and preferred shares, unless such 
dividend income or net gains are derived in the ordinary 
course of the conduct of a trade or business (other than a 
trade or business that consists of certain passive or trading 
activities).
Distributions with respect to the common shares and the 
preferred shares will not be eligible for the dividends 
received deduction allowed to U.S. corporations under the 
Code. To the extent distributions on our common shares and 
preferred shares exceed our earnings and profits, they will be 
treated first as a return of the U.S. holder's basis in our 
common shares and our preferred shares to the extent thereof, 
and then as gain from the sale of a capital asset.
United States—Sale, Exchange or Other Disposition. Subject 
to the discussions below relating to the potential application 
of the CFC, RPII and PFIC rules, U.S holders of common 
shares and preferred shares generally will recognize capital 
gain or loss, if any, for U.S. federal income tax purposes on 
the sale, exchange or other taxable disposition of common 
shares or preferred shares, as applicable in an amount equal 
to the difference between the amount realized on the sale, 
exchange or other taxable disposition and the U.S holder’s 
adjusted tax basis in the shares. Such gain or loss generally 
will be long term capital gain or loss if the U.S. holder’s 
holding period for the shares exceeds one year. Long-term 
capital gains of certain non-corporate U.S. holders (including 
individuals) are generally eligible for reduced rates of 
taxation. The deductibility of capital losses is subject to 
limitations.
United 
States—Redemption 
of 
Preferred 
Shares. 
A 
redemption of the preferred shares will be treated under 
Section 302 of the Code as a dividend to the extent we have 
earnings and profits allocable to such shares, unless the 
redemption satisfies one of the tests set forth in Section 
302(b) of the Code enabling the redemption to be treated as a 
sale or exchange, subject to the discussion herein relating to 
the potential application of the CFC, RPII and PFIC rules. 
Under the relevant Code Section 302(b) tests, the redemption 
should be treated as a sale or exchange only if it (1) is 
substantially disproportionate, (2) constitutes a complete 
termination of the holder's stock interest in us or (3) is “not 
essentially equivalent to a dividend.” In determining whether 
any of these tests are met, shares considered to be owned by 
the holder by reason of certain constructive ownership rules 
set forth in the Code, as well as shares actually owned, must 
generally be taken into account. It may be more difficult for a 
U.S. holder who owns, actually or constructively by 
ARCH CAPITAL
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2024 FORM 10-K

operation of the attribution rules, any of our other shares to 
satisfy any of the above requirements. 
In order to meet the substantially disproportionate test, the 
percentage of our issued and outstanding voting shares 
actually and constructively owned by the U.S. holder 
immediately following the redemption of our shares must, 
among other requirements, be less than 80% of the 
percentage of our issued and outstanding voting shares 
actually and constructively owned by the U.S. holder 
immediately before the redemption. There will be a complete 
termination of a U.S. holder’s interest if either (i) all of our 
shares actually and constructively owned by the U.S. holder 
are redeemed or (ii) all of our shares actually owned by the 
U.S. holder are redeemed and the U.S. holder is eligible to 
waive, and effectively waives in accordance with specific 
rules, the attribution of shares owned by certain family 
members and the U.S. holder does not constructively own 
any other of our shares. The redemption of our shares will 
not be essentially equivalent to a dividend if such redemption 
results in a “meaningful reduction” of the U.S. holder’s 
proportionate interest in us. Whether the redemption will 
result in a meaningful reduction in a U.S. holder’s 
proportionate interest in us will depend on the particular facts 
and circumstances. However, the IRS has indicated in a 
published ruling that even a small reduction in the 
proportionate interest of a small minority shareholder in a 
publicly held corporation who exercises no control over 
corporate affairs may constitute such a “meaningful 
reduction.” The determination as to whether any of the 
alternative tests of Section 302(b) of the Code is satisfied 
with respect to a particular holder of the preferred shares 
depends on the facts and circumstances as of the time the 
determination is made.
If none of the foregoing tests are satisfied, then the 
redemption of any of our shares will be treated as a 
distribution and the tax effects will be as described under “—
United States—Taxation of Dividends” above. After the 
application of those rules, any remaining tax basis of the U.S. 
holder in the redeemed shares will be added to the U.S. 
holder’s adjusted tax basis in its remaining shares, or, 
possibly, in other shares constructively owned by it. A U.S. 
holder should consult with its own tax advisors as to the tax 
consequences of a redemption of ours shares.
U.S. holders who actually or constructively own five percent 
or more of our shares (by vote or value) may be subject to 
special reporting requirements with respect to a redemption 
of our shares, and such holders are urged to consult with their 
own tax advisors with respect to their reporting requirements.
Taxation of Our U.S. Shareholders
Controlled Foreign Corporation Rules. We or any of our 
non-U.S. subsidiaries generally will be treated as a CFC with 
respect to any taxable year if at any time during such taxable 
year, one or more “10% U.S. Shareholders” (as defined 
below) collectively own more than 50% of us or such non-
U.S. subsidiary (as applicable) by vote or value (taking into 
account shares actually owned by such U.S. holder as well as 
shares attributed to such U.S. holder under the Code or the 
Treasury Regulations thereunder). Moreover, with respect to 
insurance income (including reinsurance income), the “more 
than 50%” requirement described in the preceding sentence is 
replaced with a more expansive “more than 25%” 
requirement. A 10% U.S. Shareholder means any U.S. Person 
who was considered to own, actually or constructively, 10% 
or more of the total combined voting power or total 
combined value of our shares or those of our non-U.S. 
subsidiaries (as applicable). As a result of a change in law for 
taxable years beginning after December 31, 2017, the voting 
cut-back limitation contained in our bye-laws that limits the 
votes conferred by the Controlled Shares (as defined in our 
bye-laws) of any U.S. Person to 9.9% of the total voting 
power of all our shares entitled to vote will not prevent any 
U.S. holder from being treated as a 10% U.S. Shareholder. 
Due to the repeal of Section 958(b)(4) of the Code under the 
Tax Cuts Act, all non-U.S. subsidiaries directly or indirectly 
owned by Arch Capital are treated as constructively owned 
by its U.S. subsidiaries, and therefore are treated as CFCs.
Status as a CFC would not cause us or any of our non-U.S. 
subsidiaries to be subject to U.S. federal income tax. Such 
status also would have no adverse U.S. federal income tax 
consequences for any U.S. holder that is not a 10% U.S. 
Shareholder with respect to us or any such non-U.S. 
subsidiary (as applicable). If we or any of our non-U.S. 
subsidiaries are or were a CFC with respect to any taxable 
year, a U.S. holder that is considered a 10% U.S. Shareholder 
would be subject to current U.S. federal income taxation (at 
ordinary income tax rates) to the extent of all or a portion of 
the undistributed earnings and profits of Arch Capital and our 
subsidiaries attributable to “subpart F income” (including 
certain insurance premium income and investment income) 
or global intangible low-taxed income and may be taxable at 
ordinary income tax rates on any gain recognized on a sale or 
other disposition (including by way of repurchase or 
liquidation) of our common shares or preferred shares to the 
extent of the current and accumulated earnings and profits 
attributable to such common shares or preferred shares. 
ARCH CAPITAL
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2024 FORM 10-K

Related Person Insurance Income Rules. In general, with 
respect to RPII (a limited category of insurance income, as 
defined below), the CFC rules are expanded in two 
significant respects. First, in determining CFC status, as well 
as determining which U.S. shareholders are subject to current 
taxation with respect to a CFC’s RPII (whether or not 
currently distributed), all U.S. shareholders (as opposed to 
only 10% U.S. Shareholders) are taken into account. Second, 
the amount of stock in a foreign corporation that all U.S. 
shareholders, in the aggregate, must own for such corporation 
to be treated as a CFC is reduced from more than 50% (by 
vote or value), and more than 25% (by vote or value) with 
respect to insurance income generally, to 25% or more (by 
vote or value). Generally, RPII is insurance income 
(including reinsurance income) of a foreign corporation with 
respect to which the insured is a United States shareholder of 
the foreign corporation or a related person to such a 
shareholder.
Under one exception to the foregoing RPII rules, U.S. 
shareholders are not required to include a CFC’s RPII 
currently in income if the CFC’s gross RPII is less than 20% 
of its total gross insurance income for the taxable year in 
question (the “RPII 20% gross income exception”). 
Under current law, we currently expect each of our non-U.S. 
subsidiaries to satisfy the RPII 20% gross income exception, 
and therefore we currently do not expect any U.S. 
shareholder to be required to include RPII in income 
(although there can be no assurance that this is or will 
continue be the case). However, proposed Treasury 
Regulations issued on January 24, 2022, if finalized in their 
current form, would for the first time (on a prospective basis) 
expand the definition of RPII to include certain intercompany 
insurance income (including reinsurance income) in a manner 
that could cause certain of our foreign subsidiaries not to 
satisfy the RPII 20% gross income exception. In such event, 
(1) as noted above, all U.S. shareholders (not just 10% U.S. 
Shareholders) would be required to include RPII in income 
currently, whether or not distributed, and (2) as noted below, 
U.S. shareholders that are tax exempt entities would be 
required to treat such RPII inclusions as unrelated business 
taxable income. Current and prospective U.S. holders should 
consult their own tax advisors as to the potential impact of 
these proposed Treasury Regulations.
Section 953(c)(7) of the Code generally provides that Section 
1248 of the Code (which generally would require a U.S. 
holder to treat certain gains attributable to the sale, exchange 
or disposition of common shares or preferred shares as a 
dividend) will apply to the sale or exchange by a U.S. 
shareholder of shares in a foreign corporation that is 
characterized as a CFC under the RPII rules if the foreign 
corporation would be taxed as an insurance company if it 
were a U.S. corporation, regardless of whether the U.S. 
shareholder is a 10% U.S. Shareholder or whether the 
corporation qualifies for the RPII 20% gross income 
exception. Although existing Treasury Regulations do not 
address the question, proposed Treasury Regulations issued 
in April 1991 create some ambiguity as to whether Section 
1248 and the requirement to file Form 5471 would apply 
when the non-U.S. corporation has a foreign insurance 
subsidiary that is a CFC for RPII purposes and that would be 
taxed as an insurance company if it were a domestic 
corporation. We believe that Section 1248 and the 
requirement to file Form 5471 will not apply to a less than 
10% U.S. Shareholder because Arch Capital is not directly 
engaged in the insurance business. There can be no 
assurance, however, that the IRS will interpret the proposed 
Treasury Regulations in this manner or that the Treasury will 
not take the position that Section 1248 and the requirement to 
file Form 5471 will apply to dispositions of our common 
shares or our preferred shares.
If the IRS or U.S. Treasury were to make Section 1248 of the 
Code and the Form 5471 filing requirement applicable to the 
sale of our shares, we would notify shareholders that Section 
1248 of the Code and the requirement to file Form 5471 will 
apply to dispositions of our shares. Thereafter, we would 
send a notice after the end of each calendar year to all 
persons who were shareholders during the year notifying 
them that Section 1248 of the Code and the requirement to 
file Form 5471 apply to dispositions of our shares by U.S. 
holders. We would attach to this notice a copy of Form 5471 
completed with all our information and instructions for 
completing the shareholder information.
Tax-Exempt Shareholders. Tax-exempt entities may be 
required to treat certain Subpart F insurance income, 
including RPII, that is includible in income by the tax-exempt 
entity as unrelated business taxable income. Current and 
prospective U.S. holders that are tax exempt entities should 
consult their own tax advisors as to the potential impact of 
the unrelated business taxable income provisions of the Code.
Passive Foreign Investment Companies. Sections 1291 
through 1298 of the Code contain special rules applicable 
with respect to foreign corporations that are PFICs. In 
general, a foreign corporation will be a PFIC if 75% or more 
of its income constitutes “passive income” or 50% or more of 
its assets produce passive income. If we were to be 
characterized as a PFIC, U.S. holders would be subject to a 
penalty tax at the time of their sale of (or receipt of an 
“excess distribution” with respect to) their common shares or 
preferred shares imposed at the highest applicable rate under 
the Code for the applicable tax year. In general, a shareholder 
receives an “excess distribution” if the amount of the 
distribution is more than 125% of the average distribution 
with respect to the shares during the three preceding taxable 
years (or shorter period during which the taxpayer held the 
stock). In general, the penalty tax is equivalent to an interest 
ARCH CAPITAL
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2024 FORM 10-K

charge on taxes that are deemed due during the period the 
shareholder owned the shares, computed by assuming that the 
excess distribution or gain (in the case of a sale) with respect 
to the shares was taxable in equal portions throughout the 
holder’s period of ownership. The interest charge is equal to 
the applicable rate imposed on underpayments of U.S. federal 
income tax for such period. A U.S. shareholder may avoid 
some of the adverse tax consequences of owning shares in a 
PFIC by making a qualified electing fund (“QEF”) election. 
A QEF election is revocable only with the consent of the IRS 
and has the following consequences to a shareholder:
•
For any year in which Arch Capital is a PFIC, the 
shareholder would include in its taxable income a 
proportionate share of the net ordinary income and net 
capital gains of Arch Capital and certain of its non-U.S. 
subsidiaries.
•
For any year in which Arch Capital is not a PFIC, the 
shareholder would not be subject to the QEF inclusion 
regime described in the preceding paragraph for such 
taxable year.
For taxable years beginning on or before December 31, 2017, 
the determination of whether the active insurance company 
exception applies to an insurance company was made on a 
case-by-case basis and the analysis was inherently subjective. 
Under the Tax Cuts Act, for taxable years beginning after 
December 31, 2017, the active insurance company exception 
applies only if (i) the company would be taxed as an 
insurance company were it a U.S. corporation and (ii) either 
(A) loss and loss adjustment expense and certain reserves 
constitute more than 25% of the company’s gross assets for 
the relevant year or (B) loss and loss adjustment expenses 
and certain reserves constitute more than 10% of the 
company’s gross assets for the relevant year and, based on 
the applicable facts and circumstances, the company is 
predominantly engaged in an insurance business and the 
failure of the company to satisfy the preceding 25% test is 
due solely to run-off related or other specified circumstances 
involving the insurance business. The PFIC statutory 
provisions contain a look-through rule that states that, for 
purposes of determining whether a foreign corporation is a 
PFIC, such foreign corporation shall be treated as if it 
“received directly its proportionate share of the income” and 
as if it “held its proportionate share of the assets” of any other 
corporation in which it owns at least 25% of the stock. We 
believe that we were not a PFIC for any taxable year ended 
on or before December 31, 2023, and we currently are not 
expecting to become a PFIC for any subsequent taxable year. 
However, due to the complexity and uncertainty of the PFIC 
rules and the limited guidance interpreting them, there can be 
no assurance that we have not been a PFIC to date or that we 
will not become a PFIC at some time in the future. In 
addition, our U.S. counsel expresses no opinion with respect 
to our PFIC status for our current or future taxable years.
On December 4, 2020, the IRS issued certain final Treasury 
Regulations (the “2020 final PFIC insurance regulations”) 
and revised proposed Treasury Regulations (the “2020 
proposed PFIC insurance regulations”) regarding the 
application of the insurance company exception. While we 
believe that the 2020 final PFIC insurance regulations and the 
2020 proposed PFIC insurance regulations should not 
adversely impact our ability to satisfy the insurance company 
exception and avoid being treated as a PFIC, there can be no 
assurance that such exception will in fact apply and/or will 
continue to apply at all times in the future. Each U.S. holder 
should consult its own tax advisor as to the effects of these 
rules.
Backup Withholding and Information Reporting. Payments of 
dividends and sales proceeds from a sale, exchange or other 
taxable disposition (including redemption) of our common 
shares or preferred shares that are made within the United 
States, by a U.S. payor or through certain U.S.-related 
financial intermediaries to a U.S. holder generally are subject 
to information reporting, unless the U.S. holder is a 
corporation or other exempt recipient, and if required, 
demonstrates that fact. In addition, such payments may be 
subject to backup withholding, unless (1) the U.S. holder is a 
corporation or other exempt recipient or (2) the U.S. holder 
provides a correct taxpayer identification number and 
certifies that it is not subject to backup withholding in the 
manner required. Backup withholding is not an additional 
tax. The amount of any backup withholding from a payment 
to a U.S. holder will generally be allowed as a credit against 
the U.S. holder’s U.S. federal income tax liability or may 
entitle the U.S. holder to a refund, provided that the required 
information is timely furnished to the IRS.
Foreign Financial Asset Reporting. Certain U.S. persons are 
required to report information relating to interests in 
“specified foreign financial assets”, including shares issued 
by a non-U.S. corporation, for any year in which the 
aggregate value of all specified foreign financial assets 
exceeds certain thresholds, subject to certain exceptions 
(including an exception for shares held in a custodial account 
maintained with a U.S. financial institution). Penalties may 
be imposed for a failure to disclose such information. U.S. 
holders are urged to consult their tax advisers regarding the 
effect, if any, of these additional reporting requirements on 
their ownership and disposition of our common shares or 
preferred shares.
ARCH CAPITAL
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2024 FORM 10-K

United States Taxation of Non-U.S. Shareholders
Taxation of Dividends. Cash distributions, if any, made with 
respect to common shares or preferred shares held by a 
holder that is, for U.S. federal income tax purposes, an 
individual, corporation, estate or trust that is not a U.S. 
holder (a “Non-U.S. holder”) generally will not be subject to 
U.S. withholding tax (subject to certain exceptions that may 
apply if we were determined to be engaged in a trade or 
business in the United States and 25% or more of our gross 
income were to be effectively connected to such U.S. trade or 
business).
Sale, Exchange or Other Disposition. Non-U.S. holders of 
common shares or preferred shares generally will not be 
subject to U.S. federal income tax with respect to gain 
recognized upon the sale, exchange or other disposition of 
such shares unless such gain is effectively connected with a 
U.S. trade or business of the Non-U.S. holder or such person 
is present in the U.S. for 183 days or more in the taxable year 
the gain is recognized and certain other requirements are 
satisfied.
Information Reporting and Backup Withholding. Non-U.S. 
holders of common shares or preferred shares will not be 
subject to U.S. information reporting or backup withholding 
with respect to dispositions of common or preferred shares 
effected through a non-U.S. office of a broker, unless the 
broker has certain connections to the U.S. or is a U.S. person. 
No U.S. backup withholding will apply to payments of 
dividends, if any, on our common shares or our preferred 
shares.
FATCA Withholding. Sections 1471 through 1474 to the 
Code, known as the Foreign Account Tax Compliance Act 
(“FATCA”), impose a withholding tax of 30% on U.S.-
source interest, dividends and certain other types of income, 
which is received by a foreign financial institution (“FFI”), 
unless such FFI enters into an agreement with the IRS to 
obtain certain information as to the identity of the direct and 
indirect owners of accounts in such institution. In addition, a 
30% withholding tax may be imposed on the above payments 
to certain non-financial foreign entities which do not (i) 
certify to each applicable withholding agent that they have no 
“substantial U.S. owners” (i.e., a U.S. 10% direct or indirect 
shareholder), or (ii) provide such withholding agent with the 
certain information as to the identity of such substantial U.S. 
owners. The U.S. has entered into intergovernmental 
agreements to implement FATCA (“IGAs”) with a number of 
jurisdictions. Bermuda has signed an IGA with the U.S. 
Different rules than those described above may apply under 
such an IGA.
Although dividends with respect to our common shares or 
preferred shares generally will be treated as foreign source 
for U.S. federal withholding tax purposes, it is unclear 
whether, for FATCA purposes, some or all of our dividends 
may be recharacterized as U.S. source dividends. Treasury 
Regulations addressing this topic have not yet been issued.
Current and prospective investors should consult their own 
tax advisors as to the filing and information requirements that 
may be imposed on them in respect of their ownership of our 
common share or preferred shares.
Other Tax Laws. Shareholders should consult their own tax 
advisors with respect to the applicability to them of the tax 
laws of other jurisdictions.
ITEM 1A. RISK FACTORS
Set forth below are risk factors relating to our business. 
These risks and uncertainties are not the only ones we face. 
There may be additional risks that we currently consider not 
to be material or of which we are not currently aware, and 
any of these risks could cause our actual results to differ 
materially from historical or anticipated results. You should 
carefully consider these risks along with the other 
information 
provided 
in 
this 
report, 
including 
our 
“Management’s Discussion and Analysis of Financial 
Condition and Results of Operations” and our accompanying 
consolidated financial statements, as well as the information 
under the heading “Cautionary Note Regarding Forward-
Looking Statements” before investing in any of our 
securities. We may amend, supplement or add to the risk 
factors described below from time to time in future reports 
filed with the SEC.
RISK FACTORS SUMMARY
The following is a summary description of the material risks 
and uncertainties to which we may be exposed. Each of these 
risks could adversely affect our business, financial condition 
and results of operations, and any such effects may be 
material. These and other risks are more fully described after 
this summary description.
Risks Relating to Our Industry, Business and Operations
• We operate in a highly competitive environment. 
• The insurance and reinsurance industry is highly cyclical, 
and we may at times experience periods characterized by 
excess underwriting capacity and unfavorable premium 
rates.
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2024 FORM 10-K

• The effects of inflation, trade and tariff disputes and global 
recessionary and other economic conditions impact the 
insurance and reinsurance industry in ways which may 
negatively impact our business, financial condition and 
results of operations.
• Claims for natural and man-made catastrophic events could 
cause large losses and substantial volatility in our results of 
operations and could have a material adverse effect on our 
financial position and results of operations.
• The impact of climate change will affect our loss limitation 
methods, such as the purchase of third party reinsurance 
and catastrophe risk modeling and risk selection in ways 
which may adversely impact our business, financial 
condition and results of operations.
• Our insurance and reinsurance subsidiaries are subject to 
supervision and regulation. Changes to existing regulation 
and supervisory standards, or failure to comply with 
applicable requirements, could adversely affect our 
business and results of operations. 
• We are subject to ongoing legal and policy actions around 
climate 
change 
which 
may 
result 
in 
additional 
requirements that could prompt us to shift our risk 
selection and business strategy in ways which may 
adversely impact our results of operations.
• The imposition of sanctions by the U.S., U.K. and EU on 
Russia and Russia-related businesses has impacted certain 
sectors in which we write business.
• Our customers and policyholders may also be impacted by 
regulatory, technological, market or other risks relating to 
climate change in ways which we cannot predict with 
certainty and adversely impact our results of operations.
• We are subject to changes in governmental, investor and 
societal responses to climate change and sustainability-
related issues, which may result in scrutiny of our business, 
litigation or adverse impacts to our share price and our 
results of operations.
• We could face unanticipated losses from increased 
geopolitical tensions, hostilities, war, terrorism, cyber 
attacks and general political instability, and these or other 
unanticipated losses could have a material adverse effect 
on our financial condition and results of operations.
• Underwriting risks and reserving for losses are based on 
probabilities and related modeling, which are subject to 
inherent uncertainties.
• The failure of any of the loss limitation methods we 
employ could have a material adverse effect on our 
financial condition or results of operations.
• The availability of reinsurance, retrocessional coverage and 
capital market transactions to limit our exposure to risks 
may be limited, and counterparty credit and other risks 
associated with our reinsurance arrangements may result in 
losses which could adversely affect our financial condition 
and results of operations.
• We could be materially adversely affected to the extent that 
important third parties with whom we do business do not 
adequately or appropriately manage their risks, commit 
fraud or otherwise breach obligations owed to us.
• Emerging claim and coverage issues may adversely affect 
our business. 
• Acquisitions, the addition of new lines of insurance or 
reinsurance business, expansion into new geographic 
regions and/or entering into joint ventures or partnerships 
expose us to risks.
• Our information technology systems and our pace of 
adoption of new technologies, such as generative AI, may 
not be adequate to meet the demands of our customers or 
impact negatively our ability to compete with our peers.
• Technology 
failures 
caused 
by 
intentional 
and 
unintentional human and non-human actions may cause 
material disruption in the availability of the information 
technology systems we use in our business. 
• We could be materially impacted by a cyber attack, data 
breach, ransomware, phishing, social engineering or other 
cybersecurity incident resulting in loss of business data, 
personal data and other confidential or secret information, 
a disruption in our business operations, regulatory or other 
legal action, and fines.
• Changes in criteria used by rating agencies which may 
result in a downgrade in our ratings, our inability to obtain 
a rating or a change in capital allocation or requirements 
for our operating insurance and reinsurance subsidiaries 
may adversely affect our relationships with clients and 
brokers and negatively impact sales of our products.
• Our ability to execute our business strategy successfully, 
continue to grow and innovate and offer our employees a 
dynamic and supportive workplace depends on the 
recruitment, retention and promotion of talented, agile, and 
resilient employees at all levels of our organization.
• Our success will depend on our ability to maintain and 
enhance effective operating procedures and internal 
controls and our ERM program.
• We are exposed to credit risk in certain of our business 
operations.
• Our business is subject to laws and regulations relating to 
economic trade sanctions and foreign bribery laws, the 
violation of which could adversely affect our operations.
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2024 FORM 10-K

Risks Relating to Financial Markets and Investments
• Adverse developments in the financial markets could have 
a material adverse effect on our results of operations, 
financial position and our businesses, and may also limit 
our access to capital; our policyholders, reinsurers and 
retrocessionaires 
may 
also 
be 
affected 
by 
such 
developments, which could adversely affect their ability to 
meet their obligations to us.
• Disruption to the financial markets and weak economic 
conditions resulting from situations such as supply/demand 
imbalances, inflation and political unrest may adversely 
and materially impact our investments, financial condition 
and results of operation.
• Foreign currency exchange rate fluctuation may adversely 
affect our financial results.
• The determination of the amount of current expected credit 
losses (“CECL”) allowances taken on our investments is 
highly subjective and could materially impact our results of 
operations or financial position.
• Our reinsurance subsidiaries may be required to provide 
collateral to ceding companies, by applicable regulators, 
their contracts or other commercial considerations. Their 
ability to conduct business could be significantly and 
negatively affected if they are unable to do so. 
Risks Relating to Our Mortgage Operations
• The ultimate performance of our mortgage insurance 
portfolios remains uncertain.
• If the volume of low down payment mortgage originations 
declines, or if other government housing policies, practices 
or regulations change, the amount of mortgage insurance 
we write in the U.S. or Australia could decline, which 
would reduce our mortgage insurance revenues.
• Changes to the role of the GSEs in the U.S. housing market 
or to GSE eligibility requirements for mortgage insurers or 
to the GSEs’ use of CRT could negatively impact our 
results of operations and financial condition or reduce our 
operating flexibility.
• The implementation of the Basel III Capital Accord and 
Federal Housing Finance Agency (“FHFA”)’s Enterprise 
Regulator Capital Framework may adversely affect the use 
of mortgage insurance and CRT opportunities.
Risk Relating to Our Company
• Some of the provisions of our bye-laws and our 
shareholders agreement may have the effect of hindering, 
delaying or preventing third party takeovers or changes in 
management initiated by shareholders. These provisions 
may also prevent our shareholders from receiving premium 
prices for their shares in an unsolicited takeover.
• There are regulatory limitations on the ownership and 
transfer of our common shares.
• Arch Capital is a holding company and is dependent on 
dividends and other distributions from its operating 
subsidiaries.
• General market conditions and unpredictable factors could 
adversely affect market prices for our outstanding preferred 
shares. 
• Dividends on our preferred shares are non-cumulative.
• Our preferred shares are equity and are subordinate to our 
existing and future indebtedness.
• The voting rights of holders of our preferred shares are 
limited.
Risks Relating to Taxation
• We and our non-U.S. subsidiaries may become subject to 
U.S. federal income taxation and/or the U.S. federal 
income tax liabilities of our U.S. subsidiaries may increase, 
including as a result of changes in tax law.
• The continuing implementation of the Tax Cuts Act may 
have a material and adverse impact on our operations and 
financial condition. 
• Proposed Treasury Regulations issued on January 24, 
2022, if finalized in their current form, could (on 
prospective basis) cause our U.S. shareholders (including 
tax-exempt U.S. shareholders) to be subject to current U.S. 
federal income tax on the portion of our earnings 
attributable to certain intercompany reinsurance income 
(whether or not such income is distributed).
• Legislation enacted in Bermuda as to Economic Substance 
may affect our operations. 
• We expect to become subject to increased taxation in 
Bermuda as a result of the recently adopted Bermuda CIT 
Act, and may become subject to increased taxation in other 
countries as a result of the implementation of the OECD's 
plan on “Base Erosion and Profit Shifting.” 
• Application of the EU Anti-Tax Avoidance Directives.
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2024 FORM 10-K

Risks Relating to Our Industry, Business and Operations
We operate in a highly competitive environment, and we may 
not be able to compete successfully in our industry.
The insurance and reinsurance industry is highly competitive. 
We compete on an international and regional basis with 
major U.S. and non-U.S. insurers and reinsurers, many of 
which have greater financial, marketing and management 
resources than we do. See “Competition” in Item 1 for details 
on our competitors in each of the major segments we operate 
in. We compete on the basis of product offerings, pricing, 
terms and conditions, claims servicing and customer 
relationships. Other factors, such as our proven cycle 
management skills, our expertise in specialty lines of 
business and our use of technologies and data analytics are 
other factors, may differentiate us from our competitors. Any 
failure by us to effectively compete could adversely affect 
our financial condition and results of operations.
The insurance and reinsurance industry is highly cyclical, 
and we may at times experience periods characterized by 
excess underwriting capacity and unfavorable premium 
rates.
Historically, insurers and reinsurers have experienced 
significant 
fluctuations 
in 
operating 
results 
due 
to 
competition, frequency of occurrence or severity of 
catastrophic events, levels of capacity, general economic 
conditions, inflation, changes in equity, debt and other 
investment markets, changes in legislation, case law and 
prevailing concepts of liability and other factors. Demand for 
reinsurance is influenced significantly by the underwriting 
results of primary insurers and prevailing general economic 
conditions. The supply of insurance and reinsurance is related 
to prevailing prices and levels of surplus capacity that, in 
turn, may fluctuate in response to changes in rates of return 
being realized in the insurance and reinsurance industry on 
both underwriting and investment sides. As a result, the 
insurance and reinsurance business historically has been a 
cyclical industry characterized by periods of intense price 
competition due to excessive underwriting capacity as well as 
periods when shortages of capacity permitted favorable 
premium levels and changes in terms and conditions. The 
supply of insurance and reinsurance is increasing, either as a 
result of capital provided by new entrants or by the 
commitment of additional capital by existing insurers or 
reinsurers. Continued increases in the supply of insurance 
and reinsurance may have consequences for us, including 
fewer contracts written, lower premium rates, increased 
expenses for customer acquisition and retention, and less 
favorable policy terms and conditions.
The effects of inflation, trade and tariff disputes and global 
recessionary and other economic conditions impact the 
insurance and reinsurance industry in ways which may 
negatively impact our business, financial condition and 
results of operations.
While general economic inflation has eased in recent 
quarters, higher inflationary conditions may continue to 
remain in place. The potential also exists, after a catastrophe 
loss or geopolitical hostilities for the development of 
inflationary pressures in a local or regional economy. This 
may have a material effect on the adequacy of our reserves 
for losses and loss adjustment expenses, especially in longer-
tailed lines of business. In addition, governmental actions in 
response to inflationary pressures, such as increasing interest 
rates, may have a material impact, such as on the market 
value of our investment portfolio, or on the size of the 
mortgage origination market available to be insured by our 
mortgage business. While we consider the anticipated effects 
of inflation in our pricing models, reserving processes and 
exposure management across all lines of business and types 
of loss including natural catastrophe events, the actual effects 
of inflation on our results cannot be accurately known until 
claims are settled. In addition, there are different types of 
inflation relevant to certain lines of business, the impact of 
which is difficult to accurately assess at this time. For 
example, in our mortgage business, the failure of general 
wages to keep pace with economic inflation, or increases in 
unemployment due to prolonged recessionary conditions, 
could prevent borrowers from being able to afford their 
mortgage payments and thereby increase the frequency of 
claims beyond our modeled results. Global recessionary 
conditions, including inflation, the slow recovery of certain 
sectors from the pandemic, predicted slow growth rates 
across key markets and other factors, will impact the 
insurance and reinsurance industry. 
While our business has not been directly impacted by the 
proposed Trump administration tariffs on imported goods, 
there may be a ripple effect on how these impact certain 
industries where we provide insurance or reinsurance. It is 
too early to determine the long-term effect, if any, of the 
Trump administration tariff policy, but sustained escalation 
of tariffs and trade disputes may result in a global economic 
slowdown which impacts our clients. In addition, it is 
anticipated that the Trump administration will promulgate a 
number of executive orders or propose legislation that could 
impact our industry. We cannot predict with certainty the 
impact of these actions on our business and results of 
operations.
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2024 FORM 10-K

Claims for natural and man-made catastrophic events could 
cause large losses and substantial volatility in our results of 
operations and could have a material adverse effect on our 
financial position and results of operations.
We have large aggregate exposures to natural and man-made 
catastrophic events. Natural catastrophes can be caused by 
various events, including hurricanes, floods, wildfires, 
tsunamis, windstorms, earthquakes, hailstorms, tornadoes, 
explosions, severe winter weather, fires, droughts and other 
natural disasters. The frequency and severity of natural 
catastrophe activity has also been greater in recent years due 
to climate change caused in part by human actions and other 
related factors. Catastrophic events caused by humans may 
include acts of war, acts of terrorism and political instability. 
Catastrophes can cause losses in non-property business such 
as workers’ compensation or general liability. In addition to 
the nature of the property business, we believe that economic 
and geographic trends affecting insured property, including 
inflation, property value appreciation and geographic 
concentration tend to generally increase the size of losses 
from catastrophic events over time. Actual losses from future 
catastrophic events have varied materially from estimates due 
to the inherent uncertainties in making such determinations 
resulting from several factors, including the potential 
inaccuracies and inadequacies in the data provided by clients, 
brokers and ceding companies, the modeling techniques and 
the application of such techniques, the contingent nature of 
business interruption exposures, the effects of any resultant 
demand surge on claims activity and attendant coverage 
issues. In estimating our losses from catastrophic events our 
considerations can include factors such as overall market 
losses, additional claims information from our clients, 
multiple model views and proprietary scenario testing. All of 
the catastrophe modeling tools that we use or rely on to 
evaluate our catastrophe exposures are therefore based on 
significant assumptions and judgments and are subject to 
error and misestimation. As a result, our estimated exposures 
could be materially different than our actual results.
The impact of climate change will affect our loss limitation 
methods, such as the purchase of third party reinsurance and 
catastrophe risk modeling and risk selection in ways which 
may adversely impact our business, financial condition and 
results of operations.
Changing weather patterns and climatic conditions, such as 
global warming, have added to the unpredictability, severity 
and frequency of natural disasters. Uncertainty about 
complexities of climate change affects our ability to assess 
with certainty the full impact of climate change and creates 
uncertainty about future trends and exposures. Although the 
loss experience of catastrophe insurers and reinsurers has 
historically been characterized as low frequency, climate 
change has impacted the frequency and severity of extreme 
weather events and natural catastrophes such as hurricanes, 
tornado activity, other windstorms, floods, wildfires and 
droughts in recent years and may continue to increase in the 
future. 
Claims for catastrophic events, or an unusual frequency of 
smaller losses in a particular period, could expose us to large 
losses, cause substantial volatility in our results of operations 
and could have a material adverse effect on our ability to 
write new business if we are not able to adequately assess 
and reserve for the increased frequency and severity of 
catastrophes resulting from these environmental factors. 
Climate change and increasing catastrophic events could 
increase property damage to residential real estate secured by 
mortgages owned by the GSEs, and by extension could 
increase losses to CRT investors. Increasing catastrophic 
events could increase the cost of homeowners insurance and 
could negatively impact mortgagees’ ability to meet their 
monthly housing payment obligations, and by extension 
could increase the frequency of claims. Additionally, climate 
change may make modeled outcomes less certain or produce 
new, non-modeled risks. Catastrophic events could result in 
increased 
credit 
exposure 
to 
reinsurers 
and 
other 
counterparties we transact business with, declines in the 
value of investments we hold and significant disruptions to 
our physical infrastructure, systems and operations. Climate 
change-related risks may also specifically adversely impact 
the value of the securities that we hold.
Changes in security asset prices may impact the value of our 
fixed income, real estate and commercial mortgage 
investments, resulting in realized or unrealized losses on our 
invested assets. These risks are not limited to, but can 
include: (i) changes in supply/demand characteristics for 
fossil fuels (e.g., coal, oil, natural gas); (ii) advances in low-
carbon technology and renewable energy development; and 
(iii) effects of extreme weather events on the physical and 
operational exposure of industries and issuers, and the 
transition that these companies make towards addressing 
climate risk in their own businesses. 
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2024 FORM 10-K

We attempt to manage our exposure to these risks relating to 
climate change through the use of underwriting controls, 
proprietary and third party risk models, and the purchase of 
third party reinsurance. Underwriting controls can include 
more restrictive underwriting criteria such as higher 
premiums and deductibles, reduction in limits offered or 
losses retained, and more specifically excluded policy risks. 
Our exposure in connection with a catastrophic event is 
determined by market capacity, pricing conditions, regulatory 
capital requirements, our perceptions of underlying risk and 
surplus preservation. There can be no assurance that our 
reinsurance coverage and other measures taken will be 
sufficient to mitigate losses resulting from one or more 
catastrophic events. As a result, the occurrence of one or 
more catastrophic events and the continuation and worsening 
of recent trends could have an adverse effect on our results of 
operations and financial condition.
Our insurance and reinsurance subsidiaries are subject to 
supervision and regulation. Changes to existing regulation 
and supervisory standards, or failure to comply with 
applicable requirements, could adversely affect our business 
and results of operation.
Our insurance and reinsurance subsidiaries conduct business 
globally and are subject to varying degrees of regulation in 
the various jurisdictions in which they conduct business, 
including by state, federal and national insurance regulators. 
In August 2024, we were added to the list of IAIGs, 
subjecting our global operations to additional regulation and 
scrutiny. The purpose of insurance laws and regulations 
generally is to protect policyholders and ceding insurance 
companies, not our shareholders. See “Regulation” in Item 1.
We may not be able to comply fully with, or obtain 
appropriate exemptions from, these statutes and regulations, 
which could result in restrictions on our ability to do business 
or undertake activities that are regulated in one or more of the 
jurisdictions in which we conduct business and could subject 
us to fines and other sanctions. Regulatory authorities also 
may seek to exercise their supervisory or enforcement 
authority in new or more extensive ways, such as imposing 
increased 
capital 
requirements. 
It 
is 
possible 
that 
requirements or guidance under one jurisdiction, such as the 
U.S., may be contradictory or divergent from requirements or 
guidance in other jurisdictions where we operate such as the 
EU. Examples may be climate change disclosures and goals 
and diversity, equity and inclusion programs. Any of these 
actions, if they occur, could affect the competitive market, 
how we are regulated and the way we conduct our business 
and manage our capital and could result in lower revenues 
and higher costs. As a result, such actions could have a 
material effect on our results of operations and financial 
condition.
We are subject to ongoing legal and policy actions around 
climate change which may result in additional requirements 
which could prompt us to shift our risk selection and business 
strategy in ways which may adversely impact our results of 
operations.
Governments, regulators, legislators and influential non-
governmental organizations continue to focus on enacting 
laws, regulations and other requirements relating to climate 
change. Regulator and shareholder focus on “greenwashing” 
also continues. We are subject to some of these changing 
laws, regulations and public policy debates, which are 
difficult to predict and quantify and may have an adverse 
impact on our business. Legislative and regulatory initiatives 
and court decisions following major catastrophes, could force 
expansion of certain insurance coverages for catastrophe 
claims or otherwise adversely impact our business. 
Additionally, changes in regulations or policies relating to 
climate change or our own leadership decisions implemented 
as a result of assessing the impact of climate change on our 
business may result in an increase in the cost of doing 
business, or a decrease in premiums in certain lines of 
business. 
We are subject to CSRD and other EU and U.K. regulations 
relating to climate disclosures and goals. These regulations 
require extensive reporting on climate and other social factors 
beyond 
current 
U.S. 
requirements. 
The 
European 
Commission recently proposed changes to sustainability 
reporting requirements which may impact our reporting 
obligations. We cannot predict how these proposals or other 
changes in sustainability requirements in any of the 
jurisdictions in which we operate will impact our operations, 
customers and shareholders.
Our efforts to address these exposures are based in part on 
the outcomes of our loss mitigation measures and risk 
modeling, our financial results of operations and our 
communications with our customers and shareholders. We 
also continue to monitor changes across our industry and 
geographies and the Board considers these exposures 
regularly. We may make strategic business decisions to 
address or respond to some of the legal and policy changes 
relating to climate change, but there is no assurance that these 
decisions will adequately address these exposures or that they 
will not result in a material adverse effect on our results of 
operations, financial condition or share price.
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2024 FORM 10-K

The imposition of sanctions by the U.S., U.K. and EU on 
Russia and Russia-related businesses has impacted certain 
sectors in which we write business.
The ongoing Russia-Ukraine hostilities have created a high 
level of uncertainty as well as disruption in certain sectors of 
the global economy. It is impossible to predict whether 
Russia will expand hostilities to other countries in Europe or 
elsewhere. A further prolonged war may also create 
continued uncertainty in the global economy in the form of 
oil shortages, inflationary pressures, loss of confidence and 
general increase in risks worldwide. In response to this 
aggression, the governments of the U.S., U.K., EU and other 
countries implemented several sanctions programs relating 
to, among other things, the import and transportation of 
Russian oil and gas and other goods originating in Russia. 
Sanctions imposed also target entities, individuals and 
financial institutions which support Russia’s military and 
defense systems. Certain lines of business we write have been 
impacted by the sanctions, such as the marine and energy 
lines of business, although the extent of the impact will 
depend on the outcome of the war in Ukraine and the nature 
of future sanctions packages or potential rescindment of some 
or all of the Russia sanctions currently in place. It is possible 
that the U.S. approach to Russian sanctions may diverge from 
that of the U.K. and EU in the future, which may cause 
uncertainty in certain lines of business such as marine and 
energy.
Our customers and policyholders may also be impacted by 
regulatory, technological, market or other risks relating to 
climate change in ways which we cannot predict with 
certainty and adversely impact our results of operations.
Our policyholders and customers are located primarily in 
countries and regions, such as the U.S., U.K., EU and 
Australia where there are regulatory, policy, legal and 
technological changes resulting from actions relating to 
climate change. In some cases, those policyholders and 
customers may not be able to shift their business strategies or 
adjust adequately to these changes, and their businesses may 
be negatively impacted or, in some cases, cease to exist. 
Climate change on a global and regional level may impact 
businesses on a temporary or permanent basis, resulting in 
shifting needs for our products and services in ways we 
cannot predict. More stringent regulations and other 
requirements imposed on our policyholders may negatively 
impact their ability to conduct business. As a result of these 
factors, our results of operations may be impacted by the loss 
of those customers or a shift in their patterns or levels of 
insurance coverage in ways we cannot predict.
We are subject to changes in governmental, investor and 
societal responses to climate change and sustainability-
related issues, which may result in scrutiny of our business, 
litigation or adverse impacts to our share price and our 
results of operations.
Shareholders, investors and regulators have placed increased 
attention on climate change and sustainability-related issues, 
leading to evolving and sometimes conflicting expectations 
and standards. We are committed to evaluating and, where 
appropriate, incorporating sustainability practices in our 
business. Our leadership and Board are actively engaged in 
understanding prevailing views on these issues and assessing 
our business operations to ensure that our business strategy 
reflects our values. Changes to governmental, investor and 
societal priorities on climate change and sustainability-related 
practices could adversely impact our reputation, share price 
and results of operation or result in litigation.
We could face unanticipated losses from increased 
geopolitical tensions, hostilities, war, terrorism, cyber 
attacks, and general political instability, and these or other 
unanticipated losses could have a material adverse effect on 
our financial condition and results of operations.
We have substantial exposure to unexpected, large losses 
resulting from man-made catastrophic events, such as acts of 
war, regional hostilities, acts of terrorism, political instability, 
social unrest and pandemics similar to the COVID-19 
pandemic. These risks are inherently unpredictable. It is 
difficult to predict the timing of such events with statistical 
certainty or estimate the amount of loss any given occurrence 
will generate. In certain instances, we specifically insure and 
reinsure risks resulting from acts of terrorism. We may also 
insure against risk related to cybersecurity and cyber attacks. 
In addition, our exposure to cyber attacks includes exposure 
to ‘silent cyber’ risks, meaning risks and potential losses 
associated with policies where cyber risk is not specifically 
included nor excluded in the policies. Even in cases where 
we attempt to exclude losses from terrorism, cybersecurity 
and certain other similar risks from some coverages written 
by us, we may not be successful in doing so. Moreover, 
irrespective of the clarity and inclusiveness of policy 
language, there can be no assurance that a court or arbitration 
panel will not limit enforceability of policy language or 
otherwise issue a ruling adverse to us. Accordingly, while we 
believe our reinsurance programs, together with the coverage 
provided under the Terrorism Risk Insurance Act of 2002, as 
amended (“TRIP”) are sufficient to reasonably limit our net 
losses relating to potential future terrorist attacks, we can 
offer no assurance that our available capital will be adequate 
to cover losses when they materialize. To the extent that an 
act of terrorism is certified by the Secretary of the Treasury 
and aggregate industry insured losses resulting from the act 
of terrorism exceeds the prescribed program trigger, our U.S. 
insurance operations may be covered under TRIP for up to 
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80% subject to (i) a mandatory deductible of 20% of our 
prior year’s direct earned premium for covered property and 
liability coverages, and (ii) an industry aggregate retention of 
$37.5 billion. The program trigger for calendar year 2024 and 
any program year thereafter through 2027 is $200 million. If 
an act (or acts) of terrorism result in covered losses exceeding 
the $100 billion annual limit, insurers with losses exceeding 
their deductibles will not be responsible for additional losses. 
It is not possible to completely eliminate our exposure to 
unforecasted or unpredictable events, and to the extent that 
losses from such risks occur, our financial condition and 
results of operations could be materially adversely affected.
Underwriting risks and reserving for losses are based on 
probabilities and related modeling, which are subject to 
inherent uncertainties.
Our success is dependent upon our ability to assess 
accurately the risks associated with the businesses that we 
insure and reinsure. We establish reserves for losses and loss 
adjustment expenses which represent estimates based on 
actuarial and statistical projections, at a given point in time, 
of our expectations of the ultimate future settlement and 
administration costs of losses incurred. We utilize actuarial 
models as well as available historical insurance industry loss 
ratio experience and loss development patterns to assist in the 
establishment of loss reserves. Most or all of these factors are 
not directly quantifiable, particularly on a prospective basis, 
and the effects of these and unforeseen factors could 
negatively impact our ability to accurately assess the risks of 
the policies that we write. Changes in the assumptions used 
by these models or by management could lead to an increase 
in our estimate of ultimate losses in the future. In addition, 
there may be significant reporting lags between the 
occurrence of the insured event and the time it is reported to 
the insurer and additional lags between the time of reporting 
and final settlement of claims. In addition, the estimation of 
loss reserves is more difficult during times of adverse 
economic and market conditions due to unexpected changes 
in behavior of claimants and policyholders, including an 
increase in fraudulent reporting of exposures and/or losses, 
reduced maintenance of insured properties or increased 
frequency of small claims. Changes in the level of inflation 
also result in an increased level of uncertainty in our 
estimation of loss reserves. As a result, actual losses and loss 
adjustment expenses paid can deviate, perhaps substantially, 
from the reserve estimates reflected in our financial 
statements.
If our loss reserves are determined to be inadequate, we will 
be required to increase loss reserves at the time of such 
determination with a corresponding reduction in our net 
income in the period when the deficiency becomes known. It 
is possible that claims in respect of events that have occurred 
could exceed our claim reserves and have a material adverse 
effect on our results of operations, in a particular period, or 
our financial condition in general. As a compounding factor, 
although most insurance contracts have policy limits, the 
nature of property and casualty insurance and reinsurance is 
such that losses and the associated expenses can exceed 
policy limits for a variety of reasons and could significantly 
exceed the premiums received on the underlying policies, 
thereby further adversely affecting our financial condition.
As of December 31, 2024, our consolidated reserves for 
unpaid losses and loss adjustment expenses, net of unpaid 
losses and loss adjustment expenses recoverable, were 
approximately $21.5 billion. Such reserves were established 
in accordance with applicable insurance laws and GAAP. 
Loss reserves are inherently subject to uncertainty. In 
establishing the reserves for losses and loss adjustment 
expenses, we have made various assumptions relating to the 
pricing of our reinsurance contracts and insurance policies 
and have also considered available historical industry 
experience and current industry conditions. Any estimates 
and assumptions made as part of the reserving process could 
prove to be inaccurate due to several factors, including the 
fact that for certain lines of business relatively limited 
historical information has been reported to us through 
December 31, 2024.
The failure of any of the loss limitation methods we employ 
could have a material adverse effect on our financial 
condition or results of operations.
We seek to limit our loss exposure by writing a number of 
our reinsurance contracts on an excess of loss basis, adhering 
to maximum limitations on reinsurance written in defined 
geographical zones, limiting program size for each client and 
prudent underwriting of each program written. In the case of 
proportional treaties, we may seek per occurrence limitations 
or loss ratio caps to limit the impact of losses from any one or 
series of events. In our insurance operations, we seek to limit 
our exposure through the purchase of reinsurance. For our 
U.S. insurance business, in addition to utilizing reinsurance, 
we have developed a proprietary risk model that simulates 
the maximum probable loss resulting from a severe economic 
event impacting the housing market. We also seek to limit 
our loss exposure by geographic diversification, including by 
pricing adjustments in our U.S. mortgage insurance business. 
Geographic pricing decisions and zone limitations involve 
significant 
underwriting 
judgments, 
including 
the 
determination of the area of the zones and the inclusion of a 
particular policy within a particular zone’s limits. Various 
provisions of our policies, negotiated to limit our risk, such 
as limitations or exclusions from coverage or choice of 
forum, may not be enforceable in the manner we intend, as it 
is possible that a court or regulatory authority could nullify or 
void an exclusion or limitation, or legislation could be 
enacted modifying or barring the use of these exclusions and 
limitations. Disputes relating to coverage and choice of legal 
forum may also arise. Underwriting is inherently a matter of 
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judgment, involving important assumptions about matters 
that are inherently unpredictable and beyond our control, and 
for which historical experience and probability analysis may 
not provide sufficient guidance. One or more catastrophic 
events or severe economic events could result in claims that 
substantially exceed our expectations, or the protections set 
forth in our policies could be voided, which, in either case, 
could have a material adverse effect on our financial 
condition or our results of operations, possibly to the extent 
of eliminating our shareholders’ equity. In addition, factors 
such as global climate change limit the value of historical 
experience and therefore further limit the effectiveness of our 
loss limitation methods. See “Catastrophic Events and Severe 
Economic Events” in Item 7 for further details. Depending on 
business opportunities and the mix of business that may 
comprise our insurance, reinsurance and mortgage insurance 
portfolio, we may seek to adjust our self-imposed limitations 
on probable maximum pre-tax loss for catastrophe exposed 
business and mortgage default exposed business.
The availability of reinsurance, retrocessional coverage and 
capital market transactions to limit our exposure to risks may 
be limited, and counterparty credit and other risks associated 
with our reinsurance arrangements may result in losses 
which could adversely affect our financial condition and 
results of operations.
We manage risk using reinsurance, retrocessional coverage 
and capital markets transactions. Our insurance subsidiaries 
typically cede a portion of their premiums through pro rata, 
excess of loss and facultative reinsurance agreements. Our 
reinsurance subsidiaries purchase a limited amount of 
retrocessional coverage as part of their aggregate risk 
management 
program. 
In 
addition, 
our 
reinsurance 
subsidiaries participate in “common account” retrocessional 
arrangements for certain pro rata treaties. Such arrangements 
reduce the effect of individual or aggregate losses to all 
companies participating on such treaties, including the 
reinsurers, such as our reinsurance subsidiaries, and the 
ceding company. Economic conditions, including but not 
limited to recessionary conditions, inflation, declining home 
prices or the impact of climate change could also have a 
material impact on our ability to manage our risk 
aggregations 
through 
reinsurance 
or 
capital 
markets 
transactions. The availability and cost of excess of loss 
reinsurance sold into the capital markets is subject to investor 
appetite and market conditions when compared to the terms 
and yield opportunities of other similar investment 
opportunities. As a result of these factors, we may not be able 
to successfully mitigate risk through reinsurance and 
retrocessional arrangements.
Further, we are subject to credit risk with respect to our 
reinsurance and retrocessions because the ceding of risk to 
reinsurers and retrocessionaires does not relieve us of our 
liability to the clients or companies we insure or reinsure. We 
monitor the financial condition of our reinsurers and attempt 
to place coverages only with carriers we view as substantial 
and financially sound. An inability of our reinsurers or 
retrocessionaires to meet their obligations to us could have a 
material adverse effect on our financial condition and results 
of operations. Our losses for a given event or occurrence may 
increase if our reinsurers or retrocessionaires dispute or fail 
to meet their obligations to us or the reinsurance or 
retrocessional protections purchased by us are exhausted or 
are otherwise unavailable for any reason. In certain instances, 
we also require collateral to mitigate our credit risk to our 
reinsurers or retrocessionaires. We are at risk that losses 
could exceed the collateral we have obtained. Our failure to 
establish adequate reinsurance or retrocessional arrangements 
or the failure of our existing reinsurance or retrocessional 
arrangements to protect us from overly concentrated risk 
exposure could adversely affect our financial condition and 
results of operations.
We could be materially adversely affected to the extent that 
important third parties with whom we do business do not 
adequately or appropriately manage their risks, commit 
fraud or otherwise breach obligations owed to us. 
For certain lines of our insurance business, we authorize 
managing general agents, general agents and other producers 
to write business on our behalf within underwriting 
authorities prescribed by us. In addition, our mortgage group 
delegates the underwriting of a significant percentage of its 
primary new insurance written to certain mortgage lenders. 
Under this delegated underwriting program, the approved 
customer may determine whether mortgage loans meet our 
mortgage insurance program guidelines and commit us to 
issue mortgage insurance. We rely on the underwriting 
controls of these agents to write business within the 
underwriting authorities provided by us. Although we have 
contractual protections in some instances and we monitor 
such business on an ongoing basis, our monitoring efforts 
may not be adequate or our agents may exceed their 
underwriting authorities or otherwise breach obligations 
owed to us. In addition, our agents, our insureds or other 
third parties may commit fraud or otherwise breach their 
obligations to us. Our financial condition and results of 
operations could be materially adversely affected by any one 
of these issues.
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While we conduct underwriting, financial, claims and 
information technology due diligence reviews and apply 
rigorous standards in the selection of these counterparties, 
there is no assurance they have provided us accurate or 
complete information to assess their risk or that they can 
manage effectively their own risks. The counterparties are 
also subject to the same global increase in cyber incidents, 
including ransomware, and we cannot offer assurances that 
these 
counterparties 
have 
sufficient 
technical 
and 
organizational controls to mitigate these risks. Consequently, 
we assume a degree of credit and operational risk of those 
parties, and a material failure to manage their risks may result 
in material losses or damage to us. 
Emerging claim and coverage issues may adversely affect 
our business. 
As industry practices and legal, social and new coverage 
issues change, unexpected and unintended issues related to 
claims and coverage may emerge, including new or expanded 
theories of liability. These or other changes could impose 
new financial obligations on us by extending coverage 
beyond our underwriting intent or otherwise require us to 
make unplanned modifications to the products and services 
that we provide, or cause the delay or cancellation of 
products and services that we provide. In some instances, 
these changes may not become apparent until sometime after 
we have issued insurance or reinsurance contracts that are 
affected by the changes. As a result, the full extent of liability 
under our insurance or reinsurance contracts may not be 
known for many years after a contract is issued. The effects 
of unforeseen developments or substantial government 
intervention could adversely impact us.
Acquisitions, the addition of new lines of insurance or 
reinsurance business, expansion into new geographic regions 
and/or entering into joint ventures or partnerships expose us 
to risks.
We have acquired other companies and selected blocks of 
business and also expanded our business lines and 
geographies and/or entered into joint ventures or partnerships 
as part of our strategy. The MCE Acquisition is an example 
of such expansion. We may seek, from time to time, to 
acquire other companies, acquire selected blocks of business, 
expand our business lines, expand into new geographic 
regions and/or enter into joint ventures or partnerships. Such 
activities expose us to challenges and risks, including: 
integrating financial and operational reporting systems; 
establishing satisfactory budgetary and other financial 
controls; funding increased capital needs, overhead expenses 
or cash flow shortages that may occur if anticipated sales and 
revenues are not realized or are delayed, whether by general 
economic or market conditions or unforeseen internal 
difficulties; obtaining management personnel required for 
expanded 
operations; 
obtaining 
necessary 
regulatory 
permissions; and establishing adequate reserves for any 
acquired book of business. In addition, the value of assets 
acquired may be lower than expected or may diminish due to 
credit defaults or changes in interest rates; the liabilities 
assumed may be greater than expected; and assets and 
liabilities acquired may be subject to foreign currency 
exchange rate fluctuation. We may also be subject to 
financial exposures in the event that the sellers of the entities 
or business we acquire are unable or unwilling to meet their 
indemnification, 
reinsurance 
and 
other 
contractual 
obligations to us. Our failure to manage successfully any of 
the foregoing challenges and risks may adversely impact our 
results of operations.
Our information technology systems and our pace of 
adoption of new technologies, such as generative AI, may not 
be adequate to meet the demands of our customers or impact 
negatively our ability to compete with our peers.
We are dependent on our information technology systems to 
conduct our business and drive strategic decisions based on 
data analytics. Our information technology systems also 
support areas of our business, such as mortgage servicing or 
underwriting pricing portals where we connect with third-
party information technology systems. Accordingly, we are 
highly dependent on the effective operation, availability and 
integrity of these systems. While we believe that the systems 
are adequate to service our business, there can be no 
assurance that they will operate in all manners in which we 
intend, possess all of the functionality required by customers 
currently or in the future or continuously operate without 
significant disruption. 
Our customers and regulators require that our information 
technology systems perform as intended, whether they are 
hosted by us, managed by a third-party on our behalf or rely 
on seamless electronic integrations with customer systems. 
Regulators and customers regularly request information 
about our cybersecurity program and disaster recovery plans. 
We use AI in areas of our business and, to a much more 
limited extent, carefully vetted generative AI capabilities. We 
must continually invest significant resources in maintaining, 
monitoring and enhancing our information technology 
systems’ capabilities to meet customer needs and business 
strategy. Our business, financial condition and operating 
results may be adversely affected if we do not adequately 
maintain our information technology systems, both internal 
and third-party, and continuously test and upgrade them. We 
continuously evaluate the adequacy of our information 
technology systems in order to ensure that we are utilizing 
the most appropriate technologies and innovating or adopting 
new technologies to support our underwriting business. With 
new technologies emerging at a rapid pace, there is no 
assurance that we will be able to evaluate and integrate new 
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technologies or update our existing systems to keep pace with 
our competitors and customer needs.
Technology failures caused by intentional and unintentional 
human and non-human actions may cause material 
disruption in the availability of the information technology 
systems we use in our business. 
We rely on information technology systems to securely 
process, transmit, store and protect the confidential and 
electronic information, financial data and proprietary models 
that are critical to our business. Furthermore, a significant 
portion of the communications between our employees and 
our business partners and service providers depends on 
information technology and electronic information exchange. 
Like all companies, our information technology systems and 
the systems of third-parties that we do business with are 
vulnerable to data breaches, interruptions or failures due to 
events that may be beyond our control, including, but not 
limited to, natural disasters, power outages, theft, terrorist 
attacks, computer viruses, hackers, employee or vendor error 
or misconduct, malicious actors, errors in usage or deepfake 
or social engineering or schemes, phishing attacks, other 
external hazards and general technology failures. In 2024, 
our operations, like many others, were affected by a 
significant incident relating to a third-party vendor’s faulty 
software update. While the impact of this event was not 
material to our business and operations, we are vulnerable to 
such incidents that are beyond our control.
We rely on certain third-party technology service providers 
and other service providers, notably major cloud providers, 
Software-as-a-Service (or “SaaS”) solutions, and on-premise 
software, including proprietary and open source solutions. 
We also outsource certain business processes to third parties 
and may continue do so in the future. This practice exposes 
us to increased risks if those third-party systems are not 
maintained and monitored in accordance with contractual 
terms or due to human error. There is no assurance that we 
will not be materially adversely affected by such incidents 
impacting our critical and important functions. See Item 1C, 
“Cybersecurity” for additional information.
We could be materially impacted by a cyber attack, data 
breach, ransomware, phishing, social engineering or other 
cybersecurity incident resulting in loss of business data, 
personal data and other confidential or secret information, a 
disruption in our business operations, regulatory or other 
legal action, and fines.
Cybersecurity incidents and attacks resulting in unauthorized 
access to our systems and those of third parties we use in our 
business could have a material impact on our business 
operations as a result of loss or misuse of our information, 
including personal data and sensitive data, and disruption to 
normal business operations. Specifically, these incidents, and 
the disruptions resulting therefrom, may impact the 
availability, reliability, speed, accuracy or other proper 
functioning of these systems. 
The sophistication of cybersecurity threats, AI-powered 
cyber attacks such as deep fakes and brute force attacks, 
continues to increase. We and/or our SaaS or other third-
party providers are exposed to these risks and other 
cybersecurity risks which may arise in the future.
While we believe we have effective technical and 
organizational measures in place to prevent, detect, manage 
and mitigate the impact of data breaches and cybersecurity 
incidents caused by malicious actors, systemic failures or 
human error, we cannot offer complete assurances that 
significant data breaches on our systems and those of third 
parties we use will not occur. 
We are subject to many laws and regulations relating to the 
adequacy of cybersecurity programs and business resiliency, 
including the SEC Cybersecurity Rules, and comprehensive 
privacy, security and business resiliency laws in the EU such 
as GDPR and DORA. Some U.S. industry regulators like the 
NYDFS in New York also impose comprehensive 
cybersecurity requirements on our U.S. operations. A 
cybersecurity incident could result in a violation of these and 
other applicable laws, resulting in damage to our reputation, 
loss of customers, decline in our stock price, litigation, 
remediation costs, increased insurance premiums, employee 
dissatisfaction and/or monetary fines, penalties or litigation, 
any of which could adversely affect our business.
Based on our investigations and incident management, the 
Company does not believe these and other cybersecurity 
incidents we have experienced to date have materially 
affected the Company’s business operations, but we cannot 
provide assurances that our controls will defend against all 
cyber attacks. See Item 1C, “Cybersecurity” for additional 
information.
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Changes in criteria used by rating agencies which may result 
in a downgrade in our ratings, our inability to obtain a 
rating or a change in capital application or requirements for 
our operating insurance and reinsurance subsidiaries may 
adversely affect our relationships with clients and brokers 
and negatively impact sales of our products.
Similar to our competitors, a ratings downgrade or the 
potential for such a downgrade, or failure to obtain a 
necessary rating, could adversely affect our relationships with 
agents, brokers, wholesalers, intermediaries, clients and other 
distributors of our existing and new products and services. 
Some of the reinsurance agreements assumed by our 
reinsurance operations include provisions that a ratings 
downgrade or other specified triggering event with respect to 
our reinsurance operations, such as a reduction in surplus by 
specified amounts during specified periods, provide our 
ceding company clients certain rights, including, the right to 
terminate the subject reinsurance agreement and/or to require 
us to post additional collateral. Any ratings downgrade or 
failure to obtain a necessary rating could adversely affect our 
ability to compete in our markets, could cause our premiums 
and earnings to decrease and could have a material adverse 
impact on our financial condition and results of operations. In 
some cases, a downgrade in ratings of certain of our 
operating subsidiaries may constitute an event of default 
under our credit facilities.
We can offer no assurances that our ratings will remain at 
their current levels or that any of our ratings which are under 
review or watch by ratings agencies will remain unchanged. 
Changes in the criteria used by rating agencies may impact 
our capital position, our capital requirements and the 
treatment of certain items on our balance sheet. It is possible 
that rating agencies may modify their evaluation criteria, 
heighten the level of scrutiny they apply when analyzing 
companies in our industry, adjust upward the capital and 
other requirements employed in their models and/or 
discontinue credit and debt instruments or other structures 
deployed for maintenance of certain rating levels. We may 
need to raise additional funds through equity or debt 
financings or other investments. Any equity or debt 
financing, if available at all, may be on terms that are 
unfavorable to us. Equity financings could be dilutive to our 
existing shareholders and could result in the issuance of 
securities that have rights, preferences and privileges that are 
senior to those of our outstanding securities. If we are not 
able to obtain adequate capital through such financings or 
through our investment strategy, our business, results of 
operations and financial condition could be adversely 
affected. See “Capital Resources” in Item 7 for further 
details.
For further information on our financial strength and/or 
issuer ratings, see “Ratings” in Item 1. For further 
information on our letter of credit facilities, see the Letter of 
Credit 
and 
Revolving 
Credit 
Facilities 
section 
of 
“Contractual Obligations and Commercial Commitments” in 
Item 7.
Our ability to execute our business strategy successfully, 
continue to grow and innovate and offer our employees a 
dynamic and supportive workplace depends on the 
recruitment, retention and promotion of talented, agile, and 
resilient employees at all levels of our organization.
The success of our business depends on attracting and 
retaining a capable and talented workforce. We provide a 
work environment and culture which reflects our goal to 
“Enable Possibility”. We offer flexible and hybrid work 
arrangements, when possible, for our employees globally, as 
well as competitive compensation packages which include 
participation in our Employee Stock Purchase Plan and the 
possibility of equity awards at certain job levels. Over the 
past few years, we have also implemented and expanded our 
learning programs, career leveling and employee networks, 
all of which we believe will help us retain talent.
While our efforts to attract, develop and retain talented 
employees continues to be a top priority, we may not be able 
to compete successfully for talented executives and 
employees, which may adversely impact our ability to fully 
realize our business strategy.
Our success will depend on our ability to maintain and 
enhance effective operating procedures and internal controls 
and our ERM program.
We operate within an ERM framework designed to identify, 
assess and monitor our risks. We consider underwriting, 
reserving, investment, credit, group and operational risk in 
our 
ERM 
framework. 
Losses, 
reputational 
damage, 
regulatory fines and litigation are among the adverse impacts 
which can arise if we fail to operate an effective ERM 
framework. Operational risk and losses can result from, 
among other things, fraud, errors, failure to document 
transactions 
properly 
or 
to 
obtain 
proper 
internal 
authorization, failure to comply with regulatory requirements, 
information technology or information security failures and 
failure to train employees appropriately or adequately. We 
continuously enhance our operating procedures and internal 
controls to effectively support our business and our 
regulatory and reporting requirements. As a result of the 
inherent limitations in all control systems, no evaluation of 
controls can provide absolute assurance that all control issues 
and instances of fraud, if any, within the company have been 
detected. These inherent limitations include the realities that 
judgments in decision making can be faulty, and that 
breakdowns can occur because of simple error or mistake or 
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circumvention of controls. There can be no assurance that our 
control system will succeed in achieving its stated goals 
under all potential future conditions. Any ineffectiveness in 
our controls or procedures could have a material adverse 
effect on our business. For further information on our ERM 
framework, see “Enterprise Risk Management” in Item 1.
We are exposed to credit risk in certain of our business 
operations.
In addition to exposure to credit risk related to our 
investment portfolio, reinsurance recoverables and reliance 
on brokers and other agents, we are exposed to credit risk in 
other areas of our business related to policyholders. We are 
exposed to credit risk in our insurance group’s surety unit 
where we guarantee to a third party that our policyholder will 
satisfy certain performance or financial obligations. If our 
policyholder defaults, we may suffer losses and be unable to 
be reimbursed by our policyholder. We are also exposed to 
credit risk from policyholders on smaller deductibles in other 
insurance group lines, such as healthcare and excess and 
surplus casualty. Although we have not experienced any 
material credit losses to date, an increased inability of our 
policyholders to meet their obligations to us could have a 
material adverse effect on our financial condition and results 
of operations. See note 3, “Significant Accounting Policies.”
Our business is subject to laws and regulations relating to 
economic trade sanctions and foreign bribery laws, the 
violation of which could adversely affect our operations.
We must comply with all applicable economic sanctions and 
anti-bribery laws and regulations of the U.S. and other 
foreign jurisdictions where we operate. U.S. laws and 
regulations applicable to us and others who provide insurance 
and reinsurance include the economic trade sanctions laws 
and regulations administered by the Treasury’s Office of 
Foreign Assets Control as well as certain laws administered 
by the U.S. Department of State. New sanctions regimes may 
be initiated, or existing sanctions expanded or lifted, at any 
time, which can immediately impact our business activities. 
Since the Russian invasion of Ukraine in February 2022, 
there have been several sanctions packages imposed by the 
U.S., U.K. and EU which impact our business. The sanctions 
are complex, numerous and nuanced, requiring close review 
and assessment as they pertain to our business. We are also 
subject to the U.S. Foreign Corrupt Practices Act and other 
anti-bribery laws such as the U.K. Bribery Act that generally 
bar corrupt payments or unreasonable gifts to foreign 
governments or officials. Although we have policies and 
controls in place designed to ensure compliance with these 
laws and regulations, it is possible that an employee or 
intermediary could fail to comply with applicable laws and 
regulations. In addition, we may interpret a complex sanction 
in a way which may differ from a regulator. In these cases, 
we could be exposed to fines, criminal penalties and other 
sanctions. Such violations could limit our ability to conduct 
business and/or damage our reputation, resulting in a material 
adverse effect on our financial condition and results of 
operations.
Risks Relating to Financial Markets and Investments
Adverse developments in the financial markets could have a 
material adverse effect on our results of operations, financial 
position and our businesses, and may also limit our access to 
capital; our policyholders, reinsurers and retrocessionaires 
may also be affected by such developments, which could 
adversely affect their ability to meet their obligations to us.
Adverse developments in the financial markets, resulting 
from inflation, global recessionary pressures, geopolitical 
conflict, liquidity conditions among other factors, can 
increase uncertainty and heighten volatility in the credit and 
equity markets. These developments may result in realized 
and unrealized losses on our investment portfolio that could 
have a material adverse effect on our results of operations, 
financial position and our businesses, and may also limit our 
access to capital required to operate our business. In addition, 
our policyholders, reinsurers and retrocessionaires may be 
affected by developments in the financial markets, which 
could adversely affect their ability to meet their obligations to 
us. Volatility in the financial markets could significantly 
affect 
our 
investment 
returns, 
reported 
results 
and 
shareholders’ equity.
The capital requirements of our businesses depend on many 
factors, including regulatory and rating agency requirements, 
the performance of our investment portfolio, our ability to 
write new business successfully, the frequency and severity 
of catastrophe events and our ability to establish premium 
rates and reserves at levels sufficient to cover losses.
Disruption to the financial markets and weak economic 
conditions resulting from situations such as supply/demand 
imbalances, inflation and political unrest may adversely and 
materially impact our investments, financial condition and 
results of operation.
Disruption in the financial markets and the downturn in 
global economic activity resulting from geopolitical conflict 
or economic decisions/trade wars, elevated financing rates, 
property market declines or other macro-and micro-economic 
conditions could adversely affect the valuation of securities 
in our investment portfolio. Credit deterioration spread 
widening and/or equity market volatility could result in 
temporary or permanent impairment. Elevated levels of 
inflation could drive higher U.S. and global interest rates, 
negatively impacting asset prices, particularly in fixed 
income and financial flexibility of operating businesses. In 
addition, a lack of pricing transparency, decreased market 
liquidity, the strengthening or weakening of foreign 
currencies against the U.S. Dollar, individually or in tandem, 
could have a material adverse effect on our results through 
ARCH CAPITAL
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2024 FORM 10-K

realized losses, impairments and changes in unrealized 
positions in our investment portfolio. Furthermore, issuers of 
the investments we hold under the equity method of 
accounting report their financial information to us one month 
to three months following the end of the reporting period. 
Accordingly, the adverse impact of any disruptions in global 
financial markets on equity method income from these 
investments would likely not be reflected in our current 
quarter results and would instead be reported in the 
subsequent quarter. 
Our operating results depend in part on the performance of 
our investment portfolio. A significant portion of cash and 
invested assets held by Arch consists of fixed maturities 
(67.4% as of December 31, 2024). Although our current 
investment guidelines and approach emphasize preservation 
of capital, market liquidity and diversification of risk, our 
investments are subject to market-wide risks and valuation 
fluctuations. In addition, we are subject to risks inherent in 
particular securities or types of securities, as well as sector 
concentrations. We may not be able to realize our investment 
objectives, which could have a material adverse effect on our 
financial results. In the event that we are unsuccessful in 
calibrating the liquidity of our investment portfolio with our 
expected insurance and reinsurance liabilities, we may be 
forced to liquidate our investments at times and prices that 
are not optimal, which could have a material adverse effect 
on our financial results and ability to conduct our business.
Foreign currency exchange rate fluctuation may adversely 
affect our financial results.
We write business on a worldwide basis, and our results of 
operations may be affected by fluctuations in the value of 
currencies other than the U.S. Dollar. The primary foreign 
currencies in which we operate are the Euro, the British 
Pound Sterling, the Australian Dollar and the Canadian 
Dollar. In order to minimize the possibility of losses we may 
suffer as a result of our exposure to foreign currency 
fluctuations in our net insurance liabilities, we invest in 
securities denominated in currencies other than the U.S. 
Dollar. In addition, we may replicate investment positions in 
foreign currencies using derivative financial instruments. 
Changes in the value of available-for-sale investments due to 
foreign currency rate movements are reflected as a direct 
increase or decrease to shareholders' equity and are not 
included in the statement of income.
The determination of the amount of current expected CECL 
allowances taken on our investments is highly subjective and 
could materially impact our results of operations or financial 
position.
On a quarterly basis, we review our investments by applying 
an approach based on the CECL and whether declines in fair 
value below the cost basis requires an estimate of the 
expected credit loss. There can be no assurance that our 
management has accurately assessed the level of the credit 
loss allowance taken, as reflected in our financial statements. 
Furthermore, additional allowance may need to be taken or 
allowances provided for in the future. Further, rapidly 
changing and unpredictable credit and equity market 
conditions could materially affect the valuation of securities 
carried at fair value as reported within our consolidated 
financial statements and the period-to-period changes in 
value could vary significantly.
Our reinsurance subsidiaries may be required to provide 
collateral to ceding companies, by applicable regulators, 
their contracts or other commercial considerations. Their 
ability to conduct business could be significantly and 
negatively affected if they are unable to do so.
Arch Re Bermuda is a registered Bermuda insurance 
company and is not licensed or admitted as an insurer in any 
jurisdiction in the U.S., although Arch Re Bermuda has been 
approved as a “certified reinsurer” and a “reciprocal 
reinsurer” in certain U.S. states that allow for the reduction or 
elimination of statutory collateral for reinsurance ceded to 
such reinsurers. Arch Re Bermuda's contracts generally 
require it to post a letter of credit or provide other security, 
even in U.S. states where it has been approved for reduced 
collateral, upon the happening of certain events. State credit 
for reinsurance rules also generally provide that reinsurers 
such as Arch Re Bermuda must provide statutory collateral in 
the event their certified or reciprocal status is “terminated” or 
100% collateral upon the entry of an order of rehabilitation, 
liquidation or conservation against a ceding insurer. 
Although, to date, Arch Re Bermuda has not experienced any 
difficulties in providing collateral when required, if we are 
unable to post security in the form of letters of credit or trust 
funds when required, the operations of Arch Re Bermuda 
could be significantly and negatively affected.
Risks Relating to Our Mortgage Operations
The ultimate performance of our mortgage insurance 
portfolios remains uncertain.
The mix of business in our insured loan portfolio may affect 
losses. The presence of multiple higher-risk characteristics in 
a loan materially increases the likelihood of a claim unless 
there are other characteristics to mitigate the risk. The mix of 
higher-risk loans, including affordable housing loans which 
often have higher-risk characteristics, could increase losses 
and harm our financial performance. The geographic mix of 
our insured loan portfolio could also increase losses and harm 
our financial performance.
Mortgage insurance premiums are set at the time coverage is 
procured, based in part on the expected duration of the 
coverage. We cannot cancel mortgage insurance coverage or 
adjust renewal premiums during the life of the policy. Thus, 
ARCH CAPITAL
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2024 FORM 10-K

higher than anticipated claims generally cannot be offset by 
premium increases on policies in force or mitigated by our 
non-renewal or cancellation of insurance coverage. Further, 
in the U.S., to the extent that the insured cancels coverage as 
a result of prior home price appreciation, the duration of 
coverage will be shorter, and we will receive less premium. 
The premiums charged, and the associated investment 
income, may not be adequate to compensate us for the risks 
and costs associated with the insurance coverage provided to 
customers. A decrease in the amount of premium received or 
an increase in the number or size of claims, compared to what 
we anticipate, could adversely affect our results of operations 
and financial condition.
The frequency and severity of claims we incur is uncertain 
and will depend largely on general economic factors outside 
of our control, including, among others, changes in 
unemployment and home prices affordability. Inflated home 
prices followed by a decline in home values could 
significantly decrease a borrower’s equity in their home, 
which would limit their ability to sell the property without 
incurring a loss and could increase the frequency and severity 
of claims. Monthly interest rate changes in Australia or the 
increasing cost of homeowners insurance in the U.S. could 
make a borrower’s monthly housing-related payment 
obligations increase and could increase the frequency of 
claims. Deteriorating economic conditions, potentially due to 
prolonged recessionary conditions increasing levels of 
unemployment and inflation, could adversely affect the 
performance of our mortgage insurance portfolio and could 
adversely affect our results of operations and financial 
condition.
If the volume of low down payment mortgage originations 
declines, or if other government housing policies, practices 
or regulations change, the amount of mortgage insurance we 
write in the U.S. or Australia could decline, which would 
reduce our mortgage insurance revenues.
The size of the U.S. and Australian mortgage insurance 
market depends in large part upon the volume of low down 
payment home mortgage originations. Factors affecting the 
volume of low down payment mortgage originations include, 
among others: restrictions on mortgage credit due to stringent 
underwriting standards and liquidity issues affecting lenders; 
changes in mortgage interest rates and home prices, and other 
economic conditions in the U.S., Australian and regional 
economies; population trends, including the rate of household 
formation; and U.S. government housing policy, and 
Australian government housing policy. Increases to mortgage 
interest rates have materially increased financing costs, and 
as a result may decrease the number of qualified borrowers 
and the volume of low down payment mortgage originations.
The private mortgage insurers’ principal government 
competitor is the Federal Housing Administration (“FHA”). 
On February 22, 2023, the FHA reduced its annual mortgage 
insurance premium rates by 30bps for most single family 
mortgages endorsed on or after March 20, 2023. This takes 
the annual premium from 0.85% down to 0.55% for most 
FHA borrowers. This change, and any future changes to the 
FHA program may, negatively impact the amount of 
mortgage insurance we write in the U.S. 
To reduce pressure on housing affordability in Australia, the 
Australian Government introduced the First Home Guarantee 
Scheme (“HGS”) in 2020, designed to support eligible first 
home buyers by allowing them to purchase a home with a 
deposit of as little as 5%. Under HGS, Housing Australia 
provides a free guarantee to the lender of up to 15% of the 
value of the property for first home buyers, negating the 
requirement to pay for mortgage insurance. Since inception 
through 2024, the HGS was substantially expanded, 
negatively impacting the amount of mortgage insurance we 
write in Australia.
The FHFA as conservator of the GSEs continues to evaluate 
loan level price adjustments (“LLPAs”) and guarantees fees 
assessed by the GSEs when purchasing loans. During 2022 
and 2023, the FHFA implemented a series of changes to 
update the GSEs’ single-family guarantee fee pricing 
framework to increase support for creditworthy borrowers 
limited by income or by wealth, while also increasing pricing 
to other categories of loans (such as high balance mortgages 
and mortgages on second homes) to foster capital 
accumulation. Future pricing changes, which may include 
increasing LLPAs and guarantee fees, limiting the purchase 
of certain categories of loans, or restricting loan limits could 
cause a decline in the volume of low-down payment home 
mortgage purchases by the GSEs, could decrease demand for 
mortgage insurance, and could decrease our U.S. new 
insurance written and reduce mortgage insurance revenues.
Changes to the role of the GSEs in the U.S. housing market 
or to GSE eligibility requirements for mortgage insurers or 
to the GSEs’ use of CRT could negatively impact our results 
of operations and financial condition or reduce our 
operating flexibility.
Substantially all of Arch MI U.S.’s insurance written has 
been for loans sold to the GSEs. The charters of the GSEs 
require credit enhancement for low down payment mortgages 
to be eligible for purchase or guarantee by the GSEs. Any 
changes to the charters or statutory authorities of the GSEs 
would require congressional action to implement. If the 
charters of the GSEs were amended to change or eliminate 
the acceptability of private mortgage insurance, our mortgage 
insurance business could decline significantly. 
On January 2, 2025, the U.S. Department of Treasury (the 
“Treasury Department”) and FHFA announced an agreement 
to amend the preferred stock purchase agreements between 
ARCH CAPITAL
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2024 FORM 10-K

the Treasury Department and the GSEs, originally entered 
into in September 2008, in order to, among other things, 
codify the requirement that Treasury consent before the 
conservatorships can be terminated, memorialize that ending 
the conservatorship should be based on consideration of the 
financial condition of the GSEs and the potential impact on 
the housing market, and outline an agreed upon process for 
eventual public input. If any GSE reform is adopted, whether 
through legislation or administrative action, it could impact 
the current role of private mortgage insurance as credit 
enhancement, including its reduction or elimination. Passage 
and timing of any comprehensive GSE reform or incremental 
change (legislative or administrative) is uncertain, making the 
actual impact on the mortgage insurance industry difficult to 
predict. Furthermore, the FHFA and/or the GSEs could chose 
to reduce the amount of CRT protection purchased on their 
loan portfolios, which could reduce the CRT investment 
opportunities available for reinsurers. Future legislative, 
administrative or changes to business practices related to the 
use or requirement for credit enhancement could have a 
material adverse impact on the Company.
The PMIERs apply to AMIC and UGRIC, which are eligible 
mortgage insurers. The PMIERs impose limitations on the 
type of risk insured, the forms and insurance policies issued, 
standards for the geographic and customer diversification of 
risk, acceptable underwriting practices, quality assurance, 
loss mitigation, claims handling, standards for certain 
reinsurance cessions and financial requirements, among other 
things. The financial requirements require a mortgage 
insurer’s available assets to meet or exceed “minimum 
required assets” as of each quarter end. In August 2024, the 
GSEs updated PMIERs to incorporate new deductions to the 
definition of available assets for investment risk. This update 
will become effective March 31, 2025, but the impact will be 
phased in through September 30, 2026. Arch MI U.S.’s 
minimum required assets under the PMIERs will be 
determined, in part, by the particular risk profiles of the loans 
it insures. If, absent other changes, Arch MI U.S.’s mix of 
business changes to include more loans with higher loan-to-
value ratios or lower credit scores, it will have a higher 
minimum required asset amount under the PMIERs and, 
accordingly, be required to hold more capital in order to 
maintain GSE eligibility. Our eligible mortgage insurers each 
satisfied the PMIERs’ financial requirements as of December 
31, 2024. While we intend to continue to comply with these 
requirements, there can be no assurance that the GSEs will 
not change the PMIERs or that AMIC or UGRIC will 
continue as eligible mortgage insurers. If either or both of the 
GSEs were to cease to consider AMIC or UGRIC as eligible 
mortgage insurers and, therefore, cease accepting our 
mortgage insurance products, our results of operations and 
financial condition would be adversely affected.
The implementation of the Basel III Capital Accord and 
FHFA’s Enterprise Regulator Capital Framework may 
adversely affect the use of mortgage insurance and CRT 
opportunities.
With certain exceptions, the Basel III Rules became effective 
on January 1, 2014. In December 2017, the Basel Committee 
published final revisions to the Basel Capital Accord which is 
informally denominated in the U.S. as “Basel III Endgame.” 
The Basel Committee expects the new rules to be fully 
implemented by January 2027.
On July 27, 2023, the Federal banking agencies released a 
proposed rule to implement the Basel III Endgame in the 
United States. The proposal would eliminate the capital relief 
currently afforded mortgage loans protected by private 
mortgage insurance. Instead, the capital treatment would be 
based on the mortgage’s loan to value ratio without 
consideration of mortgage insurance. The comment period 
for this proposal closed on January 16, 2024. If the U.S. 
regulators decide to adopt the proposed Basel III Endgame 
approach to mortgage assets, the capital treatment of 
mortgages held in portfolio will increase and the capital relief 
benefits of mortgage insurance would be eliminated, which 
could adversely affect the volume of mortgages originated by 
banks subject to the rule and the demand for mortgage 
insurance. With the change in the Presidential administration, 
and based on feedback received in response to the proposed 
rule, the Federal Banking agencies have indicated an intent to 
repropose the Basel III Rules, though the timing, 
requirements, and implementation of the reproposed rule 
remain 
uncertain. 
In 
January 
2025, 
the 
European 
Commission stated that it is considering what steps to take in 
light of possible delay or changes to the Basel III 
implementation in the United States, and the Bank of 
England announced a one-year delay in implementation in 
order to get clarity on what the United States plans to do.
On December 17, 2020, the FHFA published a new 
Enterprise 
Regulatory 
Capital 
Framework 
(“ERCF”) 
Enterprise Capital Rule for Fannie Mae and Freddie Mac that 
significantly increases minimum capital requirements for 
these GSEs. The new rule requires each GSE to maintain 
both higher minimum capital ratios and capital “buffers” to 
avoid restrictions on capital distributions and discretionary 
bonus payments. Changes were made to the ERCF in 2022 to 
incentive CRT transactions, and in 2023 to address capital 
requirements for derivatives; market risk; multifamily loans; 
and exposures of an Enterprise to the other Enterprise.
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2024 FORM 10-K

The ERCF includes higher risk-capital charges for residential 
mortgages and continues to take into account the benefits of 
mortgage insurance, provided the mortgage insurer is 
compliant with the PMIERs. The amount of capital relief 
afforded for mortgage insurers depends on a number of 
factors, 
including 
the 
GSEs’ 
determination 
of 
the 
creditworthiness of the mortgage insurer, which could affect 
the competitive position of the individual mortgage insurance 
providers. The higher risk-capital charges for residential 
mortgages could be incorporated into the PMIERs standards, 
thereby requiring mortgage insurers to hold higher capital 
levels in order to be recognized as approved counterparties 
for the GSEs. This could have a negative impact on our 
return on equity.
Future changes to the ERCF, or the guarantee fees charged to 
acquire loans, could adversely impact credit for credit risk 
transfer, the capital relief afforded mortgage insurance or the 
volume of loans purchased by the Enterprises and the 
demand for mortgage insurance.
Risk Relating to Our Company and Our Shares
Some of the provisions of our bye-laws and our shareholders 
agreement may have the effect of hindering, delaying or 
preventing third party takeovers or changes in management 
initiated by shareholders. These provisions may also prevent 
our shareholders from receiving premium prices for their 
shares in an unsolicited takeover.
Some provisions of our bye-laws could have the effect of 
discouraging unsolicited takeover bids from third parties or 
changes in management initiated by shareholders. These 
provisions may encourage companies interested in acquiring 
us to negotiate in advance with our Board, since the Board 
has the authority to overrule the operation of several of the 
limitations.
Among other things, our bye-laws provide: for a classified 
Board, in which the directors of the class elected at each 
annual general meeting holds office for a term of three years, 
with the term of each class expiring at successive annual 
general meetings of shareholders; that the number of 
directors is determined by the Board from time to time by a 
vote of the majority of the Board; that directors may only be 
removed for cause, and cause removal shall be deemed to 
exist only if the director whose removal is proposed has been 
convicted of a felony or been found by a court to be liable for 
gross negligence or misconduct in the performance of his or 
her duties; that the Board has the right to fill vacancies, 
including vacancies created by an expansion of the Board; 
and for limitations on a shareholder’s right to raise proposals 
or nominate directors at general meetings. Our bye-laws 
provide that certain provisions that may have anti-takeover 
effects may be repealed or altered only with prior Board 
approval and upon the affirmative vote of holders of shares 
representing at least 65% of the total voting power of our 
shares entitled generally to vote at an election of directors.
The bye-laws also contain a provision limiting the rights of 
any U.S. person (as defined in section 7701(a)(30) of the 
Internal Revenue Code of 1986, as amended (the “Code”)) 
that owns shares of Arch Capital, directly, indirectly or 
constructively (within the meaning of section 958 of the 
Code), representing more than 9.9% of the voting power of 
all shares entitled to vote generally at an election of directors. 
The votes conferred by such shares of such U.S. person will 
be reduced by whatever amount is necessary so that after any 
such reduction the votes conferred by the shares of such 
person will constitute 9.9% of the total voting power of all 
shares entitled to vote generally at an election of directors. 
Notwithstanding this provision, the Board may make such 
final adjustments to the aggregate number of votes conferred 
by the shares of any U.S. person that the Board considers fair 
and reasonable in all circumstances to ensure that such votes 
represent 9.9% of the aggregate voting power of the votes 
conferred by all shares of Arch Capital entitled to vote 
generally at an election of directors. Arch Capital will assume 
that all shareholders (other than specified persons) are U.S. 
persons unless we receive assurance satisfactory to us that 
they are not U.S. persons.
The bye-laws also provide that the affirmative vote of at least 
66 2/3% of the outstanding voting power of our shares 
(excluding shares owned by any person (and such person’s 
affiliates and associates) that is the owner of 15% or more (a 
“15% Holder”) of our outstanding voting shares) shall be 
required for various corporate actions, including: merger or 
consolidation of the company into a 15% Holder; sale of any 
or all of our assets to a 15% Holder; the issuance of voting 
securities to a 15% Holder; or amendment of these 
provisions; provided, however, the super majority vote will 
not apply to any transaction approved by the Board.
The provisions described above may have the effect of 
making more difficult or discouraging unsolicited takeover 
bids from third parties. To the extent that these effects occur, 
shareholders could be deprived of opportunities to realize 
takeover premiums for their shares and the market price of 
their shares could be depressed. In addition, these provisions 
could also result in the entrenchment of incumbent 
management. 
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2024 FORM 10-K

There are regulatory limitations on the ownership and 
transfer of our common shares.
The jurisdictions where we operate have laws and regulations 
that require regulatory approval of a change in control of an 
insurer or an insurer's holding company. Where such laws 
apply to us, there can be no effective change in our control 
unless the person seeking to acquire control has filed a 
statement with the regulators and obtained prior approval for 
the proposed change. Certain regulators may at any time, by 
written notice, object to a person holding shares in an insurer 
or an insurer's holding company if it appears to the regulator 
that the person is not or is no longer fit and proper to be such 
a holder. The regulator may require the shareholder to reduce 
its holding in the insurer or an insurer's holding company and 
direct, among other things, that such shareholder’s voting 
rights attaching to the shares in an insurer or an insurer's 
holding company shall not be exercisable.
Arch Capital is a holding company and is dependent on 
dividends and other distributions from its operating 
subsidiaries.
Arch Capital is a holding company whose assets primarily 
consist of the shares in our subsidiaries. Generally, Arch 
Capital depends on its available cash resources, liquid 
investments and dividends or other distributions from 
subsidiaries to make payments, including the payment of debt 
service obligations and operating expenses it may incur and 
any payments of dividends, redemption amounts or 
liquidation amounts with respect to our preferred shares and 
common shares, and to fund the share repurchase program. 
The ability of our regulated insurance and reinsurance 
subsidiaries to pay dividends or make distributions is subject 
to legislative constraints and dependent on their ability to 
meet applicable regulatory standards. In addition, the ability 
of our insurance and reinsurance subsidiaries to pay 
dividends to Arch Capital and to intermediate parent 
companies owned by Arch Capital could be constrained by 
our 
dependence 
on 
financial 
strength 
ratings 
from 
independent rating agencies. Our ratings from these agencies 
depend to a large extent on the capitalization levels of our 
insurance and reinsurance subsidiaries. 
General market conditions and unpredictable factors could 
adversely affect market prices for our outstanding preferred 
shares.
There can be no assurance about the market prices for our 
series of preferred shares that are traded publicly. Several 
factors, many of which are beyond our control, will influence 
the fair value of our preferred shares, including, but not 
limited to:
•
whether dividends have been declared and are likely to 
be declared on any series of our preferred shares from 
time to time;
•
our creditworthiness, financial condition, performance 
and prospects;
•
whether the ratings on any series of our preferred shares 
provided by any ratings agency have changed;
•
the market for similar securities; and
•
economic, financial, geopolitical, social, regulatory or 
judicial events that affect us and/or the insurance or 
financial markets generally.
Dividends on our preferred shares are non-cumulative.
Dividends on our preferred shares are non-cumulative and 
payable only out of lawfully available funds of Arch Capital 
under Bermuda law. Consequently, if the Board (or a duly 
authorized committee of the Board) does not authorize and 
declare a dividend for any dividend period with respect to 
any series of our preferred shares, holders of such preferred 
shares would not be entitled to receive any such dividend, 
and such unpaid dividend will not accrue and will never be 
payable. Arch Capital will have no obligation to pay 
dividends for a dividend period on or after the dividend 
payment date for such period if the Board (or a duly 
authorized committee of the Board) has not declared such 
dividend before the related dividend payment date; if 
dividends on our series F or series G preferred shares are 
authorized and declared with respect to any subsequent 
dividend period, Arch Capital will be free to pay dividends 
on any other series of preferred shares and/or our common 
shares. We paid a special cash dividend on our common 
shares during fiscal year 2024, but there is no assurance that 
any dividend will be declared and paid in the future.
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2024 FORM 10-K

Our preferred shares are equity and are subordinate to our 
existing and future indebtedness.
Our preferred shares are equity interests and do not constitute 
indebtedness. As such, these preferred shares will rank junior 
to all of our indebtedness and other non-equity claims with 
respect to assets available to satisfy our claims, including in 
our liquidation. Our existing and future indebtedness may 
restrict payments of dividends on our preferred shares. 
Additionally, unlike indebtedness, where principal and 
interest would customarily be payable on specified due dates, 
in the case of preferred shares, (1) dividends are payable only 
if declared by the Board (or a duly authorized committee of 
the Board) and (2) as described under “Risks Relating to Our 
Company—Arch Capital is a holding company and is 
dependent on dividends and other distributions from its 
operating subsidiaries,” we are subject to certain regulatory 
and other constraints affecting our ability to pay dividends 
and make other payments.
We may issue additional securities that rank equally with or 
senior to our series F and series G preferred shares without 
limitation. The issuance of securities ranking equally with or 
senior to our preferred shares may reduce the amount 
available for dividends and the amount recoverable by 
holders of such series in the event of a liquidation, 
dissolution or winding-up of Arch Capital.
The voting rights of holders of our preferred shares are 
limited.
Holders of our preferred shares have no voting rights with 
respect to matters that generally require the approval of 
voting shareholders. The limited voting rights of holders of 
our preferred shares include the right to vote as a class on 
certain fundamental matters that affect the preference or 
special rights of our preferred shares as set forth in the 
certificate of designations relating to each series of preferred 
shares. In addition, if dividends on our series F or series G 
preferred shares have not been declared or paid for the 
equivalent of six dividend payments, whether or not for 
consecutive dividend periods, holders of the outstanding 
series F or series G preferred shares will be entitled to vote 
for the election of two additional directors to the Board 
subject to the terms and to the limited extent as set forth in 
the certificate of designations relating to such series of 
preferred shares.
Risks Relating to Taxation
We expect to become subject to increased taxation in 
Bermuda as a result of the recently adopted Bermuda CIT 
Act, and may become subject to increased taxation in other 
countries as a result of the implementation of the OECD's 
plan on “Base Erosion and Profit Shifting.”
The OECD, with the support of the G20, initiated the “Base 
Erosion and Profit Shifting” (“BEPS”) project in 2013 in 
response to concerns that changes are needed to international 
tax laws to address situations where multinationals may pay 
little or no tax in certain jurisdictions by shifting profits away 
from jurisdictions where the activities creating those profits 
may take place. In November 2015, “final reports” were 
approved for adoption by the G20 finance ministers. The 
final reports provide the basis for international standards for 
corporate taxation that are designed to prevent, among other 
things, the artificial shifting of income to tax havens and low-
tax jurisdictions, the erosion of the tax base through interest 
deductions on intercompany debt and the artificial avoidance 
of permanent establishments (i.e., tax nexus with a 
jurisdiction).
Legislation to adopt and implement these standards, 
including country by country reporting, has been enacted or 
is currently under consideration in a number of jurisdictions. 
As a result, our income may be taxed in jurisdictions where it 
is not currently taxed and at higher rates of tax than currently 
taxed, which may substantially increase our effective tax rate. 
Also, the continued adoption of these standards may increase 
the complexity and costs associated with tax compliance and 
adversely affect our financial position and results of 
operations.
In May 2019, the OECD published a “Programme of Work,” 
divided into two pillars, which is designed to address the tax 
challenges created by an increasing digitalized economy. 
Pillar I addresses the broader challenge of a digitalized 
economy and focuses on the allocation of group profits 
among taxing jurisdictions based on a market-based concept 
rather than historical “permanent establishment” concepts. In 
January 2020, the OECD released a statement excluding most 
financial services activities, including insurance activities, 
from the scope of the profit reallocation mechanism in Pillar I 
(referred to under Pillar I as “Amount A”). The OECD 
statement cited the presence of commercial (rather than 
consumer) customers as grounds for the carve-out, but also 
acknowledged that a “compelling case” could be made that 
the consumer-facing business lines of insurance companies 
should be excluded from the scope of Pillar I given the 
impact of regulations and licensing requirements that 
typically ensure that residual profits are largely realized in 
local customer markets. However, profits from “unregulated 
elements of the financial services sector” remain in scope but 
only where revenue exceeds €20 billion. The revenue 
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2024 FORM 10-K

threshold is expected to be reduced to €10 billion following 
future review of the operation of Amount A. The review of 
when to reduce the revenue threshold begins beginning seven 
years after the effective date of Amount A.
Pillar II addresses the remaining BEPS risk of profit shifting 
to certain in-scope entities in low tax jurisdictions by 
introducing a global minimum tax (15%), which would 
operate through the imposition of residence-based and 
source-based taxation (including potentially through the 
denial of certain deductions). In calculating whether the 
effective tax rate of an in-scope entity meets the minimum 
tax rate, certain deferred income tax assets and liabilities 
(“Deferred Tax Items”) reflected or disclosed in the financial 
accounts of an in-scope entity are taken into account. In 
October 2021, 136 jurisdictions agreed on a two-pillar 
solution to address the tax challenges arising from the 
digitalization of the economy. In December 2021, the OECD 
released Model Rules for implementation of Pillar II 
followed by the release of detailed commentary in March 
2022, with the latest update to the commentary in December 
2023. The OECD has released additional administrative 
guidance on the global minimum tax in February, July and 
December of 2023, June of 2024 and January of 2025 (with 
this latest administrative guidance introducing a new 
interpretation (with retroactive effect) for determining the 
treatment of Deferred Tax Items, which may affect the 
effective tax rate calculations of an in-scope entity following 
a grace period).
The members of the EU have either already adopted domestic 
legislation implementing the minimum tax rules, pursuant to 
the EU’s minimum tax directive, unanimously agreed by the 
member states in 2022 or have exercised their option to 
postpone implementation on the basis of certain exceptions 
available to countries that have a small number of multi-
national groups to which the rules would apply. For many 
members of the EU that have adopted such rules, such rules 
are effective for periods beginning on or after December 31, 
2023, with the “under-taxed profit rule” taking effect for 
periods beginning on or after January 1, 2025. Legislatures in 
multiple countries outside of the EU have also drafted and/or 
enacted legislation to implement the OECD’s minimum tax 
proposal. Given the OECD’s continued release of guidance 
regarding Pillar II, that only certain jurisdictions have 
currently enacted laws to give effect to Pillar II, that some 
jurisdictions have just recently enacted such laws, that 
jurisdictions may interpret such laws in different manners, 
and that certain elements of such laws are currently subject to 
challenge pursuant to legal proceedings, the overall 
implementation of Pillar II remains uncertain and subject to 
change, possibly on a retroactive basis.
On August 8, 2023, the Bermuda Ministry of Finance 
published its first Public Consultation announcing the 
proposed implementation of a new corporate income tax 
regime applicable to Bermuda businesses that are part of 
Multinational Enterprise Groups with annual revenue of €750 
million or more. A Second Public Consultation was 
published on October 5, 2023 confirming, inter alia, a 
statutory corporate tax rate of 15% and a Third Public 
Consultation was published on November 15, 2023. The 
Bermuda CIT Act was enacted on December 27, 2023 and is 
effective for tax years beginning on or after January 1, 2025. 
The Bermuda Government announced in its Second Public 
Consultation that any new Bermuda corporate income tax 
regime would supersede existing Tax Assurance Certificates 
held by entities within the scope of the new Bermuda 
corporate income tax (such as those issued to us, referred to 
above under “—Taxation of Arch Capital. Bermuda.”). Given 
the potential for the new Bermuda corporate income tax to 
supersede existing Tax Assurance Certificates, it is likely that 
Arch will be subject to Bermuda tax for tax years beginning 
on or after January 1, 2025.
It is expected that the Bermuda CIT generally will prevent or 
mitigate the risk of other adopting countries from collecting 
“top-up” taxes from Bermuda companies to reach the 15% 
minimum rate, although the continued evolution of the 
implementation of Pillar II may in some cases mean that the 
Bermuda CIT does not avoid a “top-up” tax in all scenarios.
The adoption of the tax laws described above (in particular, 
the adoption of an “under-taxed profit rule” by certain 
countries in which we and our affiliates do business and the 
expected implementation of a corporate income tax regime in 
Bermuda) are expected to result in an increase to our 
effective tax rate and aggregate tax liability, which may 
adversely affect our financial position and results of 
operations, and is expected to increase the complexity and 
cost of our worldwide tax compliance. Although certain 
jurisdictions in which we and our affiliates do business have 
enacted an “under-taxed profit rule”, such rule is only 
expected to take effect for taxable periods beginning on or 
after December 31, 2024. Such tax laws may not be enacted 
or the form of such tax laws could change on a prospective or 
retroactive basis. The impact of any such changes is 
unknown, but such changes could have an adverse effect on 
our effective tax rate and aggregate tax liability and could 
increase the complexity and costs associated with our tax 
compliance worldwide.
ARCH CAPITAL
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2024 FORM 10-K

ITEM 1B. UNRESOLVED STAFF COMMENTS 
None.
ITEM 1C. CYBERSECURITY
Risk management and strategy 
We prioritize the management of cybersecurity risk and the 
protection of information across our enterprise by embedding 
data protection and cybersecurity risk management in our 
operations. Our processes for assessing, identifying, and 
managing material risks from cybersecurity threats have been 
integrated into our overall risk management system and 
processes. For example, to identify and assess risks from 
cybersecurity threats, our enterprise risk management 
program considers cybersecurity as part of the Company’s 
risk assessment process, and our risk management framework 
requires risk owners to monitor key risks such as 
cybersecurity on a continuous basis. See Item 1, “Business—
Enterprise Risk Management” for additional information. 
As a foundation of our approach to cybersecurity risk, we 
have implemented processes at several levels across our 
enterprise to help assess, identify and manage cybersecurity 
risks and incidents. Our privacy and information security 
policies and standards cover topics such as information 
sharing, privacy, data handling and data management as well 
as more detailed information technology (“IT”) processes 
encompassing incident response, access control, disaster 
recovery and testing, among other areas. These policies and 
standards are regularly reviewed and updated at least 
annually based on the risk and regulatory environment in 
which we operate. We monitor closely privacy and 
cybersecurity, AI and operational resilience laws, regulations 
and guidance applicable to us. See Item 1, “Business—
Regulation—Cybersecurity and Privacy” for additional 
details. 
We use many third parties for IT functions and our vendor 
management group performs information security risk 
assessments on our third-party service providers with respect 
to their ability to protect data from unauthorized access, and 
on a risk weighted basis, we perform re-assessments 
routinely. The Company also requires these vendors to 
adhere to privacy and cybersecurity measures and has a third-
party service provider monitoring program in place that 
reviews changes to the security posture of certain higher risk 
third-party service providers. 
Our operations rely on the secure processing, storage and 
transmission of confidential and other information in our 
computer systems and networks. Computer viruses, hackers, 
employee or vendor error or misconduct, and other external 
hazards could expose our information systems and those of 
our vendors to security breaches, cybersecurity incidents or 
other disruptions, any of which could materially and 
adversely affect our ability to conduct our business. We 
annually undergo an external penetration testing by a third-
party cybersecurity firm. These tests and our tabletop 
exercises enable us to incorporate recommendations and 
learnings in our program. While we and third parties with 
which we do business have experienced cybersecurity 
incidents, to date, the Company does not believe that any 
previous cybersecurity incidents have materially affected the 
Company. 
The sophistication of cybersecurity threats, including through 
the use of AI, continues to increase, and the controls and 
preventative actions that we take to reduce the risk of 
cybersecurity incidents and protect our systems, including the 
regular testing of our cybersecurity incident response plan, 
may be insufficient. In addition, new technology that could 
result in greater operational efficiency such as AI may further 
expose our information systems to the risk of cybersecurity 
incidents. See Item 1A, “Risk Factors—Risk Relating to Our 
Industry, Business & Operations—Technology failures and 
cyber attacks, including, but not limited to, ransomware, 
exploitation in software or code with malicious intent, state-
sponsored cyber attacks, as well as vulnerabilities relating to 
new technologies, such as generative AI, may impact us or 
our business partners and service providers, causing a 
disruption in service and operations which could materially 
and negatively impact our business and/or expose us to 
litigation.” 
ARCH CAPITAL
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2024 FORM 10-K

Governance 
As part of our overall risk management approach, we 
recognize the importance of identifying and managing 
cybersecurity risk at several levels, including Board 
oversight, executive commitment and employee training. Our 
Audit Committee, comprised of independent directors from 
our Board, oversees the Board’s responsibilities relating to 
the operational (including IT risks, business continuity and 
data security) risk affairs of the Company. Our Audit 
Committee is informed of such risks through quarterly 
reports from our Chief Information Officer (“CIO”) and 
Chief Operations Officer (“COO”), with input from our Chief 
Information Security Officer (“CISO”). 
Our cybersecurity and IT executives include our CIO, who 
has 34 years of experience in Information Technology, 
including 21 years in the financial services space. His 
responsibilities as the CIO include all areas of Information 
Technology and information security oversight. Our CISO, 
has 19 years of experience in information security. The CISO 
holds certifications from leading security associations. The 
information security personnel reporting to the CISO hold 
various leading security certifications. The CISO, reporting 
to the CIO, oversees the implementation and compliance of 
our information security standards and mitigation of related 
risks. We also have three management level committees and 
a team that supports our processes to assess and manage 
cybersecurity risk.
• The Privacy and Security Committee (“P&S Committee”), 
co-chaired by the CISO and our Deputy General Counsel, 
brings together Information Security, legal, compliance, 
human resources and other function leads. The P&S 
Committee provides a forum for these cross-functional 
members of management to: consider new laws and 
regulations relating to privacy and security; consider 
emerging risks relating to cybersecurity and data 
protection; approve, review and update policies and 
standards as appropriate; and promote cross-functional 
collaboration to manage cybersecurity and privacy risks 
across the enterprise.
• The Operational Risk Committee (“ORC”), comprised of 
senior IT, operations, risk, legal and compliance leaders 
across business segments, manages risks from matters 
related to business continuity including risks posed by 
cybersecurity threats, and implements controls to mitigate 
such operational risks. Among other processes, the ORC 
reviews the Company’s programs and processes related to 
business operations and resiliency, including crisis incident 
management and cyber risk response, third party risk, 
vendor management, facilities, unplanned downtime, 
business disruption, business continuity and disaster 
recovery. Key information reviewed by the ORC, including 
as it relates to cybersecurity, are included in the COO’s 
quarterly report to the Audit Committee. 
• The Crisis Incident Management Team (“CIMT”), which 
includes senior executives across the Company, is alerted 
as appropriate to cybersecurity incidents, natural disasters 
and business outages. Each quarter, the CIMT exercises its 
communication plan to confirm that its members can be 
alerted quickly in the event of an actual crisis and meet as a 
team to discuss the event and response options.
• The IT Steering Committee (“IT Committee”, which 
includes our CIO, CISO, COO and members of executive 
leadership, oversees IT initiatives while considering 
cybersecurity risk mitigation with respect to these 
initiatives. 
The P&S Committee, ORC, CIMT and IT Committee are 
comprised of executives with reporting lines to the CIO and/
or the COO. We also have an enterprise Artificial 
Intelligence Governance and Oversight Committee focusing 
on the use and management of AI in our operations.
At the employee level, we maintain an experienced IT 
security team tasked with ongoing reviews of our technology 
systems, implementation of our privacy and cybersecurity 
program and support for the CIO and CISO in carrying out 
their reporting, security and mitigation functions. We also 
hold employee training on privacy and cybersecurity, records 
and information management, conduct regular phishing tests 
and generally seek to promote awareness of cybersecurity 
risk through communication and education of our employee 
population. 
ITEM 2. PROPERTIES
We lease office space in Bermuda where our principal offices are located. Our insurance group leases space for offices in the 
U.S., Canada, Bermuda, U.K., Europe and Australia. Our reinsurance group leases space for offices in the U.S., Bermuda, U.K., 
Europe, Canada and Dubai. Our mortgage group leases space for offices in the U.S., Bermuda, Hong Kong and Australia. We 
believe that the above described office space is adequate for our needs. However, as we continue to develop our business, we 
may open additional office locations in 2025.
ARCH CAPITAL
64
2024 FORM 10-K

ITEM 3. LEGAL PROCEEDINGS
We, in common with the insurance industry in general, are subject to litigation and arbitration in the normal course of our 
business. As of December 31, 2024, we were not a party to any litigation or arbitration which is expected by management to 
have a material adverse effect on our results of operations and financial condition and liquidity.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS 
AND ISSUER PURCHASES OF EQUITY SECURITIES
HOLDERS
As of February 21, 2025, and based on information provided to us by our transfer agent and proxy solicitor, there were 1,210 
holders of record of our common shares (Nasdaq: ACGL) and approximately 485,646 beneficial holders of our common shares. 
ISSUER PURCHASES OF EQUITY SECURITIES
 The following table summarizes our purchases of common shares for the 2024 fourth quarter:
Issuer Purchases of Common Shares
Period
Total Number of Shares 
Purchased (1)
Average Price Paid per 
Share
Total Number of Shares 
Purchased as Part of 
Publicly Announced 
Plans or Programs
Approximate Dollar 
Value of Shares that May 
Yet be Purchased Under 
the Plan or Programs 
($000’s) (2)
10/1/2024-10/31/2024
517
$ 
113.51 
 
— 
$ 
1,000,000 
11/1/2024-11/30/2024
80
$ 
101.85 
 
— 
$ 
1,000,000 
12/1/2024-12/31/2024
262,857
$ 
89.66 
 
261,981 
$ 
996,796 
Total
263,454
$ 
89.71 
 
261,981 
$ 
996,796 
(1) This column represents (in whole shares) open market share repurchases, including an aggregate of 517 shares, 80 shares and 876 shares 
repurchased by Arch Capital during October, November and December, respectively, other than through publicly announced plans or 
programs. We repurchased these shares from employees in order to facilitate the payment of withholding taxes on restricted shares 
granted and the exercise of stock appreciation rights, in each case at their fair value as determined by reference to the closing price of our 
common shares on the day the restricted shares vested or the stock appreciation rights were exercised.
(2) This column represents the remaining approximate dollar amount available at the end of each applicable period under Arch Capital’s 
$1.0 billion share repurchase authorization, authorized by the Board of Directors of ACGL on December 20, 2024, and having no 
expiration date. Repurchases may be effected from time to time in open market or privately negotiated transactions.
ARCH CAPITAL
65
2024 FORM 10-K

PERFORMANCE GRAPH
The following graph compares the cumulative total shareholder return on our common shares for each of the last five years 
through December 31, 2024 to the cumulative total return, assuming reinvestment of dividends, of (1) S&P 500 Composite 
Stock Index (“S&P 500 Index”) and (2) the S&P 500 Property & Casualty Insurance Index. The share price performance 
presented below is not necessarily indicative of future results.
CUMULATIVE TOTAL SHAREHOLDER RETURN (1)(2)(3)
Arch Capital Group Ltd.
S&P 500 Index
S&P 500 Property & Casualty Insurance Index
12/31/19
12/31/20
12/31/21
12/31/22
12/31/23
12/31/24
$50.00
$100.00
$150.00
$200.00
$250.00
Base Period
Company Name/Index
12/31/19
12/31/20
12/31/21
12/31/22
12/31/23
12/31/24
l Arch Capital Group Ltd.
 
$100.00  
$84.10  
$103.64  
$146.37  
$173.16  
$226.44 
n S&P 500 Index
 
$100.00  
$118.40  
$152.39  
$124.79  
$157.59  
$197.02 
p S&P 500 Property & Casualty Insurance Index
 
$100.00  
$106.96  
$127.58  
$151.65  
$168.05  
$227.67 
(1) 
Stock price appreciation plus dividends.
(2) 
The above graph assumes that the value of the investment was $100 on December 31, 2019.
(3) 
This graph is not “soliciting material,” is not deemed filed with the SEC and is not to be incorporated by reference in any filing by us under the 
Securities Act of 1933 or the Securities and Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general 
incorporation language in any such filing.
ITEM 6. [RESERVED]
ARCH CAPITAL
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2024 FORM 10-K

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS
The following is a discussion and analysis of the financial condition and results of operations for the year ended December 31, 
2024 and 2023. Comparisons between 2023 and 2022 have been omitted from this Form 10-K, but may be found in 
"Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's 
Annual Report on Form 10-K year ended December 31, 2023 filed with the SEC. This discussion and analysis contains 
forward-looking statements which involve inherent risks and uncertainties. All statements other than statements of historical 
fact are forward-looking statements. These statements are based on our current assessment of risks and uncertainties. Actual 
results may differ materially from those expressed or implied in these statements and, therefore, undue reliance should not be 
placed on them. Important factors that could cause actual events or results to differ materially from those indicated in such 
statements are discussed in this report, including the sections entitled “Cautionary Note Regarding Forward-Looking 
Statements,” and “Risk Factors.”
This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto 
presented under Item 8. All amounts are in millions, except per share amounts, unless otherwise noted.
 
Page No.
 
 
Overview
68
Current Outlook
68
Financial Measures
69
Comments on Non-GAAP Measures
70
Results of Operations
72
Insurance Segment
72
Reinsurance Segment
74
Mortgage Segment
75
Corporate
76
Summary of Critical Accounting Estimates
78
Financial Condition
86
Liquidity
88
Capital Resources
90
Contractual Obligations and Commitments
93
Ratings
93
Catastrophic Events and Severe Economic Events
94
Market Sensitive Instruments and Risk Management
95
ARCH CAPITAL
67
2024 FORM 10-K

OVERVIEW
Arch Capital Group Ltd. (“Arch Capital” and, together with 
its subsidiaries, “we” or “us”) is a publicly listed Bermuda 
exempted company with approximately $23.5 billion in 
capital at December 31, 2024 and is part of the S&P 500 
index. Through operations in Bermuda, the United States, 
United Kingdom, Europe, Canada and Australia, we write 
specialty lines of property and casualty insurance and 
reinsurance, as well as mortgage insurance and reinsurance, 
on a worldwide basis. It is our belief that our underwriting 
platform, experienced management team and strong capital 
base enable us to establish a strong presence in the markets 
where we operate.
The worldwide property casualty insurance and reinsurance 
industry is highly competitive and has traditionally been 
subject to an underwriting cycle. In that cycle, a “hard” 
market is evidenced by high premium rates, restrictive 
underwriting standards, narrow terms and conditions, and 
strong underwriting profits for insurers. A “hard” market 
typically attracts new capital and new entrants to the market 
and is eventually followed by a “soft” market, which has 
characteristics of low premium rates, relaxed underwriting 
standards, broader terms and conditions, and lower 
underwriting profits for insurers. Market conditions in the 
property and casualty arena may affect, among other things, 
the demand for our products, our ability to increase premium 
rates, the terms and conditions of the insurance policies we 
write, changes in the products offered by us or changes in our 
business strategy.
The financial results of the property casualty insurance and 
reinsurance industry are influenced by factors such as the 
frequency and/or severity of claims and losses, including 
natural disasters or other catastrophic events, variations in 
interest rates and financial markets, changes in the legal, 
regulatory and judicial environments, inflationary pressures 
and general economic conditions. These factors influence, 
among other things, the demand for insurance or reinsurance, 
the supply of which is generally related to the total capital of 
competitors in the market.
Mortgage insurance and reinsurance are subject to similar 
cycles to property casualty except that they have historically 
been more dependent on macroeconomic conditions.
CURRENT OUTLOOK
As we head into 2025, our objective to deliver long-term 
value for our shareholders remains the same. We will 
continue to execute on the key pillars of our strategy which 
are: to build a diversified mix of businesses; actively manage 
the underwriting cycle; remain prudent stewards of the 
capital entrusted to us by our shareholders; and be dynamic 
managers of a data-driven enterprise with a culture that 
attracts best-in-class talent. Book value per share, a key 
measure of value creation, ended 2024 at $53.11, 
representing a 13.1% increase for the year and up 23.8% after 
adjusting for the impact of the $5 per share special dividend 
paid to common shareholders in December 2024. The 
decision to pay a special dividend was the result of Arch's 
strong financial performance and capital position and 
represented an effective means of returning excess capital to 
our shareholders.
Overall, we believe the property and casualty environment 
remains favorable, despite increasing competition in many of 
our lines of business. This makes underwriting and risk 
mitigation 
increasingly 
important. 
Our 
underwriting 
strategies empower our businesses to respond quickly to their 
trading environment. This has been, and remains, a 
competitive advantage as we have the agility and expertise to 
reallocate capital to more profitable opportunities across our 
diversified platform. We are selectively deploying capital to 
the areas producing attractive risk-adjusted returns, such as 
insurance and reinsurance liability lines, specialty business at 
Lloyd's and property catastrophe reinsurance.
A high level of industry catastrophic losses throughout 2024, 
combined with the California wildfires at the start of 2025, 
should continue to support demand for property insurance 
and reinsurance. Notwithstanding this increased loss activity, 
we believe the property market remains attractive. On the 
casualty side, we believe that rates are continuing to outpace 
loss cost trends, and have selectively increased casualty 
writings in both our insurance and reinsurance segments.
Our property and casualty underwriting teams continued to 
benefit from attractive market conditions, delivering a 
combined $1.6 billion of underwriting income and over $20 
billion of gross premiums written in 2024, up nearly 19% 
from 2023.
ARCH CAPITAL
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2024 FORM 10-K

Our reinsurance segment contributed $1.2 billion of 
underwriting income in 2024, despite the impact of 
catastrophic events. At the January 1, 2025 renewals, we 
selectively increased our writings in property, liability and 
specialty lines with a focus not only on price adequacy, but 
also terms and conditions. Our underwriting culture dictates 
that we include a meaningful margin of safety in our pricing, 
especially given competitive market conditions, and take a 
longer term view of inflation and rates. As underwriting 
opportunities arise, our reinsurance segment reacts quickly 
and significantly when markets pivot.
Our insurance segment also seized on strong growth 
opportunities in 2024, while elevated catastrophe activity 
such as Hurricanes Helene and Milton limited underwriting 
income. For the full year, the insurance group contributed 
$6.9 billion of net premium written, a 17% increase from 
2023 and delivered $0.3 billion of underwriting income. On 
August 1, 2024, we completed the acquisition of the U.S. 
MidCorp and Entertainment insurance businesses from 
Allianz (“MCE Acquisition”). As such, the insurance 
segment’s 2024 results include five months of activity related 
to the acquired business. This acquisition expands our 
capabilities for insureds in the U.S. middle markets and 
represents an important component of our insurance segment. 
Excluding the MCE Acquisition, insurance growth was in the 
mid-single digits and included attractive opportunities in 
casualty, programs and in the London specialty market. 
Looking ahead, we expect primary market conditions to 
remain competitive given the attractive underlying margins, 
which may result in a slowdown of new business 
opportunities.
Our mortgage segment continued to deliver a steady level of 
earnings for our shareholders, generating $1.1 billion of 
underwriting income in 2024, resulting in the third 
consecutive year of delivering over $1 billion of underwriting 
income. While new originations remain tempered by 
relatively 
high 
mortgage 
interest 
rates, 
underlying 
fundamentals remained strong and our U.S. market share was 
stable as industry pricing discipline held. The persistency of 
our in force U.S. primary mortgage insurance portfolio 
remained a healthy 82.1% and the delinquency rate remained 
low.
FINANCIAL MEASURES
Management uses the following three key financial indicators 
in evaluating our performance and measuring the overall 
growth in value generated for Arch Capital’s common 
shareholders:
Book Value per Share
Book value per share represents total common shareholders’ 
equity available to Arch divided by the number of common 
shares 
and 
common 
share 
equivalents 
outstanding. 
Management uses growth in book value per share as a key 
measure of the value generated for our common shareholders 
each period and believes that book value per share is the key 
driver of Arch Capital’s share price over time. Book value 
per share is impacted by, among other factors, our 
underwriting results, investment returns and share repurchase 
activity, which has an accretive or dilutive impact on book 
value per share depending on the purchase price. Book value 
per share was $53.11 at December 31, 2024, a 13.1% 
increase from $46.94 at December 31, 2023, and an increase 
of 23.8% when incorporating the impact of the $1.9 billion 
special dividend paid to common shareholders in December 
2024.
Operating Return on Average Common Equity
Operating return on average common equity (“Operating 
ROAE”) represents annualized after-tax operating income 
available to Arch common shareholders divided by average 
common shareholders’ equity available to Arch during the 
period. After-tax operating income available to Arch 
common shareholders, a “non-GAAP measure” as defined in 
the SEC rules, represents net income available to Arch 
common shareholders, excluding net realized gains or losses 
(which includes realized and unrealized changes in the fair 
value of equity securities and assets accounted for using the 
fair value option, realized and unrealized gains or losses on 
derivative instruments, changes in the allowance for credit 
losses on financial assets and gains or losses realized from 
the acquisition or disposition of subsidiaries), equity in net 
income or loss of investments accounted for using the equity 
method, net foreign exchange gains or losses, transaction 
costs and other, loss on redemption of preferred shares and 
income taxes. Management uses Operating ROAE as a key 
measure of the return generated to Arch common 
shareholders. See “Comment on Non-GAAP Financial 
Measures.” 
Our annualized net income return on average common equity 
was 22.8% for 2024, compared to 29.7% for 2023. Our 
Operating ROAE was 18.9% for 2024, compared to 21.6% 
for 2023. Returns for 2024 reflected strong underwriting and 
investment returns, albeit with an elevated level of 
catastrophe activity.
ARCH CAPITAL
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2024 FORM 10-K

Total Return on Investments
Total return on investments includes investment income, 
equity in net income or loss of investments accounted for 
using the equity method, net realized gains or losses and the 
change in unrealized gains or losses generated by Arch’s 
investment portfolio. Total return is calculated on a pre-tax 
basis before investment expenses and reflects the effect of 
financial market conditions along with foreign currency 
fluctuations. Management uses total return on investments as 
a key measure of the return generated for Arch common 
shareholders on the capital held in the business, and 
compares the return generated by our investment portfolio 
against benchmark returns. See “Comment on Non-GAAP 
Financial Measures.” 
The following table summarizes the pre-tax total return 
(before investment expenses) of investments held by Arch 
compared to the benchmark return (both based in U.S. 
Dollars) against which we measured our portfolio during the 
periods:
Arch
Portfolio (1)
Benchmark
 Return
Year Ended December 31, 2024
 5.08 %
 5.22 %
Year Ended December 31, 2023
 7.57 %
 8.28 %
Total return for 2024 primarily reflected the effects of 
sustained higher interest rates available in the market, along 
with growth in invested assets due in part to strong operating 
cash flows. We continue to maintain a relatively short 
duration on our fixed income portfolio of 3.31 years at 
December 31, 2024.
The benchmark return index is a customized combination of 
indices intended to approximate a target portfolio by asset 
mix and average credit quality with a fixed income 
component matching the approximate estimated duration and 
currency mix of our insurance and reinsurance liabilities. It is 
recalibrated annually. Although the estimated fixed income 
duration and average credit quality of this index will move as 
the duration and rating of its constituent securities change, 
generally we do not adjust the composition of the benchmark 
return index during the year except to incorporate changes to 
the mix of liability currencies and durations noted above. The 
benchmark return index should not be interpreted as 
expressing a preference for or aversion to any particular 
sector or sector weight. At December 31, 2024, the fixed 
income portion of the benchmark had an average credit 
quality of “A1” by Moody’s and an estimated fixed income 
duration of 3.18 years.
The benchmark return index included weightings to the 
following indices:
%
ICE BofA 1-10 Year U.S. Corporate Index
 27.70 
Yield on 3-5 Year U.S. Treasury Index plus 6%
 17.00 
ICE BofA 1-10 Year U.S. Treasury Index
 15.00 
JPM CLOIE Investment Grade
 6.00 
ICE BofA U.S. High Yield Constrained Index
 6.00 
ICE BofA 1-5 Year U.K. Gilt Index
 5.25 
S&P 500 Total Return Index
 4.75 
ICE BofA U.S. ABS & CMBS Index
 4.50 
ICE BofA German Government 1-5 Year Index
 3.25 
ICE BofA German Government 5-7 Year Index
 0.60 
ICE BofA 0-3 Month U.S. Treasury Index
 3.00 
ICE BofA 1-5 Year Canada Government Index
 2.55 
ICE BofA 15+ Year Canada Government Index
 0.30 
ICE BofA 1-5 Year Australia Government Index
 2.35 
ICE BofA U.S. Mortgage Backed Securities Index
 1.50 
ICE BofA 1-5 Year Japan Government Index
 0.25 
Total
 100.00 %
COMMENT ON NON-GAAP FINANCIAL MEASURES
Throughout this filing, we present our operations in the way 
we believe will be the most meaningful and useful to 
investors, analysts, rating agencies and others who use our 
financial information in evaluating the performance of our 
company. This presentation includes the use of after-tax 
operating income available to Arch common shareholders, 
which is defined as net income available to Arch common 
shareholders, excluding net realized gains or losses (which 
includes realized and unrealized changes in the fair value of 
equity securities and assets accounted for using the fair value 
option, realized and unrealized gains or losses on derivative 
instruments, changes in the allowance for credit losses on 
financial assets and gains or losses realized from the 
acquisition or disposition of subsidiaries), equity in net 
income or loss of investments accounted for using the equity 
method, net foreign exchange gains or losses, transaction 
costs and other, net of income taxes (which for the 2023 
fourth quarter includes a one-time deferred income tax 
benefit related to the enactment of Bermuda’s new corporate 
income tax), and the use of annualized operating return on 
average common equity. The presentation of after-tax 
operating income available to Arch common shareholders 
and annualized operating return on average common equity 
are non-GAAP financial measures as defined in Regulation 
G. The reconciliation of such measures to net income 
available to Arch common shareholders and annualized net 
income return on average common equity (the most directly 
comparable GAAP financial measures) in accordance with 
Regulation G is included under “Results of Operations” 
below.
ARCH CAPITAL
70
2024 FORM 10-K

We believe that net realized gains or losses, equity in net 
income or loss of investments accounted for using the equity 
method, net foreign exchange gains or losses and transaction 
costs and other in any particular period are not indicative of 
the performance of, or trends in, our business. Although net 
realized gains or losses, equity in net income or loss of 
investments accounted for using the equity method and net 
foreign exchange gains or losses are an integral part of our 
operations, the decision to realize these items are independent 
of the insurance underwriting process and result, in large 
part, from general economic and financial market conditions. 
Furthermore, certain users of our financial information 
believe that, for many companies, the timing of the 
realization of investment gains or losses is largely 
opportunistic. In addition, changes in the allowance for credit 
losses and net impairment losses recognized in earnings on 
the Company’s investments represent other-than-temporary 
declines in expected recovery values on securities without 
actual realization. Furthermore, we exclude net realized gains 
or losses from the acquisition or disposition of subsidiaries, 
due to their non-recurring nature, such items are not 
indicative of the performance of, or trends in, our business 
performance.
The use of the equity method on certain of our investments in 
certain funds that invest in fixed maturity securities is driven 
by the ownership structure of such funds (either limited 
partnerships or limited liability companies). In applying the 
equity method, these investments are initially recorded at cost 
and are subsequently adjusted based on our proportionate 
share of the net income or loss of the funds (which include 
changes in the market value of the underlying securities in 
the funds). This method of accounting is different from the 
way we account for our other investments and the timing of 
the recognition of equity in net income or loss of investments 
accounted for using the equity method may differ from gains 
or losses in the future upon sale or maturity of such 
investments. 
Transaction costs and other include integration, advisory, 
financing, legal, severance, incentive compensation and all 
other transaction costs directly related to acquisitions. We 
believe that transaction costs and other, due to their 
nonrecurring nature, are not indicative of the performance of, 
or trends in, our business performance.
In the 2023 fourth quarter, the Company established a net 
deferred income tax asset, resulting in a benefit of $1.18 
billion, consistent with the transition provisions specified in 
the Bermuda CIT Act. Due to the non-recurring nature of this 
one-time item, the Company believes that excluding this item 
from after-tax operating income or loss available to common 
shareholders provides the user with a better evaluation of the 
Company’s ongoing business performance.
We believe that showing net income available to Arch 
common shareholders exclusive of the items referred to 
above reflects the underlying fundamentals of our business 
since we evaluate the performance of and manage our 
business to produce an underwriting profit. In addition to 
presenting 
net 
income 
available 
to 
Arch 
common 
shareholders, we believe that this presentation enables 
investors and other users of our financial information to 
analyze our performance in a manner similar to how 
management analyzes performance. We also believe that this 
measure follows industry practice and, therefore, allows the 
users of financial information to compare our performance 
with our industry peer group. We believe that the equity 
analysts and certain rating agencies that follow us and the 
insurance industry as a whole generally exclude these items 
from their analyses for the same reasons.
Our segment information includes the presentation of 
consolidated underwriting income or loss. Such measures 
represent the pre-tax profitability of our underwriting 
operations and include net premiums earned plus other 
underwriting income, less losses and loss adjustment 
expenses, acquisition expenses and other operating expenses. 
Other operating expenses include those operating expenses 
that are incremental and/or directly attributable to our 
individual underwriting operations. Underwriting income or 
loss does not incorporate certain income and expense items 
which are included in corporate. While these measures are 
presented in note 4, “Segment Information,” to our 
consolidated financial statements in Item 8, they are 
considered non-GAAP financial measures when presented 
elsewhere on a consolidated basis. The reconciliations of 
underwriting income or loss to income before income taxes 
(the most directly comparable GAAP financial measure) on a 
consolidated basis, in accordance with Regulation G, is 
shown in note 4, “Segment Information,” to our consolidated 
financial statements in Item 8.
We measure segment performance for our three underwriting 
segments based on underwriting income or loss. We do not 
manage our assets by underwriting segment, with the 
exception of goodwill and intangible assets, and, accordingly, 
investment income, income from operating affiliates and 
other non-underwriting related items are not allocated to each 
underwriting segment. 
Our presentation of segment information includes the use of a 
current year loss ratio which excludes favorable or adverse 
development in prior year loss reserves. This ratio is a non-
GAAP financial measure as defined in Regulation G. The 
reconciliation of such measure to the loss ratio (the most 
directly comparable GAAP financial measure) in accordance 
with Regulation G is shown on the individual segment pages. 
Management utilizes the current year loss ratio in its analysis 
of the underwriting performance of each of our underwriting 
segments.
ARCH CAPITAL
71
2024 FORM 10-K

Total return on investments includes investment income, 
equity in net income or loss of investments accounted for 
using the equity method, net realized gains or losses 
(excluding changes in the allowance for credit losses on non-
investment related financial assets) and the change in 
unrealized gains or losses generated by Arch’s investment 
portfolio. Total return is calculated on a pre-tax basis and 
before investment expenses, and reflects the effect of 
financial market conditions along with foreign currency 
fluctuations. In addition, total return incorporates the timing 
of investment returns during the periods. There is no directly 
comparable GAAP financial measure for total return. 
Management uses total return on investments as a key 
measure of the return generated to Arch common 
shareholders on the capital held in the business, and 
compares the return generated by our investment portfolio 
against benchmark returns which we measured our portfolio 
against during the periods.
RESULTS OF OPERATIONS
The following table summarizes our consolidated financial 
data, including a reconciliation of net income available to 
Arch common shareholders to after-tax operating income 
available to Arch common shareholders. See “Comment on 
Non-GAAP Financial Measures.” 
Year Ended December 31,
2024
2023
Net income available to Arch common 
shareholders
$ 
4,272 
$ 
4,403 
Net realized (gains) losses (1)
 
(197)  
165 
Equity in net (income) loss of investments 
accounted for using the equity method
 
(580)  
(278) 
Net foreign exchange (gains) losses
 
(75)  
62 
Transaction costs and other
 
81 
 
6 
Income tax expense (benefit) (2)
 
41 
 
(1,157) 
After-tax operating income available to Arch 
common shareholders
$ 
3,542 
$ 
3,201 
Beginning common shareholders’ equity
$ 
17,523 
$ 
12,080 
Ending common shareholders’ equity
 
19,990 
 
17,523 
Average common shareholders’ equity 
$ 
18,757 
$ 
14,802 
Annualized net income return on average 
common equity % 
 
22.8 
 
29.7 
Annualized operating return on average 
common equity %
 
18.9 
 
21.6 
(1) Net realized gains or losses include realized and unrealized changes in 
the fair value of equity securities and assets accounted for using the fair value 
option, realized and unrealized gains and losses on derivative instruments, 
changes in the allowance for credit losses on financial assets and gains or losses 
realized from the acquisition or disposition of subsidiaries.
(2) Income tax on net realized gains or losses, equity in net income or loss of 
investments accounted for using the equity method, net foreign exchange gains or 
losses and transaction costs and other reflects the relative mix reported by 
jurisdiction and the varying tax rates in each jurisdiction. The 2023 results were 
impacted by the establishment of a net deferred income tax asset of $1.18 billion, 
or $3.10 per share, related to the enactment of Bermuda’s new corporate income 
tax.
Segment Information
We classify our businesses into three underwriting segments 
insurance, reinsurance and mortgage. Our insurance, 
reinsurance and mortgage segments each have managers who 
are responsible for the overall profitability of their respective 
segments and who are directly accountable to our chief 
operating decision makers, the Chief Executive Officer of 
Arch Capital and the Chief Financial Officer and Treasurer of 
Arch Capital. The chief operating decision makers do not 
assess performance, measure return on equity or make 
resource allocation decisions on a line of business basis. 
Management measures segment performance for our three 
underwriting segments based on underwriting income or loss. 
We do not manage our assets by underwriting segment, with 
the exception of goodwill and intangible assets and 
accordingly, investment income is not allocated to each 
underwriting segment.
We 
determined 
our 
reportable 
segments 
using 
the 
management approach described in accounting guidance 
regarding disclosures about segments of an enterprise and 
related information. The accounting policies of the segments 
are the same as those used for the preparation of our 
consolidated financial statements. Intersegment business is 
allocated to the segment accountable for the underwriting 
results.
Insurance Segment
The following tables set forth our insurance segment’s 
underwriting results:
Year Ended December 31,
2024
2023
% Change
Gross premiums written
$ 
9,053 
$ 
7,911 
 
14.4 
Premiums ceded
 
(2,179) 
 
(2,049) 
Net premiums written
 
6,874 
 
5,862 
 
17.3 
Change in unearned premiums  
(247) 
 
(416) 
Net premiums earned
 
6,627 
 
5,446 
 
21.7 
Losses and loss adjustment 
expenses
 
(4,070) 
 
(3,122) 
Acquisition expenses
 
(1,217) 
 
(1,055) 
Other operating expenses
 
(995) 
 
(819) 
Underwriting income
$ 
345 
$ 
450 
 
(23.3) 
Underwriting Ratios
% Point 
Change
Loss ratio
 61.4 %
 57.3 %
 
4.1 
Acquisition expense ratio
 18.4 %
 19.4 %
 
(1.0) 
Other operating expense ratio
 15.0 %
 15.0 %
 
— 
Combined ratio
 94.8 %
 91.7 %
 
3.1 
The 
insurance 
segment 
consists 
of 
our 
insurance 
underwriting units which offer specialty product lines on a 
worldwide basis, as described in note 4, “Segment 
Information,” to our consolidated financial statements in Item 
8.
ARCH CAPITAL
72
2024 FORM 10-K

Net Premiums Written.
The following tables set forth our insurance segment’s net 
premiums written by major line of business:
Year Ended December 31,
2024
2023
Amount
%
Amount
%
North America
Property and short-tail specialty
$ 1,220 
17.7
$ 1,058 
18.0
Other liability - occurrence
1,002
14.6
676
11.5
Other liability - claims made
858
12.5
851
14.5
Workers compensation
555
8.1
525
9.0
Commercial automobile
485
7.1
391
6.7
Commercial multi-peril
461
6.7
199
3.4
Other
288
4.2
295
5.0
Total North America
 
4,869 
 
70.8 
 
3,995 
 
68.2 
International
Property and short-tail specialty
$ 1,065 
 
15.5 
$ 1,042 
 
17.8 
Casualty and other
 
940 
 
13.7 
 
825 
 
14.1 
Total International
 
2,005 
 
29.2 
 
1,867 
 
31.8 
Total
$ 6,874 
 100.0 
$ 5,862 
 100.0 
Net premiums written by the insurance segment were 17.3% 
higher in 2024 than in 2023 (7.0% excluding the MCE 
Acquisition). Growth in net premiums written reflected the 
impact of the MCE Acquisition along with an increases in 
most lines of business due in part to new business 
opportunities and rate changes.
Net Premiums Earned. 
The following tables set forth our insurance segment’s net 
premiums earned by major line of business:
Year Ended December 31,
2024
2023
Amount
%
Amount
%
North America
Property and short-tail specialty
$ 1,165 
17.6
$ 
976 
17.9
Other liability - occurrence
942
14.2
618
11.3
Other liability - claims made
843
12.7
866
15.9
Workers compensation
549
8.3
495
9.1
Commercial automobile
459
6.9
343
6.3
Commercial multi-peril
435
6.6
193
3.5
Other
309
4.7
290
5.3
Total North America
 
4,702 
 
71.0 
 
3,781 
 
69.4 
International
Property and short-tail specialty
$ 1,050 
 
15.8 
$ 
885 
 
16.3 
Casualty and other
 
875 
 
13.2 
 
780 
 
14.3 
Total International
 
1,925 
 
29.0 
 
1,665 
 
30.6 
Total
$ 6,627 
 100.0 
$ 5,446 
 100.0 
Net premiums written are primarily earned on a pro rata basis 
over the terms of the policies for all products, usually 12 
months. Net premiums earned by the insurance segment were 
21.7% higher in 2024 than in 2023 (10.5% excluding the 
MCE Acquisition), reflecting changes in net premiums 
written over the previous five quarters. 
Losses and Loss Adjustment Expenses. 
The table below shows the components of the insurance 
segment’s loss ratio:
Year Ended December 31,
2024
2023
Current year
 61.9 %
 58.1 %
Prior period reserve development
 (0.5) %
 (0.8) %
Loss ratio
 61.4 %
 57.3 %
Current Year Loss Ratio. 
The insurance segment’s current year loss ratio was 3.8 
points higher in 2024 than in 2023. The 2024 loss ratio 
included 4.6 points of current year catastrophic event activity, 
primarily related to Hurricanes Helene and Milton, compared 
to 2.7 points in 2023. The current year loss ratio for 2024 
also reflected the impact of rate increases and changes in mix 
of business.
Prior Period Reserve Development.
The insurance segment’s net favorable development was $37 
million, or 0.5 points, for 2024, compared to $42 million, or 
0.8 points, for 2023. See note 5, “Reserve for Losses and 
Loss Adjustment Expenses,” to our consolidated financial 
statements in Item 8 for information about the insurance 
segment’s prior year reserve development.
Underwriting Expenses. 
The insurance segment’s underwriting expense ratio was 
33.4% in 2024, compared to 34.4% in 2023. The impact of 
the MCE Acquisition lowered the underwriting expense ratio 
by approximately 1.6 points, primarily due to the effects of 
the fair value estimation of the assets acquired at closing, 
including the non-recognition of deferred acquisition costs. 
The value of policies in force at closing are considered within 
the value of business acquired which is amortized through 
‘amortization of intangible assets.’ The underwriting expense 
ratio also benefited from an initial lower level of operating 
expenses in the acquired business.
ARCH CAPITAL
73
2024 FORM 10-K

Reinsurance Segment 
The following tables set forth our reinsurance segment’s 
underwriting results:
Year Ended December 31,
2024
2023
% Change
Gross premiums written
$ 11,112 
$ 
9,113 
 
21.9 
Premiums ceded
 
(3,366) 
 
(2,559) 
Net premiums written
 
7,746 
 
6,554 
 
18.2 
Change in unearned premiums  
(504) 
 
(718) 
Net premiums earned
 
7,242 
 
5,836 
 
24.1 
Other underwriting income 
(loss)
 
9 
 
17 
Losses and loss adjustment 
expenses
 
(4,327) 
 
(3,227) 
Acquisition expenses
 
(1,432) 
 
(1,240) 
Other operating expenses
 
(270) 
 
(288) 
Underwriting income
$ 
1,222 
$ 
1,098 
 
11.3 
Underwriting Ratios
% Point 
Change
Loss ratio
 59.7 %
 55.3 %
 
4.4 
Acquisition expense ratio
 19.8 %
 21.2 %
 
(1.4) 
Other operating expense ratio
 3.7 %
 4.9 %
 
(1.2) 
Combined ratio
 83.2 %
 81.4 %
 
1.8 
The reinsurance segment consists of our reinsurance 
underwriting units which offer specialty product lines on a 
worldwide basis, as described in note 4, “Segment 
Information,” to our consolidated financial statements in Item 
8.
Net Premiums Written. 
The following tables set forth our reinsurance segment’s net 
premiums written by major line of business:
Year Ended December 31,
2024
2023
Amount
%
Amount
%
Other specialty
$ 
2,849 
36.8
$ 
2,412 
36.8
Property excluding 
property catastrophe
 
2,264 
29.2
 
1,910 
29.1
Casualty
 
1,222 
15.8
 
1,002 
15.3
Property catastrophe
 
958 
12.4
 
865 
13.2
Marine and aviation
 
300 
3.9
 
250 
3.8
Other
153
2.0
115
1.8
Total
$ 
7,746 
100.0
$ 
6,554 
100.0
Net premiums written by the reinsurance segment were 
18.2% higher in 2024 than in 2023. The growth in net 
premiums written reflected increases in all lines of business, 
primarily due to new business, rate increases and growth in 
existing accounts.
Net Premiums Earned. 
The following tables set forth our reinsurance segment’s net 
premiums earned by major line of business:
Year Ended December 31,
2024
2023
Amount
%
Amount
%
Other specialty
$ 
2,619 
36.2
$ 
2,097 
35.9
Property excluding 
property catastrophe
 
2,148 
29.7
 
1,645 
28.2
Casualty
 
1,088 
15.0
 
1,005 
17.2
Property catastrophe
 
959 
13.2
 
742 
12.7
Marine and aviation
 
276 
3.8
 
229 
3.9
Other
 
152 
2.1
 
118 
2.0
Total
$ 
7,242 
100.0
$ 
5,836 
100.0
Net premiums earned in 2024 were 24.1% higher than in 
2023, reflecting changes in net premiums written over the 
previous five quarters, including the mix and type of business 
written.
Other Underwriting Income (Loss).
Other underwriting income in 2024 was $9 million, 
compared to $17 million in 2023.
Losses and Loss Adjustment Expenses. 
The table below shows the components of the reinsurance 
segment’s loss ratio:
Year Ended December 31,
2024
2023
Current year
 62.3 %
 57.9 %
Prior period reserve development
 (2.6) %
 (2.6) %
Loss ratio
 59.7 %
 55.3 %
Current Year Loss Ratio.
The reinsurance segment’s current year loss ratio was 4.4 
points higher in 2024 than in 2023. The 2024 loss ratio 
included 11.8 points for current year catastrophic event 
activity related to Hurricanes Milton and Helene, and a series 
of other global events, compared to 6.8 points in 2023. The 
current year loss ratio for 2024 also reflected the impact of 
rate increases and changes in mix of business.
Prior Period Reserve Development.
The reinsurance segment’s net favorable development was 
$188 million, or 2.6 points, for 2024, compared to $152 
million, or 2.6 points, for 2023, See note 5, “Reserve for 
Losses and Loss Adjustment Expenses,” to our consolidated 
financial statements in Item 8 for information about the 
reinsurance segment’s prior year reserve development.
ARCH CAPITAL
74
2024 FORM 10-K

Underwriting Expenses.
The underwriting expense ratio for the reinsurance segment 
was 23.5% in 2024, compared to 26.1% in 2023, with the 
decrease primarily due to growth in net premiums earned.
Mortgage Segment
The following tables set forth our mortgage segment’s 
underwriting results.
Year Ended December 31,
2024
2023
% Change
Gross premiums written
$ 
1,351 
$ 
1,387 
 
(2.6) 
Premiums ceded
 
(239) 
 
(335) 
Net premiums written
 
1,112 
 
1,052 
 
5.7 
Change in unearned 
premiums
 
119 
 
106 
Net premiums earned
 
1,231 
 
1,158 
 
6.3 
Other underwriting income
 
17 
 
14 
Losses and loss adjustment 
expenses
 
55 
 
103 
Acquisition expenses
 
(2) 
 
(17) 
Other operating expenses
 
(207) 
 
(194) 
Underwriting income
$ 
1,094 
$ 
1,064 
 
2.8 
Underwriting Ratios
% Point 
Change
Loss ratio
 (4.4) %
 (8.9) %
 
4.5 
Acquisition expense ratio
 0.2 %
 1.4 %
 
(1.2) 
Other operating expense ratio
 16.8 %
 16.8 %
 
— 
Combined ratio
 12.6 %
 9.3 %
 
3.3 
Net Premiums Written.
The following table sets forth our mortgage segment’s net 
premiums written by underwriting unit:
Year Ended December 31,
2024
2023
U.S. primary mortgage insurance
$ 
820 
$ 
737 
U.S. credit risk transfer (CRT) and other
212
220
International mortgage insurance/reinsurance
80
95
Total
$ 
1,112 
$ 
1,052 
Net premiums written for 2024 were 5.7% higher than in 
2023. The increase in net premiums written in 2024 primarily 
reflected a lower level of premiums ceded to Bellemeade 
entities.
The persistency rate of the U.S. primary portfolio of 
mortgage loans was 82.1% at December 31, 2024 compared 
to 83.6% at December 31, 2023. The persistency rate 
represents the percentage of mortgage insurance in force at 
the beginning of a 12-month period that remains in force at 
the end of such period.
The following tables provide details on the new insurance 
written (“NIW”) generated by U.S. primary mortgage 
insurance operations. NIW represents the original principal 
balance of all loans that received coverage during the period.
Year Ended December 31,
2024
2023
Amount
%
Amount
%
Total new insurance 
written (NIW) (1)
$ 
48,479 
$ 
43,531 
Credit quality (FICO):
>=740
$ 
34,023 
 
70.2 
$ 
28,527 
 
65.5 
680-739
 
12,805 
 
26.4 
 
13,832 
 
31.8 
620-679
 
1,644 
 
3.4 
 
1,164 
 
2.7 
<620
 
7 
 
0.0 
 
8 
 
0.0 
Total
$ 
48,479 
 100.0 
$ 
43,531 
 100.0 
Loan-to-value (LTV):
95.01% and above
$ 
3,564 
 
7.4 
$ 
2,582 
 
5.9 
90.01% to 95.00%
 
24,837 
 
51.2 
 
24,299 
 
55.8 
85.01% to 90.00%
 
14,735 
 
30.4 
 
12,160 
 
27.9 
85.01% and below
 
5,343 
 
11.0 
 
4,490 
 
10.3 
Total
$ 
48,479 
 100.0 
$ 
43,531 
 100.0 
Monthly vs. single:
Monthly
$ 
45,589 
 
94.0 
$ 
41,515 
 
95.4 
Single
 
2,890 
 
6.0 
 
2,016 
 
4.6 
Total
$ 
48,479 
 100.0 
$ 
43,531 
 100.0 
Purchase vs. refinance:
Purchase
$ 
46,952 
 
96.9 
$ 
42,822 
 
98.4 
Refinance
 
1,527 
 
3.1 
 
709 
 
1.6 
Total
$ 
48,479 
 100.0 
$ 
43,531 
 100.0 
(1)
Represents the original principal balance of all loans that received 
coverage during the period.
Net Premiums Earned.
The following table sets forth our mortgage segment’s net 
premiums earned by underwriting unit:
Year Ended December 31,
2024
2023
U.S. primary mortgage insurance
$ 
845 
$ 
759 
U.S. credit risk transfer (CRT) and other
213
220
International mortgage insurance/reinsurance
173
179
Total
$ 
1,231 
$ 
1,158 
Net premiums earned for 2024 were 6.3% higher than in 
2023, reflecting changes in net premiums written over the 
previous five quarters.
ARCH CAPITAL
75
2024 FORM 10-K

Other Underwriting Income.
Other underwriting income, which is primarily related to 
GSE risk-sharing transactions services and our whole 
mortgage loan purchase and sell program, was $17 million 
for 2024, compared to $14 million for 2023.
Losses and Loss Adjustment Expenses.
The table below shows the components of the mortgage 
segment’s loss ratio:
Year Ended December 31,
2024
2023
Current year
 18.6 %
 20.8 %
Prior period reserve development
 (23.0) %
 (29.7) %
Loss ratio
 (4.4) %
 (8.9) %
Unlike property and casualty business for which we estimate 
ultimate losses on premiums earned, losses on U.S. primary 
mortgage insurance business are only recorded at the time a 
borrower is delinquent on their mortgage, in accordance with 
primary mortgage insurance industry practice. Because our 
primary mortgage insurance reserving process does not take 
into account the impact of future losses from loans that are 
not delinquent, mortgage insurance loss reserves are not an 
estimate of ultimate losses. In addition to establishing loss 
reserves for delinquent loans, under GAAP, we are required 
to establish a premium deficiency reserve for our mortgage 
insurance products if the amount of expected future losses 
and maintenance costs exceeds expected future premiums, 
existing reserves and the anticipated investment income for 
such product. We assess the need for a premium deficiency 
reserve on a quarterly basis and perform a full analysis 
annually. No such reserve was established during 2024 or 
2023.
Current Year Loss Ratio.
The mortgage segment’s current year loss ratio was 2.2 
points lower in 2024 compared to 2023. The lower current 
year loss ratio for 2024 reflected a lower average case reserve 
per default. The percentage of loans in default on U.S. 
primary mortgage insurance increased from 1.74% at 
December 31, 2023 to 2.09% at December 31, 2024. 
We insure mortgages for homes in areas that have been 
impacted by catastrophic events. Generally, mortgage 
insurance losses occur only when a credit event occurs and, 
following a physical damage event, when the home is 
restored to pre-storm condition. Our ultimate claims exposure 
will depend on the number of delinquency notices received 
and the ultimate claim rate related to such notices. In the 
event of natural disasters, cure rates are influenced by the 
adequacy of homeowners and flood insurance carried on a 
related property, and a borrower's access to aid from 
government entities and private organizations, in addition to 
other factors which generally impact cure rates in unaffected 
areas.
Prior Period Reserve Development.
The mortgage segment’s net favorable development was 
$282 million, or 23.0 points, for 2024, compared to $344 
million, or 29.7 points, for 2023. See note 5, “Reserve for 
Losses and Loss Adjustment Expenses,” to our consolidated 
financial statements in Item 8 for information about the 
mortgage segment’s prior year reserve development.
Underwriting Expenses.
The underwriting expense ratio for the mortgage segment 
was 17.0% for 2024, compared to 18.2% for 2023. The 
decrease was primarily due to a lower level of profit 
commissions on U.S. primary business, along with a higher 
level of net premiums earned.
Corporate
The corporate results include net investment income, net 
realized gains or losses, equity in net income or loss of 
investments accounted for using the equity method, other 
income (loss), corporate expenses, transaction costs and 
other, amortization of intangible assets, interest expense, net 
foreign exchange gains or losses, income taxes items (which 
for 2023 reflects the establishment of a net deferred income 
tax asset related to the enactment of Bermuda’s new 
corporate income tax), income from operating affiliates and 
items related to our non-cumulative preferred shares.
Net Investment Income. 
The components of net investment income were derived from 
the following sources:
Year Ended December 31,
2024
2023
Fixed maturities
$ 
1,266 
$ 
917 
Short-term investments
 
144 
 
68 
Equity securities 
 
40 
 
22 
Other (1)
 
136 
 
93 
Gross investment income
 
1,586 
 
1,100 
Investment expenses (2)
 
(91)  
(77) 
Net investment income
$ 
1,495 
$ 
1,023 
(1) 
Includes interest income on operating cash, distributions from 
investment funds and other items.
(2) 
Investment expenses were approximately 0.26% of average invested 
assets for 2024, consistent with 0.26% for 2023.
ARCH CAPITAL
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2024 FORM 10-K

The pre-tax investment income yield was 4.25% for 2024, 
compared to 3.53% for 2023. The growth in net investment 
income for 2024 compared to 2023 primarily reflected higher 
yields available in the financial markets. The pre-tax 
investment income yields were calculated based on amortized 
cost. Net cash flow from operating activities contributed $6.7 
billion in 2024, which increased our invested asset base and 
contributed to the growth in net investment income. Net 
investment income in 2024 was partially impacted by a $1.9 
billion special dividend paid to common shareholders in 
December which required us to sell certain investments. 
Yields on future investment income may vary based on 
financial market conditions, investment allocation decisions 
and other factors.
Net Realized Gains or Losses. 
We recorded net realized gains of $197 million for 2024, 
compared to net realized losses of $165 million for 2023. 
Currently, our portfolio is actively managed to maximize 
total return within certain guidelines. The effect of financial 
market movements on the investment portfolio will directly 
impact net realized gains or losses as the portfolio is 
rebalanced. Net realized gains or losses from the sale of fixed 
maturities primarily results from our decisions to reduce 
credit exposure, to change duration targets, to rebalance our 
portfolios or due to relative value determinations.
Net realized gains or losses also include realized and 
unrealized contract gains and losses on our derivative 
instruments, changes in the fair value of assets accounted for 
using the fair value option and in the fair value of equities, 
along with changes in the allowance for credit losses on 
financial assets, net impairment losses recognized in earnings 
and gains or losses realized from the acquisition or 
disposition of subsidiaries. See note 9, “Investment 
Information—Net Realized Gains (Losses),” and note 9, 
“Investment Information—Allowance for Expected Credit 
Losses,” to our consolidated financial statements for 
additional information.
Equity in Net Income (Loss) of Investments Accounted for 
Using the Equity Method. 
We recorded $580 million of equity in net income related to 
investments accounted for using the equity method for 2024, 
compared to $278 million for 2023. Investments accounted 
for using the equity method totaled $6.0 billion at 
December 
31, 
2024, 
compared 
to $4.6 
billion 
at 
December 31, 2023. See note 9, “Investment Information—
Equity in Net Income (Loss) of Investments Accounted For 
Using the Equity Method,” to our consolidated financial 
statements in Item 8 for additional information.
Other Income or Losses
Other income for 2024 was $42 million, compared to $27 
million for 2023. Amounts in both periods primarily reflect 
changes in the cash surrender value of our investment in 
corporate-owned life insurance.
Corporate Expenses. 
Corporate expenses were $119 million for 2024, compared to 
$96 million for 2023. Such amounts primarily represent 
certain holding company costs necessary to support our 
worldwide operations and costs associated with operating as 
a publicly traded company. 
Transaction Costs and Other.
Transaction costs and other were $81 million for 2024, 
compared to $6 million for 2023. The 2024 period primarily 
includes direct costs related to the MCE Acquisition and 
ongoing integration efforts.
Amortization of Intangible Assets.
Amortization of intangible assets for 2024 was $235 million, 
compared to $95 million for 2023. Amounts in 2024 and 
2023 primarily related to amortization of finite-lived 
intangible assets with the increase in 2024 primarily related 
to the MCE Acquisition. See note 2, “Acquisition.”
Interest Expense. 
Interest expense was $141 million for 2024, compared to 
$133 million for 2023. Interest expense primarily reflects 
amounts related to our outstanding senior notes. 
Net Foreign Exchange Gains or Losses. 
Net foreign exchange gains for 2024 were $75 million, 
compared to net foreign exchange losses for 2023 of $60 
million. Amounts in such periods were primarily unrealized 
and resulted from the effects of revaluing our net insurance 
liabilities required to be settled in foreign currencies at each 
balance sheet date.
Income Tax Expense. 
Our income tax provision on income before income taxes 
resulted in an expense of 7.7% for 2024, compared to a 
benefit of 24.5% for 2023. The 2023 provision reflected the 
establishment of a net deferred income tax asset of $1.18 
billion related to the enactment of Bermuda’s new corporate 
income tax. Our effective tax rate fluctuates from year to year 
consistent with the relative mix of income or loss reported by 
jurisdiction and the varying tax rates in each jurisdiction. 
See note 15, “Income Taxes,” to our consolidated financial 
statements in Item 8 for a reconciliation of the difference 
ARCH CAPITAL
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2024 FORM 10-K

between the provision for income taxes and the expected tax 
provision at the weighted average statutory tax rate for 2024 
and 2023.
Income (Loss) from Operating Affiliates.
We recorded $200 million of net income from our operating 
affiliates in 2024, compared to $184 million in 2023. 
Amounts in both periods primarily reflected amounts related 
to our investments in Somers Group Holdings Ltd. and 
Coface SA. See note 9, “Investment Information—
Investments in Operating Affiliates,” to our consolidated 
financial statements for additional information.
SUMMARY OF CRITICAL ACCOUNTING 
ESTIMATES 
The preparation of consolidated financial statements in 
accordance with GAAP requires us to make many estimates 
and judgments that affect the reported amounts of assets, 
liabilities (including reserves), revenues and expenses, and 
related disclosures of contingent liabilities. On an ongoing 
basis, we evaluate our estimates, including those related to 
revenue 
recognition, 
insurance 
and 
other 
reserves, 
reinsurance recoverables, allowance for current expected 
credit losses, investment valuations, goodwill and intangible 
assets, bad debts, income taxes, contingencies and litigation. 
We base our estimates on historical experience, where 
possible, and on various other assumptions that we believe to 
be reasonable under the circumstances, which form the basis 
for our judgments about the carrying values of assets and 
liabilities that are not readily apparent from other sources. 
Actual results will differ from these estimates and such 
differences may be material. We believe that the following 
critical accounting policies affect significant estimates used 
in the preparation of our consolidated financial statements.
Loss Reserves
We are required by applicable insurance laws and regulations 
and GAAP to establish reserves for losses and loss 
adjustment expenses, or “Loss Reserves”, that arise from the 
business we underwrite. Loss Reserves for our insurance, 
reinsurance and mortgage operations are balance sheet 
liabilities representing estimates of future amounts required 
to pay losses and loss adjustment expenses for insured or 
reinsured events which have occurred at or before the balance 
sheet date. Loss Reserves do not reflect contingency reserve 
allowances to account for future loss occurrences. Losses 
arising from future events will be estimated and recognized at 
the time the losses are incurred and could be substantial. See 
note 6, “Short Duration Contracts,” to our consolidated 
financial statements in Item 8 for additional information on 
our reserving process.
At December 31, 2024 and 2023, our Loss Reserves, net of 
unpaid losses and loss adjustment expenses recoverable, by 
type and by operating segment were as follows:
December 31,
2024
2023
Insurance segment:
Case reserves
$ 
3,730 
$ 
2,730 
IBNR reserves
8,238
5,626
Total net reserves
 
11,968 
 
8,356 
Reinsurance segment:
Case reserves
 
2,721 
 
2,447 
Additional case reserves
806
484
IBNR reserves
5,580
4,260
Total net reserves
 
9,107 
 
7,191 
Mortgage segment:
Case reserves
 
331 
 
323 
IBNR reserves
142
192
Total net reserves
 
473 
 
515 
Total:
Case reserves
 
6,782 
 
5,500 
Additional case reserves
806
484
IBNR reserves
13,960
10,078
Total net reserves
$ 
21,548 
$ 
16,062 
At December 31, 2024 and 2023, the insurance segment’s 
Loss Reserves by major line of business, net of unpaid losses 
and loss adjustment expenses recoverable, were as follows:
December 31,
2024
2023
Multi-line and other specialty
$ 
4,105 
$ 
1,350 
Third party occurrence business
4,104
3,719
Third party claims-made business
2,630
2,451
Property, energy, marine and aviation
1,129
836
Total net reserves
$ 
11,968 
$ 
8,356 
At December 31, 2024 and 2023, the reinsurance segment’s 
Loss Reserves by major line of business, net of unpaid losses 
and loss adjustment expenses recoverable, were as follows:
December 31,
2024
2023
Casualty
$ 
3,089 
$ 
2,725 
Other specialty
2,791
2,125
Property excluding property catastrophe
1,778
1,243
Property catastrophe
845
585
Marine and aviation
461
359
Other
143
154
Total net reserves
$ 
9,107 
$ 
7,191 
ARCH CAPITAL
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2024 FORM 10-K

At December 31, 2024 and 2023, the mortgage segment’s 
Loss Reserves by major line of business, net of unpaid losses 
and loss adjustment expenses recoverable, were as follows:
December 31,
2024
2023
U.S. primary mortgage insurance (1)
$ 
333 
$ 
324 
U.S. credit risk transfer (CRT) and other 
 
85 
 
100 
International mortgage insurance/
reinsurance
 
55 
 
91 
Total net reserves
$ 
473 
$ 
515 
(1) 
At December 31, 2024, 35.0% of total net reserves represent policy 
years 2014 and prior and the remainder from later policy years. At 
December 31, 2023, 31.0% of total net reserves represent policy years 
2014 and prior and the remainder from later policy years. 
Potential Variability in Loss Reserves
The following tables summarize the effect of reasonably 
likely scenarios on the key actuarial assumptions used to 
estimate our Loss Reserves, net of unpaid losses and loss 
adjustment expenses recoverable, at December 31, 2024 by 
underwriting segment and reserving lines. See note 6, “Short 
Duration Contracts,” to our consolidated financial statements 
in Item 8 for a description of the lines of business included in 
each reserving line.
The scenarios shown in the tables summarize the effect of (i) 
changes to the expected loss ratio selections used at 
December 31, 2024, which represent loss ratio point 
increases or decreases to the expected loss ratios used, and 
(ii) changes to the loss development patterns used in our 
reserving process at December 31, 2024, which represent 
claims reporting that is either slower or faster than the 
reporting patterns used. We believe that the illustrated 
sensitivities are indicative of the potential variability inherent 
in the estimation process of those parameters. The results 
show the impact of varying each key actuarial assumption 
using the chosen sensitivity on our Loss Reserves, on a net 
basis and across all accident years. 
INSURANCE SEGMENT
Higher 
Expected Loss 
Ratios
Slower Loss 
Development 
Patterns
Reserving lines selected assumptions:
Property, energy, marine and aviation
5 points
3 months
Third party occurrence business
10
6
Third party claims-made business
10
6
Multi-line and other specialty
10
6
Increase (decrease) in Loss Reserves:
Property, energy, marine and aviation
$ 
68 
$ 
110 
Third party occurrence business
 
307 
 
125 
Third party claims-made business
 
488 
 
278 
Multi-line and other specialty
 
804 
 
302 
INSURANCE SEGMENT
Lower 
Expected Loss 
Ratios
Faster Loss 
Development 
Patterns
Reserving lines selected assumptions:
Property, energy, marine and aviation
(5) points
(3) months
Third party occurrence business
(10)
(6)
Third party claims-made business
(10)
(6)
Multi-line and other specialty
(10)
(6)
Increase (decrease) in Loss Reserves:
Property, energy, marine and aviation
$ 
(67) $ 
(94) 
Third party occurrence business
 
(281)  
(85) 
Third party claims-made business
 
(403)  
(155) 
Multi-line and other specialty
 
(709)  
(261) 
REINSURANCE SEGMENT
Higher 
Expected Loss 
Ratios
Slower Loss 
Development 
Patterns
Reserving lines selected assumptions:
Casualty
10 points
6 months
Other specialty
5
3
Property excluding property catastrophe
5
3
Property catastrophe
5
3
Marine and aviation
5
3
Other
5
3
Increase (decrease) in Loss Reserves:
Casualty
$ 
273 
$ 
300 
Other specialty
 
245 
 
172 
Property excluding property catastrophe  
88 
 
201 
Property catastrophe
 
38 
 
61 
Marine and aviation
 
20 
 
37 
Other
 
10 
 
8 
ARCH CAPITAL
79
2024 FORM 10-K

REINSURANCE SEGMENT
Lower 
Expected Loss 
Ratios
Faster Loss 
Development 
Patterns
Reserving lines selected assumptions:
Casualty
(10) points
(6) months
Other specialty
(5)
(3)
Property excluding property catastrophe
(5)
(3)
Property catastrophe
(5)
(3)
Marine and aviation
(5)
(3)
Other
(5)
(3)
Increase (decrease) in Loss Reserves:
Casualty
$ 
(273) $ 
(230) 
Other specialty
 
(245)  
(240) 
Property excluding property catastrophe  
(88)  
(195) 
Property catastrophe
 
(38)  
(36) 
Marine and aviation
 
(20)  
(38) 
Other
 
(10)  
(7) 
It is not necessarily appropriate to sum the total impact for a 
specific factor or the total impact for a specific business 
category as the business categories are not perfectly 
correlated. In addition, the potential variability shown in the 
tables above are reasonably likely scenarios of changes in our 
key assumptions at December 31, 2024 and are not meant to 
be a “best case” or “worst case” series of outcomes and 
therefore, it is possible that future variations may be more or 
less than the amounts set forth above.
For our mortgage segment, we considered the sensitivity of 
loss reserve estimates at December 31, 2024 by assessing the 
potential changes resulting from a parallel shift in severity 
and default to claim rate. For example, assuming all other 
factors remain constant, for every one percentage point 
change in primary claim severity (which we estimate to be 
approximately 30% of the unpaid principal balance at 
December 31, 2024), we estimated that our loss reserves 
would change by approximately $15 million at December 31, 
2024. For every one percentage point change in our primary 
net default to claim rate (which we estimate to be 
approximately 22% at December 31, 2024), we estimated a 
$20 million change in our loss reserves at December 31, 
2024.
Simulation Results
In order to illustrate the potential volatility in our Loss 
Reserves, we used a Monte Carlo simulation approach to 
simulate a range of results based on various probabilities. 
Both the probabilities and related modeling are subject to 
inherent uncertainties. The simulation relies on a significant 
number of assumptions, such as the potential for multiple 
entities to react similarly to external events, and includes 
other statistical assumptions. The simulation results shown 
for each segment do not add to the total simulation results, as 
the individual segment simulation results do not reflect the 
diversification effects across our segments. 
At December 31, 2024, our recorded Loss Reserves by 
underwriting segment, net of unpaid losses and loss 
adjustment expenses recoverable, and the results of the 
simulation were as follows:
Insurance 
Segment
Reinsurance 
Segment
Mortgage 
Segment
Total
Loss 
Reserves (1)
 
$11,968  
$9,107  
$473  
$21,548 
Simulation 
results:
90th 
percentile (2)
 
$14,025  
$11,114  
$566  
$25,257 
10th 
percentile (3)
 
$10,033  
$7,265  
$387  
$18,117 
(1) 
Net of reinsurance recoverables. 
(2) 
Simulation results indicate that a 90% probability exists that the net 
reserves for losses and loss adjustment expenses will not exceed the 
indicated amount.
(3) 
Simulation results indicate that a 10% probability exists that the net 
reserves for losses and loss adjustment expenses will be at or below the 
indicated amount.
For informational purposes, based on the total simulation 
results, a change in our Loss Reserves to the amount 
indicated at the 90th percentile would result in a decrease in 
income before income taxes of approximately $3.7 billion, or 
$9.71 per diluted share, while a change in our Loss Reserves 
to the amount indicated at the 10th percentile would result in 
an increase in income before income taxes of approximately 
$3.4 billion, or $8.99 per diluted share. The simulation results 
noted above are informational only, and no assurance can be 
given that our ultimate losses will not be significantly 
different than the simulation results shown above, and such 
differences could directly and significantly impact earnings 
favorably or unfavorably in the period they are determined. 
We do not have significant exposure to pre-2002 liabilities, 
such as asbestos-related illnesses and other long-tail 
liabilities. It is difficult to provide meaningful trend 
information for certain liability/casualty coverages for which 
the claim-tail may be especially long, as claims are often 
reported and ultimately paid or settled years, or even decades, 
after the related loss events occur. Any estimates and 
ARCH CAPITAL
80
2024 FORM 10-K

assumptions made as part of the reserving process could 
prove to be inaccurate due to several factors, including the 
fact that for certain lines of business relatively limited 
historical information has been reported to us through 
December 31, 2024. Accordingly, the reserving for incurred 
losses in these lines of business could be subject to greater 
variability. See Item 1A, “Risk Factors – Risks Relating to 
Our Industry, Business & Operations – Underwriting risks 
and reserving for losses are based on probabilities and related 
modeling, which are subject to inherent uncertainties.”
Mortgage Operations Supplemental Information
On June 3, 2024, we completed the acquisition of RMIC 
Companies, 
Inc., 
and 
its 
wholly-owned 
subsidiaries 
(“RMIC”) that, together, comprise the run-off mortgage 
insurance 
business 
of 
Old 
Republic 
International 
Corporation. The acquired business had been in runoff since 
2011 and represented $3.6 billion of insurance in force at the 
time of the acquisition.
The mortgage segment’s insurance in force (“IIF”) and risk 
in force (“RIF”) were as follows at December 31, 2024 and 
2023: 
December 31,
2024
2023
Amount
%
Amount
%
Insurance In Force (IIF) (1):
U.S. primary mortgage 
insurance
$ 290,435 
 58.0 
$ 290,764 
 57.1 
U.S. credit risk transfer
(CRT) and other
 
145,892 
 29.1 
 
149,098 
 29.3 
International mortgage
insurance/reinsurance
 
64,822 
 12.9 
 
69,473 
 13.6 
Total
$ 501,149 
 100.0 
$ 509,335 
 100.0 
Risk In Force (RIF) (2):
U.S. primary mortgage 
insurance
$ 
76,034 
 85.3 
$ 
75,527 
 84.6 
U.S. credit risk transfer
(CRT) and other
 
5,876 
 
6.6 
 
6,156 
 
6.9 
International mortgage
insurance/reinsurance
 
7,215 
 
8.1 
 
7,562 
 
8.5 
Total
$ 
89,125 
 100.0 
$ 
89,245 
 100.0 
(1) 
Represents the aggregate dollar amount of each insured mortgage 
loan’s current principal balance. Such amounts are shown before 
external reinsurance.
(2) 
The aggregate dollar amount of each insured mortgage loan’s current 
principal balance multiplied by the insurance coverage percentage 
specified in the policy for insurance policies issued and after contract 
limits and/or loss ratio caps for risk-sharing or reinsurance transactions. 
Such amounts are shown before external reinsurance.
The insurance in force and risk in force for our U.S. primary 
mortgage insurance business by policy year were as follows 
at December 31, 2024:
IIF
RIF
Delinquency
Amount
%
Amount
%
Rate (1)
Policy year:
2014 and prior
$ 14,998 
 
5.2 
$ 
3,817 
 
5.0 
 6.49 %
2015
 
3,331 
 
1.1 
 
853 
 
1.1 
 2.19 %
2016
 
5,240 
 
1.8 
 
1,371 
 
1.8 
 3.23 %
2017
 
5,554 
 
1.9 
 
1,489 
 
2.0 
 3.52 %
2018
 
7,081 
 
2.4 
 
1,843 
 
2.4 
 4.31 %
2019
 
12,919 
 
4.4 
 
3,386 
 
4.5 
 2.85 %
2020
 
39,426 
 13.6 
 
10,718 
 14.1 
 1.52 %
2021
 
62,382 
 21.5 
 
16,620 
 21.9 
 1.52 %
2022
 
57,175 
 19.7 
 
15,113 
 19.9 
 1.51 %
2023
 
36,827 
 12.7 
 
9,479 
 12.5 
 1.12 %
2024
 
45,502 
 15.7 
 
11,345 
 14.9 
 0.30 %
Total
$ 290,435 
 100.0 
$ 76,034 
 100.0 
 2.09 %
(1)
Represents the ending percentage of loans in default.
The insurance in force and risk in force for our U.S. primary 
mortgage insurance business by policy year were as follows 
at December 31, 2023:
IIF
RIF
Delinquency
Amount
%
Amount
%
Rate (1)
Policy year:
2014 and prior
$ 13,301 
 
4.6 
$ 
3,387 
 
4.5 
 6.01 %
2015
 
4,691 
 
1.6 
 
1,244 
 
1.6 
 1.98 %
2016
 
7,525 
 
2.6 
 
2,025 
 
2.7 
 2.50 %
2017
 
7,600 
 
2.6 
 
2,023 
 
2.7 
 3.13 %
2018
 
8,512 
 
2.9 
 
2,207 
 
2.9 
 4.04 %
2019
 
15,767 
 
5.4 
 
4,074 
 
5.4 
 2.40 %
2020
 
51,349 
 17.7 
 
13,357 
 17.7 
 1.17 %
2021
 
76,667 
 26.4 
 
19,812 
 26.2 
 1.12 %
2022
 
63,899 
 22.0 
 
16,755 
 22.2 
 0.89 %
2023
 
41,453 
 14.3 
 
10,643 
 14.1 
 0.26 %
Total
$ 290,764 
 100.0 
$ 75,527 
 100.0 
 1.74 %
(1)
Represents the ending percentage of loans in default.
ARCH CAPITAL
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2024 FORM 10-K

The following tables provide supplemental disclosures on 
risk in force for our U.S. primary mortgage insurance 
business at December 31, 2024 and 2023:
December 31,
2024
2023
Amount
%
Amount
%
Credit quality (FICO):
>=740
$ 47,360 
 
62.3 
$ 46,796 
 
62.0 
680-739
 
24,688 
 
32.5 
 
24,990 
 
33.1 
620-679
 
3,638 
 
4.8 
 
3,497 
 
4.6 
<620
 
348 
 
0.5 
 
244 
 
0.3 
Total
$ 76,034 
 100.0 
$ 75,527 
 100.0 
Weighted average FICO 
score
 
748 
 
748 
Loan-to-Value (LTV):
95.01% and above
$ 
7,420 
 
9.8 
$ 
7,067 
 
9.4 
90.01% to 95.00%
 
45,311 
 
59.6 
 
44,669 
 
59.1 
85.01% to 90.00%
 
20,637 
 
27.1 
 
20,490 
 
27.1 
85.00% and below
 
2,666 
 
3.5 
 
3,301 
 
4.4 
Total
$ 76,034 
 100.0 
$ 75,527 
 100.0 
Weighted average LTV
 93.2 %
 93.0 %
Total RIF, net of 
external reinsurance
$ 60,085 
$ 58,146 
December 31,
2024
2023
Amount
%
Amount
%
Total RIF by State:
California
$ 
5,989 
 
7.9 
$ 
6,162 
 
8.2 
Texas
 
5,613 
 
7.4 
 
5,972 
 
7.9 
North Carolina
 
3,355 
 
4.4 
 
3,248 
 
4.3 
Georgia
 
3,143 
 
4.1 
 
3,081 
 
4.1 
Minnesota
 
3,108 
 
4.1 
 
3,069 
 
4.1 
Illinois
 
3,056 
 
4.0 
 
2,986 
 
4.0 
Massachusetts
 
2,885 
 
3.8 
 
2,858 
 
3.8 
Michigan
 
2,855 
 
3.8 
 
2,773 
 
3.7 
Florida
 
2,824 
 
3.7 
 
3,007 
 
4.0 
Ohio
 
2,716 
 
3.6 
 
2,553 
 
3.4 
Others
 
40,490 
 
53.3 
 
39,818 
 
52.7 
Total
$ 
76,034 
 100.0 
$ 
75,527 
 100.0 
The following table provides supplemental disclosures for 
our U.S. primary mortgage insurance business related to 
insured loans and loss metrics for the years ended 
December 31, 2024 and 2023:
(U.S. Dollars in thousands, except loan 
and claim count)
Year Ended December 31,
2024
2023
Rollforward of insured loans in default:
Beginning delinquent number of loans
 
19,457 
 
20,567 
New notices
 
45,785 
 
39,496 
Cures
 
(43,506) 
 
(39,704) 
Paid claims
 
(1,279) 
 
(902) 
Acquired delinquent loans (1)
 
2,525 
 
— 
Ending delinquent number of loans (2)
 
22,982 
 
19,457 
Ending number of policies in force (2)
 1,100,653 
 1,117,480 
Delinquency rate (2)
 2.09 %
 1.74 %
Losses:
Number of claims paid
 
1,279 
 
902 
Total paid claims
$ 
43,895 
$ 
26,903 
Average per claim 
$ 
34.3 
$ 
29.8 
Severity (3)
 71.6 %
 70.8 %
Average reserve per default (in 
thousands) (2)
$ 
15.3 
$ 
17.7 
(1) 
Represents delinquent loans related to the acquisition of RMIC.
(2) 
Includes first lien primary and pool policies.
(3) 
Represents total direct first lien paid claims divided by RIF of loans 
for which claims were paid, excluding paid claim settlements.
The risk-to-capital ratio, which represents total current (non-
delinquent) risk in force, net of reinsurance, divided by total 
statutory capital, for U.S. primary mortgage insurance 
operations was approximately 7.8 to 1 at December 31, 2024, 
compared to 7.3 to 1 at December 31, 2023.
Ceded Reinsurance
In the normal course of business, our insurance and mortgage 
insurance operations cede a portion of their premium on a 
quota share or excess of loss basis through treaty or 
facultative 
reinsurance 
agreements. 
Our 
reinsurance 
operations also obtain reinsurance whereby another reinsurer 
contractually agrees to indemnify it for all or a portion of the 
reinsurance risks underwritten by our reinsurance operations. 
Such arrangements, where one reinsurer provides reinsurance 
to another reinsurer, are usually referred to as “retrocessional 
reinsurance” arrangements. In addition, our reinsurance 
subsidiaries participate in “common account” retrocessional 
arrangements for certain pro rata treaties. Such arrangements 
reduce the effect of individual or aggregate losses to all 
companies participating on such treaties, including the 
reinsurers, such as our reinsurance operations, and the ceding 
company. Estimating reinsurance recoverables can be more 
subjective than estimating the underlying reserves for losses 
and loss adjustment expenses as discussed above in “—Loss 
Reserves.” In particular, reinsurance recoverables may be 
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affected by deemed inuring reinsurance, industry losses 
reported by various statistical reporting services, and other 
factors. Reinsurance recoverables are recorded as assets, 
predicated on the reinsurers’ ability to meet their obligations 
under the reinsurance agreements. If the reinsurers are unable 
to satisfy their obligations under the agreements, our 
insurance or reinsurance operations would be liable for such 
defaulted amounts.
The availability and cost of reinsurance and retrocessional 
protection is subject to market conditions, which are beyond 
our control. Although we believe that our insurance and 
reinsurance operations have been successful in obtaining 
adequate reinsurance and retrocessional protection, it is not 
certain that they will be able to continue to obtain adequate 
protection at cost effective levels. As a result of such market 
conditions and other factors, our insurance, reinsurance and 
mortgage operations may not be able to successfully mitigate 
risk through reinsurance and retrocessional arrangements and 
may lead to increased volatility in our results of operations in 
future periods. See Item 1A, “Risk Factors—Risks Relating 
to Our Industry, Business and Operations—The failure of any 
of the loss limitation methods we employ could have a 
material adverse effect on our financial condition or results of 
operations.”
For purposes of managing risk, we reinsure a portion of our 
exposures, paying to reinsurers a part of the premiums 
received on the policies we write, and we may also use 
retrocessional protection. On a consolidated basis, ceded 
premiums written represented 26.9% of gross premiums 
written for 2024, compared to 26.8% for 2023. We monitor 
the financial condition of our reinsurers and attempt to place 
coverages only with substantial, financially sound carriers. If 
the financial condition of our reinsurers or retrocessionaires 
deteriorates, resulting in an impairment of their ability to 
make payments, we will be responsible for probable losses 
resulting from our inability to collect amounts due from such 
parties, as appropriate. We evaluate the credit worthiness of 
all the reinsurers to which we cede business. We report 
reinsurance recoverables net of an allowance for expected 
credit loss. The allowance is based upon our ongoing review 
of amounts outstanding, the financial condition of our 
reinsurers, amounts and form of collateral obtained and other 
relevant factors. A ratings based probability-of-default and 
loss-given-default methodology is used to estimate the 
allowance for expected credit loss. See Item 1A, “Risk 
Factors—Risks Relating to Our Industry, Business and 
Operations—We are exposed to credit risk in certain of our 
business operations” and “Financial Condition, Liquidity and 
Capital Resources” for further details.
We have entered into various aggregate excess of loss 
reinsurance agreements with various special purpose 
reinsurance companies domiciled in Bermuda. These are 
special purpose variable interest entities that are not 
consolidated in our financial results because we do not have 
the unilateral power to direct those activities that are 
significant to its economic performance. See note 12, 
“Variable Interest Entities” to our consolidated financial 
statements in Item 8 for additional information.
Premium Revenues and Related Expenses
Insurance premiums written are generally recorded at the 
policy inception and are primarily earned on a pro rata basis 
over the terms of the policies for all products, usually 12 
months. Premiums written include estimates in our insurance 
operations’ programs, specialty lines, collateral protection 
business and for participation in involuntary pools. Such 
premium estimates are derived from multiple sources which 
include the historical experience of the underlying business, 
similar 
business 
and 
available 
industry 
information. 
Unearned premium reserves represent the portion of 
premiums written that relates to the unexpired terms of in-
force insurance policies.
Reinsurance premiums written include amounts reported by 
brokers and ceding companies, supplemented by our own 
estimates of premiums where reports have not been received. 
The determination of premium estimates requires a review of 
our experience with the ceding companies, familiarity with 
each market, the timing of the reported information, an 
analysis and understanding of the characteristics of each line 
of business, and management’s judgment of the impact of 
various factors, including premium or loss trends, on the 
volume of business written and ceded to us. On an ongoing 
basis, our underwriters review the amounts reported by these 
third parties for reasonableness based on their experience and 
knowledge of the subject class of business, taking into 
account our historical experience with the brokers or ceding 
companies. In addition, reinsurance contracts under which we 
assume business generally contain specific provisions which 
allow us to perform audits of the ceding company to ensure 
compliance with the terms and conditions of the contract, 
including accurate and timely reporting of information. Based 
on a review of all available information, management 
establishes premium estimates where reports have not been 
received. Premium estimates are updated when new 
information is received and differences between such 
estimates and actual amounts are recorded in the period in 
which estimates are changed or the actual amounts are 
determined. Premiums written are recorded based on the type 
of contracts we write. Premiums on our excess of loss and 
pro rata reinsurance contracts are estimated when the 
business is underwritten. For excess of loss contracts, 
premiums are recorded as written based on the terms of the 
contract. Estimates of premiums written under pro rata 
contracts are recorded in the period in which the underlying 
risks incept and are based on information provided by the 
brokers and the ceding companies. For multi-year reinsurance 
treaties which are payable in annual installments, generally, 
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only the initial annual installment is included as premiums 
written at policy inception due to the ability of the reinsured 
to commute or cancel coverage during the term of the policy. 
The remaining annual installments are included as premiums 
written at each successive anniversary date within the multi-
year term.
Reinstatement premiums for our insurance and reinsurance 
operations are recognized at the time a loss event occurs, 
where coverage limits for the remaining life of the contract 
are 
reinstated 
under 
pre-defined 
contract 
terms. 
Reinstatement premiums, if obligatory, are fully earned when 
recognized. The accrual of reinstatement premiums is based 
on an estimate of losses and loss adjustment expenses, which 
reflects management’s judgment, as described above in “—
Loss Reserves.”
The amount of reinsurance premium estimates included in 
premiums receivable and the amount of related acquisition 
expenses by type of business were as follows at 
December 31, 2024:
December 31, 2024
Gross 
Amount
Acquisition 
Expenses
Net
Amount
Other specialty
$ 
1,599 
$ 
(447) $ 
1,152 
Property excluding 
property catastrophe
 
676 
 
(207)  
469 
Casualty
 
495 
 
(144)  
351 
Marine and aviation
 
212 
 
(43)  
169 
Property catastrophe
 
14 
 
— 
 
14 
Other
 
85 
 
(13)  
72 
Total 
$ 
3,081 
$ 
(854) $ 
2,227 
Premium estimates are reviewed by management at least 
quarterly. Such review includes a comparison of actual 
reported premiums to expected ultimate premiums along with 
a review of the aging and collection of premium estimates. 
Based on management’s review, the appropriateness of the 
premium estimates is evaluated, and any adjustment to these 
estimates is recorded in the period in which it becomes 
known. Adjustments to premium estimates could be material 
and such adjustments could directly and significantly impact 
earnings favorably or unfavorably in the period they are 
determined because the estimated premium may be fully or 
substantially earned.
A significant portion of amounts included as premiums 
receivable, which represent estimated premiums written, net 
of commissions, are not currently due based on the terms of 
the underlying contracts. Based on currently available 
information, we report premiums receivable net of an 
allowance for expected credit loss. We monitor credit risk 
associated with premiums receivable through our ongoing 
review of amounts outstanding, aging of the receivable, 
historical data and counterparty financial strength measures.
Reinsurance premiums assumed, irrespective of the class of 
business, are generally earned on a pro rata basis over the 
terms of the underlying policies or reinsurance contracts. 
Contracts and policies written on a “losses occurring” basis 
cover claims that may occur during the term of the contract 
or policy, which is typically 12 months. Accordingly, the 
premium is earned evenly over the term. Contracts which are 
written on a “risks attaching” basis cover claims which attach 
to the underlying insurance policies written during the terms 
of such contracts. Premiums earned on such contracts usually 
extend beyond the original term of the reinsurance contract, 
typically resulting in recognition of premiums earned over a 
24-month period.
Certain of our reinsurance contracts include provisions that 
adjust premiums or acquisition expenses based upon the 
experience under the contracts. Premiums written and earned, 
as well as related acquisition expenses, are recorded based 
upon the projected experience under such contracts.
Retroactive reinsurance reimburses a ceding company for 
liabilities incurred as a result of past insurable events covered 
by the underlying policies reinsured. In certain instances, 
reinsurance contracts cover losses both on a prospective basis 
and on a retroactive basis and, accordingly, we bifurcate the 
prospective and retrospective elements of these reinsurance 
contracts and accounts for each element separately where 
practical. Underwriting income generated in connection with 
retroactive reinsurance contracts is deferred and amortized 
into income over the settlement period while losses are 
charged to income immediately. Subsequent changes in 
estimated amount or timing of cash flows under such 
retroactive reinsurance contracts are accounted for by 
adjusting the previously deferred amount to the balance that 
would have existed had the revised estimate been available at 
the inception of the reinsurance transaction, with a 
corresponding charge or credit to income.
Mortgage guaranty insurance policies are contracts that are 
generally non-cancelable by the insurer, are renewable at a 
fixed price, and provide for payment of premiums on a 
monthly, annual or single basis. Upon renewal, we are not 
able to re-underwrite or re-price our policies. Consistent with 
industry accounting practices, premiums written on a 
monthly basis are earned as coverage is provided. Premiums 
written on an annual basis are amortized on a monthly pro 
rata basis over the year of coverage. Primary mortgage 
insurance premiums written on policies covering more than 
one year are referred to as single premiums. A portion of the 
revenue from single premiums is recognized in premiums 
earned in the current period, and the remaining portion is 
deferred as unearned premiums and earned over the estimated 
expiration of risk of the policy. If single premium policies 
related to insured loans are canceled for any reason and the 
policy is a non-refundable product, the remaining unearned 
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premium related to each canceled policy is recognized as 
earned premium upon notification of the cancellation. 
Unearned premiums represent the portion of premiums 
written that is applicable to the estimated unexpired risk of 
insured loans. A portion of premium payments may be 
refundable if the insured cancels coverage, which generally 
occurs when the loan is repaid, the loan amortizes to a 
sufficiently low amount to trigger a lender permitted or 
legally required cancellation, or the value of the property has 
increased sufficiently in accordance with the terms of the 
contract. Premium refunds reduce premiums earned in the 
consolidated statements of income. Generally, only unearned 
premiums are refundable.
Acquisition costs that are directly related and incremental to 
the successful acquisition or renewal of business are deferred 
and amortized based on the type of contract. For property and 
casualty insurance and reinsurance contracts, deferred 
acquisition costs are amortized over the period in which the 
related premiums are earned. Consistent with mortgage 
insurance industry accounting practice, amortization of 
acquisition costs related to the mortgage insurance contracts 
for each underwriting year’s book of business is recorded in 
proportion to estimated gross profits. Estimated gross profits 
are comprised of earned premiums and losses and loss 
adjustment expenses. For each underwriting year, we 
estimate the rate of amortization to reflect actual experience 
and any changes to persistency or loss development.
Acquisition expenses and other expenses related to our 
underwriting operations that vary with, and are directly 
related to, the successful acquisition or renewal of business 
are deferred and amortized based on the type of contract. Our 
insurance and reinsurance operations capitalize incremental 
direct external costs that result from acquiring a contract but 
do not capitalize salaries, benefits and other internal 
underwriting costs. For our mortgage insurance operations, 
which include a substantial direct sales force, both external 
and certain internal direct costs are deferred and amortized. 
Deferred acquisition costs are carried at their estimated 
realizable value and take into account anticipated losses and 
loss adjustment expenses, based on historical and current 
experience, and anticipated investment income. 
A premium deficiency occurs if the sum of anticipated losses 
and loss adjustment expenses, unamortized acquisition costs 
and maintenance costs and anticipated investment income 
exceed unearned premiums. A premium deficiency reserve 
(“PDR”) is recorded by charging any unamortized acquisition 
costs to expense to the extent required in order to eliminate 
the 
deficiency. 
If 
the 
premium 
deficiency 
exceeds 
unamortized acquisition costs then a liability is accrued for 
the excess deficiency. 
To assess the need for a PDR on our mortgage exposures, we 
develop loss projections based on modeled loan defaults 
related to our current policies in force. This projection is 
based on recent trends in default experience, severity and 
rates of defaulted loans moving to claim, as well as recent 
trends in the rate at which loans are prepaid, and incorporates 
anticipated interest income. Evaluating the expected 
profitability of our existing mortgage insurance business and 
the need for a PDR for our mortgage business involves 
significant reliance upon assumptions and estimates with 
regard to the likelihood, magnitude and timing of potential 
losses and premium revenues. The models, assumptions and 
estimates we use to evaluate the need for a PDR may prove to 
be inaccurate, especially during an extended economic 
downturn or a period of extreme market volatility and 
uncertainty.
No premium deficiency charges were recorded by us during 
2024 or 2023.
Net Deferred Income Tax Assets Measurement
On December 27, 2023 the Bermuda government enacted tax 
legislation referred to as the Corporate Income Tax Act 2023 
(“Bermuda CIT Act”). The Bermuda CIT Act establishes a 
15% corporate income tax, for in-scope businesses, for fiscal 
years beginning on or after January 1, 2025. The enacted 
legislation includes a provision referred to as the Economic 
Transition Adjustment, which requires Bermuda Constituent 
entities to establish tax basis in their assets and liabilities, 
excluding goodwill, based on fair value as of September 30, 
2023. Fair value is defined as the price that would be 
received to sell an asset or paid to transfer a liability in an 
orderly transaction between market participants at the 
measurement date.
Using fair value to establish tax basis in the assets and 
liabilities of our Bermuda entities results in deductible and 
taxable temporary differences which are reflected as deferred 
income tax assets and liabilities, respectively, in our financial 
statements. The enactment of Bermuda CIT Act resulted in 
the establishment of a $1.18 billion net deferred income tax 
asset. Such amount is included in ‘other assets’ on the 
Company’s balance sheet. In January 2025, the OECD issued 
administrative guidance introducing a new interpretation 
(with retroactive effect) for determining the treatment of 
deferred income tax assets and liabilities. Bermuda has not 
issued corresponding guidance. As of December 31, 2024, 
management’s estimate of the measurement of the deferred 
tax assets remains unchanged.
The most significant deferred income tax assets recognized 
relate to the fair value adjustments for identifiable intangible 
assets. We estimated the fair value of the identifiable 
intangible assets of our Bermuda entities using discounted 
cash flow (“DCF”) models. The significant assumptions 
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utilized in the DCF models included the future revenue and 
profits expected to be generated by the identifiable intangible 
assets and the discount rates. See note 15, “Income Taxes” to 
our consolidated financial statements in Item 8 for 
disclosures concerning our Company’s deferred income tax 
asset.
Fair Value Measurements
We review our securities measured at fair value and discuss 
the proper classification of such investments with investment 
advisors and others. See note 10, “Fair Value,” to our 
consolidated financial statements in Item 8 for a summary of 
our financial assets and liabilities measured at fair value at 
December 31, 2024 by valuation hierarchy.
Reclassifications
We have reclassified the presentation of certain prior year 
information to conform to the current presentation. Such 
reclassifications had no effect on our net income, 
shareholders’ equity or cash flows.
Significant Accounting Pronouncements
For all other significant accounting policies see note 3, 
“Significant Accounting Policies” and note 3(t), “Recent 
Accounting Pronouncements” to our consolidated financial 
statements in Item 8 for disclosures concerning our 
companies significant accounting policies and recent 
accounting pronouncements.
FINANCIAL CONDITION
Investable Assets
At December 31, 2024, total investable assets held by Arch 
were $41.4 billion.
Investable Assets Held by Arch 
The Finance, Investment and Risk Committee (“FIR 
Committee”) of our Board of Directors (the “Board”) 
establishes our investment policies and sets the parameters 
for creating guidelines for our investment managers. The FIR 
Committee reviews the implementation of the investment 
strategy on a regular basis. Our current approach stresses 
preservation of capital, market liquidity and diversification of 
risk. While maintaining our emphasis on preservation of 
capital and liquidity, we expect our portfolio to become more 
diversified and, as a result, we may expand into areas which 
are not currently part of our investment strategy. Our Chief 
Investment Officer administers the investment portfolio, 
oversees our investment managers and formulates investment 
strategy in conjunction with the FIR Committee. At 
December 31, 2024, approximately $25.6 billion, or 62%, of 
total investable assets held by Arch were internally managed, 
compared to $21.9 billion, or 63%, at December 31, 2023. 
The following table summarizes the duration and average 
credit quality of fixed income assets held by Arch:
December 31,
2024
2023
Average effective fixed maturities duration 
(in years)
 
3.31 
 
3.51 
Average S&P/Moody’s credit ratings (1)
AA-/Aa3
AA-/Aa3
(1)
Average credit ratings on our investment portfolio on securities with 
ratings by Standard & Poor’s Rating Services (“S&P”) and Moody’s 
Investors Service (“Moody’s”).
The following table provides the credit quality distribution of 
our fixed maturities. For individual fixed maturities, S&P 
ratings are used. In the absence of an S&P rating, ratings 
from Moody’s are used, followed by ratings from Fitch 
Ratings.
Estimated 
Fair Value
% of
Total
December 31, 2024
U.S. government and gov’t agencies (1)
$ 
7,498 
 
26.9 
AAA
 
4,330 
 
15.5 
AA
 
2,285 
 
8.2 
A
 
5,138 
 
18.4 
BBB
 
6,467 
 
23.2 
BB
 
978 
 
3.5 
B
 
458 
 
1.6 
Lower than B
 
28 
 
0.1 
Not rated
 
707 
 
2.5 
Total
$ 
27,889 
 
100.0 
December 31, 2023
U.S. government and gov’t agencies (1)
$ 
6,493 
 
26.8 
AAA
 
4,305 
 
17.8 
AA
 
2,165 
 
8.9 
A
 
4,629 
 
19.1 
BBB
 
5,058 
 
20.9 
BB
 
698 
 
2.9 
B
 
389 
 
1.6 
Lower than B
 
15 
 
0.1 
Not rated
 
484 
 
2.0 
Total
$ 
24,236 
 
100.0 
(1)
Includes U.S. government-sponsored agency residential mortgage 
backed securities and agency commercial mortgage backed securities.
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2024 FORM 10-K

The following table provides information on the severity of 
the unrealized loss position as a percentage of amortized cost 
for all fixed maturities which were in an unrealized loss 
position:
Severity of gross 
unrealized losses:
Estimated 
Fair Value
Gross
Unrealized
Losses
% of
Total Gross
Unrealized
Losses
December 31, 2024
0-10%
$ 
16,044 
$ 
(453)  
65.5 
10-20%
 
1,357 
 
(216)  
31.2 
20-30%
 
70 
 
(20)  
2.9 
Greater than 30%
 
6 
 
(3)  
0.4 
Total
$ 
17,477 
$ 
(692)  
100.0 
December 31, 2023
0-10%
$ 
10,696 
$ 
(410)  
49.7 
10-20%
 
2,282 
 
(367)  
44.5 
20-30%
 
116 
 
(35)  
4.2 
Greater than 30%
 
26 
 
(13)  
1.6 
Total
$ 
13,120 
$ 
(825)  
100.0 
The following table summarizes our top ten exposures to 
fixed income corporate issuers by fair value at December 31, 
2024, excluding guaranteed amounts and covered bonds:
 
Estimated 
Fair Value
Credit
Rating (1)
JPMorgan Chase & Co.
$ 
418 
A/A1
Morgan Stanley
 
357 
A-/A1
Bank of America Corporation
 
299 
A-/A1
The Goldman Sachs Group, Inc.
 
244 
A-/A2
Blue Owl Capital Inc.
 
242 
BBB-/Baa3
Citigroup Inc.
 
236 
BBB+/A3
Blackstone Inc.
 
188 
BBB-/Baa2
Hyundai Motor Company
 
186 
A-/A3
Ford Motor Company
 
166 
BBB-/Ba1
Canada
 
156 
AA-/Aa2
Total
$ 
2,492 
(1)
Average credit ratings as assigned by S&P and Moody’s, 
respectively.
The following table provides information on our structured 
securities, 
which 
include 
residential 
mortgage-backed 
securities 
(“RMBS”), 
commercial 
mortgage-backed 
securities (“CMBS”) and asset backed securities (“ABS”):
Agencies
Investment 
Grade
Below 
Investment 
Grade
Total
Dec. 31, 2024
RMBS
$ 
769 
$ 
310 
$ 
— 
$ 
1,079 
CMBS
 
7 
 
959 
 
92 
 
1,058 
ABS
 
— 
 
2,667 
 
233 
 
2,900 
Total
$ 
776 
$ 
3,936 
$ 
325 
$ 
5,037 
Dec. 31, 2023
RMBS
$ 
658 
$ 
445 
$ 
— 
$ 
1,103 
CMBS
 
7 
 
1,126 
 
80 
 
1,213 
ABS
 
— 
 
2,143 
 
107 
 
2,250 
Total
$ 
665 
$ 
3,714 
$ 
187 
$ 
4,566 
The following table summarizes our equity securities, which 
include investments in exchange traded funds:
December 31,
2024
2023
Equities (1)
$ 
1,041 
$ 
739 
Exchange traded funds
Fixed income (2)
 
428 
 
285 
Equity and other (3)
 
213 
 
169 
Total
$ 
1,682 
$ 
1,193 
(1)
Primarily in technology, consumer non-cyclical, communications, 
financial and industrials at December 31, 2024.
(2)
Primarily in corporate at December 31, 2024.
(3)
Primarily in financials, consumer staples, industrials and energy sectors 
at December 31, 2024.
Our investment strategy allows for the use of derivative 
instruments. We utilize various derivative instruments such 
as futures contracts to enhance investment performance, 
replicate investment positions or manage market exposures 
and fixed income duration risk that would be allowed under 
our investment guidelines if implemented in other ways. See 
note 11, “Derivative Instruments,” to our consolidated 
financial statements in Item 8 for additional disclosures 
concerning derivatives.
Accounting guidance regarding fair value measurements 
addresses how companies should measure fair value when 
they are required to use a fair value measure for recognition 
or disclosure purposes under GAAP and provides a common 
definition of fair value to be used throughout GAAP. See 
note 10, “Fair Value,” to our consolidated financial 
statements in Item 8 for a summary of our financial assets 
and liabilities measured at fair value at December 31, 2024 
and 2023 segregated by level in the fair value hierarchy.
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Reinsurance Recoverables
The following table details our reinsurance recoverables at 
December 31, 2024:
% of 
Total
A.M. Best 
Rating (1)
Somers Re Ltd. (2)
 
19.6 
A-
Hannover Rück SE
 
4.4 
A+
Lloyd’s syndicates (3) 
 
4.3 
A+
Munich Reinsurance America, Inc.
 
3.0 
A+
RenaissanceRe Holdings Ltd.
 
2.7 
A+
Swiss Reinsurance America Corporation
 
2.5 
A+
Everest Reinsurance Company
 
2.2 
A+
Partner Reinsurance Company of the U.S.
 
1.6 
A+
Transatlantic Reinsurance Company
 
1.6 
A++
Fortitude Reinsurance Company Ltd.
 
1.6 
A
All other -- “A-” or better
 
20.3 
All other -- not rated (4)
 
36.2 
Total
 
100.0 
(1) 
The financial strength ratings are as of January 6, 2025 and were 
assigned by A.M. Best based on its opinion of the insurer’s financial 
strength as of such date. An explanation of the ratings listed in the table 
follows: the rating of “A++” and “A+” are designated “Superior”; and 
the “A” and “A-” ratings are designated “Excellent.”
(2) 
See note 16, “Transactions with Related Parties.”
(3) 
The A.M. Best group rating of “A+” (Superior) has been applied to all 
Lloyd’s syndicates. 
(4) 
Over 96% of such amount is collateralized through reinsurance trusts, 
funds withheld arrangements, letters of credit or other.
See note 8, “Reinsurance,” to our consolidated financial 
statements in Item 8 for further details.
Reserves for Losses and Loss Adjustment Expenses
We establish Loss Reserves which represent estimates 
involving actuarial and statistical projections, at a given point 
in time, of our expectations of the ultimate settlement and 
administration costs of losses incurred. Estimating Loss 
Reserves is inherently difficult. We utilize actuarial models 
as well as available historical insurance industry loss ratio 
experience and loss development patterns to assist in the 
establishment of Loss Reserves. Actual losses and loss 
adjustment expenses paid will deviate, perhaps substantially, 
from the reserve estimates reflected in our financial 
statements. See “Management’s Discussion and Analysis of 
Financial Condition and Results of Operations—Summary of 
Critical Accounting Estimates—Loss Reserves” and see Item 
1, “Business—Reserves” for further details.
Shareholders’ Equity and Book Value per Share
The following table presents the calculation of book value 
per share:
(U.S. dollars in millions, except per share 
data)
December 31,
2024
2023
Total shareholders’ equity available to 
Arch
$ 
20,820 
$ 
18,353 
Less preferred shareholders’ equity
 
830 
 
830 
Common shareholders’ equity available to 
Arch
$ 
19,990 
$ 
17,523 
Common shares and common share 
equivalents outstanding, net of treasury 
shares (1)
376.4
373.3
Book value per share
$ 
53.11 
$ 
46.94 
(1) 
Excludes the effects of 12.4 million and 12.5 million stock options and 
0.3 million and 0.4 million restricted stock and performance units 
outstanding at December 31, 2024 and 2023, respectively.
LIQUIDITY
Liquidity is a measure of our ability to access sufficient cash 
flows to meet the short-term and long-term cash requirements 
of our business operations. 
Arch Capital is a holding company whose assets primarily 
consist of the shares in its subsidiaries. Generally, Arch 
Capital depends on its available cash resources, liquid 
investments and dividends or other distributions from its 
subsidiaries to make payments, including the payment of debt 
service obligations and operating expenses it may incur and 
any dividends or liquidation amounts with respect to our 
preferred and common shares. 
In 2024, Arch Capital received dividends of $2.5 billion from 
Arch Reinsurance Ltd. (“Arch Re Bermuda”), our Bermuda-
based reinsurer and insurer. Arch Re Bermuda can pay 
approximately $5.5 billion to Arch Capital in 2025 without 
providing an affidavit to the Bermuda Monetary Authority 
(“BMA”). 
Our insurance and reinsurance operations provide liquidity in 
that premiums are received in advance, sometimes 
substantially in advance, of the time losses are paid. The 
period of time from the occurrence of a claim through the 
settlement of the liability may extend many years into the 
future. Sources of liquidity include cash flows from 
operations, financing arrangements or routine sales of 
investments.
As part of our investment strategy, we seek to establish a 
level of cash and highly liquid short-term and intermediate-
term securities which, combined with expected cash flow, is 
believed by us to be adequate to meet our foreseeable 
payment obligations. However, due to the nature of our 
operations, cash flows are affected by claim payments that 
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2024 FORM 10-K

may comprise large payments on a limited number of claims 
and which can fluctuate from year to year. We believe that 
our liquid investments and cash flow will provide us with 
sufficient liquidity in order to meet our claim payment 
obligations. However, the timing and amounts of actual claim 
payments related to recorded Loss Reserves vary based on 
many factors, including large individual losses, changes in 
the legal environment, as well as general market conditions. 
The ultimate amount of the claim payments could differ 
materially from our estimated amounts. Certain lines of 
business written by us, such as excess casualty, have loss 
experience characterized as low frequency and high severity. 
The foregoing may result in significant variability in loss 
payment patterns. The impact of this variability can be 
exacerbated by the fact that the timing of the receipt of 
reinsurance recoverables owed to us may be slower than 
anticipated by us. Therefore, the irregular timing of claim 
payments can create significant variations in cash flows from 
operations between periods and may require us to utilize 
other sources of liquidity to make these payments, which 
may include the sale of investments or utilization of existing 
or new credit facilities or capital market transactions. If the 
source of liquidity is the sale of investments, we may be 
forced to sell such investments at a loss, which may be 
material.
We expect that our liquidity needs, including our anticipated 
insurance obligations and operating and capital expenditure 
needs, will be met by funds generated from underwriting 
activities and investment income, as well as by our balance of 
cash, short-term investments, proceeds on the sale or maturity 
of our investments, and our credit facilities, for the next 
twelve months, at a minimum.
Dividend Restrictions 
Arch Capital has no material restrictions on its ability to 
make distributions to shareholders. However, the ability of 
our regulated insurance and reinsurance subsidiaries to pay 
dividends or make distributions or other payments to us is 
limited by the applicable local laws and relevant regulations 
of the various countries and states in which we operate. See 
note 25, “Statutory Information,” to our consolidated 
financial statements in Item 8 for additional information on 
dividend restrictions.
The payment of dividends from Arch Re Bermuda is, under 
certain circumstances, limited under Bermuda law, which 
requires our Bermuda operating subsidiary to maintain 
certain measures of solvency and liquidity.
Our U.S. insurance and reinsurance subsidiaries are subject 
to insurance laws and regulations in the jurisdictions in which 
they operate. The ability of our regulated insurance 
subsidiaries to pay dividends or make distributions is 
dependent on their ability to meet applicable regulatory 
standards. These regulations include restrictions that limit the 
amount of dividends or other distributions, such as loans or 
cash advances, available to shareholders without prior 
approval of the insurance regulatory authorities. Each state 
requires prior regulatory approval of any payment of 
extraordinary dividends.
We also have insurance subsidiaries that are the parent 
company for other insurance subsidiaries, which means that 
dividends and other distributions will be subject to multiple 
layers of regulations in order for our insurance subsidiaries to 
be able to dividend funds to Arch Capital. The inability of the 
subsidiaries of Arch Capital to pay dividends and other 
permitted distributions could have a material adverse effect 
on Arch Capital’s cash requirements and our ability to make 
principal, interest and dividend payments on the senior notes, 
preferred shares and common shares.
In addition to meeting applicable regulatory standards, the 
ability of our insurance and reinsurance subsidiaries to pay 
dividends is also constrained by our dependence on the 
financial strength ratings of our insurance and reinsurance 
subsidiaries from independent rating agencies. The ratings 
from these agencies depend to a large extent on the 
capitalization levels of our insurance and reinsurance 
subsidiaries. We believe that Arch Capital has sufficient cash 
resources and available dividend capacity to service its 
indebtedness and other current outstanding obligations.
Restricted Assets 
Our 
insurance, 
reinsurance 
and 
mortgage 
insurance 
subsidiaries are required to maintain assets on deposit, which 
primarily consist of fixed maturities, with various regulatory 
authorities to support their operations. The assets on deposit 
are available to settle insurance and reinsurance liabilities to 
third parties. Our insurance and reinsurance subsidiaries 
maintain assets in trust accounts as collateral for insurance 
and reinsurance transactions with affiliated companies and 
also have investments in segregated portfolios primarily to 
provide collateral or guarantees for letters of credit to third 
parties. At December 31, 2024 and 2023, such amounts 
approximated $13.0 billion and $9.9 billion, respectively.
Our investments in certain securities, including certain fixed 
income and structured securities, investments in funds 
accounted for using the equity method, other alternative 
investments and investments in operating affiliates may be 
illiquid due to contractual provisions or investment market 
conditions. If we require significant amounts of cash on short 
notice in excess of anticipated cash requirements, then we 
may have difficulty selling these investments in a timely 
manner or may be forced to sell or terminate them at 
unfavorable values. Our unfunded investment commitments 
totaled approximately $4.4 billion at December 31, 2024 and 
are callable by our investment managers. The timing of the 
ARCH CAPITAL
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2024 FORM 10-K

funding of investment commitments is uncertain and may 
require us to access cash on short notice.
Cash Flows 
The following table summarizes our cash flows from 
operating, investing and financing activities:
Year Ended December 31,
2024
2023
Total cash provided by (used for):
Operating activities
$ 
6,673 
$ 
5,749 
Investing activities
 
(4,461)  
(5,468) 
Financing activities
 
(1,925)  
(69) 
Effects of exchange rate changes on foreign 
currency cash
 
(25)  
13 
Increase (decrease) in cash
$ 
262 
$ 
225 
Cash provided by operating activities in 2024 was higher 
than in 2023. Activity in 2024 primarily reflected a higher 
level of premiums collected than in 2023.
Cash used for investing activities in 2024 reflected lower net 
purchases than in 2023. Cash used for investing activity 
during 2024 was partially impacted by a $1.9 billion special 
dividend paid to common shareholders, which entailed that 
we liquidate certain investments. Activity in 2024 also 
reflected $852 million of net cash received related to the 
MCE Acquisition.
Cash used for financing activities in 2024 was higher than in 
2023. Activity in 2024 included a $1.9 billion special 
dividend paid to common shareholders.
Investments 
At December 31, 2024, our investable assets were $41.4 
billion. The primary goals of our asset liability management 
process are to meet our insurance liabilities, manage the 
interest rate risk embedded in those insurance liabilities and 
maintain sufficient liquidity to cover fluctuations in projected 
liability cash flows, including debt service obligations. 
Generally, the expected principal and interest payments 
produced by our fixed income portfolio adequately fund the 
estimated runoff of our insurance reserves. Although this is 
not an exact cash flow match in each period, the substantial 
degree by which the fair value of the fixed income portfolio 
exceeds the expected present value of the net insurance 
liabilities, as well as the positive cash flow from newly sold 
policies and the large amount of high quality liquid bonds, 
provide assurance of our ability to fund the payment of 
claims and to service our outstanding debt without having to 
sell securities at distressed prices or access credit facilities. 
See Item 1A “Risk Factors” for a discussion of other risks 
relating to our business and investment portfolio.
CAPITAL RESOURCES
The following table provides an analysis of our capital 
structure:
December 31,
2024
2023
Senior notes
$ 
2,728 
$ 
2,726 
Shareholders’ equity available to Arch:
Series F non-cumulative preferred shares
 
330 
 
330 
Series G non-cumulative preferred shares
 
500 
 
500 
Common shareholders’ equity
 
19,990 
 
17,523 
Total
$ 
20,820 
$ 
18,353 
Total capital available to Arch
$ 
23,548 
$ 
21,079 
Senior notes to total capital (%)
 11.6 
 12.9 
Revolving credit agreement borrowings to 
total capital (%)
 — 
 — 
Debt to total capital (%)
 11.6 
 12.9 
Preferred to total capital (%)
 3.5 
 3.9 
Debt and preferred to total capital (%)
 15.1 
 16.9 
See note 19, “Debt and Financing Arrangements" and note 
21, “Shareholders' Equity”, to our consolidated financial 
statements in Item 8 for additional information on capital 
structure.
Capital Adequacy
We monitor our capital adequacy on a regular basis and will 
seek to adjust our capital base (up or down) according to the 
needs of our business. The future capital requirements of our 
business will depend on many factors, including our ability to 
write new business successfully and to establish premium 
rates and reserves at levels sufficient to cover losses. Our 
ability to underwrite is largely dependent upon the quality of 
our claims paying and financial strength ratings as evaluated 
by independent rating agencies. In particular, we require (1) 
sufficient capital to maintain our financial strength ratings, as 
issued by several ratings agencies, at a level considered 
necessary by management to enable our key operating 
subsidiaries to compete; (2) sufficient capital to enable our 
underwriting subsidiaries to meet the capital adequacy tests 
performed by statutory agencies in the U.S. and other key 
markets; and (3) our non-U.S. operating companies are 
required to post letters of credit and other forms of collateral 
that are necessary for them to operate as they are “non-
admitted” under U.S. state insurance regulations.
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2024 FORM 10-K

In addition, Arch Mortgage Insurance Company and United 
Guaranty Residential Insurance Company (together, “eligible 
mortgage insurer”) are required to maintain compliance with 
the GSE requirements, known as PMIERs. The financial 
requirements require an eligible mortgage insurer’s available 
assets, which generally include only the most liquid assets of 
an insurer, to meet or exceed “minimum required assets” as 
of each quarter end. Minimum required assets are calculated 
from PMIERs tables with several risk dimensions (including 
origination year, original loan-to-value and original credit 
score of performing loans, and the delinquency status of non-
performing loans) and are subject to a minimum amount. 
Together, our eligible mortgage insurers satisfied the 
PMIERs’ financial requirements as of December 31, 2024 
with a PMIER sufficiency ratio of 186%, compared to 213% 
at December 31, 2023. On August 21, 2024, Fannie Mae and 
Freddie Mac (collectively the GSEs) each updated their 
PMIERs to incorporate new deductions to available assets for 
investment risk. This update will become effective March 31, 
2025, but the impact will be phased in through September 30, 
2026. If the GSEs had fully implemented this update to 
PMIERs as of December 31, 2024, the changes would have 
reduced available assets by 17% and resulted in a Pro-forma 
PMIERs Sufficiency Ratio of 154% compared with a 
reported PMIERs Sufficiency Ratio of 186%.
As part of our capital management program, we may seek to 
raise additional capital or may seek to return capital to our 
shareholders through share repurchases, cash dividends or 
other methods (or a combination of such methods). Any such 
determination will be at the discretion of the Board and will 
be dependent upon our profits, financial requirements and 
other factors, including legal restrictions, rating agency 
requirements and such other factors as our Board deems 
relevant.
To the extent that our existing capital is insufficient to fund 
our future operating requirements or maintain such ratings, 
we may need to raise additional funds through financings or 
limit our growth. We can provide no assurance that, if 
needed, we would be able to obtain additional funds through 
financing on satisfactory terms or at all. Any adverse 
developments in the financial markets, such as disruptions, 
uncertainty or volatility in the capital and credit markets, may 
result in realized and unrealized capital losses that could have 
a material adverse effect on our results of operations, 
financial position and our businesses, and may also limit our 
access to capital required to operate our business. In addition 
to common share capital, we depend on external sources of 
finance to support our underwriting activities, which can be 
in the form (or any combination) of debt securities, 
preference shares, common equity and bank credit facilities 
providing loans and/or letters of credit. 
Arch Capital, through its subsidiaries, provides financial 
support to certain of its insurance subsidiaries and affiliates, 
through certain reinsurance arrangements beneficial to the 
ratings of such subsidiaries. Historically, our insurance, 
reinsurance and mortgage insurance subsidiaries have entered 
into separate reinsurance arrangements with Arch Re 
Bermuda covering individual lines of business.
Except as described in the above paragraph, or where express 
reinsurance, guarantee or other financial support contractual 
arrangements are in place, each of Arch Capital’s subsidiaries 
or affiliates is solely responsible for its own liabilities and 
commitments (and no other Arch Capital subsidiary or 
affiliate is so responsible). Any reinsurance arrangements, 
guarantees 
or 
other 
financial 
support 
contractual 
arrangements that are in place are solely for the benefit of the 
Arch Capital subsidiary or affiliate involved and third parties 
(creditors or insureds of such entity) are not express 
beneficiaries of such arrangements.
Share Repurchase Program 
Our Board has authorized the investment in Arch Capital’s 
common shares through a share repurchase program. Since 
the inception of the share repurchase program through 
December 31, 2024, Arch Capital has repurchased 
approximately 433.8 million common shares for an aggregate 
purchase price of $5.9 billion. At December 31, 2024, $996.8 
million of share repurchases were available under the 
program. Repurchases under the program may be effected 
from time to time in open market. The timing and amount of 
the repurchase transactions under this program will depend 
on a variety of factors, including market conditions, the 
development of the economy, corporate and regulatory 
considerations. We will continue to monitor our share price 
and, depending upon results of operations, market conditions 
and the development of the economy, as well as other factors, 
we will consider share repurchases on an opportunistic basis. 
GUARANTOR INFORMATION
The below table provides a description of our senior notes 
payable at December 31, 2024:
Interest
Principal
Carrying
Issuer/Due
(Fixed)
Amount
Amount
Arch Capital:
May 1, 2034
 7.350 %
$ 
300 
$ 
298 
June 30, 2050
 3.635 %
1,000
989
Arch-U.S.:
Nov. 1, 2043 (1)
 5.144 %
500
496
Arch Finance:
Dec. 15, 2026 (1)
 4.011 %
500
499
Dec. 15, 2046 (1)
 5.031 %
450
446
Total
$ 
2,750 
$ 
2,728 
(1) Fully and unconditionally guaranteed by Arch Capital.
Our senior notes were issued by Arch Capital, Arch Capital 
Group (U.S.) Inc. (“Arch-U.S.”) and Arch Capital Finance 
ARCH CAPITAL
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2024 FORM 10-K

LLC (“Arch Finance”). Arch-U.S. is a wholly-owned 
subsidiary of Arch Capital and Arch Finance is a wholly-
owned finance subsidiary of Arch-U.S. Our 2034 senior 
notes and 2050 senior notes issued by Arch Capital are 
unsecured and unsubordinated obligations of Arch Capital 
and ranked equally with all of its existing and future 
unsecured and unsubordinated indebtedness. The 2043 senior 
notes issued by Arch-U.S. are unsecured and unsubordinated 
obligations of Arch-U.S. and Arch Capital and rank equally 
and ratably with the other unsecured and unsubordinated 
indebtedness of Arch-U.S. and Arch Capital. The 2026 senior 
notes and 2046 senior notes issued by Arch Finance are 
unsecured and unsubordinated obligations of Arch Finance 
and Arch Capital and rank equally and ratably with the other 
unsecured and unsubordinated indebtedness of Arch Finance 
and Arch Capital. 
Arch Capital and Arch-U.S. are each holding companies and, 
accordingly, they conduct substantially all of their operations 
through their operating subsidiaries. Arch Finance is a wholly 
owned subsidiary of Arch U.S. MI Holdings Inc., a U.S. 
holding company. As a result, Arch Capital, Arch-U.S. and 
Arch Finance's cash flows and their ability to service their 
debt depends upon the earnings of their operating 
subsidiaries and on their ability to distribute the earnings, 
loans or other payments from such subsidiaries to Arch 
Capital, Arch-U.S. and Arch Finance, respectively.
During 2024 and 2023, we made interest payments of $127 
million and $127 million, respectively, primarily related to 
our senior notes and other financing arrangements. See note 
19, “Debt and Financing Arrangements,” to our consolidated 
financial statements in Item 8 for additional disclosures 
concerning our senior notes and revolving credit agreement 
borrowings. For additional information on our preferred 
shares, see note 21, “Shareholders’ Equity,” to our 
consolidated financial statements in Item 8.
The following tables present condensed financial information 
for Arch Capital (parent guarantor) and Arch-U.S. 
(subsidiary issuer):
December 31, 2024
December 31, 2023
Arch 
Capital
Arch-
U.S.
Arch 
Capital
Arch-
U.S.
Assets
Total investments
$ 
43 $ 
549 
$ 
17 $ 
145 
Cash
 
13  
5 
 
9  
5 
Investment in operating 
affiliates
 
3  
— 
 
4  
— 
Due from subsidiaries and 
affiliates
 
6  
10 
 
—  
— 
Other assets
 
66  
101 
 
58  
56 
Total assets
$ 
131 $ 
665 
$ 
88 $ 
206 
Liabilities
Senior notes
 
1,287  
495 
 
1,287  
495 
Due to subsidiaries and 
affiliates
 
11  
994 
 
—  
993 
Other liabilities
 
48  
50 
 
38  
42 
Total liabilities
 
1,346  
1,539 
 
1,325  
1,530 
Non-cumulative 
preferred shares
$ 
830 $ 
— 
$ 
830 $ 
— 
 Year Ended
December 31, 2024
December 31, 2023
Arch 
Capital
Arch-
U.S.
Arch 
Capital
Arch-
U.S.
Revenues
Net investment income
$ 
5 
$ 
14 
$ 
2 
$ 
4 
Net realized gains (losses)
 
(4)  
— 
 
— 
 
— 
Equity in net income 
(loss) of investments 
accounted for using the 
equity method
 
— 
 
(4)  
— 
 
(2) 
Total revenues
 
1 
 
10 
 
2 
 
2 
Expenses
Corporate expenses
 
116 
 
7 
 
93 
 
9 
Interest expense
 
59 
 
26 
 
59 
 
26 
Interest expense 
(intercompany)
 
— 
 
53 
 
— 
 
51 
Total expenses
 
175 
 
86 
 
152 
 
86 
Income (loss) before 
income taxes
 
(174)  
(76)  
(150)  
(84) 
Income tax (expense) 
benefit
 
— 
 
22 
 
41 
 
19 
Income (loss) from 
operating affiliates
 
(1)  
— 
 
(1)  
— 
Net income available to 
Arch
 
(175)  
(54)  
(110)  
(65) 
Preferred dividends
 
(40)  
— 
 
(40)  
— 
Net income available to 
Arch common 
shareholders
$ 
(215) $ 
(54) $ 
(150) $ 
(65) 
ARCH CAPITAL
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2024 FORM 10-K

CONTRACTUAL OBLIGATIONS AND COMMITMENTS
Contractual Obligations
The following table provides an analysis of our contractual commitments at December 31, 2024:
Payment due by period
Total
2025
2026 and 
2027
2028 and 
2029
Thereafter
Operating activities
Estimated gross payments for losses and loss adjustment expenses (1)
$ 
29,369 
$ 
9,295 
$ 
9,255 
$ 
4,333 
$ 
6,486 
Contractholder payables (2)
 
2,165 
 
244 
 
433 
 
337 
 
1,151 
Operating lease obligations
 
200 
 
32 
 
60 
 
44 
 
64 
Purchase obligations
 
260 
 
111 
 
108 
 
41 
 
— 
Contingent and deferred consideration liabilities
 
73 
 
56 
 
12 
 
3 
 
2 
Investing activities
Unfunded investment commitments (3)
 
4,433 
 
4,433 
 
— 
 
— 
 
— 
Financing activities
Senior notes (including interest payments)
 
4,914 
 
127 
 
734 
 
214 
 
3,839 
Total contractual obligations and commitments
$ 
41,414 
$ 
14,298 
$ 
10,602 
$ 
4,972 
$ 
11,542 
(1)
The estimated expected contractual commitments related to the reserves for losses and loss adjustment expenses are presented on a gross basis (i.e., not 
reflecting any corresponding reinsurance recoverable amounts that would be due to us). It should be noted that until a claim has been presented to us, 
determined to be valid, quantified and settled, there is no known obligation on an individual transaction basis, and while estimable in the aggregate, the 
timing and amount contain significant uncertainty.
(2)
Certain insurance policies written by our insurance operations feature large deductibles, primarily in construction and national accounts lines. Under such 
contracts, we are obligated to pay the claimant for the full amount of the claim and are subsequently reimbursed by the policyholder for the deductible 
amount. In the event we are unable to collect from the policyholder, we would be liable for such defaulted amounts.
(3)
Unfunded investment commitments are callable by our investment managers. We have assumed that such investments will be funded in the next year but 
the funding may occur over a longer period of time, due to market conditions and other factors.
Letter of Credit and Revolving Credit Facilities
Arch Capital and certain of its subsidiaries have access to a 
credit facility with a syndicate of financial institutions (the 
“Group Credit Facility”) that expires on August 23, 2028. 
The Group Credit Facility consists of a $425 million secured 
facility for letters of credit (the “Secured Facility”) and a 
$500 million unsecured facility for revolving loans and 
letters of credit (the “Unsecured Facility”). At December 31, 
2024, the Secured Facility had $275 million of letters of 
credit outstanding and remaining capacity of $150 million, 
and the Unsecured Facility had no outstanding revolving 
loans or letters of credit, with remaining capacity of 
$500 million.
The Group Credit Facility contains certain restrictive and 
maintenance covenants customary for facilities of this type, 
including 
restrictions 
on 
indebtedness, 
minimum 
consolidated tangible net worth, maximum leverage levels 
and minimum financial strength ratings. Arch Capital and its 
subsidiaries which are party to the agreement were in 
compliance with all covenants contained therein at 
December 31, 2024.
See note 19, “Debt and Financing Arrangements,” to our 
consolidated financial statements in Item 8 for additional 
disclosures concerning our senior notes and revolving credit 
agreement borrowings.
RATINGS
Our ability to underwrite business is affected by the quality 
of our claims paying ability and financial strength ratings as 
evaluated by independent agencies. Such ratings from third 
party 
internationally 
recognized 
statistical 
rating 
organizations or agencies are instrumental in establishing the 
financial security of companies in our industry. We believe 
that the primary users of such ratings include commercial and 
investment banks, policyholders, brokers, ceding companies 
and investors. Insurance ratings are also used by insurance 
and reinsurance intermediaries as an important means of 
assessing the financial strength and quality of insurers and 
reinsurers, and are often an important factor in the decision 
by an insured or intermediary of whether to place business 
with a particular insurance or reinsurance provider. 
Periodically, rating agencies evaluate us to confirm that we 
continue to meet their criteria for the ratings assigned to us 
by them. S&P, Moody’s, A.M. Best Company and Fitch 
Ratings are ratings agencies which have assigned financial 
strength ratings to one or more of Arch Capital’s subsidiaries. 
ARCH CAPITAL
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2024 FORM 10-K

If we are not able to obtain adequate capital, our business, 
results of operations and financial condition could be 
adversely affected, which could include, among other things, 
the following possible outcomes: (1) potential downgrades in 
the financial strength ratings assigned by ratings agencies to 
our operating subsidiaries, which could place those operating 
subsidiaries at a competitive disadvantage compared to 
higher-rated competitors; (2) reductions in the amount of 
business that our operating subsidiaries are able to write in 
order to meet capital adequacy-based tests enforced by 
statutory agencies; and (3) any resultant ratings downgrades 
could, among other things, affect our ability to write business 
and increase the cost of bank credit and letters of credit. In 
addition, under certain of the reinsurance agreements 
assumed by our reinsurance operations, upon the occurrence 
of a ratings downgrade or other specified triggering event 
with respect to our reinsurance operations, such as a 
reduction in surplus by specified amounts during specified 
periods, our ceding company clients may be provided with 
certain rights, including, among other things, the right to 
terminate the subject reinsurance agreement and/or to require 
that our reinsurance operations post additional collateral.
The ratings issued on our companies by these agencies are 
announced publicly and are available directly from the 
agencies. 
Our 
website 
www.archgroup.com 
(Investor 
Relations-Credit Ratings) contains information about our 
ratings, but such information on our website is not 
incorporated by reference into this report. 
CATASTROPHIC EVENTS AND SEVERE 
ECONOMIC EVENTS 
We have large aggregate exposures to natural and man-made 
catastrophic events, pandemic events like COVID-19 and 
severe economic events. Natural catastrophes can be caused 
by various events, including hurricanes, floods, windstorms, 
earthquakes, hailstorms, tornadoes, explosions, severe winter 
weather, fires, droughts and other natural disasters. 
Catastrophes can also cause losses in non-property business 
such as mortgage insurance, workers’ compensation or 
general liability. In addition to the nature of property 
business, we believe that economic and geographic trends 
affecting insured property, including inflation, property value 
appreciation and geographic concentration, tend to generally 
increase the size of losses from catastrophic events over time.
We have substantial exposure to unexpected, large losses 
resulting from future man-made catastrophic events, such as 
acts of war, acts of terrorism and political instability. These 
risks are inherently unpredictable. It is difficult to predict the 
timing of such events with statistical certainty or estimate the 
amount of loss any given occurrence will generate. It is not 
possible 
to 
completely 
eliminate 
our 
exposure 
to 
unforecasted or unpredictable events and, to the extent that 
losses from such risks occur, our financial condition and 
results of operations could be materially adversely affected. 
Therefore, claims for natural and man-made catastrophic 
events could expose us to large losses and cause substantial 
volatility in our results of operations, which could cause the 
value of our common shares to fluctuate widely. In certain 
instances, we specifically insure and reinsure risks resulting 
from terrorism. Even in cases where we attempt to exclude 
losses from terrorism and certain other similar risks from 
some coverages written by us, we may not be successful in 
doing so. Moreover, irrespective of the clarity and 
inclusiveness of policy language, there can be no assurance 
that a court or arbitration panel will limit enforceability of 
policy language or otherwise issue a ruling adverse to us.
We seek to limit our loss exposure by writing a number of 
our reinsurance contracts on an excess of loss basis, adhering 
to maximum limitations on reinsurance written in defined 
geographical zones, limiting program size for each client and 
prudent underwriting of each program written. In the case of 
proportional treaties, we may seek per occurrence limitations 
or loss ratio caps to limit the impact of losses from any one or 
series of events. In our insurance operations, we seek to limit 
our exposure through the purchase of reinsurance. We cannot 
be certain that any of these loss limitation methods will be 
effective. We also seek to limit our loss exposure by 
geographic diversification. Geographic zone limitations 
involve significant underwriting judgments, including the 
determination of the area of the zones and the inclusion of a 
particular policy within a particular zone's limits. There can 
be no assurance that various provisions of our policies, such 
as limitations or exclusions from coverage or choice of 
forum, will be enforceable in the manner we intend. Disputes 
relating to coverage and choice of legal forum may also arise. 
Underwriting is inherently a matter of judgment, involving 
important assumptions about matters that are inherently 
unpredictable and beyond our control, and for which 
historical experience and probability analysis may not 
provide sufficient guidance. One or more catastrophic or 
other events could result in claims that substantially exceed 
our expectations, which could have a material adverse effect 
on our financial condition or our results of operations, 
possibly to the extent of eliminating our shareholders' equity.
For our natural catastrophe exposed business, we seek to 
limit the amount of exposure we will assume from any one 
insured or reinsured and the amount of the exposure to 
catastrophe losses from a single event in any geographic 
zone. We monitor our exposure to catastrophic events, 
including earthquake and wind and periodically reevaluate 
the estimated probable maximum pre-tax loss for such 
exposures. Our estimated probable maximum pre-tax loss is 
determined through the use of modeling techniques, but such 
estimate does not represent our total potential loss for such 
exposures. 
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2024 FORM 10-K

Our models employ both proprietary and vendor-based 
systems and include cross-line correlations for property, 
marine, offshore energy, aviation, workers compensation and 
personal accident. We seek to limit the probable maximum 
pre-tax loss to a specific level for severe catastrophic events. 
Currently, we seek to limit our 1-in-250 year return period 
net probable maximum loss from a severe catastrophic event 
in any geographic zone to approximately 25% of tangible 
shareholders’ equity available to Arch (total shareholders’ 
equity available to Arch less goodwill and intangible assets). 
We reserve the right to change this threshold at any time.
Based on in-force exposure estimated as of January 1, 2025, 
our modeled peak zone catastrophe exposure is a windstorm 
affecting the Florida Tri-County, with a net probable 
maximum pre-tax loss of $1.8 billion, followed by 
windstorms affecting the Northeast U.S., and the Gulf of 
Mexico with net probable maximum pre-tax losses of $1.7 
billion and $1.5 billion, respectively. As of January 1, 2025, 
our modeled peak zone earthquake exposure (San Francisco 
area earthquake) represented approximately 57% of our peak 
zone catastrophe exposure, and our modeled peak zone 
international exposure (German windstorm) was substantially 
less than both our peak zone windstorm and earthquake 
exposures.
We also have significant exposure to losses due to mortgage 
defaults resulting from severe economic events in the future. 
For our U.S. mortgage insurance business, we have 
developed a proprietary risk model (“Realistic Disaster 
Scenario” or “RDS”) that simulates the maximum loss 
resulting from a severe economic downturn impacting the 
housing market. The RDS models the collective impact of 
adverse conditions for key economic indicators, the most 
significant of which is a decline in home prices. The RDS 
model projects paths of future home prices, unemployment 
rates, income levels and interest rates and assumes 
correlation across states and geographic regions. The 
resulting future performance of our in-force portfolio is then 
estimated under the economic stress scenario, reflecting loan 
and borrower information.
Currently, we seek to limit our modeled RDS loss from a 
severe economic event to approximately 25% of total 
tangible shareholders’ equity available to Arch. We reserve 
the right to change this threshold at any time. Based on in-
force exposure estimated as of January 1, 2025, our modeled 
RDS loss was 4.8% of tangible shareholders’ equity available 
to Arch.
Net probable maximum loss estimates are net of expected 
reinsurance recoveries, before income tax and before excess 
reinsurance reinstatement premiums. RDS loss estimates are 
net of expected reinsurance recoveries and before income tax. 
Catastrophe loss estimates are reflective of the zone indicated 
and not the entire portfolio. Since hurricanes and windstorms 
can affect more than one zone and make multiple landfalls, 
our catastrophe loss estimates include clash estimates from 
other zones. Our catastrophe loss estimates and RDS loss 
estimates do not represent our maximum exposures and it is 
highly likely that our actual incurred losses would vary 
materially from the modeled estimates. There can be no 
assurances that we will not suffer pre-tax losses greater than 
25% of our tangible shareholders’ equity from one or more 
catastrophic events or severe economic events due to several 
factors, including the inherent uncertainties in estimating the 
frequency and severity of such events and the margin of error 
in making such determinations resulting from potential 
inaccuracies and inadequacies in the data provided by clients 
and brokers, the modeling techniques and the application of 
such techniques or as a result of a decision to change the 
percentage of shareholders' equity exposed to a single 
catastrophic event or severe economic event. In addition, 
actual losses may increase if our reinsurers fail to meet their 
obligations to us or the reinsurance protections purchased by 
us are exhausted or are otherwise unavailable. See Item 1A, 
“Risk Factors—Risks Relating to Our Industry, Business and 
Operations” Depending on business opportunities and the 
mix of business that may comprise our insurance, reinsurance 
and mortgage portfolios, we may seek to adjust our self-
imposed limitations on probable maximum pre-tax loss for 
catastrophe exposed business and mortgage default exposed 
business. See “—Summary of Critical Accounting Estimates
—Ceded Reinsurance” for a discussion of our catastrophe 
reinsurance programs.
MARKET SENSITIVE INSTRUMENTS AND RISK 
MANAGEMENT
Our investment results are subject to a variety of risks, 
including risks related to changes in the business, financial 
condition or results of operations of the entities in which we 
invest, as well as changes in general economic conditions and 
overall market conditions. We are also exposed to potential 
loss from various market risks, including changes in equity 
prices, interest rates and foreign currency exchange rates.
In accordance with the SEC’s Financial Reporting Release 
No. 48, we performed a sensitivity analysis to determine the 
effects that market risk exposures could have on the future 
earnings, fair values or cash flows of our financial 
instruments as of December 31, 2024. Market risk represents 
the risk of changes in the fair value of a financial instrument 
and consists of several components, including liquidity, basis 
and price risks. 
The sensitivity analysis performed as of December 31, 2024 
presents hypothetical losses in cash flows, earnings and fair 
values of market sensitive instruments which were held by us 
on December 31, 2024 and are sensitive to changes in interest 
rates and equity security prices. This risk management 
ARCH CAPITAL
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discussion and the estimated amounts generated from the 
following sensitivity analysis represent forward-looking 
statements of market risk assuming certain adverse market 
conditions occur. Actual results in the future may differ 
materially from these projected results due to actual 
developments in the global financial markets. The analysis 
methods used by us to assess and mitigate risk should not be 
considered projections of future events of losses.
The focus of the SEC’s market risk rules is on price risk. For 
purposes of specific risk analysis, we employ sensitivity 
analysis to determine the effects that market risk exposures 
could have on the future earnings, fair values or cash flows of 
our financial instruments. The financial instruments included 
in the following sensitivity analysis consist of all of our 
investments and cash.
Investment Market Risk
Fixed Income Securities. We invest in interest rate sensitive 
securities, primarily debt securities. We consider the effect of 
interest rate movements on the fair value of our fixed 
maturities, short-term investments and certain of our other 
investments, 
equity 
securities 
and 
investment 
funds 
accounted for using the equity method which invest in fixed 
income securities (collectively, “Fixed Income Securities”) 
and the corresponding change in unrealized appreciation. As 
interest rates rise, the fair value of our Fixed Income 
Securities falls, and the converse is also true. Based on 
historical observations, there is a low probability that all 
interest rate yield curves would shift in the same direction at 
the same time. Furthermore, at times interest rate movements 
in certain credit sectors exhibit a much lower correlation to 
changes in U.S. Treasury yields. Accordingly, the actual 
effect of interest rate movements may differ materially from 
the amounts set forth in the following tables. 
The following table summarizes the effect that an immediate, 
parallel shift in the interest rate yield curve would have had 
on our investment portfolio at December 31, 2024 and 2023:
(U.S. dollars in 
billions)
Interest Rate Shift in Basis Points
-100
-50
-
+50
+100
Dec. 31, 2024
Total fair value
$ 40.0 
$ 39.5 
$ 
38.9 
$ 38.4 
$ 37.9 
Change from base
 2.8 %
 1.4 %
 (1.4) %
 (2.7) %
Change in 
unrealized value
$ 1.09 
$ 0.54 
$ (0.54) 
$ (1.05) 
Dec. 31, 2023
Total fair value
$ 33.6 
$ 33.1 
$ 
32.7 
$ 32.2 
$ 31.7 
Change from base
 3.0 %
 1.5 %
 (1.4) %
 (2.8) %
Change in 
unrealized value
$ 0.98 
$ 0.49 
$ (0.46) 
$ (0.91) 
In addition, we consider the effect of credit spread 
movements on the market value of our Fixed Income 
Securities and the corresponding change in unrealized value. 
As credit spreads widen, the fair value of our Fixed Income 
Securities falls, and the converse is also true. In periods 
where the spreads on our Fixed Income Securities are much 
higher than their historical average due to short-term market 
dislocations, a parallel shift in credit spread levels would 
result in a much more pronounced change in unrealized 
value. 
The following table summarizes the effect that an immediate, 
parallel shift in credit spreads in a static interest rate 
environment 
would 
have 
had 
on 
the 
portfolio 
at 
December 31, 2024 and 2023:
(U.S. dollars in 
billions)
Credit Spread Shift in Percentage
-100
-50
-
+50
+100
Dec. 31, 2024
Total fair value
$ 40.0 
$ 39.5 
$ 
38.9 
$ 38.4 
$ 37.8 
Change from base
 2.8 %
 1.4 %
 (1.4) %
 (2.8) %
Change in 
unrealized value
$ 1.09 
$ 0.54 
$ (0.54) 
$ (1.09) 
Dec. 31, 2023
Total fair value
$ 33.8 
$ 33.2 
$ 
32.7 
$ 32.1 
$ 31.5 
Change from base
 3.4 %
 1.7 %
 (1.7) %
 (3.4) %
Change in 
unrealized value
$ 1.11 
$ 0.56 
$ (0.56) 
$ (1.11) 
Another method that attempts to measure portfolio risk is 
Value-at-Risk (“VaR”). VaR measures the worst expected 
loss under normal market conditions over a specific time 
interval at a given confidence level. The 1-year 95th 
percentile parametric VaR reported herein estimates that 95% 
of the time, the portfolio loss in a one-year horizon would be 
less than or equal to the calculated number, stated as a 
percentage of the measured portfolio’s initial value. The VaR 
is a variance-covariance based estimate, based on linear 
sensitivities of a portfolio to a broad set of systematic market 
risk factors and idiosyncratic risk factors mapped to the 
portfolio exposures. The relationships between the risk 
factors are estimated using historical data, and the most 
recent data points are generally given more weight. As of 
December 31, 2024, our portfolio’s 95th percentile VaR was 
estimated to be 5.6%, compared to an estimated 7.8% at 
December 31, 2023. In periods where the volatility of the risk 
factors mapped to our portfolio’s exposures is higher due to 
market conditions, the resulting VaR is higher than in other 
periods.
Equity Securities. At December 31, 2024 and 2023, the fair 
value of our investments in equity securities and certain 
investments accounted for using the equity method with 
underlying equity strategies totaled $1.5 billion and $1.0 
billion, respectively. These investments are exposed to price 
risk, which is the potential loss arising from decreases in fair 
value. An immediate hypothetical 10% decline in the value of 
each position would reduce the fair value of such investments 
by approximately $149 million and $101 million at 
ARCH CAPITAL
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2024 FORM 10-K

December 31, 2024 and 2023, respectively, and would have 
decreased book value per share by approximately $0.40 and 
$0.27, respectively. An immediate hypothetical 10% increase 
in the value of each position would increase the fair value of 
such investments by approximately $149 million and $101 
million at December 31, 2024 and 2023, respectively, and 
would have increased book value per share by approximately 
$0.40 and $0.27, respectively.
Investment-Related Derivatives. At December 31, 2024, the 
notional value of all derivative instruments (excluding 
foreign currency forward contracts which are included in the 
foreign currency exchange risk analysis below) was $5.0 
billion, compared to $4.2 billion at December 31, 2023. If the 
underlying exposure of each investment-related derivative 
held at December 31, 2024 depreciated by 100 basis points, it 
would have resulted in a reduction in net income of 
approximately $50 million, and a decrease in book value per 
share of $0.13, compared to $42 million and $0.11, 
respectively, on investment-related derivatives held at 
December 31, 2023. If the underlying exposure of each 
investment-related derivative held at December 31, 2024 
appreciated by 100 basis points, it would have resulted in an 
increase in net income of approximately $50 million, and an 
increase in book value per share of $0.13, compared to $42 
million and $0.11, respectively, on investment-related 
derivatives held at December 31, 2023. See note 11, 
“Derivative Instruments,” to our consolidated financial 
statements in Item 8 for additional disclosures concerning 
derivatives.
For further discussion on investment activity, please refer to 
“—Financial Condition, Liquidity and Capital Resources—
Financial Condition—Investable Assets.”
Foreign Currency Exchange Risk
Foreign currency rate risk is the potential change in value, 
income and cash flow arising from adverse changes in 
foreign currency exchange rates. Through our subsidiaries 
and branches located in various foreign countries, we conduct 
our insurance and reinsurance operations in a variety of local 
currencies other than the U.S. Dollar. We generally hold 
investments in foreign currencies which are intended to 
mitigate our exposure to foreign currency fluctuations in our 
net insurance liabilities. We may also utilize foreign currency 
forward contracts and currency options as part of our 
investment strategy. See note 11, “Derivative Instruments,” 
to our consolidated financial statements in Item 8 for 
additional information.
The following table provides a summary of our net foreign 
currency exchange exposures, as well as foreign currency 
derivatives in place to manage these exposures:
(U.S. dollars in millions, except 
per share data)
December 31,
2024
December 31,
2023
Net assets (liabilities), denominated in 
foreign currencies, excluding 
shareholders’ equity and derivatives
$ 
(815) $ 
(300) 
Shareholders’ equity denominated in 
foreign currencies (1)
 
1,120 
 
1,158 
Net foreign currency forward contracts 
outstanding (2)
 
453 
 
246 
Net exposures denominated in foreign 
currencies
$ 
758 
$ 
1,104 
Pre-tax impact of a hypothetical 10% 
appreciation of the U.S. Dollar against 
foreign currencies:
 
 
Shareholders’ equity
$ 
(76) $ 
(110) 
Book value per share
$ 
(0.20) $ 
(0.30) 
Pre-tax impact of a hypothetical 10% 
decline of the U.S. Dollar against foreign 
currencies:
 
 
Shareholders’ equity
$ 
76 
$ 
110 
Book value per share
$ 
0.20 
$ 
0.30 
(1) 
Represents capital contributions held in the foreign currencies of our 
operating units.
(2) 
Represents the net notional value of outstanding foreign currency 
forward contracts.
Although the Company generally attempts to match the 
currency of its projected liabilities with investments in the 
same currencies, from time to time the Company may elect to 
over or underweight one or more currencies, which could 
increase the Company’s exposure to foreign currency 
fluctuations and increase the volatility of the Company’s 
shareholders’ equity. Historical observations indicate a low 
probability that all foreign currency exchange rates would 
shift against the U.S. Dollar in the same direction and at the 
same time and, accordingly, the actual effect of foreign 
currency rate movements may differ materially from the 
amounts set forth above. For further discussion on foreign 
exchange activity, please refer to “—Results of Operations.”
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2024 FORM 10-K

Effects of Inflation
General economic inflation may continue to remain at 
elevated levels for an extended period of time. The potential 
also exists, after a catastrophe loss or pandemic events like 
COVID-19, for the development of inflationary pressures in a 
local economy. This may have a material effect on the 
adequacy of our reserves for losses and loss adjustment 
expenses, especially in longer-tailed lines of business, and on 
the market value of our investment portfolio through rising 
interest rates. The anticipated effects of inflation are 
considered in our pricing models, reserving processes and 
exposure management, across all lines of business and types 
of loss including natural catastrophe events. The actual 
effects of inflation on our results cannot be accurately known 
until claims are ultimately settled and will vary by the 
specific type of inflation affecting each line of business.
ITEM 7A. QUANTITATIVE AND QUALITATIVE 
DISCLOSURES ABOUT MARKET RISK
Reference is made to the information appearing above under 
the subheading “Market Sensitive Instruments and Risk 
Management” under the caption “Management’s Discussion 
and Analysis of Financial Condition and Results of 
Operation,” which information is hereby incorporated by 
reference.
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2024 FORM 10-K

ITEM 8.  
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Financial Statements
Page No.
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
100
Consolidated Balance Sheets
At December 31, 2024 and December 31, 2023
102
Consolidated Statements of Income
For the years ended December 31, 2024, 2023 and 2022
103
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2024, 2023 and 2022
104
Consolidated Statements of Changes in Shareholders’ Equity
For the years ended December 31, 2024, 2023 and 2022
105
Consolidated Statements of Cash Flows
For the years ended December 31, 2024, 2023 and 2022
106
Notes to Consolidated Financial Statements
Note 1 - General
107
Note 2 - Acquisitions
107
Note 3 - Significant Accounting Policies
108
Note 4 - Segment Information
117
Note 5 - Reserve for Losses and Loss Adjustment Expenses
122
Note 6 - Short Duration Contracts
124
Note 7 - Allowance for Expected Credit Losses
136
Note 8 - Reinsurance
137
Note 9 - Investment Information
139
Note 10 - Fair Value
144
Note 11 - Derivative Instruments
150
Note 12 - Variable interest entities
151
Note 13 - Other Comprehensive Income (Loss)
152
Note 14 - Earnings Per Common Share
154
Note 15 - Income Taxes
154
Note 16 - Transactions with Related Parties
157
Note 17 - Leases
158
Note 18 - Commitments and Contingencies
158
Note 19 - Debt and Financing Arrangements
159
Note 20 - Goodwill and Intangible Assets
161
Note 21 - Shareholders’ Equity
162
Note 22 - Share-Based Compensation
163
Note 23 - Retirement Plans
166
Note 24 - Legal Proceedings
166
Note 25 - Statutory Information
166
Note 26 - Subsequent Events
170
ARCH CAPITAL
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2024 FORM 10-K

Report of Independent Registered Public Accounting Firm 
To the Board of Directors and Shareholders of Arch Capital Group Ltd. 
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Arch Capital Group Ltd. and its subsidiaries (the 
"Company") as of December 31, 2024 and 2023, and the related consolidated statements of income, of comprehensive income, 
of changes in shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2024, 
including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively 
referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial 
reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by 
the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial 
position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the 
three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United 
States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over 
financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) 
issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal 
control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included 
in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to 
express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial 
reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight 
Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. 
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, 
whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material 
respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement 
of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. 
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated 
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by 
management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal 
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the 
risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based 
on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the 
circumstances. We believe that our audits provide a reasonable basis for our opinions.
As described in Management’s Report on Internal Control over Financial Reporting, management has excluded the acquired 
U.S. Middle Market Property & Casualty and U.S. Entertainment Property and Casualty Insurance Business (“MCE”) from its 
assessment of internal control over financial reporting as of December 31, 2024, because it was acquired by the Company in a 
purchase business combination during 2024. We have also excluded MCE from our audit of internal control over financial 
reporting. MCE represents 1.6% of total assets and 3.5% of total revenues as of and for the year ended December 31, 2024. 
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the 
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally 
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures 
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and 
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit 
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and 
ARCH CAPITAL
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2024 FORM 10-K

expenditures of the company are being made only in accordance with authorizations of management and directors of the 
company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or 
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate 
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial 
statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or 
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or 
complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated 
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate 
opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Valuation of Reserve for Losses and Loss Adjustment Expenses
As described in Notes 3, 5 and 6 to the consolidated financial statements, the reserve for losses and loss adjustment expenses 
represents estimates of future amounts required to pay losses and loss adjustment expenses for insured or reinsured events 
which have occurred at or before the balance sheet date. As of December 31, 2024, the Company’s total reserve for losses and 
loss adjustment expenses was $29.4 billion. For the insurance and reinsurance segments, management estimates ultimate losses 
and loss adjustment expenses using various generally accepted actuarial methods applied to known losses and other relevant 
information. Ultimate losses and loss adjustment expenses are generally determined by projection of claim emergence and 
settlement patterns observed in the past that can reasonably be expected to persist into the future. Management makes a number 
of key assumptions in their reserving process, including estimating loss development patterns and expected loss ratios. For the 
mortgage segment, the lead actuarial methodology used by management is a frequency-severity method based on the inventory 
of pending delinquencies. The assumptions of frequency and severity reflect judgments based on historical data and experience. 
The principal considerations for our determination that performing procedures relating to the valuation of the reserve for losses 
and loss adjustment expenses is a critical audit matter are (i) the significant judgment by management when developing their 
estimate, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence 
relating to the aforementioned key actuarial methods and key assumptions, and (iii) the audit effort involved the use of 
professionals with specialized skill and knowledge. 
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall 
opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the 
valuation of the reserve for losses and loss adjustment expenses, including controls over the selection of key actuarial methods 
and development of key assumptions. These procedures also included, among others, the involvement of professionals with 
specialized skill and knowledge to assist in performing one or a combination of procedures, including (i) developing an 
independent estimate, on a test basis, of the reserve for losses and loss adjustment expenses, and comparing the independent 
estimate to management’s actuarially determined reserve for losses and loss adjustment expenses to evaluate the reasonableness 
of the reserve for losses and loss adjustment expenses and (ii) evaluating the appropriateness of the actuarial methods and 
reasonableness of the assumptions related to loss development patterns, expected loss ratios, frequency, and severity used by 
management to determine the Company’s reserve for losses and loss adjustment expenses. Developing the independent estimate 
and evaluating the appropriateness of the key methods and reasonableness of the key assumptions related to loss development 
patterns, expected loss ratios, frequency and severity, as applicable, involved testing the completeness and accuracy of 
historical data provided by management.
/s/ PricewaterhouseCoopers LLP
New York, New York 
February 27, 2025
We have served as the Company’s or its predecessor’s auditor since 1995. 
ARCH CAPITAL
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2024 FORM 10-K

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars and shares in millions)
December 31,
2024
2023
Assets
Investments:
Fixed maturities available for sale, at fair value (amortized cost: $27,570 and $24,131; net of allowance for credit 
losses: $22 and $28)
$ 
27,035 
$ 
23,553 
Short-term investments available for sale, at fair value (amortized cost: $2,784 and $2,064; net of allowance for credit 
losses: $0 and $0 )
 
2,784 
 
2,063 
Equity securities, at fair value
 
1,675 
 
1,186 
Other investments (portion measured at fair value: $3,066 and $2,488)
 
3,066 
 
2,488 
Investments accounted for using the equity method
 
5,980 
 
4,566 
Total investments
 
40,540 
 
33,856 
Cash
 
979 
 
917 
Accrued investment income
 
298 
 
236 
Investment in operating affiliates
 
1,240 
 
1,119 
Premiums receivable (net of allowance for credit losses: $45 and $34)
 
5,634 
 
4,644 
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses (net of allowance for credit losses: 
$17 and $21)
 
8,260 
 
7,064 
Contractholder receivables (net of allowance for credit losses: $5 and $3)
 
2,161 
 
1,814 
Ceded unearned premiums
 
2,428 
 
2,170 
Deferred acquisition costs
 
1,734 
 
1,531 
Receivable for securities sold
 
50 
 
63 
Goodwill and intangible assets
 
1,351 
 
731 
Other assets
 
6,231 
 
4,761 
Total assets
$ 
70,906 
$ 
58,906 
Liabilities
Reserve for losses and loss adjustment expenses
$ 
29,369 
$ 
22,752 
Unearned premiums
 
10,218 
 
8,808 
Reinsurance balances payable
 
2,137 
 
2,000 
Contractholder payables
 
2,165 
 
1,817 
Collateral held for insured obligations
 
249 
 
259 
Senior notes
 
2,728 
 
2,726 
Payable for securities purchased
 
181 
 
247 
Other liabilities
 
3,039 
 
1,942 
Total liabilities
 
50,086 
 
40,551 
Commitments and Contingencies (refer to Note 18)
Redeemable noncontrolling interests
 
— 
 
2 
Shareholders’ Equity
Non-cumulative preferred shares
 
830 
 
830 
Common shares ($0.0011 par, shares issued: 595.6 and 591.9)
 
1 
 
1 
Additional paid-in capital
 
2,510 
 
2,327 
Retained earnings
 
22,686 
 
20,295 
Accumulated other comprehensive income (loss), net of deferred income tax
 
(720)  
(676) 
Common shares held in treasury, at cost (shares: 219.2 and 218.5)
 
(4,487)  
(4,424) 
Total shareholders' equity available to Arch
 
20,820 
 
18,353 
Total liabilities, noncontrolling interests and shareholders' equity
$ 
70,906 
$ 
58,906 
See Notes to Consolidated Financial Statements
ARCH CAPITAL
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2024  FORM 10-K

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars and shares in millions, except per share data)
Year Ended December 31,
2024
2023
2022
Revenues
Net premiums earned
$ 
15,100 
$ 
12,440 
$ 
9,679 
Net investment income
 
1,495 
 
1,023 
 
496 
Net realized gains (losses)
 
197 
 
(165)  
(663) 
Other underwriting income
 
26 
 
31 
 
13 
Equity in net income of investments accounted for using the equity method
 
580 
 
278 
 
115 
Other income (loss)
 
42 
 
27 
 
(27) 
Total revenues
 
17,440 
 
13,634 
 
9,613 
Expenses
Losses and loss adjustment expenses
 
8,342 
 
6,246 
 
5,028 
Acquisition expenses
 
2,651 
 
2,312 
 
1,740 
Other operating expenses
 
1,472 
 
1,301 
 
1,128 
Corporate expenses
 
200 
 
102 
 
95 
Amortization of intangible assets
 
235 
 
95 
 
106 
Interest expense
 
141 
 
133 
 
131 
Net foreign exchange losses (gains)
 
(75)  
60 
 
(102) 
Total expenses
 
12,966 
 
10,249 
 
8,126 
Income before income taxes and income (loss) from operating affiliates
 
4,474 
 
3,385 
 
1,487 
Income taxes:
Current tax expense (benefit) 
 
397 
 
288 
 
201 
Deferred tax expense (benefit) 
 
(35)  
(1,161)  
(121) 
Income tax expense (benefit)
 
362 
 
(873)  
80 
Income (loss) from operating affiliates
 
200 
 
184 
 
75 
Net income
$ 
4,312 
$ 
4,442 
$ 
1,482 
Net (income) loss attributable to noncontrolling interests
 
— 
 
1 
 
(6) 
Net income available to Arch
 
4,312 
 
4,443 
 
1,476 
Preferred dividends
 
(40)  
(40)  
(40) 
Net income available to Arch common shareholders
$ 
4,272 
$ 
4,403 
$ 
1,436 
Net income per common share and common share equivalent
Basic
$ 
11.47 
$ 
11.94 
$ 
3.90 
Diluted
$ 
11.19 
$ 
11.62 
$ 
3.80 
Weighted average common shares and common share equivalents outstanding
Basic
372.5
368.7
368.6
Diluted
381.8
378.8
377.6
See Notes to Consolidated Financial Statements
ARCH CAPITAL
103
2024  FORM 10-K

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(U.S. dollars in millions)
Year Ended December 31,
2024
2023
2022
Comprehensive Income
Net income
$ 
4,312 
$ 
4,442 
$ 
1,482 
Other comprehensive income (loss), net of deferred income tax
Unrealized appreciation (decline) in value of available-for-sale investments:
Unrealized holding gains (losses) arising during year
 
(23)  
547 
 
(1,772) 
Reclassification of net realized (gains) losses, included in net income
 
81 
 
400 
 
247 
Foreign currency translation adjustments
 
(102)  
23 
 
(56) 
Comprehensive income (loss)
 
4,268 
 
5,412 
 
(99) 
Net (income) loss attributable to noncontrolling interests
 
— 
 
1 
 
(6) 
Comprehensive income available to Arch (loss)
$ 
4,268 
$ 
5,413 
$ 
(105) 
See Notes to Consolidated Financial Statements
ARCH CAPITAL
104
2024  FORM 10-K

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(U.S. dollars in millions)
Year Ended December 31,
2024
2023
2022
Non-cumulative preferred shares
Balance at beginning and end of year
$ 
830 
$ 
830 
$ 
830 
Common shares
Balance at beginning and end of year
 
1 
 
1 
 
1 
Additional paid-in capital
Balance at beginning of year
 
2,327 
 
2,211 
 
2,085 
Amortization of share-based compensation
 
133 
 
93 
 
88 
Other changes
 
50 
 
23 
 
38 
Balance at end of year
 
2,510 
 
2,327 
 
2,211 
Retained earnings
Balance at beginning of year
 
20,295 
 
15,892 
 
14,456 
Net income
 
4,312 
 
4,442 
 
1,482 
Net (income) loss attributable to noncontrolling interests
 
— 
 
1 
 
(6) 
Common share dividends
 
(1,881)  
— 
 
— 
Preferred share dividends
 
(40)  
(40)  
(40) 
Balance at end of year
 
22,686 
 
20,295 
 
15,892 
Accumulated other comprehensive income (loss)
Balance at beginning of year
 
(676)  
(1,646)  
(65) 
Unrealized appreciation (decline) in value of available-for-sale investments, net of deferred income tax:
Balance at beginning of year
 
(565)  
(1,512)  
13 
Unrealized holding gains (losses) during period, net of reclassification adjustment
 
58 
 
947 
 
(1,525) 
Balance at end of year
 
(507)  
(565)  
(1,512) 
Foreign currency translation adjustments, net of deferred income tax:
Balance at beginning of year
 
(111)  
(134)  
(78) 
Foreign currency translation adjustments
 
(102)  
23 
 
(56) 
Balance at end of year
 
(213)  
(111)  
(134) 
Balance at end of year
 
(720)  
(676)  
(1,646) 
Common shares held in treasury, at cost
Balance at beginning of year
 
(4,424)  
(4,378)  
(3,761) 
Shares repurchased for treasury
 
(63)  
(46)  
(617) 
Balance at end of year
 
(4,487)  
(4,424)  
(4,378) 
Total shareholders’ equity
$ 
20,820 
$ 
18,353 
$ 
12,910 
See Notes to Consolidated Financial Statements
ARCH CAPITAL
105
2024  FORM 10-K

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in millions)
Year Ended December 31,
2024
2023
2022
Operating Activities
Net income
$ 
4,312 
$ 
4,442 
$ 
1,482 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses
 
(185)  
182 
 
651 
Equity in net (income) or loss of investments accounted for using the
equity method and other income or loss
 
(488)  
(215)  
154 
Amortization of intangible assets
 
235 
 
95 
 
106 
Share-based compensation
 
133 
 
93 
 
88 
Changes in:
Reserve for losses and loss adjustment expenses, net of unpaid losses and loss adjustment expenses 
recoverable
 
3,279 
 
2,138 
 
1,890 
Unearned premiums, net of ceded unearned premiums
 
632 
 
1,028 
 
1,399 
Premiums receivable
 
(818)  
(981)  
(1,110) 
Deferred acquisition costs
 
(212)  
(235)  
(374) 
Reinsurance balances payable
 
179 
 
455 
 
(36) 
Deferred income tax assets, net
 
(35)  
(1,161)  
(121) 
Other items, net
 
(359)  
(92)  
(313) 
Net cash provided by operating activities
 
6,673 
 
5,749 
 
3,816 
Investing Activities
Purchases of fixed maturity investments
 
(31,290)  
(18,062)  
(16,390) 
Purchases of equity securities
 
(1,423)  
(456)  
(797) 
Purchases of other investments
 
(3,485)  
(2,171)  
(1,720) 
Proceeds from sales of fixed maturity investments
 
26,245 
 
14,105 
 
11,844 
Proceeds from sales of equity securities
 
1,101 
 
288 
 
1,554 
Proceeds from sales, redemptions and maturities of other investments
 
1,858 
 
768 
 
1,220 
Proceeds from redemptions and maturities of fixed maturity investments
 
2,036 
 
781 
 
715 
Net settlements of derivative instruments
 
(5)  
50 
 
(69) 
Net (purchases) sales of short-term investments
 
(269)  
(696)  
467 
Acquisitions, net of cash
 
852 
 
— 
 
— 
Purchases of fixed assets
 
(51)  
(52)  
(50) 
Other
 
(30)  
(23)  
125 
Net cash used for investing activities
 
(4,461)  
(5,468)  
(3,101) 
Financing Activities
Purchases of common shares under share repurchase program
 
(24)  
— 
 
(586) 
Proceeds from common shares issued, net
 
7 
 
(2)  
6 
Third party investment in redeemable noncontrolling interests
 
— 
 
(22)  
— 
Common dividends paid
 
(1,866)  
— 
 
— 
Preferred dividends paid
 
(40)  
(40)  
(40) 
Other
 
(2)  
(5)  
(86) 
Net cash provided by (used for) financing activities
 
(1,925)  
(69)  
(706) 
Effects of exchange rate changes on foreign currency cash and restricted cash
 
(25)  
13 
 
(50) 
Increase (decrease) in cash and restricted cash
 
262 
 
225 
 
(41) 
Cash and restricted cash, beginning of year
 
1,498 
 
1,273 
 
1,314 
Cash and restricted cash, end of year
$ 
1,760 
$ 
1,498 
$ 
1,273 
Income taxes paid (received)
$ 
378 
$ 
267 
$ 
255 
Interest paid
$ 
127 
$ 
127 
$ 
128 
See Notes to Consolidated Financial Statements
ARCH CAPITAL
106
2024  FORM 10-K

1. 
General
Arch Capital Group Ltd. (“Arch Capital,” “Arch” or the 
“Company”) is a publicly listed Bermuda exempted company 
which provides insurance, reinsurance and mortgage 
insurance on a worldwide basis through its wholly owned 
subsidiaries. As used herein, the Company means Arch 
Capital and its subsidiaries. Similarly, “Common Shares” 
means the common shares of Arch Capital. 
The Company has reclassified the presentation of certain 
prior year information to conform to the current presentation. 
Such reclassifications had no effect on the Company’s net 
income, shareholders’equity or cash flows. All amounts are 
in millions, except per share amounts, unless otherwise 
noted.
2. 
Acquisition
On August 1, 2024, the Company completed the acquisition 
of Allianz’s U.S Middle Market Property & Casualty 
Insurance and U.S. Entertainment Property and Casualty 
Insurance Business (“MCE Acquisition”). This business is 
written by Fireman’s Fund Insurance Company, an affiliate 
of Allianz, and its subsidiaries (collectively, the “Business 
Entities”), in each case, relating to relevant policies with 
accident years 2016 and onwards (collectively, the 
“Business”), as well as certain assets of Allianz and its 
affiliates related to the Business. In connection with the 
acquisition of the Business, the Company also entered into 
certain reinsurance agreements relating to the Business and 
the Business Entities and other agreements providing for 
administration and other services for the Business Entities by 
the Company for the applicable policies being reinsured 
following the closing. The acquisition of the Business is an 
important part of the Company’s growth strategy, and 
provides a ballast to our existing insurance business. It 
further enhances the Company’s capabilities in the U.S. 
middle markets and represents an attractive way to enter a 
new niche entertainment insurance market.
Aggregate cash consideration for the transaction was $450 
million. Direct costs related to the acquisition are immaterial, 
and were expensed as incurred. These include one-time costs 
that are directly attributable to third party consulting fees and 
other professional and legal fees related to the acquisition. 
Such costs are included within ‘corporate expenses’ in the 
consolidated statement of income. The Business acquired is 
included within the Company’s insurance segment beginning 
from the acquisition date.
The following table summarizes the Company’s allocation of 
the purchase price to the acquired assets and liabilities 
assumed based on estimated fair values on August 1, 2024. 
The fair value of the assets and liabilities are preliminary and 
may change with offsetting adjustments to goodwill. The 
Company may make further adjustments to its purchase price 
allocation through the end of the permissible one-year 
measurement period.
Total
Useful Life
Purchase price
Cash paid (a)
$ 
450 
Assets Acquired
Cash and investments, at fair value
$ 
2,332 
Premiums receivable, net of commissions
265
Intangible asset -- distribution relationships
220
10 years
Intangible asset -- value of business acquired
165
1-2 years
Intangible asset -- other (1)
178
5-7 years
Other assets acquired
167
Total assets acquired
$ 
3,327 
Liabilities Acquired
Reserves for losses and loss adjustment 
expenses 
$ 
2,418 
Unearned premiums
636
Other liabilities acquired
69
Total liabilities acquired
 
3,123 
Identifiable net assets acquired (b)
$ 
204 
Goodwill (a) - (b)
$ 
246 
(1) Includes $128 million related to the net fair value adjustment to reserves 
for loss and loss adjustment expenses on August 1, 2024.
The Company recognized goodwill of $246 million that is 
primarily attributed to the expanded presence and long-term 
growth opportunities in the insurance market provided by this 
strategic acquisition. Approximately $565 million of the 
acquired goodwill and intangibles is expected to be 
deductible for income tax purposes. At the date of the 
acquisition, the Company established a net deferred tax asset 
of $24 million related to the estimated fair value of reserves 
for losses and loss adjustment expenses and unearned 
premiums.
Intangible assets resulting from the acquisition are amortized 
as part of ‘amortization of intangible assets’ in the 
Company’s 
consolidated 
statements 
of 
income. 
The 
significant fair value adjustments and related future 
amortization are as follows:
Value of business acquired (“VOBA”)— which represents the 
present value of the expected underwriting profit within the 
unearned premium liability, less costs to service the related 
policies and a risk premium. The fair value of VOBA was 
determined after taking into consideration certain key 
assumptions, including the estimated cost of capital, 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
107
2024  FORM 10-K

investment yield, loss ratio and related expenses;
Reserves for losses and loss adjustment expenses—to reflect 
a decrease related to the present value of the reserve for 
losses and loss adjustment expenses based on the estimated 
payout patterns, partially offset by an increase in losses and 
loss adjustment expenses related to the estimated market 
based risk margin. The risk margin represents the estimated 
costs of capital required by a market participant to assume the 
losses and loss adjustment expenses. The fair value of the 
reserve for losses and loss adjustment expenses was 
determined after taking into consideration certain key 
assumptions, including the estimated cost of capital, and 
investment yield.
Distribution relationships—the value of the distribution 
relationships was determined after taking into consideration 
certain key assumptions, including the estimated cost of 
capital, investment yield, retention rates, loss ratios, related 
expenses and effective tax rates that would impact the 
expected cash flows from Business policies written on a go 
forward basis.
The results of the acquired Business have been included in 
the Company’s consolidated financial statements beginning 
as of their acquisition date. It is impracticable to provide 
historical supplemental pro forma financial information along 
with revenue and earnings subsequent to the acquisition due 
to a variety of factors, including access to historical 
information and the operations of acquirees being integrated 
within the Company shortly after closing and not operating as 
discrete operations within the Company’s organizational 
structure.
3.
Significant Accounting Policies
(a) Basis of Presentation
The consolidated financial statements have been prepared in 
conformity with accounting principles generally accepted in 
the United States of America (“GAAP”) and include the 
accounts of Arch Capital and its subsidiaries, including Arch 
Reinsurance Ltd. (“Arch Re Bermuda”), Arch Reinsurance 
Company (“Arch Re U.S.”), Arch Capital Group (U.S.) Inc.
(“Arch-U.S.”), Arch Insurance Company, Arch Specialty 
Insurance Company, Arch Property Casualty Insurance 
Company (“Arch P&C”), Arch Indemnity Insurance 
Company (“Arch Indemnity Insurance”), Arch Insurance 
Canada Ltd. (“Arch Insurance Canada”), Arch Reinsurance 
Europe Designated Activity Company (“Arch Re Europe”), 
Arch Mortgage Insurance Company (“AMIC”), Arch 
Mortgage Guaranty Company (“AMG”), United Guaranty 
Residential Insurance Company (“UGRIC”), Arch Lenders 
Mortgage Indemnity Ltd. (“Arch Indemnity”), Arch 
Insurance (EU) Designated Activity Company (“Arch 
Insurance (EU)”), Arch Insurance (U.K.) Limited (“Arch 
Insurance (U.K.)”) and the Company’s participation on 
Lloyd’s of London syndicates: 2012 (“Arch Syndicate 2012”) 
and 1955 (“Arch Syndicate 1955” and together with Arch 
Syndicate 2012, the Company’s “Lloyd’s Syndicates”). All 
significant intercompany transactions and balances have been 
eliminated in consolidation. 
The preparation of financial statements in conformity with 
GAAP requires management to make estimates and 
assumptions that affect the reported amounts of assets and 
liabilities and disclosure of contingent assets and liabilities at 
the date of the financial statements and the reported amounts 
of revenues and expenses during the reporting period. Actual 
results could differ materially from those estimates and 
assumptions. The Company’s principal estimates include:
•
The reserve for losses and loss adjustment expenses;
•
Reinsurance recoverable on unpaid and paid losses and 
loss adjustment expenses, including the provision for 
uncollectible amounts;
•
Estimates of written and earned premiums;
•
The valuation of the investment portfolio and assessment 
of allowance for credit losses;
•
The valuation of purchased intangible assets;
•
The assessment of goodwill and intangible assets for 
impairment; and
•
The valuation of deferred income tax assets.
(b) Premium Revenues and Related Expenses
Insurance. Insurance premiums written are generally 
recorded at the policy inception and are primarily earned on a 
pro rata basis over the terms of the policies for all products, 
usually 12 months. Premiums written include estimates that 
are derived from multiple sources which include the 
historical experience of the underlying business, similar 
business and available industry information. Unearned 
premium reserves represent the portion of premiums written 
that relates to the unexpired terms of in-force insurance 
policies.
Reinsurance. Reinsurance premiums written include amounts 
reported by brokers and ceding companies, supplemented by 
the Company’s own estimates of premiums where reports 
have not been received. The determination of premium 
estimates requires a review of the Company’s experience 
with the ceding companies, familiarity with each market, the 
timing of the reported information, an analysis and 
understanding of the characteristics of each line of business, 
and management’s judgment of the impact of various factors, 
including premium or loss trends, on the volume of business 
written and ceded to the Company. On an ongoing basis, the 
Company’s underwriters review the amounts reported by 
these third parties for reasonableness based on their 
experience and knowledge of the subject class of business, 
taking into account the Company’s historical experience with 
the brokers or ceding companies. In addition, reinsurance 
contracts under which the Company assumes business 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
108
2024  FORM 10-K

generally contain specific provisions which allow the 
Company to perform audits of the ceding company to ensure 
compliance with the terms and conditions of the contract, 
including accurate and timely reporting of information. Based 
on a review of all available information, management 
establishes premium estimates where reports have not been 
received. Premium estimates are updated when new 
information is received and differences between such 
estimates and actual amounts are recorded in the period in 
which estimates are changed or the actual amounts are 
determined.
Reinsurance premiums written are recorded based on the type 
of contracts the Company writes. Premiums on the 
Company’s excess of loss and pro rata reinsurance contracts 
are estimated when the business is underwritten. For excess 
of loss contracts, premiums are recorded as written based on 
the terms of the contract. Estimates of premiums written 
under pro rata contracts are recorded in the period in which 
the underlying risks are expected to incept and are based on 
information provided by the brokers and the ceding 
companies. For multi-year reinsurance treaties which are 
payable in annual installments, generally, only the initial 
annual installment is included as premiums written at policy 
inception due to the ability of the reinsured to commute or 
cancel coverage during the term of the policy. The remaining 
annual installments are included as premiums written at each 
successive anniversary date within the multi-year term.
Reinsurance premiums written, irrespective of the class of 
business, are generally earned on a pro rata basis over the 
terms of the underlying policies or reinsurance contracts. 
Contracts and policies written on a “losses occurring” basis 
cover claims that may occur during the term of the contract 
or policy, which is typically 12 months. Accordingly, the 
premium is earned evenly over the term. Contracts which are 
written on a “risks attaching” basis cover claims which attach 
to the underlying insurance policies written during the terms 
of such contracts. Premiums earned on such contracts usually 
extend beyond the original term of the reinsurance contract, 
typically resulting in recognition of premiums earned over a 
24-month period. Certain of the Company’s reinsurance 
contracts include provisions that adjust premiums or 
acquisition expenses based upon the experience under the 
contracts. Premiums written and earned, as well as related 
acquisition expenses, are recorded based upon the projected 
experience under such contracts.
The Company also writes certain reinsurance business that is 
intended to provide insurers with risk management solutions 
that complement traditional reinsurance. Under these 
contracts, the Company assumes a measured amount of 
insurance risk in exchange for an anticipated margin, which 
is typically lower than on traditional reinsurance contracts. 
The terms and conditions of these contracts may include 
additional or return premiums based on loss experience, loss 
corridors, sublimits and caps. Examples of such business 
include aggregate stop-loss coverages, financial quota share 
coverages and multi-year retrospectively rated excess of loss 
coverages. If these contracts are deemed to transfer risk, they 
are accounted for as reinsurance. Otherwise, such contracts 
are accounted for under the deposit method.
Mortgage. Mortgage guaranty insurance policies are 
contracts that are generally non-cancelable by the insurer, are 
renewable at a fixed price, and provide for payment of 
premiums on a monthly, annual or single basis. Upon 
renewal, the Company is not able to re-underwrite or re-price 
its policies. Consistent with industry accounting practices, 
premiums written on a monthly basis are earned as coverage 
is provided. Premiums written on an annual basis are 
amortized on a monthly pro rata basis over the year of 
coverage. Primary mortgage insurance premiums written on 
policies covering more than one year are referred to as single 
premiums. A portion of the revenue from single premiums is 
recognized in premiums earned in the current period, and the 
remaining portion is deferred as unearned premiums and 
earned over the estimated expiration of risk of the policy. If 
single premium policies related to insured loans are canceled 
due to repayment by the borrower and the policy is a non-
refundable product, the remaining unearned premium related 
to each canceled policy is recognized as earned premium 
upon notification of the cancellation. 
Unearned premiums for the Company’s mortgage operations 
represent the portion of premiums written that is applicable to 
the estimated unexpired risk of insured loans. A portion of 
premium payments may be refundable if the insured cancels 
coverage, which generally occurs when the loan is repaid, the 
loan amortizes to a sufficiently low amount to trigger a lender 
permitted or legally required cancellation, or the value of the 
property has increased sufficiently in accordance with the 
terms of the contract. Premium refunds reduce premiums 
earned in the consolidated statements of income. Generally, 
only unearned premiums are refundable.
Reinstatement premiums for the Company’s insurance and 
reinsurance operations are recognized at the time a loss event 
occurs, where coverage limits for the remaining life of the 
contract are reinstated under pre-defined contract terms. 
Reinstatement premiums, if obligatory, are fully earned when 
recognized. The accrual of reinstatement premiums is based 
on an estimate of losses and loss adjustment expenses, which 
reflects management’s judgment. 
Premium estimates are reviewed by management at least 
quarterly. Such review includes a comparison of actual 
reported premiums to expected ultimate premiums along with 
a review of the aging and collection of premium estimates. 
Based on management’s review, the appropriateness of the 
premium estimates is evaluated, and any adjustment to these 
estimates is recorded in the period in which it becomes 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
109
2024  FORM 10-K

known. Adjustments to premium estimates could be material 
and such adjustments could directly and significantly impact 
earnings favorably or unfavorably in the period they are 
determined because the estimated premium may be fully or 
substantially earned. A significant portion of amounts 
included as premiums receivable, which represent estimated 
premiums written, net of commissions, are not currently due 
based on the terms of the underlying contracts.
Premiums receivable include amounts receivable from 
agents, brokers and insured that are both currently due and 
amounts not yet due on insurance, reinsurance and mortgage 
insurance policies. Premiums receivable balances are 
reported net of an allowance for expected credit losses. The 
Company monitors credit risk associated with premiums 
receivable 
through 
its 
ongoing 
review 
of 
amounts 
outstanding, aging of the receivable, historical loss data, and 
counterparty financial strength measures. The allowance also 
includes estimated uncollectible amounts related to dispute 
risk. In certain instances, credit risk may be reduced by the 
Company’s right to offset loss obligations or unearned 
premiums against premiums receivable. Any allowance for 
credit losses is charged to net realized gains (losses) in the 
period the receivable is recorded and revised in subsequent 
periods to reflect changes in the Company’s estimate of 
expected credit losses. See note 7, for additional information.
Acquisition Costs. Acquisition costs that are directly related 
and incremental to the successful acquisition or renewal of 
business are deferred and amortized based on the type of 
contract. The Company’s insurance and reinsurance 
operations capitalize incremental direct external costs that 
result from acquiring a contract but do not capitalize salaries, 
benefits and other internal underwriting costs. For the 
Company’s mortgage insurance operations, which include a 
substantial direct sales force, both external and certain 
internal direct costs are deferred and amortized. For property 
and casualty insurance and reinsurance contracts, deferred 
acquisition costs are amortized over the period in which the 
related premiums are earned. Consistent with mortgage 
insurance industry accounting practice, amortization of 
acquisition costs related to the mortgage insurance contracts 
for each underwriting year’s book of business is recorded in 
proportion to estimated gross profits. Estimated gross profits 
are comprised of earned premiums and losses and loss 
adjustment expenses. For each underwriting year, the 
Company estimates the rate of amortization to reflect actual 
experience and any changes to persistency or loss 
development. 
Deferred acquisition costs are carried at their estimated 
realizable value and take into account anticipated losses and 
loss adjustment expenses, based on historical and current 
experience, and anticipated investment income. 
A premium deficiency occurs if the sum of anticipated losses 
and loss adjustment expenses, unamortized acquisition costs 
and maintenance costs exceed unearned premiums (including 
expected future premiums) and anticipated investment 
income. A premium deficiency reserve (“PDR”) is recorded 
by charging any unamortized acquisition costs to expense to 
the extent required in order to eliminate the deficiency. If the 
premium deficiency exceeds unamortized acquisition costs 
then a liability is accrued for the excess deficiency. 
To assess the need for a PDR on mortgage exposures, the 
Company develops loss projections based on modeled loan 
defaults related to its current policies in force. This projection 
is based on recent trends in default experience, severity and 
rates of defaulted loans moving to claim, as well as recent 
trends in the rate at which loans are prepaid, and incorporates 
anticipated interest income. Evaluating the expected 
profitability of the Company’s existing mortgage insurance 
business and the need for a PDR for its mortgage business 
involves significant reliance upon assumptions and estimates 
with regard to the likelihood, magnitude and timing of 
potential losses and premium revenues. No premium 
deficiency charges were recorded by the Company during 
2024, 2023 or 2022.
(c) Deposit Accounting
Certain assumed reinsurance contracts that are deemed not to 
transfer insurance risk, are accounted for using the deposit 
method of accounting. However, it is possible that the 
Company could incur financial losses on such contracts. 
Management 
exercises 
significant 
judgment 
in 
the 
assumptions used in determining whether assumed contracts 
should be accounted for as reinsurance contracts or deposit 
contracts. For those contracts that contain only significant 
underwriting risk, the estimated profit margin is deferred and 
amortized over the contract period and such amount is 
included in the Company’s underwriting results. When the 
estimated profit margin is explicit, the margin is reflected as 
other underwriting income and any adverse financial results 
on such contracts are reflected as incurred losses. When the 
estimated profit margin is implicit, the margin is reflected as 
an offset to paid losses and any adverse financial results on 
such contracts are reflected as incurred losses. Additional 
judgments are required when applying the accounting 
guidance with respect to the revenue recognition criteria for 
contracts deemed to transfer only significant underwriting 
risk. For those contracts that contain only significant timing 
risk, an accretion rate is established at inception of the 
contract based on actuarial estimates whereby the deposit 
accounting liability is increased to the estimated amount 
payable over the contract term. The accretion on the deposit 
is based on the expected rate of return required to fund the 
expected future payment obligations. Periodically the 
Company reassesses the estimated ultimate liability and the 
related expected rate of return. The accretion of the deposit 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
110
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accounting liability as well as changes to the estimated 
ultimate liability and the accretion rate would be reflected as 
part of interest expense in the Company’s results of 
operations. Any negative accretion in a deposit accounting 
liability is shown in other underwriting income in the 
Company’s results of operations. 
Under some of these contracts, the ceding company retains 
the related assets on a funds held basis. Such amounts are 
included in “Other assets” on the Company’s balance sheet. 
Interest income produced by those assets are recorded as part 
of net investment income in the Company's results of 
operations.
(d) Retroactive Reinsurance
Retroactive reinsurance reimburses a ceding company for 
liabilities incurred as a result of past insurable events covered 
by the underlying policies reinsured. In certain instances, 
reinsurance contracts cover losses both on a prospective basis 
and on a retroactive basis and, accordingly, the Company 
bifurcates the prospective and retrospective elements of these 
reinsurance contracts and accounts for each element 
separately where practical. Underwriting income generated in 
connection with retroactive reinsurance contracts is deferred 
and amortized into income over the settlement period while 
losses are charged to income immediately. Subsequent 
changes in estimated amount or timing of cash flows under 
such retroactive reinsurance contracts are accounted for by 
adjusting the previously deferred amount to the balance that 
would have existed had the revised estimate been available at 
the inception of the reinsurance transaction, with a 
corresponding charge or credit to income.
(e) Reinsurance Ceded
In the normal course of business, the Company purchases 
reinsurance to increase capacity and to limit the impact of 
individual losses and events on its underwriting results by 
reinsuring certain levels of risk with other insurance 
enterprises or reinsurers. The Company uses pro rata, excess 
of loss and facultative reinsurance contracts. Reinsurance 
ceding commissions that represent a recovery of acquisition 
costs are recognized as a reduction to acquisition costs while 
the remaining portion is deferred. The accompanying 
consolidated statement of income reflects premiums and 
losses and loss adjustment expenses and acquisition costs, net 
of reinsurance ceded. See note 8, for information on the 
Company's reinsurance usage. Reinsurance premiums ceded 
and unpaid losses and loss adjustment expenses recoverable 
are estimated in a manner consistent with that of the original 
policies issued and the terms of the reinsurance contracts. If 
the reinsurers are unable to satisfy their obligations under the 
agreements, the Company’s insurance or reinsurance 
subsidiaries would be liable for such defaulted amounts.
Reinsurance recoverables are recorded as assets, predicated 
on the reinsurers’ ability to meet their obligations under the 
reinsurance agreements. In certain instances, the Company 
obtains collateral, including letters of credit and trust 
accounts to further reduce the credit exposure on its 
reinsurance 
recoverables. 
The 
Company 
reports 
its 
reinsurance recoverables net of an allowance for expected 
credit loss. The allowance is based upon the Company’s 
ongoing review of amounts outstanding, the financial 
condition of its reinsurers, amounts and form of collateral 
obtained and other relevant factors. A ratings based 
probability-of-default and loss-given-default methodology is 
used to estimate the allowance for expected credit loss. Any 
allowance for credit losses is charged to net realized gains 
(losses) in the period the recoverable is recorded and revised 
in subsequent periods to reflect changes in the Company’s 
estimate of expected credit losses. See note 7, for additional 
information.
(f) Cash
Cash includes cash equivalents, which are investments with 
original maturities of three months or less which are not part 
of the investment portfolio.
(g) Restricted Cash
Restricted cash represents amounts held for the benefit of 
third parties or is legally or contractually restricted as to 
withdrawal or usage by the Company. Such amounts are 
included in “Other assets” on the Company’s balance sheet.
(h) Investments
The Company currently classifies substantially all of its fixed 
maturity 
investments 
and 
short-term 
investments 
as 
“available for sale” and, accordingly, they are carried at 
estimated fair value (also known as fair value) with the 
changes in fair value recorded as an unrealized gain or loss 
component of accumulated other comprehensive income in 
shareholders’ equity. The fair value of fixed maturity 
securities and equity securities is generally determined from 
quotations received from nationally recognized pricing 
services, or when such prices are not available, by reference 
to broker or underwriter bid indications. Short-term 
investments comprise securities due to mature within one 
year of the date of issue. Short-term investments include 
certain cash equivalents which are part of investment 
portfolios under the management of external and internal 
investment managers.
The Company’s investment portfolio includes certain funds 
that, due to their ownership structure, are accounted for by 
the Company using the equity method. In applying the equity 
method, these investments are initially recorded at cost and 
are subsequently adjusted based on the Company’s 
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proportionate share of the net income or loss of the funds 
(which include changes in the fair value of the underlying 
securities in the funds). Such investments are generally 
recorded on a one to three month lag based on the availability 
of reports from the investment funds. Changes in the carrying 
value of such investments are recorded in net income as 
“Equity in net income (loss) of investments accounted for 
using the equity method.” As such, fluctuations in the 
carrying value of the investments accounted for using the 
equity method may increase the volatility of the Company’s 
reported results of operations.
The Company’s investment portfolio includes equity 
securities that are accounted for at fair value. Such holdings 
primarily include publicly traded common stocks. Dividend 
income on equities is reflected in net investment income. 
Changes in fair value on equity securities are included in 
“Net realized gains (losses)” in the consolidated statement of 
income.
The Company elected to carry certain fixed maturity 
securities, equity securities, short-term investments and other 
investments at fair value under the fair value option afforded 
by accounting guidance regarding the fair value option for 
financial assets and liabilities. The fair value for certain of 
the Company’s other investments are determined using net 
asset values (“NAVs”) as advised by external fund managers. 
The NAV is based on the fund manager’s valuation of the 
underlying holdings in accordance with the fund’s governing 
documents.
Changes in fair value of investments accounted for using the 
fair value option are included in “Net realized gains (losses).” 
The primary reasons for electing the fair value option were to 
address simplification and cost-benefit considerations.
The Company invests in reverse repurchase agreements that 
are 
generally 
treated 
as 
collateralized 
receivables. 
Receivables for reverse repurchase agreements are reflected 
in “Other investments” or “Short-term investments” in the 
Company's consolidated balance sheet depending on their 
terms. These agreements are recorded at their contracted 
resale amount plus accrued interest, other than those that are 
accounted for at fair value. In reverse repurchase 
transactions, the Company obtains an interest in the 
purchased assets that are received as collateral.
The Company invests in limited partner interests and shares 
of limited liability companies. Such amounts are included in 
investments accounted for using the equity method and other 
investments. These investments can often have characteristics 
of a variable interest entity (“VIE”). A VIE refers to entities 
that have characteristics such as (i) insufficient equity at risk 
to allow the entity to finance its activities without additional 
financial support or (ii) instances where the equity investors, 
as a group, do not have the characteristic of a controlling 
financial interest. If the Company is determined to be the 
primary beneficiary, it is required to consolidate the VIE. The 
primary beneficiary is defined as the variable interest holder 
that is determined to have the controlling financial interest as 
a result of having both (i) the power to direct the activities of 
a VIE that most significantly impact the economic 
performance of the VIE and (ii) the obligation to absorb 
losses or right to receive benefits from the VIE that could 
potentially be significant to the VIE. At inception of the VIE 
as well as on an ongoing basis, the Company determines 
whether it is the primary beneficiary based on an analysis of 
the Company’s level of involvement in the VIE, the 
contractual terms, and the overall structure of the VIE. The 
Company's maximum exposure to loss with respect to these 
investments is limited to the investment carrying amounts 
reported in the Company's consolidated balance sheet and 
any unfunded commitment.
The Company conducts a periodic review to identify and 
evaluate credit based impairments related to the Company’s 
available for sale investments. The Company derives 
estimated credit losses by comparing expected future cash 
flows to be collected to the amortized cost of the security. 
Estimates of expected future cash flows consider among 
other things, macroeconomic conditions as well as the 
financial condition, near-term and long-term prospects for the 
issuer, and the likelihood of the recoverability of principal 
and interest. Effective January 1, 2020, credit losses are 
recognized through an allowance account subject to reversal, 
rather than a reduction in amortized cost. Declines in value 
attributable to factors other than credit are reported as an 
unrealized loss in other comprehensive income while the 
allowance for credit loss is charged to net realized gains 
(losses) in the consolidated statement of income.
For available for sale investments that the Company intends 
to sell or for which it is more likely than not that the 
Company would be required to sell before an anticipated 
recovery in value, the full amount of the impairment is 
included in net realized gains (losses). The new cost basis of 
the investment is the previous amortized cost basis reduced 
by the impairment recognized in net realized gains (losses). 
The new cost basis is not adjusted for any subsequent 
recoveries in fair value. 
The Company reports accrued investment income separately 
from investment balances and has elected not to measure an 
allowance for credit losses for accrued investment income. 
Any uncollectible accrued interest income is written off in 
the period it is deemed uncollectible.
Net investment income includes interest and dividend income 
together with amortization of market premiums and discounts 
and is net of investment management and custody fees. 
Anticipated prepayments and expected maturities are used in 
applying the interest method for certain investments such as 
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mortgage and other asset-backed securities. When actual 
prepayments 
differ 
significantly 
from 
anticipated 
prepayments, the effective yield is recalculated to reflect 
actual payments to date and anticipated future payments. The 
net investment in such securities is adjusted to the amount 
that would have existed had the new effective yield been 
applied since the acquisition of the security. Such 
adjustments, if any, are included in net investment income 
when determined.
Investment gains or losses realized on the sale of 
investments, except for certain fund investments, are 
determined on a first-in, first-out basis and are reflected in 
net income. Investment gains or losses realized on the sale of 
certain fund investments are determined on an average cost 
basis. Unrealized appreciation or decline in the value of 
available for sale securities, which are carried at fair value, is 
excluded from net income and recorded as a separate 
component of accumulated other comprehensive income, net 
of applicable deferred income tax.
(i) Derivative Instruments
The Company recognizes all derivative instruments, 
including embedded derivative instruments, at fair value in 
its consolidated balance sheets. The Company employs the 
use of derivative instruments within its operations to mitigate 
risks arising from assets and liabilities held in foreign 
currencies as well as part of its overall investment strategy. 
For such instruments, changes in assets and liabilities 
measured at fair value are recorded as “Net realized gains 
(losses)” in the consolidated statements of income. In 
addition, the Company’s derivative instruments include 
amounts related to underwriting activities where an insurance 
or reinsurance contract meets the accounting definition of a 
derivative instrument. For such contracts, changes in fair 
value are reflected in “Other underwriting income” in the 
consolidated statements of income as the underlying contract 
originates from the Company’s underwriting operations. For 
the periods ended 2024, 2023, and 2022, the Company did 
not designate any derivative instruments as hedges under the 
relevant accounting guidance. See note 11, for additional 
information.
(j) Reserves for Losses and Loss Adjustment Expenses
Insurance and Reinsurance. The reserve for losses and loss 
adjustment expenses consists of estimates of unpaid reported 
losses and loss adjustment expenses and estimates for losses 
incurred but not reported. The reserve for unpaid reported 
losses and loss adjustment expenses, established by 
management based on reports from ceding companies and 
claims from insureds, excludes estimates of amounts related 
to losses under high deductible policies, and represents the 
estimated ultimate cost of events or conditions that have been 
reported to or specifically identified by the Company. Such 
reserves are supplemented by management’s estimates of 
reserves for losses incurred for which reports or claims have 
not been received. The Company’s reserves are based on a 
combination of reserving methods, incorporating both 
Company and industry loss development patterns. The 
Company selects the initial expected loss and loss adjustment 
expense ratios based on information derived by its 
underwriters and actuaries during the initial pricing of the 
business, supplemented by industry data where appropriate. 
Such ratios consider, among other things, rate changes and 
changes in terms and conditions that have been observed in 
the market. These estimates are reviewed regularly and, as 
experience develops and new information becomes known, 
the reserves are adjusted as necessary. Such adjustments, if 
any, are reflected in income in the period in which they are 
determined. As actual loss information has been reported, the 
Company has developed its own loss experience and its 
reserving methods include other actuarial techniques. Over 
time, such techniques have been given further weight in its 
reserving process based on the continuing maturation of the 
Company’s reserves. Inherent in the estimates of ultimate 
losses and loss adjustment expenses are expected trends in 
claims severity and frequency and other factors which may 
vary significantly as claims are settled. Accordingly, ultimate 
losses and loss adjustment expenses may differ materially 
from the amounts recorded in the accompanying consolidated 
financial statements. Losses and loss adjustment expenses are 
recorded on an undiscounted basis, except for excess 
workers’ compensation and employers’ liability business 
written by the Company’s insurance operations.
Mortgage. The reserves for mortgage guaranty insurance 
losses and loss adjustment expenses are the estimated claim 
settlement costs on notices of delinquency that have been 
received by the Company, as well as loan delinquencies that 
have been incurred but have not been reported by the lenders. 
Consistent with primary mortgage insurance industry 
accounting practice, the Company does not establish loss 
reserves for future claims on insured loans that are not 
currently delinquent (defined as two or more payments in 
arrears). The Company establishes loss reserves on a case-by-
case basis when insured loans are reported delinquent using 
estimated claim rates and average claim sizes for each cohort, 
net of any salvage recoverable. The Company also reserves 
for delinquencies that have occurred but have not yet been 
reported to the Company prior to the close of an accounting 
period. To determine this reserve, the Company estimates the 
number of delinquencies not yet reported using historical 
information regarding late reported delinquencies and applies 
estimated claim rates and claim sizes for the estimated 
delinquencies not yet reported.
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The establishment of reserves across the Company’s 
segments is an inherently uncertain process, are necessarily 
based on estimates, and the ultimate net cost may vary from 
such estimates. The methods for making such estimates and 
for establishing the resulting liability are reviewed and 
updated using the most current information available. Any 
resulting adjustments, which may be material, are reflected in 
current operations.
(k) Contractholder Receivables and Payables and Collateral 
Held for Insured Obligations
Certain insurance policies written by the Company’s U.S. 
insurance operations feature large deductibles, primarily in its 
construction and national accounts line of business. Under 
such contracts, the Company is obligated to pay the claimant 
for the full amount of the claim. The Company is 
subsequently reimbursed by the policy holder for the 
deductible amount. These amounts are included on a gross 
basis in the consolidated balance sheet as contractholder 
payables and contractholder receivables. In the event that the 
Company is unable to collect from the policyholder, the 
Company would be liable for such defaulted amounts. 
Collateral, primarily in the form of letters of credit, cash and 
trusts, is obtained from the policyholder to mitigate the 
Company’s credit risk. In the instances where the Company 
receives collateral in the form of cash, the Company reflects 
it in “Collateral held for insured obligations.”
Contractholder receivables are reported net of an allowance 
for expected credit losses. The allowance is based upon the 
Company’s ongoing review of amounts outstanding, changes 
in policyholder credit standing, amounts and form of 
collateral obtained, and other relevant factors. A ratings 
based 
probability-of-default 
and 
loss-given-default 
methodology is used to estimate the allowance for expected 
credit losses. Any allowance for credit losses is charged to 
net realized gains (losses) in the period the receivable is 
recorded and revised in subsequent periods to reflect changes 
in the Company’s estimate of expected credit losses. See note 
7, for additional information.
(l) Foreign Exchange
Assets and liabilities of foreign operations whose functional 
currency is not the U.S. Dollar are translated at the prevailing 
exchange rates at each balance sheet date. Revenues and 
expenses of such foreign operations are translated at average 
exchange rates during the year. The net effect of the 
translation adjustments for foreign operations is included in 
accumulated other comprehensive income, net of applicable 
deferred income tax. Monetary assets and liabilities, such as 
premiums receivable and the reserve for losses and loss 
adjustment expenses, denominated in foreign currencies are 
revalued at the exchange rate in effect at the balance sheet 
date with the resulting foreign exchange gains and losses 
included in net income. Accounts that are classified as non-
monetary, such as deferred acquisition costs and the unearned 
premium reserves, are not revalued. In the case of foreign 
currency denominated fixed maturity securities which are 
classified as “available for sale,” the change in exchange 
rates between the local currency in which the investments are 
denominated and the Company’s functional currency at each 
balance sheet date is included in unrealized appreciation or 
decline in value of securities, a component of accumulated 
other comprehensive income, net of applicable deferred 
income tax.
(m) Income Taxes
Deferred income taxes reflect the expected future tax 
consequences of temporary differences between the carrying 
amounts of assets and liabilities for financial reporting 
purposes and amounts used for income tax purposes. A 
valuation allowance is recorded if it is more likely than not 
that some or all of a deferred income tax asset may not be 
realized. The Company considers future taxable income and 
feasible tax planning strategies in assessing the need for a 
valuation allowance. In the event the Company determines 
that it will not be able to realize all or part of its deferred 
income tax assets in the future, an adjustment to the deferred 
income tax assets would be charged to income in the period 
in which such determination is made. In addition, if the 
Company subsequently assesses that the valuation allowance 
is no longer needed, a benefit would be recorded to income in 
the period in which such determination is made. See note 15, 
for additional information.
The Company recognizes a tax benefit where it concludes 
that it is more likely than not that the tax benefit will be 
sustained on audit by the taxing authority based solely on the 
technical merits of the associated tax position. If the 
recognition threshold is met, the Company recognizes a tax 
benefit measured at the largest amount of the tax benefit that, 
in the Company’s judgment, is greater than 50% likely to be 
realized. The Company records interest and penalties related 
to unrecognized tax benefits in the provision for income 
taxes.
On December 27, 2023 the Bermuda government enacted tax 
legislation referred to as the Corporate Income Tax Act 2023 
(“Bermuda CIT Act”). The Bermuda CIT Act establishes a 
15% corporate income tax, for in-scope businesses, for fiscal 
years beginning on or after January 1, 2025. The enacted 
legislation includes a provision referred to as the Economic 
Transition Adjustment, which requires Bermuda Constituent 
entities to establish tax basis in their assets and liabilities, 
excluding goodwill, based on fair value as of September 30, 
2023. Fair value is defined as the price that would be 
received to sell an asset or paid to transfer a liability in an 
orderly transaction between market participants at the 
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measurement date. See note 15, for additional information 
regarding Company’s deferred income tax asset. 
(n) Share-Based Payment Arrangements
The Company applies a fair value based measurement 
method 
in 
accounting 
for 
its 
share-based 
payment 
arrangements with eligible employees and directors. 
Compensation expense is estimated based on the fair value of 
the award at the grant date and is recognized in net income 
over the requisite service period with a corresponding 
increase in shareholders’ equity. No value is attributed to 
awards that employees forfeit because they fail to satisfy 
vesting conditions. The Company’s (i) time-based awards 
generally vest over a three year period with one-third vesting 
on the first, second and third anniversaries of the grant date 
and (ii) performance-based awards cliff vest after each three 
year performance period based on achievement of the 
specified 
performance 
criteria. 
The 
share-based 
compensation expense associated with awards that have 
graded vesting features and vest based on service conditions 
only is calculated on a straight-line basis over the requisite 
service period for the entire award. Compensation expense 
recognized in connection with performance awards is based 
on the achievement of the specified performance and service 
conditions. The final measure of compensation expense 
recognized over the requisite service period reflects the final 
performance outcome. During the recognition period 
compensation expense is accrued based on the performance 
condition that is probable of achievement. For awards 
granted to retirement-eligible employees where no service is 
required for the employee to retain the award, the grant date 
fair value is immediately recognized as compensation 
expense at the grant date because the employee is able to 
retain the award without continuing to provide service. For 
employees 
near 
retirement 
eligibility, 
attribution 
of 
compensation cost is over the period from the grant date to 
the retirement eligibility date. These charges had no impact 
on the Company’s cash flows or total shareholders’ equity. 
See note 22, for information relating to the Company’s share-
based payment awards.
(o) Guaranty Fund and Other Related Assessments
Liabilities for guaranty fund and other related assessments in 
the Company’s insurance and reinsurance operations are 
accrued when the Company receives notice that an amount is 
payable, or earlier if a reasonable estimate of the assessment 
can be made.
(p) Treasury Shares
Treasury shares are common shares purchased by the 
Company and not subsequently canceled. These shares are 
recorded at cost and result in a reduction of the Company’s 
shareholders’ equity in its Consolidated Balance Sheets.
(q) Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price of 
business combination over the fair value of the net assets 
acquired and is assigned to the applicable reporting unit at 
acquisition. The annual goodwill impairment test was 
performed as of October 1, 2024. Impairment tests may be 
performed more frequently if the facts and circumstances 
indicate a possible impairment. In performing impairment 
tests, the Company may first assess qualitative factors to 
determine whether it is more likely than not (that is, more 
than a 50% probability) that the fair value of a reporting unit 
exceeds its carrying amount as a basis for determining 
whether it is necessary to perform goodwill impairment test 
described in the accounting guidance. 
Indefinite-lived intangible assets, such as insurance licenses 
are evaluated for impairment similar to goodwill. Finite-lived 
intangible assets and liabilities include the value of acquired 
insurance and reinsurance contracts, which are estimated 
based on the present value of future expected cash flows and 
amortized in proportion to the estimated profits expected to 
be realized. Other finite-lived intangible assets, including 
customer lists, trade name and IT platforms, are amortized 
over their useful lives. Finite-lived intangible assets and 
liabilities are periodically reviewed for indicators of 
impairment. An impairment is recognized when the carrying 
amount is not recoverable from its undiscounted cash flows 
and is measured as the difference between the carrying 
amount and fair value.
If goodwill or intangible assets are impaired, such assets are 
written down to their fair values with the related expense 
recorded in the Company’s results of operations.
(r) Investment in Operating Affiliates
Investment in operating affiliates primarily represent the 
Company’s investments in which it has significant influence 
and which are accounted for under the equity method of 
accounting. In applying the equity method of accounting, 
investments in operating affiliates are initially recorded at 
cost and are subsequently adjusted based on the Company’s 
proportionate share of net income or loss of the operating 
affiliate. The Company records its proportionate share of 
other comprehensive income or loss of the operating affiliate 
as a component of other comprehensive income. Adjustments 
are based on the most recently available financial information 
from the operating affiliate. Changes in the carrying value of 
these investments are recorded in income (loss) from 
operating affiliates.
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(s) Funds Held Arrangements
Funds held arrangements are agreements with a third party 
reinsurance company, where the reinsured retains the related 
assets on a funds held basis. Such amounts are included in 
“Other assets” on the Company’s balance sheet. Investment 
returns produced by those assets are recorded as part of net 
investment income and net realized gains (losses) in the 
Company's consolidated results of operations. Funds held as 
collateral by the Company are included in “Other liabilities” 
and changes to the funds held liability are reflected as part of 
interest expense in the Company’s consolidated results of 
operations.
(t) Recent Accounting Pronouncements
Recently Issued Accounting Standards Adopted
The Company adopted ASU 2020-04, “Facilitation of the 
Effects of Reference Rate Reform on Financial Reporting,” 
which was issued in March 2020 and amended in December 
2022 with ASU 2022-06, “Reference Rate Reform (Topic 
848)”. This ASU provides optional expedients and 
exceptions for applying GAAP to investments, derivatives, or 
other transactions that reference the London Interbank 
Offered Rate (“LIBOR”) or another reference rate expected 
to be discontinued because of reference rate reform. Along 
with the optional expedients, the amendments include a 
general principle that permits an entity to consider contract 
modifications due to reference reform to be an event that 
does not require contract re-measurement at the modification 
date or reassessment of a previous accounting determination. 
The adoption of this ASU did not have a material impact on 
the Company’s consolidated financial statements.
The Company adopted ASU 2023-07, “Segment Reporting – 
Improvements to Reportable Segments Disclosures,” which 
was issued in November 2023. This ASU enhances public 
entities’ segment disclosures by requiring the disclosures of 
significant segment expenses that are regularly provided to 
the chief operating decision maker (“CODM”), and included 
within each reported measure of segment profit or loss. The 
ASU also extends certain annual disclosures to interim 
periods and allows the reporting of more than one measure of 
segment profit or loss under certain conditions. The adoption 
of this ASU did not have any effect on the Company’s 
consolidated financial statements.
Recently Issued Accounting Standards Not Yet Adopted
ASU 2023-09, “Improvements to Income Tax Disclosures,” 
was issued in December 2023 with the stated purpose of 
enhancing the transparency and decision usefulness of 
income tax disclosures. The amendments in ASU 2023-09 
address investor requests for enhanced income tax 
information 
primarily 
through 
changes 
to 
the 
rate 
reconciliation and income taxes paid information. While 
early adoption is permitted, a public entity should apply the 
amendments in ASU 2023-09 prospectively to all annual 
periods beginning after December 15, 2024. The Company is 
currently evaluating the impact of this standard on the 
Company’s consolidated financial statements and related 
disclosures.
ASU 2024-03, “Disaggregation of Income Statement 
Expenses” was issued in November 2024, which requires 
disaggregated disclosure of income statement expenses for 
public business entities. The ASU does not change the 
expense captions an entity presents on the face of the income 
statement; rather, it requires disaggregation of certain 
expense captions into specified categories in disclosures 
within the footnotes to the financial statements. The ASU is 
effective for annual reporting periods beginning after 
December 15, 2026, and interim reporting periods within 
annual reporting periods beginning after December 15, 2027. 
The requirements will be applied prospectively with the 
option for retrospective application. Early adoption is 
permitted. The Company is currently evaluating the impact of 
this standard on the Company’s consolidated financial 
statements and related disclosures.
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4. 
Segment Information
The Company classifies its businesses into three segments – 
insurance, reinsurance and mortgage. The Company 
determined its segments using the management approach 
described in accounting guidance regarding disclosures about 
segments of an enterprise and related information. The 
accounting policies of the segments are the same as those 
used for the preparation of the Company’s consolidated 
financial statements. Intersegment business is allocated to the 
segment accountable for the underwriting results.
The Company’s insurance, reinsurance and mortgage 
segments each have managers who are responsible for the 
overall profitability of their respective segments and who are 
directly accountable to the Company’s CODMs, the Chief 
Executive Officer of Arch Capital and the Chief Financial 
Officer and Treasurer of Arch Capital. The CODMs do not 
assess performance, measure return on equity or make 
resource allocation decisions on a line of business basis. 
Management measures segment performance for its three 
segments based on underwriting income or loss. The 
Company does not manage its assets by segment, with the 
exception of goodwill and intangible assets, and, accordingly, 
investment income is not allocated to each underwriting 
segment. 
The Company’s insurance segment primarily consists of 
commercial insurance lines of business, with a focus on 
specialty insurance products. These products are mainly 
offered in North America, Bermuda, the United Kingdom, 
continental Europe and Australia. Products offered in North 
America include: commercial automobile; commercial 
multiperil; other liability—claims made, which includes 
financial and professional lines; other liability—occurrence, 
which includes admitted and excess and surplus casualty 
lines; 
property 
and 
short-tail 
specialty; 
workers 
compensation; and other. Products offered across the 
Company’s International units include: property and short-
tail specialty; and casualty and other.
The Company’s reinsurance segment offers reinsurance 
products on a worldwide basis. Product lines of business 
include: casualty; marine and aviation; other specialty; 
property 
catastrophe; 
property 
excluding 
property 
catastrophe; and other.
The Company’s mortgage segment consists of U.S. primary 
mortgage insurance business written predominantly on loans 
sold to the Federal National Mortgage Association (“Fannie 
Mae”) and the Federal Home Loan Mortgage Corporation 
(“Freddie Mac”), each a government sponsored entity 
(“GSE”) and also through non GSE approved entities 
(combined “Arch MI U.S.”); reinsurance and underwriting 
services related to U.S. credit-risk transfer (“CRT”) business 
which are predominately with the GSEs and other U.S. 
mortgage 
reinsurance 
transactions; 
and 
international 
mortgage insurance and reinsurance business covering loans 
primarily in Australia and Europe.
The Company’s results also include net investment income, 
net realized gains or losses (which includes realized and 
unrealized changes in the fair value of equity securities and 
assets accounted for using the fair value option, realized and 
unrealized gains or losses on derivative instruments, changes 
in the allowance for credit losses on financial assets and gains 
or losses realized from the acquisition or disposition of 
subsidiaries), equity in net income or loss of investment 
funds accounted for using the equity method, other income 
(loss), corporate expenses, transaction costs and other, 
amortization of intangible assets, interest expense, net foreign 
exchange gains or losses, income tax items, income or loss 
from operating affiliates and items related to the Company’s 
non-cumulative preferred shares.
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The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of 
underwriting income or loss to net income available to Arch common shareholders, summary information regarding net 
premiums written and earned by major line of business and net premiums written by location:
Year Ended December 31, 2024
Insurance
Reinsurance
Mortgage
Total
Gross premiums written (1)
$ 
9,053 
$ 
11,112 
$ 
1,351 
$ 
21,511 
Premiums ceded (1)
 
(2,179) 
 
(3,366) 
 
(239) 
 
(5,779) 
Net premiums written
 
6,874 
 
7,746 
 
1,112 
 
15,732 
Change in unearned premiums
 
(247) 
 
(504) 
 
119 
 
(632) 
Net premiums earned
 
6,627 
 
7,242 
 
1,231 
 
15,100 
Other underwriting income
 
— 
 
9 
 
17 
 
26 
Losses and loss adjustment expenses
 
(4,070) 
 
(4,327) 
 
55 
 
(8,342) 
Acquisition expenses
 
(1,217) 
 
(1,432) 
 
(2) 
 
(2,651) 
Other operating expenses (2)
 
(995) 
 
(270) 
 
(207) 
 
(1,472) 
Underwriting income
$ 
345 
$ 
1,222 
$ 
1,094 
 
2,661 
Net investment income
 
1,495 
Net realized gains (losses)
 
197 
Equity in net income (loss) of investments accounted for using the equity method
 
580 
Other income (loss)
 
42 
Corporate expenses 
 
(119) 
Transaction costs and other
 
(81) 
Amortization of intangible assets
 
(235) 
Interest expense
 
(141) 
Net foreign exchange gains (losses)
 
75 
Income (loss) before income taxes and income (loss) from operating affiliates
 
4,474 
Income tax (expense) benefit
 
(362) 
Income (loss) from operating affiliates
 
200 
Net income (loss) available to Arch
 
4,312 
Preferred dividends
 
(40) 
Net income (loss) available to Arch common shareholders
$ 
4,272 
Underwriting Ratios
Loss ratio
 61.4 %
 59.7 %
 -4.4 %
 55.2 %
Acquisition expense ratio
 18.4 %
 19.8 %
 0.2 %
 17.6 %
Other operating expense ratio
 15.0 %
 3.7 %
 16.8 %
 9.7 %
Combined ratio
 94.8 %
 83.2 %
 12.6 %
 82.5 %
Goodwill and intangible assets
$ 
916 
$ 
102 
$ 
333 
$ 
1,351 
Total investable assets
$ 
41,388 
Total assets
 
70,906 
Total liabilities
 
50,086 
(1) 
Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such 
transactions for each segment does not agree to the total due to eliminations.
(2) 
Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional 
fees.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
118
2024  FORM 10-K

Year Ended December 31, 2023
Insurance
Reinsurance
Mortgage
Total
Gross premiums written (1)
$ 
7,911 
$ 
9,113 
$ 
1,387 
$ 
18,403 
Premiums ceded (1)
 
(2,049) 
 
(2,559) 
 
(335) 
 
(4,935) 
Net premiums written
 
5,862 
 
6,554 
 
1,052 
 
13,468 
Change in unearned premiums
 
(416) 
 
(718) 
 
106 
 
(1,028) 
Net premiums earned
 
5,446 
 
5,836 
 
1,158 
 
12,440 
Other underwriting income
 
— 
 
17 
 
14 
 
31 
Losses and loss adjustment expenses
 
(3,122) 
 
(3,227) 
 
103 
 
(6,246) 
Acquisition expenses, net
 
(1,055) 
 
(1,240) 
 
(17) 
 
(2,312) 
Other operating expenses (2)
 
(819) 
 
(288) 
 
(194) 
 
(1,301) 
Underwriting income (loss)
$ 
450 
$ 
1,098 
$ 
1,064 
 
2,612 
Net investment income
 
1,023 
Net realized gains (losses)
 
(165) 
Equity in net income (loss) of investments accounted for using the equity method
 
278 
Other income (loss)
 
27 
Corporate expenses
 
(96) 
Transaction costs and other
 
(6) 
Amortization of intangible assets
 
(95) 
Interest expense
 
(133) 
Net foreign exchange gains (losses)
 
(60) 
Income (loss) before income taxes and income (loss) from operating affiliates
 
3,385 
Income tax (expense) benefit
 
873 
Income (loss) from operating affiliates
 
184 
Net income (loss)
 
4,442 
Amounts attributable to redeemable noncontrolling interests
 
1 
Net income (loss) available to Arch
 
4,443 
Preferred dividends
 
(40) 
Net income (loss) available to Arch common shareholders
$ 
4,403 
Underwriting Ratios
Loss ratio
 57.3 %
 55.3 %
 -8.9 %
 50.2 %
Acquisition expense ratio
 19.4 %
 21.2 %
 1.4 %
 18.6 %
Other operating expense ratio
 15.0 %
 4.9 %
 16.8 %
 10.5 %
Combined ratio
 91.7 %
 81.4 %
 9.3 %
 79.3 %
Goodwill and intangible assets
$ 
224 
$ 
130 
$ 
377 
$ 
731 
Total investable assets
$ 
34,589 
Total assets
 
58,906 
Total liabilities
 
40,551 
(1) 
Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such 
transactions for each segment does not agree to the total due to eliminations.
(2) 
Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional 
fees.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
119
2024  FORM 10-K

Year Ended December 31, 2022
Insurance
Reinsurance
Mortgage
Total
Gross premiums written (1)
$ 
6,931 
$ 
6,948 
$ 
1,455 
$ 
15,327 
Premiums ceded (1)
 
(1,910) 
 
(2,024) 
 
(322) 
 
(4,249) 
Net premiums written
 
5,021 
 
4,924 
 
1,133 
 
11,078 
Change in unearned premiums
 
(461) 
 
(965) 
 
27 
 
(1,399) 
Net premiums earned
 
4,560 
 
3,959 
 
1,160 
 
9,679 
Other underwriting income
 
— 
 
5 
 
8 
 
13 
Losses and loss adjustment expenses
 
(2,784) 
 
(2,568) 
 
324 
 
(5,028) 
Acquisition expenses, net
 
(887) 
 
(813) 
 
(40) 
 
(1,740) 
Other operating expenses (2)
 
(665) 
 
(268) 
 
(195) 
 
(1,128) 
Underwriting income (loss)
$ 
224 
$ 
315 
$ 
1,257 
 
1,796 
Net investment income
 
496 
Net realized gains (losses)
 
(663) 
Equity in net income (loss) of investments accounted for using the equity method
 
115 
Other income (loss)
 
(27) 
Corporate expenses
 
(95) 
Transaction costs and other
 
— 
Amortization of intangible assets
 
(106) 
Interest expense
 
(131) 
Net foreign exchange gains (losses)
 
102 
Income (loss) before income taxes and income (loss) from operating affiliates
 
1,487 
Income tax (expense) benefit
 
(80) 
Income (loss) from operating affiliates
 
75 
Net income
 
1,482 
Amounts attributable to redeemable noncontrolling interests
 
(6) 
Net income (loss) available to Arch
 
1,476 
Preferred dividends
 
(40) 
Net income (loss) available to Arch common shareholders
$ 
1,436 
Underwriting Ratios
Loss ratio
 61.0 %
 64.9 %
 -28.0 %
 51.9 %
Acquisition expense ratio
 19.4 %
 20.5 %
 3.5 %
 18.0 %
Other operating expense ratio
 14.6 %
 6.8 %
 16.8 %
 11.7 %
Combined ratio
 95.0 %
 92.2 %
 -7.7 %
 81.6 %
Goodwill and intangible assets
$ 
229 
$ 
145 
$ 
430 
$ 
804 
Total investable assets
$ 
28,065 
Total assets
 
47,990 
Total liabilities
 
35,069 
(1) 
Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such 
transactions for each segment does not agree to the total due to eliminations.
(2) 
Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional 
fees.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
120
2024  FORM 10-K

The following tables provide summary information regarding net premiums earned by major line of business and net premiums 
written by underwriting location:
INSURANCE SEGMENT
Year Ended December 31,
2024
2023
2022
Net premiums earned
North America
Property and short-tail specialty
$ 
1,165 
$ 
976 
$ 
746 
Other liability - occurrence
942
618
509
Other liability - claims made
843
866
874
Workers compensation
549
495
415
Commercial automobile
459
343
287
Commercial multi-peril
435
193
197
Other
309
290
255
Total North America
4,702
3,781
3,283
International
Property and short-tail specialty
$ 
1,050 
$ 
885 
$ 
613 
Casualty and other
875
780
664
Total International 
1,925
1,665
1,277
Total
$ 
6,627 
$ 
5,446 
$ 
4,560 
Net premiums written by underwriting location
North America
$ 
4,869 
$ 
3,995 
$ 
3,527 
International
2,005
1,867
 
1,494 
Total
$ 
6,874 
$ 
5,862 
$ 
5,021 
REINSURANCE SEGMENT
Year Ended December 31,
2024
2023
2022
Net premiums earned
Other specialty
$ 
2,619 
$ 
2,097 
$ 
1,378 
Property excluding property catastrophe
2,148
1,645
1,090
Casualty
1,088
1,005
855
Property catastrophe
959
742
367
Marine and aviation
276
229
159
Other
152
118
110
Total
$ 
7,242 
$ 
5,836 
$ 
3,959 
Net premiums written by underwriting location
Bermuda
$ 
3,425 
$ 
3,288 
$ 
2,561 
United States
2,135
1,756
 
1,247 
Europe and other
2,186
1,510
 
1,116 
Total
$ 
7,746 
$ 
6,554 
$ 
4,924 
MORTGAGE SEGMENT
Year Ended December 31,
2024
2023
2022
Net premiums earned
U.S. primary mortgage insurance
$ 
845 
$ 
759 
$ 
804 
U.S. credit risk transfer (CRT) and other
213
220
196
International mortgage insurance/reinsurance
173
179
160
Total
$ 
1,231 
$ 
1,158 
$ 
1,160 
Net premiums written by underwriting location
United States
$ 
823 
$ 
743 
$ 
781 
Other
 
289 
 
309 
 
352 
Total
$ 
1,112 
$ 
1,052 
$ 
1,133 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
121
2024  FORM 10-K

5. 
Reserve for Losses and Loss Adjustment Expenses
The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and 
ending reserve for losses and loss adjustment expenses:
Year Ended December 31,
2024
2023
2022
Reserve for losses and loss adjustment expenses at beginning of year
$ 
22,752 
$ 
20,032 
$ 
17,757 
Unpaid losses and loss adjustment expenses recoverable
 
6,690 
 
6,280 
 
5,599 
Net reserve for losses and loss adjustment expenses at beginning of year
 
16,062 
 
13,752 
 
12,158 
Net incurred losses and loss adjustment expenses relating to losses occurring in:
Current year
 
8,849 
 
6,784 
 
5,797 
Prior years
 
(507)  
(538)  
(769) 
Total net incurred losses and loss adjustment expenses
 
8,342 
 
6,246 
 
5,028 
Net losses and loss adjustment expense reserves of acquired business (1)
 
2,477 
 
— 
 
— 
Foreign exchange (gains) losses and other
 
(260)  
157 
 
(293) 
Net paid losses and loss adjustment expenses relating to losses occurring in:
Current year
 
(1,176)  
(1,081)  
(888) 
Prior years
 
(3,897)  
(3,012)  
(2,253) 
Total net paid losses and loss adjustment expenses
 
(5,073)  
(4,093)  
(3,141) 
Net reserve for losses and loss adjustment expenses at end of year
 
21,548 
 
16,062 
 
13,752 
Unpaid losses and loss adjustment expenses recoverable
 
7,821 
 
6,690 
 
6,280 
Reserve for losses and loss adjustment expenses at end of year
$ 
29,369 
$ 
22,752 
$ 
20,032 
(1) Activity in the 2024 period primarily related to the MCE Acquisition (see note 2), along with acquisitions of Watford Insurance Company (see note 16) and 
RMIC Companies, Inc. and its wholly-owned subsidiaries (“RMIC”) that, together, comprise the run-off mortgage insurance business of Old Republic 
International Corporation.
Prior year development (“PYD”) arises from changes in loss estimates during the current period related to events occurring in 
prior calendar years. Long-tailed lines include lines of business that typically take many years for claims to settle such as third-
party liability; short-tailed lines are those that settle more quickly such as property. The table below summarizes (favorable) and 
adverse net PYD by segment and tail length:
(Favorable) Adverse
Year Ended December 31,
2024
Short-tailed
Long-tailed
Total
Insurance
$ 
(53) $ 
16 
$ 
(37) 
Reinsurance
 
(232)  
44 
 
(188) 
Mortgage
 
(282)  
— 
 
(282) 
Total
$ 
(567) $ 
60 
$ 
(507) 
2023
Insurance
$ 
(85) $ 
43 
$ 
(42) 
Reinsurance
 
(202)  
50 
 
(152) 
Mortgage
 
(344)  
— 
 
(344) 
Total
$ 
(631) $ 
93 
$ 
(538) 
2022
Insurance
$ 
(65) $ 
40 
$ 
(25) 
Reinsurance
 
(195)  
5 
 
(190) 
Mortgage
 
(554)  
— 
 
(554) 
Total
$ 
(814) $ 
45 
$ 
(769) 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
122
2024  FORM 10-K

Year Ended December 31, 2024
The 
insurance 
segment’s 
short-tailed 
lines 
included 
$32 million of favorable development in travel and accident, 
primarily from the 2023 accident year, (i.e., the year in which 
a loss occurred), and $31 million of favorable development in 
surety, primarily from the 2007, 2022 and 2023 accident 
years. Net adverse development in long-tailed lines included 
adverse development in programs, mainly from the 2023 
accident year.
The reinsurance segment’s short-tailed lines included 
$99 million of favorable development from property other 
than property catastrophe, primarily from the 2022 and 2023 
underwriting years (i.e., all premiums and losses attributable 
to contracts having an inception or renewal date within the 
given 12 month period), $74 million of favorable 
development from other specialty lines, primarily from the 
2015 to 2022 underwriting years, and $64 million of 
favorable development from property catastrophe, primarily 
from the 2020 to 2023 underwriting years. Long-tailed lines 
included $44 million of adverse development in casualty, 
primarily from the 2016, 2017 and 2020 underwriting years.
The mortgage segment’s favorable development was driven 
by reserve releases associated with the U.S. first lien 
portfolio from the 2022 and 2023 accident years. The 
Company’s credit risk transfer and international businesses 
also contributed to the favorable development.
Year Ended December 31, 2023
The 
insurance 
segment’s 
short-tailed 
lines 
included 
$43 million of favorable development in property and 
marine, primarily from the 2021 and 2022 accident years, 
$22 million of favorable development in warranty and 
lenders solutions, primarily from the 2022 accident year, and 
$15 million of favorable development related to travel and 
accident business, primarily from the 2022 accident year. 
Long-tailed 
lines 
included 
$50 
million 
of 
adverse 
development in professional liability, primarily from the 
2017 to 2020 accident years.
The reinsurance segment’s short-tailed lines included 
$93 million of favorable development in property other than 
property catastrophe, primarily from the 2020 to 2022 
underwriting years, $51 million of favorable development in 
property catastrophe, primarily from the 2019 to 2022 
underwriting years, and $35 million from other specialty 
lines, primarily from the 2021 underwriting year. Long-tailed 
lines included $45 million of adverse development in 
casualty business, primarily from the 2013 to 2020 
underwriting years.
The mortgage segment’s favorable development was driven 
by reserve releases associated with the U.S. first lien 
portfolio from the 2020 to 2022 accident years. The 
Company’s credit risk transfer and international businesses 
also contributed to the favorable development.
Year Ended December 31, 2022
The 
insurance 
segment’s 
short-tailed 
lines 
included 
$37 million of favorable development in warranty and 
lenders solutions, primarily from the 2021 accident year, and 
$15 million of favorable development related to travel and 
accident business, primarily from the 2021 accident year. 
Long-tailed 
lines 
included 
$25 
million 
of 
adverse 
development in professional liability, primarily from the 
2013 to 2015 and 2018 to 2020 accident years, and 
$18 million related to casualty business, primarily from the 
2020 and 2021 accident years.
The reinsurance segment’s short-tailed lines included 
$109 million of favorable development from property other 
than property catastrophe business, primarily from the 2018 
to 2021 underwriting years, $35 million from other specialty 
business, primarily from the 2016 and 2021 underwriting 
years, $28 million in marine and aviation lines, across most 
underwriting 
years, 
and 
$24 
million 
of 
favorable 
development from property catastrophe business, primarily 
from the 2018 to 2020 underwriting years. Net adverse 
development in long-tailed lines included $5 million in 
casualty, spread across many prior underwriting years.
The mortgage segment’s favorable development was driven 
by reserve releases related to COVID-19 delinquencies 
associated with the U.S. first lien portfolio from the 2020 and 
2021 accident years. The Company’s credit risk transfer, 
international, second lien and student loan businesses also 
contributed to the favorable development.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
123
2024  FORM 10-K

6. 
Short Duration Contracts
The Company’s reserves for losses and loss adjustment 
expenses primarily relate to short-duration contracts with 
various characteristics (e.g., type of coverage, geography, 
claims duration). The Company considered such information 
in determining the level of disaggregation for disclosures 
related to its short-duration contracts, as detailed in the table 
below:
Reportable 
segment
Level of 
disaggregation
Included lines of business
Insurance
Property energy, 
marine and aviation
Property energy, marine and 
aviation
Third party 
occurrence business
Excess and surplus casualty 
(excluding contract binding); 
construction and national 
accounts; and other (including 
alternative market risks, excess 
workers’ compensation and 
employer’s liability insurance 
coverages)
Third party claims-
made business
Professional lines
Multi-line and other 
specialty
Programs; contract binding (part 
of excess and surplus casualty); 
travel, accident and health; 
warranty and lenders solutions; 
and other (contract and 
commercial surety coverages); 
MCE business1
Reinsurance
Casualty
Casualty
Property catastrophe
Property catastrophe
Property excluding 
property catastrophe
Property excluding property 
catastrophe
Marine and aviation
Marine and aviation
Other specialty
Other specialty
Mortgage
Direct mortgage 
insurance in the U.S.
Mortgage insurance on U.S. 
primary exposures
(1) Includes business underwritten under a new business reinsurance 
agreement related to the MCE Acquisition. See note 2.
The Company determined the following to be insignificant 
for disclosure purposes: (i) certain mortgage business, 
including non-U.S. primary business, second lien and student 
loan 
exposures, 
global 
mortgage 
reinsurance 
and 
participation in various GSE credit risk-sharing products and 
(ii) certain reinsurance business, including casualty clash and 
non-traditional lines. Such amounts are included as 
reconciling items.
The Company is required to establish reserves for losses and 
loss adjustment expenses (“Loss Reserves”) that arise from 
the business the Company underwrites. Loss Reserves for the 
insurance, reinsurance and mortgage segments represent 
estimates of future amounts required to pay losses and loss 
adjustment expenses for insured or reinsured events which 
have occurred at or before the balance sheet date. Loss 
Reserves do not reflect contingency reserve allowances to 
account for future loss occurrences. Losses arising from 
future events will be estimated and recognized at the time the 
losses are incurred and could be substantial.
Insurance Segment
Loss Reserves for the insurance segment are comprised of 
estimated amounts for (1) reported losses (“case reserves”) 
and (2) incurred but not reported losses (“IBNR reserves”). 
Generally, claims personnel determine whether to establish a 
case reserve for the estimated amount of the ultimate 
settlement of individual claims. The estimate reflects the 
judgment of claims personnel based on general corporate 
reserving practices, the experience and knowledge of such 
personnel regarding the nature and value of the specific type 
of claim and, where appropriate, advice of counsel. The 
Company also contracts with a number of outside third party 
administrators in the claims process who, in certain cases, 
have limited authority to establish case reserves. The work of 
such administrators is reviewed and monitored by our claims 
personnel. Loss Reserves are also established to provide for 
loss adjustment expenses and represent the estimated expense 
of settling claims, including legal and other fees and the 
general expenses of administering the claims adjustment 
process. Periodically, adjustments to the case reserves may be 
made as additional information is reported or payments are 
made. IBNR reserves are established to provide for incurred 
claims which have not yet been reported at the balance sheet 
date as well as to adjust for any projected variance in case 
reserving. Actuaries estimate ultimate losses and loss 
adjustment expenses using various generally accepted 
actuarial methods applied to known losses and other relevant 
information. Like case reserves, IBNR reserves are adjusted 
as additional information becomes known or payments are 
made. The process of estimating reserves involves a 
considerable degree of judgment by management and, as of 
any given date, is inherently uncertain.
Ultimate losses and loss adjustment expenses are generally 
determined by projection of claim emergence and settlement 
patterns observed in the past that can reasonably be expected 
to persist into the future. In forecasting ultimate losses and 
loss adjustment expenses with respect to any line of business, 
past experience with respect to that line of business is the 
primary resource, developed through both industry and 
company experience, but cannot be relied upon in isolation. 
Uncertainties in estimating ultimate losses and loss 
adjustment expenses are magnified by the length of the time 
lag between when a claim actually occurs and when it is 
reported and settled. This time lag is sometimes referred to as 
the “claim-tail.” During this period additional facts regarding 
coverages written in prior accident years, as well as about 
actual claims and trends, may become known and, as a result, 
may lead to adjustments of the related Loss Reserves. If the 
Company determines that an adjustment is appropriate, the 
adjustment is recorded in the accounting period in which 
such determination is made. Accordingly, should Loss 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
124
2024  FORM 10-K

Reserves need to be increased or decreased in the future from 
amounts currently established, future results of operations 
would be negatively or positively impacted respectively. The 
Company authorizes managing general agents, general agents 
and other producers to write program business on the 
Company’s behalf within prescribed underwriting authorities. 
This delegated authority process introduces additional 
complexity to the actuarial determination of unpaid future 
losses and loss adjustment expenses. In order to monitor 
adherence to the underwriting guidelines given to such 
parties, the Company periodically performs underwriting and 
claims due diligence reviews.
In determining ultimate losses and loss adjustment expenses, 
the cost to indemnify claimants, provide needed legal defense 
and other services for insureds and administer the 
investigation and adjustment of claims are considered. These 
claim costs are influenced by many factors that change over 
time, such as expanded coverage definitions as a result of 
new court decisions, inflation in costs to repair or replace 
damaged property, inflation in the cost of medical services 
and legislated changes in statutory benefits, as well as by the 
particular, unique facts that pertain to each claim. As a result, 
the rate at which claims arose in the past and the costs to 
settle them may not always be representative of what will 
occur in the future. The factors influencing changes in claim 
costs are often difficult to isolate or quantify and 
developments in paid and incurred losses from historical 
trends are frequently subject to multiple and conflicting 
interpretations. Changes in coverage terms or claims handling 
practices 
may 
also 
cause 
future 
experience 
and/or 
development patterns to vary from the past. A key objective 
of actuaries in developing estimates of ultimate losses and 
loss adjustment expenses, and resulting IBNR reserves, is to 
identify aberrations and systemic changes occurring within 
historical experience and adjust for them so that the future 
can be projected more reliably. Because of the factors 
previously discussed, this process requires the substantial use 
of informed judgment and is inherently uncertain.
Although Loss Reserves are initially determined based on 
underwriting and pricing analyses, the Company’s insurance 
segment applies several generally accepted actuarial 
methods, as discussed below, on a quarterly basis to evaluate 
the Loss Reserves, in addition to the expected loss method, in 
particular for Loss Reserves from more mature accident years 
(the year in which a loss occurred). Each quarter, as part of 
the reserving process, the segments’ actuaries reaffirm that 
the assumptions used in the reserving process continue to 
form a sound basis for the projection of liabilities. If actual 
loss activity differs substantially from expectations based on 
historical information, an adjustment to Loss Reserves may 
be supported. The Company places more or less reliance on a 
particular actuarial method based on the facts and 
circumstances at the time the estimates of Loss Reserves are 
made. 
These methods generally fall into one of the following 
categories or are hybrids of one or more of the following 
categories:
•
Expected loss methods - these methods are based on the 
assumption that ultimate losses vary proportionately with 
premiums. Expected loss and loss adjustment expense 
ratios 
are 
typically 
developed 
based 
upon 
the 
information derived by underwriters and actuaries during 
the initial pricing of the business, supplemented by 
industry data available from organizations, such as 
statistical 
bureaus 
and 
consulting 
firms, 
where 
appropriate. These ratios consider, among other things, 
rate increases and changes in terms and conditions that 
have been observed in the market. Expected loss 
methods are useful for estimating ultimate losses and 
loss adjustment expenses in the early years of long-tailed 
lines of business, when little or no paid or incurred loss 
information is available, and is commonly applied when 
limited loss experience exists for a company.
•
Historical incurred loss development methods - these 
methods assume that the ratio of losses in one period to 
losses in an earlier period will remain constant in the 
future. These methods use incurred losses (i.e., the sum 
of cumulative historical loss payments plus outstanding 
case reserves) over discrete periods of time to estimate 
future losses. Historical incurred loss development 
methods may be preferable to historical paid loss 
development methods because they explicitly take into 
account open cases and the claims adjusters’ evaluations 
of the cost to settle all known claims. However, 
historical incurred loss development methods necessarily 
assume that case reserving practices are consistently 
applied over time. Therefore, when there have been 
significant changes in how case reserves are established, 
using incurred loss data to project ultimate losses may be 
less reliable than other methods.
•
Historical paid loss development methods - these 
methods, like historical incurred loss development 
methods, assume that the ratio of losses in one period to 
losses in an earlier period will remain constant. These 
methods use historical loss payments over discrete 
periods of time to estimate future losses and necessarily 
assume that factors that have affected paid losses in the 
past, such as inflation or the effects of litigation, will 
remain constant in the future. Because historical paid 
loss development methods do not use incurred losses to 
estimate ultimate losses, they may be more reliable than 
the other methods that use incurred losses in situations 
where there are significant changes in how incurred 
losses are established by a company’s claims adjusters. 
However, historical paid loss development methods are 
more leveraged (meaning that small changes in payments 
have a larger impact on estimates of ultimate losses) than 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
125
2024  FORM 10-K

actuarial methods that use incurred losses because 
cumulative loss payments take much longer to equal the 
expected ultimate losses than cumulative incurred 
amounts. In addition, and for similar reasons, historical 
paid loss development methods are often slow to react to 
situations when new or different factors arise than those 
that have affected paid losses in the past.
•
Adjusted historical paid and incurred loss development 
methods - these methods take traditional historical paid 
and incurred loss development methods and adjust them 
for the estimated impact of changes from the past in 
factors such as inflation, the speed of claim payments or 
the adequacy of case reserves. Adjusted historical paid 
and incurred loss development methods are often more 
reliable methods of predicting ultimate losses in periods 
of significant change, provided the actuaries can develop 
methods to reasonably quantify the impact of changes. 
As such, these methods utilize more judgment than 
historical paid and incurred loss development methods.
•
Bornhuetter-Ferguson (“B-F”) paid and incurred loss 
methods - these methods utilize actual paid and incurred 
losses and expected patterns of paid and incurred losses, 
taking the initial expected ultimate losses into account to 
determine an estimate of expected ultimate losses. The 
B-F paid and incurred loss methods are useful when 
there are few reported claims and a relatively less stable 
pattern of reported losses.
•
Frequency-Severity methods - These methods utilize 
actual paid and incurred claim experience, but break the 
data down into its component pieces: claim counts, often 
expressed as a ratio to exposure or premium (frequency), 
and average claim size (severity). The component pieces 
are projected to an ultimate level and multiplied together 
to result in an estimate of ultimate loss. These methods 
are especially useful when the severity of claims can be 
confined to a relatively stable range of estimated 
ultimate average claim value.
•
Additional analyses - other methodologies are often used 
in the reserving process for specific types of claims or 
events, such as catastrophic or other specific major 
events. These include vendor catastrophe models, which 
are typically used in the estimation of Loss Reserves at 
the early stage of known catastrophic events before 
information has been reported to an insurer or reinsurer. 
In the initial reserving process for short-tail insurance lines 
(consisting of property, energy, marine and aviation and 
other exposures including travel, accident and health, and 
warranty and lenders solutions), the Company relies on a 
combination of the reserving methods discussed above. For 
catastrophe-exposed business, the reserving process also 
includes the usage of catastrophe models for known events 
and a heavy reliance on analysis of individual catastrophic 
events and management judgment. The development of 
losses on short-tail business can be unstable, especially for 
policies characterized by high severity, low frequency losses. 
As time passes, for a given accident year, additional weight is 
given to the paid and incurred B-F loss development methods 
and eventually to the historical paid and incurred loss 
development methods in the reserving process. The Company 
makes a number of key assumptions in their reserving 
process, including that historical paid and reported 
development patterns are stable, catastrophe models provide 
useful information about our exposure to catastrophic events 
that have occurred and underwriters’ judgment as to potential 
loss exposures can be relied on. The expected loss ratios used 
in the initial reserving process for short-tail business have 
varied over time due to changes in pricing, reinsurance 
structure, estimates of catastrophe losses, policy changes 
(such as attachment points, class and limits) and geographical 
distribution. As losses in short-tail lines are reported 
relatively quickly, expected loss ratios are selected for the 
current accident year based upon actual attritional loss ratios 
for earlier accident years, adjusted for rate changes, inflation, 
changes in reinsurance programs and expected attritional 
losses based on modeling. Furthermore, ultimate losses for 
short-tail business are known in a reasonably short period of 
time.
In the initial reserving process for long-tail insurance lines 
(consisting of third party occurrence business, third party 
claims made business, and other exposures including surety, 
programs and contract binding exposures), the Company 
primarily relies on the expected loss method. The 
development of the Company’s long-tail business may be 
unstable, especially if there are high severity major events, as 
a portion of the Company’s casualty business is in high 
excess layers. As time passes, for a given accident year, 
additional weight is given to the paid and incurred B-F loss 
development methods and historical paid and incurred loss 
development methods in the reserving process. The Company 
makes a number of key assumptions in reserving for long-tail 
lines, including that the pricing loss ratio is the best estimate 
of the ultimate loss ratio at the time the policy is entered into, 
that the loss development patterns, which are based on a 
combination of company and industry loss development 
patterns and adjusted to reflect differences in the insurance 
segment’s mix of business, are reasonable and that claims 
personnel and underwriters analyses of our exposure to major 
events are assumed to be the best estimate of exposure to the 
known claims on those events. The expected loss ratios used 
in the initial reserving process for long-tail business for 
recent accident years have varied over time, in some cases 
significantly, from earlier accident years. As the credibility of 
historical experience for earlier accident years increases, the 
experience from these accident years will be given a greater 
weighting in the actuarial analysis to determine future 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
126
2024  FORM 10-K

accident year expected loss ratios, adjusted for changes in 
pricing, loss trends, terms and conditions and reinsurance 
structure. 
From time to time, the Company enters into loss portfolio 
transfer and adverse development cover reinsurance 
agreements accounted for as retroactive reinsurance. These 
agreements transfer Loss Reserves and future favorable or 
adverse development on certain runoff programs and certain 
third party occurrence business, within multi-line and other 
specialty business (the “Covered Lines”). As incurred losses 
and allocated loss adjustment expenses for the Covered Lines 
are ceded to the reinsurer, the Company is not exposed to 
changes in the amount, timing and uncertainty of cash flows 
arising from the Covered Lines. To avoid distortion, the 
incurred losses and allocated loss adjustment expenses and 
cumulative paid losses and loss adjustment expenses for the 
Covered Lines are excluded entirely from the tables below. 
Unpaid loss and loss adjustment expenses recoverable at 
December 31, 2024 included $168 million related to such 
reinsurance agreements. 
The following tables present information on the insurance segment’s short-duration insurance contracts:
Property, energy, marine and aviation (in millions except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
112 
$ 
110 
$ 
104 
$ 
102 
$ 
98 
$ 
92 
$ 
92 
$ 
91 
$ 
89 
$ 
89 
$ 
1 
 
4,535 
2016
 
104 
 
101 
 
105 
 
100 
 
96 
 
92 
 
87 
 
87 
 
86 
 
— 
 
6,177 
2017
 
281 
 
246 
 
236 
 
230 
 
231 
 
225 
 
225 
 
224 
 
— 
 
6,481 
2018
 
181 
 
186 
 
174 
 
170 
 
170 
 
172 
 
170 
 
4 
 
5,085 
2019
 
179 
 
179 
 
165 
 
161 
 
159 
 
156 
 
(2) 
 
7,436 
2020
 
359 
 
329 
 
336 
 
333 
 
337 
 
3 
 
8,682 
2021
 
427 
 
429 
 
423 
 
421 
 
19 
 
10,077 
2022
 
522 
 
495 
 
576 
 
148 
 
15,860 
2023
 
571 
 
510 
 
110 
 
20,178 
2024
 
703 
 
348 
 
17,889 
Total
$ 
3,272 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
24 
$ 
65 
$ 
76 
$ 
86 
$ 
88 
$ 
86 
$ 
87 
$ 
88 
$ 
86 
$ 
86 
2016
 
25 
 
83 
 
98 
 
97 
 
94 
 
91 
 
87 
 
87 
 
86 
2017
 
30 
 
140 
 
196 
 
212 
 
216 
 
218 
 
220 
 
221 
2018
 
30 
 
102 
 
135 
 
143 
 
150 
 
154 
 
157 
2019
 
26 
 
105 
 
134 
 
139 
 
148 
 
153 
2020
 
56 
 
194 
 
251 
 
293 
 
306 
2021
 
90 
 
268 
 
343 
 
365 
2022
 
100 
 
276 
 
337 
2023
 
146 
 
271 
2024
 
195 
Total
 
2,177 
All outstanding liabilities before 2015, net of reinsurance
 
19 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
1,114 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
127
2024  FORM 10-K

Third party occurrence business (in millions except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
359 
$ 
391 
$ 
398 
$ 
392 
$ 
391 
$ 
382 
$ 
386 
$ 
379 
$ 
377 
$ 
365 
$ 
51 
 
78,553 
2016
 
389 
 
394 
 
406 
 
399 
 
375 
 
367 
 
363 
 
352 
 
345 
 
67 
 
78,811 
2017
 
417 
 
418 
 
422 
 
412 
 
407 
 
406 
 
404 
 
408 
 
89 
 
84,682 
2018
 
430 
 
453 
 
450 
 
451 
 
459 
 
461 
 
448 
 
106 
 
79,202 
2019
 
456 
 
487 
 
480 
 
471 
 
470 
 
451 
 
122 
 
88,964 
2020
 
606 
 
616 
 
640 
 
632 
 
606 
 
138 
 
98,530 
2021
 
622 
 
662 
 
659 
 
671 
 
147 
 
99,287 
2022
 
688 
 
726 
 
735 
 
408 
 
100,455 
2023
 
877 
 
936 
 
622 
 
102,558 
2024
 
1,001 
 
883 
 
83,386 
Total
$ 
5,966 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
11 
$ 
44 
$ 
88 
$ 
139 
$ 
181 
$ 
211 
$ 
227 
$ 
249 
$ 
268 
$ 
276 
2016
 
12 
 
42 
 
88 
 
137 
 
164 
 
195 
 
215 
 
230 
 
246 
2017
 
13 
 
52 
 
100 
 
135 
 
165 
 
221 
 
247 
 
271 
2018
 
17 
 
64 
 
115 
 
154 
 
200 
 
247 
 
271 
2019
 
18 
 
73 
 
122 
 
173 
 
214 
 
255 
2020
 
24 
 
76 
 
155 
 
235 
 
318 
2021
 
26 
 
91 
 
174 
 
323 
2022
 
24 
 
85 
 
186 
2023
 
32 
 
156 
2024
 
37 
Total
 
2,339 
All outstanding liabilities before 2015, net of reinsurance
 
339 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
3,966 
Third party claims-made business (in millions except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
259 
$ 
277 
$ 
276 
$ 
260 
$ 
255 
$ 
252 
$ 
268 
$ 
267 
$ 
274 
$ 
268 
$ 
6 
 
13,955 
2016
 
275 
 
291 
 
308 
 
314 
 
322 
 
327 
 
329 
 
327 
 
329 
 
16 
 
14,892 
2017
 
270 
 
285 
 
311 
 
308 
 
323 
 
316 
 
337 
 
339 
 
42 
 
15,484 
2018
 
272 
 
314 
 
319 
 
336 
 
347 
 
366 
 
366 
 
33 
 
17,094 
2019
 
289 
 
317 
 
317 
 
322 
 
329 
 
329 
 
49 
 
16,723 
2020
 
383 
 
412 
 
423 
 
445 
 
432 
 
86 
 
16,816 
2021
 
514 
 
517 
 
499 
 
461 
 
176 
 
18,086 
2022
 
668 
 
654 
 
589 
 
257 
 
19,825 
2023
 
809 
 
895 
 
543 
 
23,671 
2024
 
737 
 
577 
 
23,155 
Total
$ 
4,745 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
9 
$ 
52 
$ 
100 
$ 
126 
$ 
174 
$ 
193 
$ 
217 
$ 
221 
$ 
242 
$ 
248 
2016
 
11 
 
68 
 
127 
 
158 
 
205 
 
242 
 
257 
 
295 
 
296 
2017
 
9 
 
67 
 
113 
 
143 
 
196 
 
232 
 
257 
 
276 
2018
 
12 
 
68 
 
118 
 
158 
 
208 
 
258 
 
285 
2019
 
12 
 
65 
 
122 
 
154 
 
196 
 
235 
2020
 
17 
 
87 
 
151 
 
214 
 
265 
2021
 
23 
 
90 
 
162 
 
223 
2022
 
25 
 
100 
 
218 
2023
 
64 
 
200 
2024
 
56 
Total
 
2,302 
All outstanding liabilities before 2015, net of reinsurance
 
90 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
2,533 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
128
2024  FORM 10-K

Multi-line and other specialty (in millions except claim count) 
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
334 
$ 
358 
$ 
356 
$ 
365 
$ 
356 
$ 
349 
$ 
347 
$ 
345 
$ 
344 
$ 
344 
$ 
3 
 
181,424 
2016
 
408 
 
431 
 
427 
 
416 
 
410 
 
408 
 
408 
 
406 
 
404 
 
4 
 
195,233 
2017
 
482 
 
500 
 
491 
 
500 
 
504 
 
512 
 
516 
 
514 
 
6 
 
236,433 
2018
 
512 
 
564 
 
562 
 
564 
 
564 
 
564 
 
564 
 
9 
 
266,125 
2019
 
566 
 
611 
 
639 
 
650 
 
656 
 
671 
 
11 
 
249,876 
2020
 
616 
 
567 
 
513 
 
515 
 
519 
 
26 
 
168,232 
2021
 
634 
 
618 
 
614 
 
635 
 
42 
 
112,591 
2022
 
677 
 
640 
 
639 
 
90 
 
144,429 
2023
 
815 
 
809 
 
199 
 
161,842 
2024
 
1,419 
 
885 
 
145,190 
Total
$ 
6,518 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
138 
$ 
236 
$ 
278 
$ 
306 
$ 
321 
$ 
326 
$ 
330 
$ 
331 
$ 
333 
$ 
337 
2016
 
176 
 
304 
 
341 
 
363 
 
379 
 
385 
 
390 
 
391 
 
396 
2017
 
181 
 
342 
 
380 
 
423 
 
446 
 
472 
 
479 
 
493 
2018
 
211 
 
389 
 
442 
 
479 
 
508 
 
526 
 
543 
2019
 
212 
 
385 
 
486 
 
548 
 
576 
 
611 
2020
 
171 
 
308 
 
358 
 
405 
 
450 
2021
 
157 
 
334 
 
427 
 
511 
2022
 
177 
 
370 
 
439 
2023
 
253 
 
489 
2024
 
337 
Total
 
4,606 
All outstanding liabilities before 2015, net of reinsurance
 
29 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
1,941 
The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by 
age, net of reinsurance, as of December 31, 2024: 
Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Property, energy, marine and aviation
 21.5 %
 43.8 %
 17.2 %
 6.1 %
 2.4 %
 — %
 — %
 0.3 %
 (1.2) %
 — %
Third party occurrence business
 3.6 %
 10.0 %
 12.3 %
 13.2 %
 10.0 %
 10.0 %
 5.5 %
 5.5 %
 4.8 %
 2.2 %
Third party claims-made business
 4.4 %
 15.6 %
 16.3 %
 10.9 %
 14.3 %
 10.9 %
 7.0 %
 6.2 %
 4.0 %
 2.4 %
Multi-line and other specialty
 32.8 %
 29.2 %
 11.0 %
 8.5 %
 5.1 %
 3.3 %
 1.7 %
 1.1 %
 0.8 %
 1.4 %
Reinsurance Segment
Loss Reserves for the Company’s reinsurance segment are 
comprised of (1) case reserves, (2) additional case reserves 
(“ACRs”) and (3) IBNR reserves. The Company receives 
reports of claims notices from ceding companies and records 
case reserves based upon the amount of reserves 
recommended by the ceding company. Case reserves may be 
supplemented by ACRs, which may be estimated by the 
Company’s claims personnel ahead of official notification 
from the ceding company, or when judgment regarding the 
size or severity of the known event differs from the ceding 
company. In certain instances, the Company establishes 
ACRs even when the ceding company does not report any 
liability on a known event. In addition, specific claim 
information reported by ceding companies or obtained 
through claim audits can alert the Company to emerging 
trends such as changing legal interpretations of coverage and 
liability, claims from unexpected sources or classes of 
business, and significant changes in the frequency or severity 
of individual claims. Such information is often used in the 
process of estimating IBNR reserves. IBNR reserves are 
established to provide for incurred claims which have not yet 
been reported at the balance sheet date as well as to adjust for 
any projected variance in case reserving. Actuaries estimate 
ultimate losses and loss adjustment expenses using various 
generally accepted actuarial methods applied to known losses 
and other relevant information. Like case reserves, IBNR 
reserves are adjusted as additional information becomes 
known or payments are made. The process of estimating Loss 
Reserves involves a considerable degree of judgment by 
management and, as of any given date, is inherently 
uncertain.
The estimation of Loss Reserves for the reinsurance segment 
is subject to the same risk factors as the estimation of Loss 
Reserves for the insurance segment. In addition, the inherent 
uncertainties of estimating such reserves are even greater for 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
129
2024  FORM 10-K

reinsurers, due primarily to the following factors: (1) the 
claim-tail for reinsurers is generally longer because claims 
are first reported to the ceding company and then to the 
reinsurer through one or more intermediaries, (2) the reliance 
on premium estimates, where reports have not been received 
from the ceding company, in the reserving process, (3) the 
potential for writing a number of reinsurance contracts with 
different ceding companies with the same exposure to a 
single loss event, (4) the diversity of loss development 
patterns among different types of reinsurance contracts, (5) 
the necessary reliance on the ceding companies for 
information regarding reported claims and (6) the differing 
reserving practices among ceding companies.
Ultimate losses and loss adjustment expenses are generally 
determined by projection of claim emergence and settlement 
patterns observed in the past that can reasonably be expected 
to persist into the future. As with the insurance segment, the 
process of estimating Loss Reserves for the reinsurance 
segment involves a considerable degree of judgment by 
management and, as of any given date, is inherently 
uncertain. As discussed above, such uncertainty is greater for 
reinsurers compared to insurers. As a result, our reinsurance 
operations obtain information from numerous sources to 
assist in the process. Pricing actuaries from the reinsurance 
segment devote considerable effort to understanding and 
analyzing a ceding company’s operations and loss history 
during the underwriting of the business, using a combination 
of ceding company and industry statistics. Such statistics 
normally include historical premium and loss data by class of 
business, individual claim information for larger claims, 
distributions of insurance limits provided, loss reporting and 
payment patterns, and rate change history. This analysis is 
used to project expected loss ratios for each treaty during the 
upcoming contract period.
As mentioned above, there can be a considerable time lag 
from the time a claim is reported to a ceding company to the 
time it is reported to the reinsurer. The lag can be several 
years in some cases and may be attributed to a number of 
reasons, including the time it takes to investigate a claim, 
delays associated with the litigation process, the deterioration 
in a claimant’s physical condition many years after an 
accident occurs, the case reserving approach of the ceding 
company, etc. In the reserving process, the Company 
assumes that such lags are predictable, on average, over time 
and therefore the lags are contemplated in the loss reporting 
patterns used in their actuarial methods. This means that the 
reinsurance segment must rely on estimates for a longer 
period of time than does an insurance company. Backlogs in 
the recording of assumed reinsurance can also complicate the 
accuracy of loss reserve estimation. As of December 31, 
2024 there were no significant backlogs related to the 
processing of assumed reinsurance information at our 
reinsurance operations.
The reinsurance segment relies heavily on information 
reported by ceding companies, as discussed above. In order 
to determine the accuracy and completeness of such 
information, underwriters, actuaries, and claims personnel 
often perform audits of ceding companies and regularly 
review information received from ceding companies for 
unusual or unexpected results. Material findings are usually 
discussed with the ceding companies. The Company 
sometimes encounters situations where they determine that a 
claim presentation from a ceding company is not in 
accordance with contract terms. In these situations, the 
Company attempts to resolve the dispute with the ceding 
company. Most situations are resolved amicably and without 
the need for litigation or arbitration. However, in the 
infrequent situations where a resolution is not possible, the 
Company will vigorously defend its position in such disputes.
Although Loss Reserves are initially determined based on 
underwriting and pricing analysis, the Company applies 
several generally accepted actuarial methods, as discussed 
above, on a quarterly basis to evaluate its Loss Reserves in 
addition to the expected loss method, in particular for 
reserves from more mature underwriting years (the year in 
which business is underwritten). Each quarter, as part of the 
reserving process, the Company’s actuaries reaffirm that the 
assumptions used in the reserving process continue to form a 
sound basis for projection of liabilities. If actual loss activity 
differs substantially from expectations based on historical 
information, an adjustment to Loss Reserves may be 
supported. Estimated Loss Reserves for more mature 
underwriting years are now based more on actual loss activity 
and historical patterns than on the initial assumptions based 
on pricing indications. More recent underwriting years rely 
more heavily on internal pricing assumptions. The Company 
places more or less reliance on a particular actuarial method 
based on the facts and circumstances at the time the estimates 
of Loss Reserves are made.
In the initial reserving process for short-tail reinsurance lines 
(consisting of property excluding property catastrophe and 
property catastrophe exposures), the Company relies on a 
combination of the reserving methods discussed above. For 
known catastrophic events, the reserving process also 
includes the usage of catastrophe models and a heavy 
reliance on analysis which includes ceding company inquiries 
and management judgment. The development of property 
losses may be unstable, especially where there is high 
catastrophic exposure, may be characterized by high severity, 
low frequency losses for excess and catastrophe-exposed 
business and may be highly correlated across contracts. As 
time passes, for a given underwriting year, additional weight 
is given to the paid and incurred B-F loss development 
methods and historical paid and incurred loss development 
methods in the reserving process. The Company makes a 
number of key assumptions in reserving for short-tail lines, 
including that historical paid and reported development 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
130
2024  FORM 10-K

patterns are stable, catastrophe models provide useful 
information about our exposure to catastrophic events that 
have occurred and our underwriters’ judgment and guidance 
received from ceding companies as to potential loss 
exposures may be relied on. The expected loss ratios used in 
the initial reserving process for property exposures have 
varied over time due to changes in pricing, reinsurance 
structure, estimates of catastrophe losses, terms and 
conditions and geographical distribution. As losses in 
property lines are reported relatively quickly, expected loss 
ratios are selected for the current underwriting year 
incorporating the experience for earlier underwriting years, 
adjusted for rate changes, inflation, changes in reinsurance 
programs, expectations about present and future market 
conditions and expected attritional losses based on modeling. 
Due to the short-tail nature of property business, reported 
loss experience emerges quickly and ultimate losses are 
known in a reasonably short period of time.
In the initial reserving process for long-tail reinsurance lines 
(consisting of casualty, other specialty, marine and aviation 
and other exposures), the Company primarily relies on the 
expected loss method. The development of long-tail business 
may be unstable, especially if there are high severity major 
events, with business written on an excess of loss basis 
typically having a longer tail than business written on a pro 
rata basis. As time passes, for a given underwriting year, 
additional weight is given to the paid and incurred B-F loss 
development methods and eventually to the historical paid 
and incurred loss development methods in the reserving 
process. Our reinsurance operations make a number of key 
assumptions in reserving for long-tail lines, including that the 
pricing loss ratio is the best estimate of the ultimate loss ratio 
at the time the contract is entered into, historical paid and 
reported development patterns are stable and claims 
personnel and underwriters’ analyses of our exposure to 
major events are our best estimate of our exposure to the 
known claims on those events. The expected loss ratios used 
in our reinsurance operations’ initial reserving process for 
long-tail contracts have varied over time due to changes in 
pricing, terms and conditions and reinsurance structure. As 
the 
credibility 
of 
historical 
experience 
for 
earlier 
underwriting years increases, the experience from these 
underwriting years is used in the actuarial analysis to 
determine future underwriting year expected loss ratios, 
adjusted for changes in pricing, loss trends, terms and 
conditions and reinsurance structure.
The following tables present information on the reinsurance segment’s short-duration insurance contracts:
Casualty (in millions)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
218 
$ 
217 
$ 
225 
$ 
232 
$ 
236 
$ 
243 
$ 
246 
$ 
248 
$ 
257 
$ 
248 
$ 
37 
N/A
2016
 
209 
 
222 
 
244 
 
259 
 
266 
 
266 
 
269 
 
278 
 
279 
 
43 
N/A
2017
 
264 
 
252 
 
268 
 
295 
 
306 
 
313 
 
327 
 
335 
 
49 
N/A
2018
 
273 
 
286 
 
278 
 
283 
 
295 
 
304 
 
318 
 
49 
N/A
2019
 
328 
 
340 
 
367 
 
378 
 
399 
 
398 
 
72 
N/A
2020
 
377 
 
365 
 
348 
 
366 
 
385 
 
128 
N/A
2021
 
436 
 
431 
 
422 
 
423 
 
157 
N/A
2022
 
542 
 
523 
 
535 
 
312 
N/A
2023
 
650 
 
654 
 
438 
N/A
2024
 
720 
 
680 
N/A
Total
$ 
4,295 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
4 
$ 
20 
$ 
47 
$ 
71 
$ 
96 
$ 
119 
$ 
136 
$ 
151 
$ 
169 
$ 
177 
2016
 
6 
 
26 
 
51 
 
86 
 
113 
 
132 
 
156 
 
172 
 
186 
2017
 
6 
 
30 
 
64 
 
113 
 
137 
 
164 
 
188 
 
221 
2018
 
8 
 
31 
 
106 
 
129 
 
154 
 
182 
 
205 
2019
 
16 
 
58 
 
97 
 
130 
 
219 
 
256 
2020
 
18 
 
50 
 
90 
 
131 
 
177 
2021
 
14 
 
53 
 
102 
 
190 
2022
 
17 
 
60 
 
111 
2023
 
18 
 
86 
2024
 
14 
Total
 
1,623 
All outstanding liabilities before 2015, net of reinsurance
 
354 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
3,026 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
131
2024  FORM 10-K

Property catastrophe (in millions)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
32 
$ 
17 
$ 
11 
$ 
5 
$ 
3 
$ 
3 
$ 
2 
$ 
2 
$ 
2 
$ 
2 
$ 
— 
N/A
2016
 
21 
 
15 
 
11 
 
8 
 
5 
 
5 
 
4 
 
3 
 
3 
 
1 
N/A
2017
 
85 
 
53 
 
48 
 
35 
 
23 
 
20 
 
20 
 
20 
 
(1) 
N/A
2018
 
68 
 
43 
 
25 
 
11 
 
2 
 
(1) 
 
(2) 
 
— 
N/A
2019
 
10 
 
2 
 
1 
 
(7) 
 
(14) 
 
(10) 
 
— 
N/A
2020
 
262 
 
325 
 
329 
 
320 
 
308 
 
9 
N/A
2021
 
307 
 
301 
 
286 
 
288 
 
7 
N/A
2022
 
292 
 
284 
 
258 
 
25 
N/A
2023
 
253 
 
245 
 
34 
N/A
2024
 
489 
 
100 
N/A
Total
$ 
1,601 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
(3) 
$ 
(3) 
$ 
1 
$ 
2 
$ 
1 
$ 
1 
$ 
1 
$ 
1 
$ 
1 
$ 
2 
2016
 
(7) 
 
1 
 
1 
 
2 
 
1 
 
1 
 
1 
 
1 
 
2 
2017
 
31 
 
31 
 
36 
 
26 
 
13 
 
15 
 
16 
 
16 
2018
 
27 
 
2 
 
12 
 
(18) 
 
(15) 
 
(14) 
 
(12) 
2019
 
4 
 
3 
 
6 
 
(19) 
 
(19) 
 
(27) 
2020
 
55 
 
155 
 
203 
 
243 
 
253 
2021
 
66 
 
168 
 
217 
 
224 
2022
 
68 
 
162 
 
200 
2023
 
6 
 
75 
2024
 
58 
Total
 
791 
All outstanding liabilities before 2015, net of reinsurance
 
2 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
812 
Property excluding property catastrophe (in millions)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
213 
$ 
187 
$ 
183 
$ 
187 
$ 
186 
$ 
175 
$ 
171 
$ 
166 
$ 
166 
$ 
166 
$ 
4 
N/A
2016
 
172 
 
143 
 
135 
 
133 
 
137 
 
133 
 
127 
 
128 
 
126 
 
6 
N/A
2017
 
263 
 
244 
 
233 
 
225 
 
209 
 
201 
 
198 
 
197 
 
7 
N/A
2018
 
221 
 
236 
 
232 
 
209 
 
199 
 
201 
 
201 
 
6 
N/A
2019
 
212 
 
202 
 
192 
 
187 
 
187 
 
193 
 
4 
N/A
2020
 
363 
 
336 
 
316 
 
317 
 
319 
 
14 
N/A
2021
 
537 
 
489 
 
483 
 
491 
 
28 
N/A
2022
 
728 
 
654 
 
645 
 
74 
N/A
2023
 
819 
 
720 
 
136 
N/A
2024
 
1,183 
 
687 
N/A
Total
$ 
4,241 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
75 
$ 
118 
$ 
148 
$ 
159 
$ 
164 
$ 
157 
$ 
158 
$ 
158 
$ 
159 
$ 
159 
2016
 
33 
 
93 
 
97 
 
102 
 
110 
 
112 
 
113 
 
113 
 
115 
2017
 
27 
 
123 
 
153 
 
160 
 
175 
 
178 
 
182 
 
182 
2018
 
29 
 
106 
 
150 
 
165 
 
173 
 
175 
 
175 
2019
 
42 
 
122 
 
148 
 
160 
 
166 
 
167 
2020
 
100 
 
206 
 
241 
 
264 
 
277 
2021
 
135 
 
265 
 
358 
 
418 
2022
 
141 
 
354 
 
459 
2023
 
149 
 
375 
2024
 
143 
Total
 
2,470 
All outstanding liabilities before 2015, net of reinsurance
 
6 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
1,777 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
132
2024  FORM 10-K

Marine and aviation (in millions)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development on 
reported claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
33 
$ 
37 
$ 
31 
$ 
31 
$ 
30 
$ 
28 
$ 
27 
$ 
25 
$ 
24 
$ 
24 
$ 
1 
N/A
2016
 
27 
 
23 
 
23 
 
19 
 
17 
 
15 
 
12 
 
11 
 
10 
 
3 
N/A
2017
 
29 
 
26 
 
24 
 
21 
 
20 
 
17 
 
15 
 
15 
 
2 
N/A
2018
 
27 
 
25 
 
24 
 
24 
 
21 
 
20 
 
20 
 
2 
N/A
2019
 
48 
 
54 
 
60 
 
60 
 
62 
 
62 
 
6 
N/A
2020
 
82 
 
75 
 
79 
 
79 
 
81 
 
7 
N/A
2021
 
109 
 
95 
 
80 
 
78 
 
9 
N/A
2022
 
125 
 
137 
 
133 
 
42 
N/A
2023
 
161 
 
166 
 
66 
N/A
2024
 
235 
 
157 
N/A
Total
$ 
824 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
— 
$ 
13 
$ 
19 
$ 
21 
$ 
22 
$ 
22 
$ 
22 
$ 
22 
$ 
22 
$ 
22 
2016
 
(7) 
 
(2) 
 
— 
 
3 
 
6 
 
7 
 
7 
 
7 
 
7 
2017
 
2 
 
6 
 
9 
 
11 
 
11 
 
12 
 
12 
 
12 
2018
 
2 
 
7 
 
11 
 
13 
 
14 
 
15 
 
16 
2019
 
10 
 
21 
 
28 
 
34 
 
43 
 
49 
2020
 
9 
 
26 
 
42 
 
59 
 
66 
2021
 
8 
 
24 
 
45 
 
52 
2022
 
12 
 
37 
 
62 
2023
 
13 
 
43 
2024
 
18 
Total
 
347 
All outstanding liabilities before 2015, net of reinsurance
 
18 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
495 
Other specialty (in millions)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of IBNR 
liabilities plus 
expected 
development 
on reported 
claims
Cumulative 
number of 
reported 
claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
270 
$ 
269 
$ 
267 
$ 
264 
$ 
264 
$ 
261 
$ 
251 
$ 
249 
$ 
247 
$ 
245 
$ 
1 
N/A
2016
 
317 
 
314 
 
307 
 
298 
 
304 
 
300 
 
297 
 
298 
 
291 
 
3 
N/A
2017
 
386 
 
378 
 
361 
 
360 
 
358 
 
355 
 
352 
 
348 
 
11 
N/A
2018
 
403 
 
396 
 
391 
 
415 
 
411 
 
411 
 
405 
 
22 
N/A
2019
 
414 
 
393 
 
388 
 
383 
 
393 
 
388 
 
27 
N/A
2020
 
578 
 
511 
 
506 
 
526 
 
518 
 
44 
N/A
2021
 
594 
 
594 
 
594 
 
602 
 
55 
N/A
2022
 
929 
 
911 
 
956 
 
161 
N/A
2023
 
1,310 
 
1,238 
 
390 
N/A
2024
 
1,704 
 
1,070 
N/A
Total
$ 
6,695 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
$ 
81 
$ 
157 
$ 
191 
$ 
205 
$ 
217 
$ 
228 
$ 
231 
$ 
232 
$ 
234 
$ 
234 
2016
 
105 
 
199 
 
235 
 
253 
 
269 
 
275 
 
281 
 
284 
 
284 
2017
 
132 
 
249 
 
289 
 
303 
 
316 
 
327 
 
336 
 
337 
2018
 
126 
 
267 
 
306 
 
327 
 
344 
 
366 
 
369 
2019
 
118 
 
205 
 
269 
 
295 
 
316 
 
335 
2020
 
130 
 
286 
 
361 
 
396 
 
434 
2021
 
148 
 
302 
 
420 
 
481 
2022
 
176 
 
451 
 
606 
2023
 
238 
 
534 
2024
 
362 
Total
 
3,976 
All outstanding liabilities before 2015, net of reinsurance
 
30 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
2,749 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
133
2024  FORM 10-K

The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by 
age, net of reinsurance, as of December 31, 2024: 
Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Casualty
 2.8 %
 8.3 %
 11.9 %
 11.9 %
 11.5 %
 8.4 %
 7.5 %
 7.2 %
 6.0 %
 3.4 %
Property catastrophe
 (134.2) %
 168.4 %
 (22.5) %
 213.9 %
 (38.4) %
 9.1 %
 (12.1) %
 1.5 %
 (0.8) %
 9.4 %
Property excluding property catastrophe
 23.6 %
 36.2 %
 14.7 %
 6.8 %
 4.7 %
 0.2 %
 0.8 %
 0.2 %
 1.1 %
 0.1 %
Marine and aviation
 1.4 %
 28.9 %
 20.3 %
 13.8 %
 10.0 %
 4.9 %
 2.3 %
 1.4 %
 0.6 %
 0.4 %
Other specialty
 27.7 %
 29.2 %
 14.2 %
 6.4 %
 5.2 %
 4.0 %
 1.6 %
 0.7 %
 0.3 %
 0.3 %
Mortgage Segment
The Company’s mortgage segment includes (1) U.S. primary 
mortgage insurance (2) U.S. credit risk transfer and other, 
and (3) international mortgage insurance and reinsurance. 
The latter two categories along with second lien and student 
loan exposures are excluded on the basis of insignificance for 
the purposes of presenting disclosures related to short 
duration contracts.
For primary mortgage insurance business, the Company 
establishes case reserves for loans that have been reported as 
delinquent by loan servicers as well as those that are 
delinquent but not reported (IBNR reserves). The Company 
also reserves for the expenses of adjusting claims related to 
these delinquencies. The trigger that creates a case reserve 
estimate is that an insured loan is reported to us as being two 
payments 
in 
arrears. 
The 
actuarial 
reviews 
and 
documentation created in the reserving process are completed 
in accordance with generally accepted actuarial standards. 
The selected assumptions reflect actuarial judgment based on 
the analysis of historical data and experience combined with 
information concerning current underwriting, economic, 
judicial, regulatory and other influences on ultimate claim 
settlements.
Because the reserving process requires the Company to 
forecast future conditions, it is inherently uncertain and 
requires significant judgment and estimation. The use of 
different estimates would result in the establishment of 
different reserve levels. Additionally, changes in estimates 
are likely to occur from period to period as economic 
conditions change, and the ultimate liability may vary 
significantly from the estimates used. Major risk factors 
include (but are not limited to) changes in home prices and 
borrower equity, which can limit the borrower’s ability to sell 
the property and satisfy the outstanding loan balance, and 
changes in unemployment, which can affect the borrower’s 
income and ability to make mortgage payments. The unique 
nature of the COVID-19 pandemic, with no historical 
precedent, adds further uncertainty to current reserve 
estimates.
The lead actuarial methodology used by the Company is a 
frequency-severity method based on the inventory of pending 
delinquencies. Each month the loan servicers report the 
delinquency status of each insured loan. Using the frequency-
severity method allows the Company to take advantage of its 
knowledge of the number of delinquent loans and the 
coverage provided (“risk size”) on those loans by directly 
relating the reserves to these amounts. The delinquencies are 
grouped into homogeneous cohorts for analysis, reflecting 
the age of delinquency. A claim rate is then developed for 
each cohort which represents the frequency with which the 
delinquencies become claims. The claim frequency rates are 
based on an analysis of the patterns of emerging cure counts 
and claim counts, the foreclosure status of the pending 
delinquencies, the product and geographical mix of the 
delinquencies and our view of future economic and claim 
conditions, which include trends in home prices and 
unemployment. Claim rates can vary materially by age of 
delinquency, depending on the mix of delinquencies and 
economic conditions.
Claim size severity estimates are determined by examining 
the risk sizes on the delinquent loans and estimating the 
portion of risk that will be paid, as well as any expenses. This 
is done based on a review of historical development patterns, 
an assessment of economic conditions and the level of equity 
the borrowers may have in their homes, as well as 
considering economic conditions and loss mitigation 
opportunities. Mortgage insurance is generally not subject to 
large claim sizes, as with some other lines of insurance. A 
claim size over $250,000 is rare, and this helps reduce the 
volatility of claim size estimates.
The claim rate and claim size assumptions generate case 
reserves for the population of reported delinquencies. The 
reserve for unreported delinquencies (included in IBNR 
reserves) is estimated by looking at historical patterns of 
reporting. Claim rates and claim sizes can then be assigned to 
estimated unreported delinquencies using assumptions made 
in the establishment of case reserves.
Mortgage insurance Loss Reserves are short-tail, in the sense 
that the vast majority of delinquencies are resolved within 
two years of being reported. Due to the forbearances and 
foreclosure 
moratoriums 
associated 
with 
COVID-19, 
settlement timelines have been extended. While reserves are 
initially analyzed by reserve cohort, as described above, they 
are also rolled up by underwriting year to ensure that reserve 
assumptions are consistent with the performance of the 
underwriting year. The accuracy of prior reserve assumptions 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
134
2024  FORM 10-K

is also checked in hindsight to determine if adjustments to the 
assumptions are needed.
Loss Reserves for the Company’s mortgage reinsurance 
business and GSE credit risk sharing transactions are 
comprised of case reserves and IBNR reserves. The 
Company’s mortgage reinsurance operations receive reports 
of delinquent loans and claims notices from ceding 
companies and record case reserves based upon the amount 
of reserves recommended by the ceding company. In 
addition, specific claim and delinquency information reported 
by ceding companies is used in the process of estimating 
IBNR reserves.
The following table presents information on the mortgage segment’s short-duration insurance contracts:
U.S. primary mortgage insurance (in millions except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance
December 31, 2024
Total of 
IBNR 
liabilities plus 
expected 
development 
on reported 
claims
Cumulative 
number of 
paid claims
Year ended December 31,
Accident 
year
2015
unaudited
2016
unaudited
2017
unaudited
2018
unaudited
2019
unaudited
2020
unaudited
2021
unaudited
2022
unaudited
2023
unaudited
2024
2015
$ 
223 
$ 
197 
$ 
198 
$ 
195 
$ 
189 
$ 
191 
$ 
191 
$ 
189 
$ 
188 
$ 
188 
 
— 
 
4,686 
2016
 
184 
 
171 
 
149 
 
141 
 
142 
 
142 
 
137 
 
136 
 
136 
 
— 
 
3,557 
2017
 
179 
 
132 
 
107 
 
108 
 
109 
 
102 
 
99 
 
99 
 
— 
 
2,707 
2018
 
132 
 
96 
 
89 
 
88 
 
72 
 
69 
 
69 
 
— 
 
1,966 
2019
 
108 
 
119 
 
110 
 
63 
 
51 
 
52 
 
— 
 
1,435 
2020
 
420 
 
374 
 
78 
 
33 
 
31 
 
— 
 
835 
2021
 
144 
 
77 
 
20 
 
17 
 
— 
 
381 
2022
 
173 
 
55 
 
30 
 
— 
 
469 
2023
 
182 
 
71 
 
— 
 
366 
2024
 
180 
 
1 
 
40 
Total
$ 
873 
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2015
 
16 
 
92 
 
151 
 
171 
 
180 
 
183 
 
184 
 
185 
 
186 
 
186 
2016
 
11 
 
72 
 
113 
 
127 
 
131 
 
132 
 
132 
 
133 
 
134 
2017
 
9 
 
48 
 
79 
 
87 
 
90 
 
92 
 
93 
 
95 
2018
 
4 
 
31 
 
50 
 
56 
 
59 
 
60 
 
63 
2019
 
3 
 
20 
 
29 
 
34 
 
39 
 
42 
2020
 
1 
 
4 
 
8 
 
13 
 
19 
2021
 
— 
 
2 
 
5 
 
8 
2022
 
— 
 
3 
 
10 
2023
 
— 
 
7 
2024
 
1 
Total
 
565 
All outstanding liabilities before 2015, net of reinsurance
 
13 
Liabilities for losses and loss adjustment expenses, net of reinsurance
$ 
321 
The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by 
age, net of reinsurance, as of December 31, 2024: 
Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
U.S. Primary
 4.5 %
 26.1 %
 23.7 %
 11.4 %
 7.2 %
 2.5 %
 1.5 %
 1.0 %
 0.5 %
 0.5 %
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
135
2024  FORM 10-K

The following table represents a reconciliation of the 
disclosures of net incurred and paid loss development tables 
to the reserve for losses and loss adjustment expenses at 
December 31, 2024:
December 31, 
2024
Net outstanding liabilities
Insurance
Property, energy, marine and aviation
$ 
1,114 
Third party occurrence business
 
3,966 
Third party claims-made business
 
2,533 
Multi-line and other specialty
 
1,941 
Reinsurance
Casualty
 
3,026 
Property catastrophe
 
812 
Property excluding property catastrophe
 
1,777 
Marine and aviation
 
495 
Other specialty
 
2,749 
Mortgage
U.S. primary
 
321 
Other short duration lines not included in disclosures (1)
 
2,384 
Total for short duration lines
 
21,118 
Unpaid losses and loss adjustment expenses recoverable
Insurance
Property, energy, marine and aviation
 
420 
Third party occurrence business
 
2,411 
Third party claims-made business
 
923 
Multi-line and other specialty
 
356 
Reinsurance
Casualty
 
715 
Property catastrophe
 
783 
Property excluding property catastrophe
 
278 
Marine and aviation
 
462 
Other specialty
 
998 
Mortgage
U.S. primary
 
33 
Other short duration lines not included in disclosures (2)
 
474 
Intercompany eliminations
 
(32) 
Total for short duration lines
 
7,821 
Lines other than short duration
 
146 
Discounting
 
(68) 
Unallocated claims adjustment expenses
 
352 
 
430 
Reserve for losses and loss adjustment expenses
$ 
29,369 
(1) 
Includes amounts associated with the loss portfolio reinsurance 
agreement related to the MCE Acquisition. See note 2.
(2) 
Includes unpaid loss and loss adjustment expenses recoverable of $168 
million related to the loss portfolio transfer reinsurance agreements.
7. 
Allowance for Expected Credit Losses
Premiums Receivable
The following table provides a roll forward of the allowance 
for expected credit losses of the Company’s premium 
receivables:
Year Ended December 31, 2024
Premium 
Receivables, 
Net of 
Allowance
Allowance for 
Expected 
Credit Losses
Balance at beginning of period
$ 
4,644 
$ 
34 
Provision on business acquired (1)
 
16 
Change for provision of expected 
credit losses (2)
 
(5) 
Balance at end of period
$ 
5,634 
$ 
45 
Year Ended December 31, 2023
Balance at beginning of period
$ 
3,625 
$ 
35 
Change for provision of expected 
credit losses (2)
 
(1) 
Balance at end of period
$ 
4,644 
$ 
34 
(1) Reflects provision for current expected credit losses on premiums 
receivable related to the MCE Acquisition. See note 2.
(2) Amounts deemed uncollectible are written-off in operating expenses. For 
the 2024 and 2023 periods, amounts written off totaled $3 million and 
$3 million, respectively.
Reinsurance Recoverables
The Company monitors the financial condition of its 
reinsurers and attempts to place coverages only with 
substantial, 
financially 
sound 
carriers. 
Although 
the 
Company has not experienced any material credit losses to 
date, an inability of its reinsurers or retrocessionaires to meet 
their obligations to it over the relevant exposure periods for 
any reason could have a material adverse effect on its 
financial condition and results of operations. 
The following table provides a roll forward of the allowance 
for expected credit losses of the Company’s reinsurance 
recoverables:
Year Ended December 31, 2024
Reinsurance 
Recoverables, 
Net of 
Allowance
Allowance for 
Expected 
Credit Losses
Balance at beginning of period
$ 
7,064 
$ 
21 
Change for provision of expected 
credit losses
 
(4) 
Balance at end of period
$ 
8,260 
$ 
17 
Year Ended December 31, 2023
Balance at beginning of period
$ 
6,564 
$ 
22 
Change for provision of expected 
credit losses
 
(1) 
Balance at end of period
 
7,064 
$ 
21 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
136
2024  FORM 10-K

The following table summarizes the Company’s reinsurance 
recoverables on paid and unpaid losses (not including ceded 
unearned premiums) at December 31, 2024 and 2023:
December 31,
2024
2023
Reinsurance recoverable on unpaid and 
paid losses and loss adjustment expenses
$ 
8,260 
$ 
7,064 
% due from carriers with A.M. Best rating 
of “A-” or better
 63.8 %
 66.8 %
% due from all other rated carriers
 — %
 0.1 %
% due from all other carriers with no A.M. 
Best rating (1)
 36.2 %
 33.1 %
Largest balance due from any one carrier 
as % of total shareholders’ equity
 7.8 %
 7.2 %
(1) 
At December 31, 2024 and 2023 period, over 95% of such amount 
were collateralized through reinsurance trusts, funds withheld 
arrangements, letters of credit or other, respectively.
Contractholder Receivables
The following table provides a roll forward of the allowance 
for expected credit losses of the Company’s contractholder 
receivables:
Year Ended December 31, 2024
Contractholder 
Receivables, 
Net of 
Allowance
Allowance for 
Expected 
Credit Losses
Balance at beginning of period
$ 
1,814 
$ 
3 
Change for provision of expected 
credit losses
 
2 
Balance at end of period
$ 
2,161 
$ 
5 
Year Ended December 31, 2023
Balance at beginning of period
$ 
1,731 
$ 
3 
Change for provision of expected 
credit losses
 
— 
Balance at end of period
 
1,814 
$ 
3 
8. 
Reinsurance
In the normal course of business, the Company’s insurance 
subsidiaries cede a portion of their premium through pro rata 
and excess of loss reinsurance agreements on a treaty or 
facultative basis to third parties. The Company’s reinsurance 
subsidiaries participate in “common account” retrocessional 
arrangements for certain pro rata treaties. Such arrangements 
reduce the effect of individual or aggregate losses to all 
companies participating on such treaties, including the 
reinsurers, such as the Company’s reinsurance subsidiaries, 
and the ceding company. In addition, the Company’s 
reinsurance 
subsidiaries 
may 
purchase 
retrocessional 
coverage as part of their risk management program. The 
Company’s mortgage subsidiaries cede a portion of their 
premium through quota share arrangements and enter into 
various aggregate excess of loss mortgage reinsurance 
agreements with various special purpose reinsurance 
companies. Reinsurance recoverables are recorded as assets, 
predicated on the reinsurers’ ability to meet their obligations 
under the reinsurance agreements. If the reinsurers are unable 
to satisfy their obligations under the agreements, the 
Company’s insurance or reinsurance subsidiaries would be 
liable for such defaulted amounts.
The effects of reinsurance on the Company’s written and 
earned premiums and losses and loss adjustment expenses 
with unaffiliated reinsurers were as follows:
Year Ended December 31,
2024
2023
2022
Premiums Written
Direct
$ 
10,056 
$ 
9,652 
$ 
8,542 
Assumed
 
11,455 
 
8,751 
 
6,785 
Ceded
 
(5,779)  
(4,935)  
(4,249) 
Net
$ 
15,732 
$ 
13,468 
$ 
11,078 
Premiums Earned
Direct
$ 
9,721 
$ 
9,131 
$ 
8,058 
Assumed
 
10,880 
 
7,890 
 
5,768 
Ceded
 
(5,501)  
(4,581)  
(4,147) 
Net
$ 
15,100 
$ 
12,440 
$ 
9,679 
Losses and Loss 
Adjustment Expenses
Direct
$ 
5,676 
$ 
4,739 
$ 
3,991 
Assumed
 
6,137 
 
3,975 
 
3,558 
Ceded
 
(3,471)  
(2,468)  
(2,521) 
Net
$ 
8,342 
$ 
6,246 
$ 
5,028 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
137
2024  FORM 10-K

Bellemeade Re
The Company has entered into various aggregate excess of 
loss mortgage reinsurance agreements with various special 
purpose reinsurance companies domiciled in Bermuda (the 
“Bellemeade Agreements”). For the respective coverage 
periods, the Company will retain the first layer of the 
respective aggregate losses and the special purpose 
reinsurance companies will provide second layer coverage up 
to the outstanding coverage amount. The Company will then 
retain losses in excess of the outstanding coverage limit. The 
aggregate excess of loss reinsurance coverage decreases over 
a ten-year period as the underlying covered mortgages 
amortize. See note 12.
The following table summarizes the respective coverages and 
retentions at December 31, 2024:
Bellemeade Entities
(Issue Date)
Initial 
Coverage at 
Issuance
Current
Coverage
Remaining 
Retention, Net
2021-3 Ltd. (1)
$ 
639 
$ 
461 
$ 
132 
2022-1 Ltd. (2)
 
317 
 
218 
 
140 
2022-2 Ltd. (3)
 
327 
 
293 
 
199 
2023-1 Ltd. (4)
 
233 
 
233 
 
175 
2024-1 Ltd. (5)
 
204 
 
204 
 
172 
Total
$ 
1,720 
$ 
1,409 
$ 
818 
(1) 
Issued in September 2021, covering in-force policies issued between 
April 1, 2021 and June 30, 2021. $508 million was directly funded by 
Bellemeade Re 2021-3 Ltd. via insurance-linked notes, with an 
additional $131 million capacity provided directly to Arch MI U.S. by 
a separate panel of reinsurers.
(2) 
Issued in January 2022, covering in-force policies issued between July 
1, 2021 and November 30, 2021. $284 million was directly funded by 
Bellemeade Re 2022-1 Ltd. via insurance-linked notes, with an 
additional $33 million capacity provided directly to Arch MI U.S. by a 
separate panel of reinsurers.
(3) 
Issued in September 2022, covering in-force policies issued between 
November 1, 2021 and June 30, 2022. $201 million was directly 
funded by Bellemeade Re 2022-2 Ltd. via insurance-linked notes, with 
an additional $126 million capacity provided directly to Arch MI U.S. 
by a separate panel of reinsurers.
(4) 
Issued in October 2023, covering in-force policies issued between 
January 1, 2023 and September 30, 2023. $186 million was directly 
funded by Bellemeade Re 2023-1 Ltd. via insurance-linked notes, with 
an additional $47 million capacity provided directly to Arch MI U.S. 
by a separate panel of reinsurers.
(5) 
Issued in August 2024, covering in-force policies issued between 
September 1, 2023 and July 31, 2024. $163 million was directly funded 
by Bellemeade Re 2024-1 Ltd. via insurance-linked notes, with an 
additional $41 million capacity provided directly to Arch MI U.S. by a 
separate panel of reinsurers.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
138
2024  FORM 10-K

9. 
Investment Information
Available For Sale Investments
The following table summarizes the fair value and cost or amortized cost of the Company’s securities classified as available for 
sale:
Estimated
Fair 
Value
Gross 
Unrealized 
Gains
Gross 
Unrealized 
Losses
Allowance for 
Expected Credit 
Losses
Cost or
Amortized
Cost
December 31, 2024
Fixed maturities:
Corporate bonds
$ 
12,487 
$ 
110 
$ 
(346) $ 
(12) $ 
12,735 
U.S. government and government agencies
 
6,710 
 
8 
 
(149)  
— 
 
6,851 
Asset backed securities
 
2,900 
 
19 
 
(32)  
(8)  
2,921 
Non-U.S. government securities
 
2,538 
 
30 
 
(107)  
(1)  
2,616 
Commercial mortgage backed securities
 
1,058 
 
6 
 
(11)  
(1)  
1,064 
Residential mortgage backed securities
 
1,079 
 
6 
 
(31)  
— 
 
1,104 
Municipal bonds
 
263 
 
— 
 
(16)  
— 
 
279 
Total
 
27,035 
 
179 
 
(692)  
(22)  
27,570 
Short-term investments
 
2,784 
 
2 
 
(2)  
— 
 
2,784 
Total
$ 
29,819 
$ 
181 
$ 
(694) $ 
(22) $ 
30,354 
December 31, 2023
Fixed maturities:
Corporate bonds
$ 
10,855 
$ 
157 
$ 
(464) $ 
(20) $ 
11,182 
U.S. government and government agencies
 
5,814 
 
63 
 
(86)  
— 
 
5,837 
Asset backed securities
 
2,250 
 
11 
 
(55)  
(5)  
2,299 
Non-U.S. government securities
 
2,062 
 
33 
 
(100)  
(1)  
2,130 
Commercial mortgage backed securities
 
1,213 
 
3 
 
(34)  
(2)  
1,246 
Residential mortgage backed securities
 
1,103 
 
7 
 
(66)  
— 
 
1,162 
Municipal bonds
 
256 
 
1 
 
(20)  
— 
 
275 
Total
 
23,553 
 
275 
 
(825)  
(28)  
24,131 
Short-term investments
 
2,063 
 
1 
 
(2)  
— 
 
2,064 
Total
$ 
25,616 
$ 
276 
$ 
(827) $ 
(28) $ 
26,195 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
139
2024  FORM 10-K

The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross 
unrealized loss by length of time the security has been in a continual unrealized loss position:
Less than 12 Months
12 Months or More
Total
Estimated 
Fair
Value
Gross 
Unrealized 
Losses
Estimated 
Fair
Value
Gross 
Unrealized 
Losses
Estimated 
Fair
Value
Gross 
Unrealized 
Losses
December 31, 2024
Fixed maturities:
Corporate bonds
$ 
4,582 
$ 
(114) 
$ 
2,924 
$ 
(232) 
$ 
7,506 
$ 
(346) 
U.S. government and government agencies
 
5,130 
 
(100) 
 
516 
 
(49) 
 
5,646 
 
(149) 
Non-U.S. government securities
 
1,650 
 
(58) 
 
418 
 
(49) 
 
2,068 
 
(107) 
Residential mortgage backed securities
 
571 
 
(6) 
 
186 
 
(25) 
 
757 
 
(31) 
Asset backed securities
 
236 
 
(8) 
 
426 
 
(24) 
 
662 
 
(32) 
Commercial mortgage backed securities
 
180 
 
(1) 
 
434 
 
(10) 
 
614 
 
(11) 
Municipal bonds
 
48 
 
(1) 
 
176 
 
(15) 
 
224 
 
(16) 
Total
 
12,397 
 
(288) 
 
5,080 
 
(404) 
 
17,477 
 
(692) 
Short-term investments
 
97 
 
(2) 
 
— 
 
— 
 
97 
 
(2) 
Total
$ 
12,494 
$ 
(290) 
$ 
5,080 
$ 
(404) 
$ 
17,574 
$ 
(694) 
December 31, 2023
Fixed maturities:
Corporate bonds
$ 
1,559 
$ 
(45) 
$ 
4,959 
$ 
(419) 
$ 
6,518 
$ 
(464) 
U.S. government and government agencies
 
1,066 
 
(10) 
 
941 
 
(76) 
 
2,007 
 
(86) 
Non-U.S. government securities
 
365 
 
(4) 
 
897 
 
(96) 
 
1,262 
 
(100) 
Residential mortgage backed securities
 
221 
 
(3) 
 
522 
 
(63) 
 
743 
 
(66) 
Asset backed securities
 
234 
 
(1) 
 
1,112 
 
(54) 
 
1,346 
 
(55) 
Commercial mortgage backed securities
 
100 
 
(1) 
 
909 
 
(33) 
 
1,009 
 
(34) 
Municipal bonds
 
20 
 
(1) 
 
215 
 
(19) 
 
235 
 
(20) 
Total
 
3,565 
 
(65) 
 
9,555 
 
(760) 
 
13,120 
 
(825) 
Short-term investments
 
302 
 
(2) 
 
— 
 
— 
 
302 
 
(2) 
Total
$ 
3,867 
$ 
(67) 
$ 
9,555 
$ 
(760) 
$ 
13,422 
$ 
(827) 
At December 31, 2024, on a lot level basis, approximately 9,980 security lots out of a total of approximately 20,930 security 
lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity 
portfolio was $8 million. The Company believes that such securities were temporarily impaired at December 31, 2024. At 
December 31, 2023, on a lot level basis, approximately 7,100 security lots out of a total of approximately 15,720 security lots 
were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity 
portfolio was $6 million.
The contractual maturities of the Company’s fixed maturities are shown in the following table. Expected maturities, which are 
management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay 
obligations with or without call or prepayment penalties.
December 31, 2024
December 31, 2023
Maturity
Estimated 
Fair Value
Amortized 
Cost
Estimated 
Fair Value
Amortized 
Cost
Due in one year or less
$ 
438 
$ 
451 
$ 
480 
$ 
499 
Due after one year through five years
 
15,364 
 
15,590 
 
12,924 
 
13,101 
Due after five years through 10 years
 
5,811 
 
6,039 
 
5,249 
 
5,450 
Due after 10 years
 
385 
 
401 
 
334 
 
374 
 
21,998 
 
22,481 
 
18,987 
 
19,424 
Mortgage backed securities
 
1,079 
 
1,104 
 
1,103 
 
1,162 
Commercial mortgage backed securities
 
1,058 
 
1,064 
 
1,213 
 
1,246 
Asset backed securities
 
2,900 
 
2,921 
 
2,250 
 
2,299 
Total
$ 
27,035 
$ 
27,570 
$ 
23,553 
$ 
24,131 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
140
2024  FORM 10-K

Equity Securities, at Fair Value
At December 31, 2024, the Company held $1.7 billion of 
equity securities, at fair value, compared to $1.2 billion at 
December 31, 2023. 
Net Investment Income
The components of net investment income were derived from 
the following sources:
Year Ended December 31,
2024
2023
2022
Fixed maturities
$ 
1,266 
$ 
917 
$ 
469 
Short-term investments
 
144 
 
68 
 
29 
Equity securities
 
40 
 
22 
 
22 
Other (1)
 
136 
 
93 
 
47 
Gross investment income
 
1,586 
 
1,100 
 
567 
Investment expenses
 
(91)  
(77)  
(71) 
Net investment income
$ 
1,495 
$ 
1,023 
$ 
496 
(1) 
Amounts include dividends and other distributions on investment 
funds, term loan investments, funds held balances, cash balances and 
other items.
Net Realized Gains (Losses)
Net realized gains (losses) were as follows:
Year Ended December 31,
2024
2023
2022
Available for sale securities:
Gross gains on investment 
sales
$ 
259 
$ 
116 
$ 
81 
Gross losses on investment 
sales
 
(354)  
(547)  
(317) 
Change in fair value of assets 
and liabilities accounted for 
using the fair value option:
Fixed maturities
 
3 
 
18 
 
(71) 
Other investments
 
(144)  
27 
 
(21) 
Equity securities
 
(1)  
1 
 
(4) 
Short-term investments
 
— 
 
— 
 
(3) 
Equity securities, at fair value :
Net realized gains (losses) on 
securities sold
 
62 
 
61 
 
75 
Net unrealized gains (losses) 
on equity securities still held 
at reporting date
 
108 
 
88 
 
(267) 
Allowance for credit losses:
Investments related
 
— 
 
3 
 
(44) 
Underwriting related
 
5 
 
(1)  
(13) 
Derivative instruments (1)
 
8 
 
59 
 
(75) 
Other (2)
 
251 
 
10 
 
(4) 
Net realized gains (losses)
$ 
197 
$ 
(165) $ 
(663) 
(1) 
See note 11, for information on the Company’s derivative instruments.
(2) 
Amounts in the 2024 period include benefits from the sale of Castel 
Underwriting Agencies Limited and the acquisition of RMIC.
Other Investments
The following table summarizes the Company’s assets and 
liabilities which are accounted for using the fair value option:
December 31,
2024
2023
Other investments
$ 
2,135 
$ 
1,777 
Fixed maturities
 
854 
 
683 
Equity securities
 
7 
 
7 
Short-term investments
 
70 
 
21 
Total other investments
$ 
3,066 
$ 
2,488 
The following table summarizes the Company’s other 
investments, as detailed in the previous table, by strategy:
December 31,
2024
2023
Investment grade fixed income
 
1,055 
 
754 
Term loan investments
 
430 
 
272 
Lending
 
303 
 
427 
Private equity
 
229 
 
182 
Credit related funds
 
99 
 
124 
Energy
 
19 
 
18 
Total
$ 
2,135 
$ 
1,777 
Limited Partnership Interests
In the normal course of its activities, the Company invests in 
limited partnerships as part of its overall investment strategy. 
Such amounts are included in ‘investments accounted for 
using the equity method’ and ‘investments accounted for 
using the fair value option.’ The Company determined that 
these limited partnership interests represented variable 
interests in the funds. The Company’s maximum exposure to 
loss with respect to these investments is limited to the 
investment carrying amounts reported in the Company’s 
consolidated balance sheet and any unfunded commitment.
The following table summarizes investments in limited 
partnership interests where the Company has a variable 
interest by balance sheet item:
December 31,
2024
2023
Investments accounted for using the equity 
method (1)
$ 
5,980 
$ 
4,566 
Investments accounted for using the fair 
value option (2)
 
48 
 
114 
Total
$ 
6,028 
$ 
4,680 
(1)  Aggregate unfunded commitments were $4.3 billion at December 31, 
2024, compared to $3.4 billion at December 31, 2023. 
(2) 
Aggregate unfunded commitments were $21 million at December 31, 
2024, compared to $32 million at December 31, 2023. 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
141
2024  FORM 10-K

Investments Accounted For Using the Equity Method
The following table summarizes the Company’s investments 
accounted for using the equity method, by strategy:
December 31,
2024
2023
Private equity
$ 
1,915 
$ 
1,175 
Credit related funds
 
1,487 
 
1,258 
Real estate
 
869 
 
666 
Lending
 
616 
 
597 
Infrastructure
 
425 
 
320 
Fixed income
 
384 
 
277 
Equities
 
217 
 
178 
Energy
 
67 
 
95 
Total
$ 
5,980 
$ 
4,566 
In applying the equity method, investments are initially 
recorded at cost and are subsequently adjusted based on the 
Company’s proportionate share of the net income or loss of 
the funds (which include changes in the fair value of the 
underlying securities in the funds). Such investments are 
generally recorded on a one to three month lag based on the 
availability of reports from the investment funds. 
Equity in Net Income (Loss) of Investments Accounted For 
Using the Equity Method
The Company recorded equity in net income related to 
investments accounted for using the equity method of $580 
million for 2024, compared to $278 million for 2023 and 
$115 million for 2022. In applying the equity method, 
investments are initially recorded at cost and are 
subsequently adjusted based on the Company’s proportionate 
share of the net income or loss of the funds (which include 
changes in the market value of the underlying securities in 
the funds).
A summary of aggregated financial information for the 
Company’s investment funds and operating affiliates 
accounted for using the equity method is as follows: 
December 31,
2024
2023
Invested assets
$ 
113,977 
$ 
91,534 
Total assets
 
132,647 
 
108,952 
Total liabilities
 
36,614 
 
33,901 
Net assets
$ 
96,033 
$ 
75,051 
Year Ended December 31,
2024
2023
2022
Total revenues
$ 
19,160 
$ 
7,766 
$ 
12,305 
Total expenses
 
7,269 
 
7,174 
 
5,374 
Net income (loss)
$ 
11,891 
$ 
592 
$ 
6,931 
Certain of the Company’s other investments and investments 
accounted for using the equity method are in investment 
funds for which the Company has the option to redeem at 
agreed upon values as described in each investment fund’s 
subscription agreement. Depending on the terms of the 
various subscription agreements, investments in investment 
funds may be redeemed daily, monthly, quarterly or on other 
terms. Two common redemption restrictions which may 
impact the Company’s ability to redeem these investment 
funds are gates and lockups. A gate is a suspension of 
redemptions which may be implemented by the general 
partner or investment manager of the fund in order to defer, 
in whole or in part, the redemption request in the event the 
aggregate amount of redemption requests exceeds a 
predetermined percentage of the investment fund's net assets 
which may otherwise hinder the general partner or 
investment manager's ability to liquidate holdings in an 
orderly fashion in order to generate the cash necessary to 
fund extraordinarily large redemption payouts. A lockup 
period is the initial amount of time an investor is 
contractually required to hold the security before having the 
ability to redeem. If the investment funds are eligible to be 
redeemed, the time to redeem such fund can take weeks or 
months following the notification. 
Investments in Operating Affiliates
Investments in which the Company has significant influence 
over the operating and financial policies are classified as 
‘investments in operating affiliates’ on the Company’s 
balance sheets and are accounted for under the equity 
method. Such investments primarily include the Company’s 
investment in Coface SA (“Coface”), Greysbridge Holdings 
Ltd., (“Greysbridge”) and Premia Holdings Ltd. (“Premia”). 
Investments in Coface and Premia are generally recorded on 
a three month lag, while the Company’s investment in 
Greysbridge is not recorded on a lag.
In 2021, the Company completed the share purchase 
agreement with Natixis to purchase 29.5% of the common 
equity of Coface, a France-based leader in the global trade 
credit insurance market. The consideration paid was €9.95 
per share, or an aggregate €453 million (approximately 
$546 million) including related fees. Income (loss) from 
operating affiliates reflected a one-time gain of $75 million 
realized from the acquisition. As a result of equity method 
accounting rules, approximately $36 million of additional 
gain was deferred and will generally be recognized over the 
next five years. As of December 31, 2024, the Company 
owned approximately 29.9% of the issued shares of Coface, 
or 30.03% excluding treasury shares, with a carrying value of 
$592 million, compared to $570 million at December 31, 
2023.
In 2021, the Company completed acquisition of Somers 
Group Holdings Ltd. and its wholly owned subsidiaries 
(collectively, “Somers”) by Greysbridge for a cash purchase 
price of $35.00 per common share. Somers is wholly owned 
by Greysbridge, and Greysbridge is owned 40% by the 
Company, 30% by certain investment funds managed by 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
142
2024  FORM 10-K

Kelso & Company (“Kelso”) and 30% owned by certain 
investment funds managed by Warburg Pincus LLC 
(“Warburg”). At December 31, 2024 the Company’s carrying 
value in Greysbridge was $523 million, compared to 
$430 million at December 31, 2023. The Company’s carrying 
value in Greysbridge reflected aggregate purchase price of 
$279 million along with income (loss) from operating 
affiliates, which included a one-time gain of $96 million 
recognized from the acquisition. See note 16.
The Company recorded income from operating affiliates of 
$200 million for 2024, compared to $184 million for 2023 
and $75 million for 2022. 
Allowance for Expected Credit Losses
The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as 
available for sale:
Year Ended December 31, 2024
Structured 
Securities (1)
Non-U.S. 
Government 
Securities
Corporate
Bonds
Total
Balance at beginning of period
$ 
7 
$ 
1 
$ 
20 
$ 
28 
Additions for current-period provision for expected credit losses
 
— 
 
— 
 
— 
 
— 
Additions (reductions) for previously recognized expected credit losses
 
3 
 
— 
 
(3)  
— 
Reductions due to disposals
 
(1)  
— 
 
(5)  
(6) 
Balance at end of period
$ 
9 
$ 
1 
$ 
12 
$ 
22 
Year Ended December 31, 2023
Balance at beginning of period
$ 
9 
$ 
2 
$ 
30 
$ 
41 
Additions for current-period provision for expected credit losses
 
2 
 
— 
 
5 
 
7 
Additions (reductions) for previously recognized expected credit losses 
 
(3)  
— 
 
(7)  
(10) 
Reductions due to disposals
 
(1)  
(1)  
(8)  
(10) 
Balance at end of period
$ 
7 
$ 
1 
$ 
20 
$ 
28 
(1) 
Includes asset backed securities, mortgage backed securities and commercial mortgage backed securities.
Restricted Assets
The Company is required to maintain assets on deposit, 
which primarily consist of fixed maturities, with various 
regulatory authorities to support its underwriting operations. 
The Company’s subsidiaries maintain assets in trust accounts 
as collateral for transactions with affiliated companies and 
also have investments in segregated portfolios primarily to 
provide collateral or guarantees for letters of credit to third 
parties
The following table details the value of the Company’s 
restricted assets:
December 31,
2024
2023
Assets used for collateral or guarantees:
Affiliated transactions
$ 
4,730 
$ 
4,854 
Third party agreements (1)
 
5,999 
 
2,869 
Deposits with U.S. regulatory authorities
 
882 
 
833 
Other (2)
 
1,437 
 
1,376 
Total restricted assets 
$ 
13,048 
$ 
9,932 
(1) 2024 period includes amounts related to the MCE Acquisition.
(2) Primarily includes Funds at Lloyds, deposits with non-U.S. regulatory 
authorities and other restricted assets.
Reconciliation of Cash and Restricted Cash
The following table details reconciliation of cash and 
restricted cash within the Consolidated Balance Sheets:
December 31,
2024
2023
2022
Cash
$ 
979 
$ 
917 
$ 
855 
Restricted cash (included in 
‘other assets’)
 
781 
 
581 
 
418 
Cash and restricted cash
$ 
1,760 
$ 
1,498 
$ 
1,273 
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
143
2024  FORM 10-K

10. Fair Value
Accounting guidance regarding fair value measurements 
addresses how companies should measure fair value when 
they are required to use a fair value measure for recognition 
or disclosure purposes under GAAP and provides a common 
definition of fair value to be used throughout GAAP. It 
defines fair value as the price that would be received to sell 
an asset or paid to transfer a liability in an orderly fashion 
between market participants at the measurement date. In 
addition, it establishes a three-level valuation hierarchy for 
the disclosure of fair value measurements. The valuation 
hierarchy is based upon the transparency of inputs to the 
valuation of an asset or liability as of the measurement date. 
The level in the hierarchy within which a given fair value 
measurement falls is determined based on the lowest level 
input that is significant to the measurement (Level 1 being 
the highest priority and Level 3 being the lowest priority).
The levels in the hierarchy are defined as follows:
Level 1:
Inputs to the valuation methodology are 
observable inputs that reflect quoted prices 
(unadjusted) for identical assets or liabilities in 
active markets
Level 2:
Inputs to the valuation methodology include 
quoted prices for similar assets and liabilities in 
active markets, and inputs that are observable for 
the asset or liability, either directly or indirectly, 
for substantially the full term of the financial 
instrument
Level 3:
Inputs to the valuation methodology are 
unobservable and significant to the fair value 
measurement
Following is a description of the valuation methodologies 
used for securities measured at fair value, as well as the 
general classification of such securities pursuant to the 
valuation hierarchy. The Company reviews its securities 
measured at fair value and discusses the proper classification 
of such investments with investment advisers and others.
The Company determines the existence of an active market 
based on its judgment as to whether transactions for the 
financial instrument occur in such market with sufficient 
frequency 
and 
volume 
to 
provide 
reliable 
pricing 
information. The independent pricing sources obtain market 
quotations and actual transaction prices for securities that 
have quoted prices in active markets. The Company uses 
quoted values and other data provided by nationally 
recognized independent pricing sources as inputs into its 
process for determining fair values of its fixed maturity 
investments. To validate the techniques or models used by 
pricing sources, the Company's review process includes, but 
is not limited to: (i) quantitative analysis (e.g., comparing the 
quarterly return for each managed portfolio to its target 
benchmark, with significant differences identified and 
investigated); (ii) a review of the prices obtained in the 
pricing process and the range of resulting fair values; (iii) 
initial and ongoing evaluation of methodologies used by 
outside parties to calculate fair value; (iv) a comparison of 
the fair value estimates to the Company’s knowledge of the 
current market; (v) a comparison of the pricing services' fair 
values to other pricing services' fair values for the same 
investments; and (vi) periodic back-testing, which includes 
randomly selecting purchased or sold securities and 
comparing the executed prices to the fair value estimates 
from the pricing service. A price source hierarchy was 
maintained in order to determine which price source would 
be used (i.e., a price obtained from a pricing service with 
more seniority in the hierarchy will be used over a less senior 
one in all cases). The hierarchy prioritizes pricing services 
based on availability and reliability and assigns the highest 
priority to index providers. Based on the above review, the 
Company will challenge any prices for a security or portfolio 
which are considered not to be representative of fair value. 
In certain circumstances, when fair values are unavailable 
from these independent pricing sources, quotes are obtained 
directly from broker-dealers who are active in the 
corresponding markets. Such quotes are subject to the 
validation procedures noted above. Of the $35.0 billion of 
financial assets and liabilities measured at fair value at 
December 31, 2024, approximately $185 million, or 0.5%, 
were priced using non-binding broker-dealer quotes. Of the 
$29.6 billion of financial assets and liabilities measured at 
fair value at December 31, 2023, approximately $14 million, 
or 0.0%, were priced using non-binding broker-dealer quotes.
Fixed maturities
The Company uses the market approach valuation technique 
to estimate the fair value of its fixed maturity securities, 
when possible. The market approach includes obtaining 
prices from independent pricing services, such as index 
providers and pricing vendors, as well as to a lesser extent 
quotes from broker-dealers. The independent pricing sources 
obtain market quotations and actual transaction prices for 
securities that have quoted prices in active markets. Each 
source has its own proprietary method for determining the 
fair value of securities that are not actively traded. In general, 
these methods involve the use of “matrix pricing” in which 
the independent pricing source uses observable market inputs 
including, but not limited to, investment yields, credit risks 
and spreads, benchmarking of like securities, broker-dealer 
quotes, reported trades and sector groupings to determine a 
reasonable fair value. The following describes the significant 
inputs generally used to determine the fair value of the 
Company’s fixed maturity securities by asset class:
Table of Contents
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
144
2024  FORM 10-K

U.S. government and government agencies – valuations 
provided by independent pricing services, with all prices 
provided through index providers and pricing vendors. The 
Company determined that all U.S. Treasuries would be 
classified as Level 1 securities due to observed levels of 
trading activity, the high number of strongly correlated 
pricing quotes received on U.S. Treasuries and other factors. 
The fair values of U.S. government agency securities are 
generally determined using the spread above the risk-free 
yield curve. As the yields for the risk-free yield curve and the 
spreads for these securities are observable market inputs, the 
fair values of U.S. government agency securities are 
classified within Level 2.
Corporate bonds – valuations provided by independent 
pricing services, substantially all through index providers and 
pricing vendors with a small amount through broker-dealers. 
The fair values of these securities are generally determined 
using the spread above the risk-free yield curve. These 
spreads are generally obtained from the new issue market, 
secondary trading and from broker-dealers who trade in the 
relevant security market. As the significant inputs used in the 
pricing process for corporate bonds are observable market 
inputs, the fair value of these securities are classified within 
Level 2. A small number of securities are included in Level 3 
due to the lack of an available independent price source for 
such securities. As the significant inputs used to price these 
securities are unobservable, the fair value of such securities 
are classified as Level 3.
Residential mortgage-backed securities – valuations provided 
by independent pricing services, substantially all through 
pricing vendors and index providers with a small amount 
through broker-dealers. The fair values of these securities are 
generally determined through the use of pricing models 
(including Option Adjusted Spread) which use spreads to 
determine the expected average life of the securities. These 
spreads are generally obtained from the new issue market, 
secondary trading and from broker-dealers who trade in the 
relevant security market. The pricing services also review 
prepayment speeds and other indicators, when applicable. As 
the significant inputs used in the pricing process for 
mortgage-backed securities are observable market inputs, the 
fair value of these securities are classified within Level 2.
Municipal bonds – valuations provided by independent 
pricing services, with all prices provided through index 
providers and pricing vendors. The fair values of these 
securities are generally determined using spreads obtained 
from broker-dealers who trade in the relevant security 
market, trade prices and the new issue market. As the 
significant inputs used in the pricing process for municipal 
bonds are observable market inputs, the fair value of these 
securities are classified within Level 2.
Commercial 
mortgage-backed 
securities 
– 
valuations 
provided by independent pricing services, substantially all 
through index providers and pricing vendors with a small 
amount through broker-dealers. The fair values of these 
securities are generally determined through the use of pricing 
models which use spreads to determine the appropriate 
average life of the securities. These spreads are generally 
obtained from the new issue market, secondary trading and 
from broker-dealers who trade in the relevant security 
market. As the significant inputs used in the pricing process 
for commercial mortgage-backed securities are observable 
market inputs, the fair value of these securities are classified 
within Level 2.
Non-U.S. government securities – valuations provided by 
independent pricing services, with all prices provided 
through index providers and pricing vendors. The fair values 
of these securities are generally based on international indices 
or valuation models which include daily observed yield 
curves, cross-currency basis index spreads and country credit 
spreads. As the significant inputs used in the pricing process 
for non-U.S. government securities are observable market 
inputs, the fair value of these securities are classified within 
Level 2.
Asset-backed securities – valuations provided by independent 
pricing services, substantially all through index providers and 
pricing vendors with a small amount through broker-dealers. 
The fair values of these securities are generally determined 
through the use of pricing models (including Option Adjusted 
Spread) which use spreads to determine the appropriate 
average life of the securities. These spreads are generally 
obtained from the new issue market, secondary trading and 
from broker-dealers who trade in the relevant security 
market. As the significant inputs used in the pricing process 
for asset-backed securities are observable market inputs, the 
fair value of these securities are classified within Level 2. A 
small number of securities are included in Level 3 due to a 
low level of transparency on the inputs used in the pricing 
process.
Equity securities
The Company determined that exchange-traded equity 
securities would be included in Level 1 as their fair values 
are based on quoted market prices in active markets. Other 
equity securities are included in Level 2 of the valuation 
hierarchy. A small number of securities are included in Level 
3 due to the lack of an available independent price source for 
such securities. As the significant inputs used to price these 
securities are unobservable, the fair value of such securities 
are classified as Level 3.
 
Table of Contents
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
145
2024  FORM 10-K

Other investments
The Company determined that exchange-traded investments 
would be included in Level 1 as their fair values are based on 
quoted market prices in active markets. Other investments 
also include term loan investments for which fair values are 
estimated by using quoted prices of term loan investments 
with similar characteristics, pricing models or matrix pricing. 
Such investments are generally classified within Level 2. A 
small number of securities are included in Level 3 due to the 
lack of an available independent price source for such 
securities. 
Derivative instruments
The Company’s futures contracts, foreign currency forward 
contracts, interest rate swaps and other derivatives trade in 
the over-the-counter derivative market. The Company uses 
the market approach valuation technique to estimate the fair 
value for these derivatives based on significant observable 
market inputs from third party pricing vendors, non-binding 
broker-dealer quotes and/or recent trading activity. As the 
significant inputs used in the pricing process for these 
derivative instruments are observable market inputs, the fair 
value of these securities are classified within Level 2. 
Short-term investments
The Company determined that certain of its short-term 
investments held in highly liquid money market-type funds, 
Treasury bills and commercial paper would be included in 
Level 1 as their fair values are based on quoted market prices 
in active markets. The fair values of certain short-term 
investments are generally determined using the spread above 
the risk-free yield curve and are classified within Level 2. 
Other short-term investments are included in Level 3 due to 
the lack of an available independent price source for such 
securities. As the significant inputs used to price these short-
term securities are unobservable, the fair value of such 
securities are classified as Level 3.
Residential mortgage loans
The Company’s residential mortgage loans (included in 
‘other assets’ in the consolidated balance sheets) include 
amounts related to the Company’s whole mortgage loan 
purchase and sell program. Fair values of residential 
mortgage loans are generally determined based on market 
prices. As significant inputs used in pricing process for these 
residential mortgage loans are observable market inputs, the 
fair value of these securities are classified within Level 2.
Other liabilities
The Company’s other liabilities include contingent and 
deferred consideration liabilities related to the Company’s 
acquisitions. 
Contingent 
consideration 
liabilities 
are 
remeasured at fair value at each balance sheet date with 
changes in fair value recognized in ‘net realized gains 
(losses).’ To determine the fair value of contingent 
consideration liabilities, the Company estimates the future 
payments using an income approach based on modeled inputs 
which include a weighted average cost of capital. Deferred 
consideration liabilities are measured at fair value on the 
transaction date. The Company determined that contingent 
and deferred consideration liabilities would be included 
within Level 3.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
146
2024  FORM 10-K

The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 
2024:
Fair Value Measurement Using:
Estimated
Fair Value
Quoted Prices in 
Active Markets 
for Identical 
Assets 
(Level 1)
Significant 
Other 
Observable 
Inputs 
(Level 2)
Significant 
Unobservable 
Inputs 
(Level 3)
Assets measured at fair value:
Available for sale securities:
Fixed maturities:
Corporate bonds
$ 
12,487 
$ 
— 
$ 
12,390 
$ 
97 
U.S. government and government agencies
 
6,710 
 
6,709 
 
1 
 
— 
Asset backed securities
 
2,900 
 
— 
 
2,900 
 
— 
Non-U.S. government securities
 
2,538 
 
— 
 
2,538 
 
— 
Commercial mortgage backed securities
 
1,058 
 
— 
 
1,058 
 
— 
Residential mortgage backed securities
 
1,079 
 
— 
 
1,079 
 
— 
Municipal bonds
 
263 
 
— 
 
263 
 
— 
Total
 
27,035 
 
6,709 
 
20,229 
 
97 
Short-term investments
 
2,784 
 
2,704 
 
80 
 
— 
Equity securities, at fair value
 
1,675 
 
1,640 
 
28 
 
7 
Derivative instruments (1)
 
206 
 
— 
 
206 
 
— 
Residential mortgage loans
 
15 
 
— 
 
15 
 
— 
Fair value option:
Corporate bonds
 
832 
 
— 
 
832 
 
— 
Non-U.S. government bonds
 
8 
 
— 
 
8 
 
— 
Asset backed securities
 
— 
 
— 
 
— 
 
— 
U.S. government and government agencies
 
14 
 
14 
 
— 
 
— 
Short-term investments
 
70 
 
— 
 
37 
 
33 
Equity securities
 
6 
 
2 
 
— 
 
4 
Other investments
 
752 
 
— 
 
563 
 
189 
Other investments measured at net asset value (2)
 
1,383 
Total
 
3,065 
 
16 
 
1,440 
 
226 
Total assets measured at fair value
$ 
34,780 
$ 
11,069 
$ 
21,998 
$ 
330 
Liabilities measured at fair value:
Other liabilities
$ 
(73) $ 
— 
$ 
— 
$ 
(73) 
Derivative instruments (1)
 
(115)  
— 
 
(115)  
— 
Total liabilities measured at fair value
$ 
(188) $ 
— 
$ 
(115) $ 
(73) 
(1) 
See note 11.
(2) 
In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its 
equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit 
reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
147
2024  FORM 10-K

The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 
2023:
Fair Value Measurement Using:
Estimated
Fair Value
Quoted Prices in 
Active Markets 
for Identical 
Assets 
(Level 1)
Significant 
Other 
Observable 
Inputs 
(Level 2)
Significant 
Unobservable 
Inputs 
(Level 3)
Assets measured at fair value:
Available for sale securities:
Fixed maturities:
Corporate bonds
$ 
10,855 
$ 
— 
$ 
10,708 
$ 
147 
U.S. government and government agencies
 
5,814 
 
5,792 
 
22 
 
— 
Asset backed securities
 
2,250 
 
— 
 
2,250 
 
— 
Non-U.S. government securities
 
2,062 
 
— 
 
2,062 
 
— 
Commercial mortgage backed securities
 
1,213 
 
— 
 
1,213 
 
— 
Residential mortgage backed securities
 
1,103 
 
— 
 
1,103 
 
— 
Municipal bonds
 
256 
 
— 
 
256 
 
— 
Total
 
23,553 
 
5,792 
 
17,614 
 
147 
Equity securities, at fair value
 
1,186 
 
1,151 
 
30 
 
5 
Short-term investments
 
2,063 
 
1,786 
 
193 
 
84 
Derivative instruments (1)
 
197 
 
— 
 
197 
 
— 
Residential mortgage loans
 
2 
 
— 
 
2 
 
— 
Fair value option:
Corporate bonds
 
662 
 
— 
 
662 
 
— 
Non-U.S. government bonds
 
6 
 
— 
 
6 
 
— 
Asset backed securities
 
2 
 
— 
 
2 
 
— 
U.S. government and government agencies
 
13 
 
13 
 
— 
 
— 
Short-term investments
 
21 
 
— 
 
11 
 
10 
Equity securities
 
7 
 
3 
 
— 
 
4 
Other investments
 
316 
 
— 
 
210 
 
106 
Other investments measured at net asset value (2)
 
1,461 
Total
 
2,488 
 
16 
 
891 
 
120 
Total assets measured at fair value
$ 
29,489 
$ 
8,745 
$ 
18,927 
$ 
356 
Liabilities measured at fair value:
Other liabilities
$ 
(22) $ 
— 
$ 
— 
$ 
(22) 
Derivative instruments (1)
 
(119)  
— 
 
(119)  
— 
Total liabilities measured at fair value
$ 
(141) $ 
— 
$ 
(119) $ 
(22) 
(1) 
See note 11.
(2) 
In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its 
equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit 
reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
148
2024  FORM 10-K

The following table presents a reconciliation of the beginning and ending balances for all financial assets and liabilities 
measured at fair value on a recurring basis using Level 3 inputs for 2024 and 2023:
Assets
Liabilities
Available For Sale
Fair Value Option
Fair Value
Corporate 
Bonds
Short-term
Investments
Other 
Investments
Short-term
Investments
Equity 
Securities
Equity 
Securities
Other
Liabilities
Year Ended December 31, 2024
Balance at beginning of year
$ 
147 
$ 
84 
$ 
106 
$ 
10 
$ 
4 
$ 
5 
$ 
(22) 
Total gains or (losses) (realized/unrealized)
Included in earnings (1)
 
1 
 
— 
 
(5)  
— 
 
— 
 
— 
 
10 
Included in other comprehensive income
 
2 
 
1 
 
— 
 
— 
 
— 
 
— 
 
1 
Purchases, issuances, sales and settlements
Purchases
 
100 
 
12 
 
148 
 
41 
 
— 
 
2 
 
— 
Issuances
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
(64) 
Sales 
 
— 
 
— 
 
(5)  
— 
 
— 
 
— 
 
— 
Settlements
 
(153)  
(97)  
(70)  
(18)  
— 
 
— 
 
2 
Transfers in and/or out of Level 3
 
— 
 
— 
 
15 
 
— 
 
— 
 
— 
 
— 
Balance at end of year
$ 
97 
$ 
— 
$ 
189 
$ 
33 
$ 
4 
$ 
7 
$ 
(73) 
Year Ended December 31, 2023
Balance at beginning of year
$ 
121 
$ 
— 
$ 
33 
$ 
— 
$ 
4 
$ 
4 
$ 
(14) 
Total gains or (losses) (realized/unrealized)
Included in earnings (1)
 
1 
 
— 
 
(5)  
— 
 
— 
 
— 
 
(1) 
Included in other comprehensive income
 
(1)  
— 
 
— 
 
— 
 
— 
 
— 
 
— 
Purchases, issuances, sales and settlements
Purchases
 
111 
 
84 
 
107 
 
11 
 
— 
 
1 
 
— 
Issuances
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
(9) 
Sales
 
— 
 
— 
 
(10)  
— 
 
— 
 
— 
 
— 
Settlements
 
(85)  
— 
 
(19)  
(1)  
— 
 
— 
 
2 
Transfers in and/or out of Level 3
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
Balance at end of year
$ 
147 
$ 
84 
$ 
106 
$ 
10 
$ 
4 
$ 
5 
$ 
(22) 
(1) 
Gains or losses were included in net realized gains (losses).
Financial Instruments Disclosed, But Not Carried, At Fair 
Value
The Company uses various financial instruments in the 
normal course of its business. The carrying values of cash, 
accrued investment income, receivable for securities sold, 
certain other assets, payable for securities purchased and 
certain other liabilities approximated their fair values at 
December 31, 2024, due to their respective short maturities. 
As these financial instruments are not actively traded, their 
respective fair values are classified within Level 2.
At December 31, 2024, the Company’s senior notes were 
carried at their cost, net of debt issuance costs, of $2.7 billion 
and had a fair value of $2.4 billion. At December 31, 2023, 
the Company’s senior notes were carried at their cost, net of 
debt issuance costs, of $2.7 billion and had a fair value of 
$2.5 billion. The fair values of the senior notes were obtained 
from a third party pricing service and are based on observable 
market inputs. As such, the fair value of the senior notes is 
classified within Level 2.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
149
2024  FORM 10-K

Fair Value Measurements on a Non-Recurring Basis
The Company measures the fair value of certain assets on a 
non-recurring basis, generally quarterly, annually, or when 
events or changes in circumstances indicate that the carrying 
amount of the assets may not be recoverable. These assets 
include investments accounted for using the equity method, 
certain other investments, goodwill and intangible assets, and 
long-lived assets. The Company uses a variety of techniques 
to measure the fair value of these assets when appropriate, as 
described below: 
Investments accounted for using the equity method. When the 
Company determines that the carrying value of these assets 
may not be recoverable, the Company records the assets at 
fair value with the loss recognized in income. In such cases, 
the Company measures the fair value of these assets using the 
techniques discussed above in “—Fair Value Measurements 
on a Recurring Basis.”
Goodwill and Intangible Assets. The Company tests goodwill 
and intangible assets annually for impairment or whenever 
events or changes in circumstances indicate the carrying 
amount may not be recoverable. When the Company 
determines goodwill and intangible assets may be impaired, 
the Company uses techniques including discounted expected 
future cash flows, to measure fair value.
Long-Lived Assets. The Company tests its long-lived assets 
for impairment whenever events or changes in circumstances 
indicate the carrying amount of a long-lived asset may not be 
recoverable. 
11. Derivative Instruments
The Company’s investment strategy allows for the use of 
derivative 
instruments. 
The 
Company’s 
derivative 
instruments are recorded on its consolidated balance sheets at 
fair value. The Company utilizes exchange traded U.S. 
Treasury note, Eurodollar and other futures contracts and 
commodity futures to manage portfolio duration or replicate 
investment positions in its portfolios and the Company 
routinely utilizes foreign currency forward contracts, 
currency options, index futures contracts and other 
derivatives as part of its total return objective. In addition, 
certain of the Company’s investments are managed in 
portfolios which incorporate the use of foreign currency 
forward contracts which are intended to provide an economic 
hedge against foreign currency movements.
The following table summarizes information on the fair 
values and notional values of the Company’s derivative 
instruments: 
Estimated Fair Value
 
Asset
Derivatives (1)
Liability 
Derivatives (1)
Notional
Value (2)
December 31, 2024
 
 
 
Futures contracts
$ 
78 
$ 
(46) $ 
4,781 
Foreign currency 
forward contracts
 
90 
 
(48)  
1,698 
Other (3)
 
38 
 
(21)  
236 
Total
$ 
206 
$ 
(115) 
December 31, 2023
 
 
 
Futures contracts
$ 
139 
$ 
(61) $ 
3,746 
Foreign currency 
forward contracts
 
27 
 
(32)  
1,224 
Other (3)
 
31 
 
(26)  
512 
Total
$ 
197 
$ 
(119) 
(1) 
The fair value of asset derivatives are included in ‘other assets’ and the 
fair value of liability derivatives are included in ‘other liabilities.’
(2)
Represents the absolute notional value of all outstanding contracts, 
consisting of long and short positions.
(3) 
Includes swaps, options and other derivatives contracts.
The Company did not hold any derivatives which were 
designated as hedging instruments at December 31, 2024 or 
2023. 
The Company’s derivative instruments can be traded under 
master netting agreements, which establish terms that apply 
to all derivative transactions with a counterparty. In the event 
of a bankruptcy or other stipulated event of default, such 
agreements provide that the non-defaulting party may elect to 
terminate all outstanding derivative transactions, in which 
case all individual derivative positions (loss or gain) with a 
counterparty are closed out and netted and replaced with 
a single amount, usually referred to as the termination 
amount, which is expressed in a single currency. The 
resulting single net amount, where positive, is payable to the 
party “in-the-money” regardless of whether or not it is the 
defaulting party, unless the parties have agreed that only the 
non-defaulting party is entitled to receive a termination 
payment where the net amount is positive and is in its favor. 
At December 31, 2024, $206 million and $115 million, 
respectively, of asset derivatives and liability derivatives 
were subject to a master netting agreement compared to $197 
million and $119 million, respectively, at December 31, 
2023. The remaining derivatives included in the table above 
were not subject to a master netting agreement.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
150
2024  FORM 10-K

Realized and unrealized contract gains and losses on the 
Company’s derivative instruments are reflected in ‘net 
realized gains (losses)’ in the consolidated statements of 
income, as summarized in the following table:
Derivatives not designated 
as hedging instruments
Year Ended December 31,
2024
2023
2022
Net realized gains (losses):
Futures contracts
$ 
4 
$ 
49 
$ 
(86) 
Foreign currency forward 
contracts
 
(6)  
21 
 
6 
Other (1)
 
10 
 
(11)  
5 
Total
$ 
8 
$ 
59 
$ 
(75) 
(1) Includes realized gains or losses on swaps, options and other derivatives 
contracts.
12. Variable Interest Entities
Bellemeade Re
The Company has entered into aggregate excess of loss 
mortgage reinsurance agreements with various special 
purpose reinsurance companies domiciled in Bermuda (the 
“Bellemeade Agreements”). At the time the Bellemeade 
Agreements were entered into, the applicability of the 
accounting guidance that addresses VIEs was evaluated. As a 
result of the evaluation of the Bellemeade Agreements, the 
Company concluded that these entities are VIEs. However, 
given that the ceding insurers do not have the unilateral 
power to direct those activities that are significant to their 
economic performance, the Company does not consolidate 
such entities in its consolidated financial statements. The 
reinsurance premium paid in regard to the Bellemeade 
Agreements is calculated by multiplying the outstanding 
reinsurance coverage amount at the beginning of the period 
by the coupon rate, which is the SOFR plus a contractual risk 
margin, less the actual investment income collected during 
the preceding month on the assets included in the underlying 
reinsurance trusts. In the event the assets included in the 
underlying reinsurance trusts became severely impaired or 
worthless and the special purpose reinsurance companies 
were unable to meet their future obligations, the Company’s 
mortgage insurance subsidiaries would be liable to fulfill 
claim payments to policyholders. The Company’s maximum 
exposure to loss associated with these VIEs is determined as 
the amount of mortgage insurance claim payments on the 
insured policies, net of aggregate reinsurance payments 
previously received, up to the full aggregate excess of loss 
reinsurance coverage amounts.
The following table summarizes the total assets of the 
Bellemeade entities:
December 31, 2024
December 31, 
2023
Bellemeade Entities
 (Issue Date)
Total VIE 
Assets
Coverage
Remaining 
from
Reinsurers (1)
Total VIE 
Assets
2019-1 Ltd. (Mar-19)
$ 
— 
$ 
— 
$ 
71 
2019-3 Ltd. (Jul-19)
 
— 
 
— 
 
99 
2021-3 Ltd. (Sep-21)
 
363 
 
98 
 
429 
2022-1 Ltd. (Jan-22)
 
202 
 
16 
 
256 
2022-2 Ltd. (Sep-22)
 
180 
 
113 
 
201 
2023-1 Ltd. (Oct-23)
 
186 
 
47 
 
186 
2024-1 Ltd. (Aug-24)
 
163 
 
41 
 
— 
Total
$ 
1,094 
$ 
315 
$ 
1,242 
 (1) Coverage from a separate panel of reinsurers remaining at December 31, 2024.
Table of Contents
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
151
2024  FORM 10-K

13.  Other Comprehensive Income (Loss)
The following table presents the changes in each component of AOCI, net of noncontrolling interests:
Unrealized 
Appreciation on 
Available-For-Sale 
Investments
Foreign Currency 
Translation 
Adjustments
Total
Year Ended December 31, 2024
Beginning balance
$ 
(565) $ 
(111) $ 
(676) 
Other comprehensive income (loss) before reclassifications
 
(23)  
(102)  
(125) 
Amounts reclassified from accumulated other comprehensive income
 
81 
 
— 
 
81 
Net current period other comprehensive income (loss)
 
58 
 
(102)  
(44) 
Ending balance
$ 
(507) $ 
(213) $ 
(720) 
Year Ended December 31, 2023
Beginning balance
$ 
(1,512) $ 
(134) $ 
(1,646) 
Other comprehensive income (loss) before reclassifications
 
547 
 
23 
 
570 
Amounts reclassified from accumulated other comprehensive income
 
400 
 
— 
 
400 
Net current period other comprehensive income (loss)
 
947 
 
23 
 
970 
Ending balance
$ 
(565) $ 
(111) $ 
(676) 
Year Ended December 31, 2022
Beginning balance
$ 
13 
$ 
(78) $ 
(65) 
Other comprehensive income (loss) before reclassifications
 
(1,772)  
(56)  
(1,828) 
Amounts reclassified from accumulated other comprehensive income
 
247 
 
— 
 
247 
Net current period other comprehensive income (loss)
 
(1,525)  
(56)  
(1,581) 
Ending balance
$ 
(1,512) $ 
(134) $ 
(1,646) 
The following tables present details about amounts reclassified from accumulated other comprehensive income and the tax 
effects allocated to each component of other comprehensive income (loss):
Consolidated Statement of Income
Amounts Reclassified from AOCI
Details About
Line Item That Includes
Year Ended December 31,
 AOCI Components
Reclassification
2024
2023
2022
Unrealized appreciation on available-for-sale investments
Net realized gains (losses)
$ 
(95) $ 
(431) $ 
(235) 
Provision for credit losses
 
— 
 
3 
 
(44) 
Total before tax
 
(95)  
(428)  
(279) 
Income tax (expense) benefit
 
14 
 
28 
 
32 
Net of tax
$ 
(81) $ 
(400) $ 
(247) 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
152
2024  FORM 10-K

Following are the related tax effects allocated to each component of other comprehensive income (loss):
Before Tax
Tax Expense
Net of Tax
Amount
(Benefit)
Amount
Year Ended December 31, 2024
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period
$ 
(23) 
$ 
— 
$ 
(23) 
Less reclassification of net realized gains (losses) included in net income
 
(95) 
 
(14) 
 
(81) 
Foreign currency translation adjustments
 
(105) 
 
(3) 
 
(102) 
Other comprehensive income (loss)
$ 
(33) 
$ 
11 
$ 
(44) 
Year Ended December 31, 2023
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period
$ 
617 
$ 
70 
$ 
547 
Less reclassification of net realized gains (losses) included in net income
 
(428) 
 
(28) 
 
(400) 
Foreign currency translation adjustments
 
23 
 
— 
 
23 
Other comprehensive income (loss)
$ 
1,068 
$ 
98 
$ 
970 
Year Ended December 31, 2022
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period
$ 
(2,009) 
$ 
(237) 
$ 
(1,772) 
Less reclassification of net realized gains (losses) included in net income
 
(279) 
 
(32) 
 
(247) 
Foreign currency translation adjustments
 
(56) 
 
— 
 
(56) 
Other comprehensive income (loss)
$ 
(1,786) 
$ 
(205) 
$ 
(1,581) 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
153
2024  FORM 10-K

14. Earnings Per Common Share
The calculation of basic earnings per common share is computed by dividing income available to Arch common shareholders 
by the weighted average number of Common Shares and common share equivalents outstanding. The following table sets forth 
the computation of basic and diluted earnings per common share:
Year Ended December 31,
2024
2023
2022
Numerator:
Net income
$ 
4,312 
$ 
4,442 
$ 
1,482 
Amounts attributable to noncontrolling interests
 
— 
 
1 
 
(6) 
Net income available to Arch
 
4,312 
 
4,443 
 
1,476 
Preferred dividends
 
(40)  
(40)  
(40) 
Net income available to Arch common shareholders
$ 
4,272 
$ 
4,403 
$ 
1,436 
Denominator:
Weighted average common shares outstanding
 
372.5 
 
368.7 
 
368.6 
Effect of dilutive common share equivalents:
Nonvested restricted shares
 
2.1 
 
2.5 
 
2.1 
Stock options (1)
 
7.2 
 
7.6 
 
6.9 
Weighted average common shares and common share equivalents outstanding – diluted
 
381.8 
 
378.8 
 
377.6 
Earnings per common share:
Basic
$ 
11.47 
$ 
11.94 
$ 
3.90 
Diluted
$ 
11.19 
$ 
11.62 
$ 
3.80 
(1) 
Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the 
average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the 
proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For 2024, 2023 and 2022, the 
number of stock options excluded were 2.2 million, 0.5 million and 0.8 million, respectively.
15.  Income Taxes
Arch Capital is incorporated under the laws of Bermuda and, 
under Bermuda law in effect as of December 31, 2024, is not 
obligated to pay taxes on income or capital gains in Bermuda. 
Upon its formation in 2000, the Company received a written 
undertaking from the Minister of Finance in Bermuda under 
the Exempted Undertakings Tax Protection Act 1966 
assuring that, in the event that any legislation is enacted in 
Bermuda imposing any tax computed on profits, income, 
gain or appreciation on any capital asset, or any tax in the 
nature of estate duty or inheritance tax, such tax will not be 
applicable to Arch Capital or any of its operations until 
March 31, 2035. However, on December 27, 2023, the 
Government of Bermuda enacted the Bermuda CIT Act, 
which is effective for tax years beginning on or after January 
1, 2025. Once in effect, the new corporate income tax regime 
in Bermuda is expected to supersede the Minister of 
Finance’s assurance, and the Company will become subject 
to taxes in Bermuda before March 31, 2035.
The Bermuda CIT Act will apply a 15% corporate income tax 
to certain Bermuda constituent entities of multi-national 
groups in fiscal years beginning on or after January 1, 2025. 
The Company expects to incur and pay increased taxes in 
Bermuda beginning in 2025. The Bermuda CIT Act, together 
with the widespread adoption of the OECD Pillar II 
minimum tax proposal, is expected to result in a minimum 
effective tax rate of 15% in most jurisdictions in which the 
Company operates.
Arch Capital has subsidiaries and branches that operate in 
various jurisdictions around the world that are subject to tax 
in the jurisdictions in which they operate. The significant 
jurisdictions in which Arch Capital’s subsidiaries and 
branches are subject to tax are the United States, United 
Kingdom, Ireland, Switzerland, Australia, Canada, and 
Gibraltar.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
154
2024  FORM 10-K

The components of income taxes attributable to operations 
were as follows:
Year Ended December 31,
2024
2023
2022
Current expense (benefit):
United States
$ 
332 
$ 
251 
$ 
195 
Non-U.S.
 
65 
 
37 
 
6 
 
397 
 
288 
 
201 
Deferred expense (benefit):
United States
 
(21)  
(20)  
(96) 
Non-U.S.
 
(14)  
(1,141)  
(25) 
 
(35)  
(1,161)  
(121) 
Income tax expense (benefit)
$ 
362 
$ 
(873) $ 
80 
The Company’s income or loss before income taxes was 
earned in the following jurisdictions:
Year Ended December 31,
2024
2023
2022
Income (Loss) Before Income Taxes:
Bermuda
$ 
2,611 
$ 
2,099 
$ 
986 
United States
 
1,438 
 
1,239 
 
401 
Other
 
625 
 
232 
 
175 
Total
$ 
4,674 
$ 
3,570 
$ 
1,562 
The expected tax provision computed on pre-tax income or 
loss at the weighted average tax rate has been calculated as 
the sum of the pre-tax income in each jurisdiction multiplied 
by that jurisdiction’s applicable statutory tax rate. The 2024 
applicable statutory tax rates by jurisdiction were as follows: 
Bermuda (0.0%), United States (21.0%), United Kingdom 
(25.0%), Ireland (12.5%), Switzerland (19.6%), Australia 
(30.0%), Canada (26.4%) and Gibraltar (13.8%).
A reconciliation of the difference between the provision for 
income taxes and the expected tax provision at the weighted 
average tax rate follows:
Year Ended December 31,
2024
2023
2022
Expected income tax expense 
(benefit) computed on pre-tax 
income at weighted average income 
tax rate
$ 
424 
$ 
300 
$ 
110 
Addition (reduction) in income tax 
expense (benefit) resulting from:
Sale of subsidiaries/Bargain 
purchase option
 
(45)  
— 
 
— 
Investment income
 
(39)  
(14)  
(13) 
Change in tax rate
 
12 
 
(1,179)  
(5) 
Share based compensation
 
(11)  
(13)  
(9) 
Tax credits
 
(5)  
(3)  
(10) 
Base eroding tax/Alternative 
minimum tax
 
5 
 
9 
 
8 
State taxes, net of U.S. federal tax 
benefit
 
4 
 
6 
 
11 
Change in valuation allowance
 
3 
 
4 
 
(23) 
Uncertain tax position
 
3 
 
— 
 
— 
Dividend withholding taxes
 
3 
 
9 
 
11 
Other
 
8 
 
8 
 
— 
Income tax expense (benefit)
$ 
362 
$ 
(873) $ 
80 
The effect of a change in tax laws or rates on deferred income 
tax assets and liabilities is recognized in income in the period 
in which such change is enacted. 
Deferred income tax assets and liabilities reflect temporary 
differences based on enacted tax rates between the carrying 
amounts of assets and liabilities for financial reporting and 
income tax purposes. 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
155
2024  FORM 10-K

Significant components of the Company’s deferred income 
tax assets and liabilities were as follows:
December 31,
2024
2023
Deferred income tax assets:
Net operating loss
$ 
77 
$ 
93 
Discounting of net loss reserves
 
203 
 
219 
Net unearned premium reserve
 
190 
 
133 
Compensation liabilities
 
75 
 
64 
Foreign tax credit carryforward
 
22 
 
16 
Goodwill and intangible assets
 1,034 
 1,020 
Bad debt reserves
 
15 
 
16 
Depreciation and amortization
 
151 
 
133 
Lease liability
 
32 
 
31 
Net unrealized decline of investments
 
77 
 
89 
Fair value adjustment to senior notes
 
41 
 
41 
Other, net
 
— 
 
13 
Deferred income tax assets before valuation 
allowance
 1,917 
 1,868 
Valuation allowance
 
(18)  
(15) 
Deferred income tax assets net of valuation allowance  1,899 
 1,853 
Deferred income tax liabilities:
Lloyds year of account deferral
 
(19)  
(13) 
Contingency reserve
 
(27)  
(50) 
Deferred policy acquisition costs
 
(143)  
(144) 
Investment related
 
(43)  
(13) 
Right-of-use asset
 
(25)  
(24) 
Other
 
(6)  
— 
Total deferred income tax liabilities
 
(263)  
(244) 
Net deferred income tax assets
$ 1,636 
$ 1,609 
The Company provides a valuation allowance to reduce the 
net value of certain deferred income tax assets to an amount 
which management expects to more likely than not be 
realized. As of December 31, 2024, the Company’s valuation 
allowance was $18 million, compared to $15 million at 
December 
31, 
2023. 
The 
valuation 
allowance 
at 
December 31, 2024, was primarily attributable to valuation 
allowances on the Company’s Australia, Gibraltar and Hong 
Kong operations and certain other deferred income tax assets 
relating to tax attributes that have a limited use.
At December 31, 2024, the Company’s net operating loss 
carryforwards and tax credits were as follows: 
Year Ended December 31,
2024
Expiration
Operating Loss Carryforwards
United Kingdom
$ 
146 
No expiration
Ireland
 
26 
No expiration
Australia
 
43 
No expiration
Hong Kong
 
35 
No expiration
Gibraltar
 
26 
No expiration
Cyprus
 
1 
No expiration
United States (1)
 
70 
2029 - 2038
Tax Credits
U.K. foreign tax credits
 
14 
No expiration
U.S. foreign tax credits
 
8 
2029 - 2033
(1) The Company’s U.S. operations have recorded $70 million of net 
operating loss (“NOL”) carryforwards that are subject to annual usage 
limitations under Section 382 of the Internal Revenue Code (“the Code”). 
The Company’s U.S. mortgage operations are eligible for a 
tax deduction, subject to certain limitations, under Section 
832(e) of the Code for amounts required by state law or 
regulation to be set aside in statutory contingency reserves. 
The deduction is allowed only to the extent that the Company 
purchases non-interest bearing U.S. Mortgage Guaranty Tax 
and Loss Bonds (“T&L Bonds”) issued by the U.S. Treasury 
Department in an amount equal to the tax benefit derived 
from deducting any portion of the statutory contingency 
reserves. T&L Bonds are reflected in ‘other assets’ on the 
Company’s balance sheet and totaled approximately $47 
million at December 31, 2024, compared to $42 million at 
December 31, 2023.
Deferred income tax liabilities have not been accrued with 
respect to the undistributed earnings of the Company's U.S., 
U.K. and Ireland subsidiaries as it is the Company’s intention 
that all such earnings will be indefinitely reinvested. If the 
earnings were to be distributed, as dividends or otherwise, 
such amounts may be subject to withholding tax in the 
jurisdiction of the paying entity. The Company does not 
intend to indefinitely reinvest earnings from the Company's 
Canada subsidiary, however, no income or withholding taxes 
have been accrued as the Canada subsidiary does not have 
positive cumulative earnings and profits and therefore a 
distribution from this particular subsidiary would not be 
subject to income taxes or withholding taxes. Potential tax 
implications of repatriation from the Company’s unremitted 
earnings that are indefinitely reinvested are driven by facts at 
the time of distribution. Therefore, it is not practicable to 
estimate the income tax liabilities that might be incurred if 
such earnings were remitted. Distributions from the U.K. or 
Ireland would not be subject to withholding tax and no 
deferred income tax liability would need to be accrued. 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
156
2024  FORM 10-K

The Company recognizes interest and penalties relating to 
unrecognized tax benefits in the provision for income taxes. 
As of December 31, 2024, the Company’s total unrecognized 
tax benefits, including interest and penalties, were $5 million. 
If recognized, the full amount of the unrecognized tax benefit 
would impact the consolidated effective tax rate. A 
reconciliation of the beginning and ending amount of 
unrecognized tax benefits is as follows:
December 31,
2024
2023
Balance at beginning of year
$ 
2 
$ 
2 
Additions based on tax positions related to the 
current year
 
1 
 
— 
Additions for tax positions of prior years
 
2 
 
— 
Reductions for tax positions of prior years
 
— 
 
— 
Settlements
 
— 
 
— 
Balance at end of year
$ 
5 
$ 
2 
The Company, its subsidiaries and branches file income tax 
returns in various federal, state and local jurisdictions. The 
following table details open tax years that are potentially 
subject to examination by local tax authorities, in the 
following major jurisdictions:
Jurisdiction
Tax Years
United States
2019-2024
United Kingdom
2022-2024
Ireland
2020-2024
Switzerland
2020-2024
Australia
2019-2024
Canada
2020-2024
Gibraltar
2019-2024
As of December 31, 2024, the Company’s current income tax 
recoverable (included in “Other assets”) was $3 million.
16. Transactions with Related Parties
In 2017, the Company acquired approximately 25% of 
Premia. Premia is the parent of Premia Reinsurance Ltd., a 
multi-line Bermuda reinsurance company. Premia’s strategy 
is to reinsure or acquire companies or reserve portfolios in 
the non-life property and casualty insurance and reinsurance 
run-off market. Arch Re Bermuda and certain Arch co-
investors invested $100 million and acquired approximately 
25% of Premia as well as warrants to purchase additional 
common equity. Arch has appointed two directors to serve on 
the seven person board of directors of Premia. Arch Re 
Bermuda is providing a quota share reinsurance treaty on 
certain business written by Premia, and subsidiaries of Arch 
Capital are providing certain administrative and support 
services to Premia, in each case pursuant to separate multi-
year agreements. During the 2024 period, the Company did 
not enter into any new reinsurance transactions with Premia, 
compared to $80 million and $81 million of net premiums 
written and earned, respectively in 2023. At December 31, 
2024, the Company recorded a funds held asset from Premia 
of $137 million, compared to $158 million at December 31, 
2023.
In 2021, the Company completed the acquisition of Somers. 
Somers is wholly owned by Greysbridge, and Greysbridge is 
owned 40% by the Company and by certain funds managed 
by Kelso and Warburg. The Company entered into certain 
reinsurance transactions with Somers. During 2024 and 2023 
periods, the Company’s net premiums written was reduced 
by $738 million and $574 million, respectively. In addition, 
Somers paid certain acquisition costs and administrative fees 
to the Company. At December 31, 2024, the Company 
recorded a reinsurance recoverable on unpaid and paid losses 
from Somers of $1.6 billion and a reinsurance balance 
payable to Somers of $489 million. At December 31, 2023, 
reinsurance recoverable on unpaid and paid losses from 
Somers was $1.3 billion, with a reinsurance balance payable 
to Somers of $475 million. 
Under the terms of the Greysbridge equity financing, 
beginning January 1, 2024, the Company has a call right (but 
not the obligation) and Warburg and Kelso each have a put 
right (but not the obligation) to buy/sell a certain amount of 
their initial shares annually at the current year-end tangible 
book value per share of Greysbridge. In 2024, Warburg and 
Kelso both delivered a put option notice to sell a certain 
amount of their initial shares. The transaction, which will 
involve third-party purchasers of such shares, is expected to 
close in the 2025 calendar year, subject to any required 
regulatory approvals and other closing conditions. In 
association with the put option notice at December 31, 2024, 
the Company’s balance sheet reflected $261 million in both 
other assets and other liabilities.
During 2024 period, the Company completed the acquisition 
of Watford Insurance Company from Somers for a total 
consideration paid of $35 million.
As of December 31, 2024, the Company owns $35 million in 
aggregate principal amount of Somers 6.5% senior notes, due 
July 2, 2029.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
157
2024  FORM 10-K

17. Leases
In the ordinary course of business, the Company renews and 
enters into new leases for office property and equipment. At 
the lease inception date, the Company determines whether a 
contract contains a lease and its classification as a finance or 
operating lease. Primarily all of the Company’s leases are 
classified as operating leases. The Company’s operating 
leases have remaining lease terms of up to 13 years, some of 
which include options to extend the lease term. The Company 
considers these options when determining the lease term and 
measuring its lease liability and right-of-use asset. In 
addition, the Company’s lease agreements do not contain any 
material residual value guarantees or material restrictive 
covenants.
Short-term operating leases with an initial term of twelve 
months or less were excluded on the Company's consolidated 
balance sheet and represent an inconsequential amount of 
operating lease expense. 
As most leases do not provide an implicit rate, the Company 
uses its incremental borrowing rate based on the information 
available at the lease commencement date in determining the 
present value of lease payments. 
Additional information regarding the Company’s operating 
leases is as follows:
December 31,
2024
2023
Operating lease costs
$ 
34 
$ 
33 
Sublease income (1)
$ 
(2) 
$ 
(2) 
Cash payments included in the 
measurement of lease liabilities 
reported in operating cash flows
$ 
30 
$ 
31 
Right-of-use assets obtained in 
exchange for new lease liabilities
$ 
30 
$ 
28 
Right-of-use assets (2)
$ 
129 
$ 
125 
Operating lease liability (2)
$ 
163 
$ 
156 
Weighted average discount rate
 4.9 %
 4.7 %
Weighted average remaining lease 
term
7.2 years
7.2 years
(1) 
The sublease income primarily relates to office property in Raleigh, 
North Carolina.
(2) 
The right-of-use assets are included in ‘other assets’ while the 
operating lease liability is included in ‘other liabilities.’
The following table presents the contractual maturities of the 
Company's operating lease liabilities at December 31, 2024:
Years Ending December 31,
2025
$ 
31 
2026
 
31 
2027
 
28 
2028
 
24 
2029
 
19 
2030 and thereafter
 
63 
Total undiscounted lease liability
$ 
196 
Less: present value adjustment
 
(33) 
Operating lease liability
$ 
163 
Rental expense was approximately $35 million, $38 million 
and $39 million for 2024, 2023 and 2022, respectively.
18. 
Commitments and Contingencies
Concentrations of Credit Risk
The creditworthiness of a counterparty is evaluated by the 
Company, taking into account credit ratings assigned by 
independent agencies. The credit approval process involves 
an assessment of factors, including, among others, the 
counterparty, country and industry credit exposure limits. 
Collateral may be required, at the discretion of the Company, 
on certain transactions based on the creditworthiness of the 
counterparty.
The areas where significant concentrations of credit risk may 
exist include unpaid losses and loss adjustment expenses 
recoverable, contractholder receivables, ceded unearned 
premiums, paid losses and loss adjustment expenses 
recoverable net of reinsurance balances payable, investments 
and cash and cash equivalent balances. A credit exposure 
exists with respect to reinsurance recoverables as they may 
become uncollectible. The Company manages its credit risk 
in its reinsurance relationships by transacting with reinsurers 
that it considers financially sound and, if necessary, the 
Company may hold collateral in the form of funds, trust 
accounts and/or irrevocable letters of credit. This collateral 
can be drawn on for amounts that remain unpaid beyond 
specified time periods on an individual reinsurer basis. In 
addition, certain insurance policies written by the Company’s 
insurance operations feature large deductibles, primarily in its 
construction and national accounts lines of business. Under 
such contracts, the Company is obligated to pay the claimant 
for the full amount of the claim. The Company is 
subsequently reimbursed by the policyholder for the 
deductible amount. These amounts are included on a gross 
basis in the consolidated balance sheet in contractholder 
payables and contractholder receivables, respectively. In the 
event that the Company is unable to collect from the 
policyholder, the Company would be liable for such 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
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2024  FORM 10-K

defaulted amounts. Collateral, primarily in the form of letters 
of credit, cash and trusts, is obtained from the policyholder to 
mitigate the Company’s credit risk. In the instances where the 
company receives collateral in the form of cash, the 
Company records a related liability in “Collateral held for 
insured obligations.”
In addition, the Company underwrites a significant amount of 
its business through brokers and a credit risk exists should 
any of these brokers be unable to fulfill their contractual 
obligations with respect to the payments of insurance and 
reinsurance balances owed to the Company. The following 
table summarizes the percentage of the Company’s gross 
premiums written generated from or placed by the largest 
brokers:
Broker
Year Ended December 31,
2024
2023
2022
Marsh & McLennan Companies 
and its subsidiaries
 18.6 %
 19.0 %
 17.3 %
Aon Corporation and its 
subsidiaries
 14.5 %
 13.9 %
 13.8 %
No other broker and no one insured or reinsured accounted 
for more than 10% of gross premiums written for 2024, 2023 
and 2022.
The Company’s available for sale investment portfolio is 
managed in accordance with guidelines that have been 
tailored to meet specific investment strategies, including 
standards of diversification, which limit the allowable 
holdings of any single issue. There were no investments in 
any entity in excess of 10% of the Company’s shareholders’ 
equity at December 31, 2024 other than investments issued or 
guaranteed by the United States government or its agencies.
Investment Commitments
The Company’s investment commitments, which are 
primarily related to agreements entered into by the Company 
to invest in funds and separately managed accounts when 
called upon, were approximately $4.4 billion and $3.6 billion 
at December 31, 2024 and 2023, respectively.
Purchase Obligations
The Company has also entered into certain agreements which 
commit the Company to purchase goods or services, 
primarily related to software and computerized systems. Such 
purchase obligations were approximately $260 million and 
$148 million at December 31, 2024 and 2023, respectively.
Employment and Other Arrangements
At December 31, 2024, the Company has entered into 
employment agreements with certain of its executive officers. 
Such employment arrangements provide for compensation in 
the form of base salary, annual bonus, share-based awards, 
participation in the Company’s employee benefit programs 
and the reimbursements of expenses.
19. Debt and Financing Arrangements
The Company’s senior notes payable at December 31, 2024 
and 2023 were as follows:
Carrying Amount at
Interest
Principal
December 31,
(Fixed)
Amount
2024
2023
2034 notes (1)
 7.350 %
$ 
300 
$ 
298 
$ 
298 
2043 notes (2)
 5.144 %
 
500 
 
496 
 
495 
2026 notes (3)
 4.011 %
 
500 
 
499 
 
498 
2046 notes (4)
 5.031 %
 
450 
 
446 
 
446 
2050 notes (5)
 3.635 %
 
1,000 
 
989 
 
989 
$ 
2,750 
$ 
2,728 
$ 
2,726 
(1) Senior notes of Arch Capital issued on May 4, 2004 and due May 1, 2034 
(“2034 notes”).
(2) Senior notes of Arch-U.S., a wholly-owned subsidiary of Arch Capital, 
issued on December 13, 2013 and due November 1, 2043 (“2043 notes”), 
fully and unconditionally guaranteed by Arch Capital. 
(3) Senior notes of Arch Capital Finance LLC (“Arch Finance”), a wholly-
owned finance subsidiary of Arch Capital, issued on December 8, 2016 and 
due December 15, 2026 (“2026 notes”), fully and unconditionally 
guaranteed by Arch Capital.
(4) Senior notes of Arch Finance issued on December 8, 2016 and due 
December 15, 2046 (“2046 notes”), fully and unconditionally guaranteed by 
Arch Capital
(5) Senior notes of Arch Capital issued on June 30, 2020 and due June 30, 
2050 (“2050 notes”).
The 2034 notes are Arch Capital’s senior unsecured 
obligations and rank equally with all of its existing and future 
senior unsecured indebtedness. Interest payments on the 2034 
notes are due on May 1st and November 1st of each year. 
Arch Capital may redeem the 2034 notes at any time and 
from time to time, in whole or in part, at a “make-whole” 
redemption price. 
The 2043 notes are unsecured and unsubordinated obligations 
of Arch-U.S. and Arch Capital, respectively, and rank 
equally and ratably with the other unsecured and 
unsubordinated indebtedness of Arch-U.S. and Arch Capital, 
respectively. Interest payments on the 2043 notes are due on 
May 1st and November 1st of each year. Arch-U.S. may 
redeem the 2043 notes at any time and from time to time, in 
whole or in part, at a “make-whole” redemption price. 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
159
2024  FORM 10-K

The 2026 notes are unsecured and unsubordinated obligations 
of Arch Finance and Arch Capital, respectively, and rank 
equally and ratably with the other unsecured and 
unsubordinated indebtedness of Arch Finance and Arch 
Capital, respectively. Interest payments on the 2026 notes are 
due on June 15th and December 15th of each year. Arch 
Finance may redeem the 2026 notes at any time and from 
time to time, in whole or in part, at a “make-whole” 
redemption price.
The 2046 notes are unsecured and unsubordinated obligations 
of Arch Finance and Arch Capital, respectively, and rank 
equally and ratably with the other unsecured and 
unsubordinated indebtedness of Arch Finance and Arch 
Capital, respectively. Interest payments on the 2046 notes are 
due on June 15th and December 15th of each year. Arch 
Finance may redeem the 2046 notes at any time and from 
time to time, in whole or in part, at a “make-whole” 
redemption price.
The 2050 notes are Arch Capital’s senior unsecured 
obligations and rank equally with all of its existing and future 
senior unsecured indebtedness. Interest payments on the 2050 
notes are due on June 30 and December 30 of each year. 
Arch Capital may redeem the 2050 notes at any time and 
from time to time, in whole or in part, at a “make-whole” 
redemption price.
Letter of Credit and Revolving Credit Facilities
In the normal course of its operations, the Company enters 
into agreements with financial institutions that provide access 
to secured and unsecured credit facilities. 
Group Credit Facility
Arch Capital and certain of its subsidiaries have access to a 
credit facility with a syndicate of financial institutions (the 
“Group Credit Facility”) that expires on August 23, 2028. 
The Group Credit Facility consists of a $425 million secured 
facility for letters of credit (the “Secured Facility”) and a 
$500 million unsecured facility for revolving loans and 
letters of credit (the “Unsecured Facility”). At December 31, 
2024, the Secured Facility had $275 million of letters of 
credit outstanding and remaining capacity of $150 million, 
and the Unsecured Facility had no outstanding revolving 
loans or letters of credit, with remaining capacity of 
$500 million.
The Group Credit Facility contains certain restrictive and 
maintenance covenants customary for facilities of this type, 
including 
restrictions 
on 
indebtedness, 
minimum 
consolidated tangible net worth, maximum leverage levels 
and minimum financial strength ratings. Arch Capital and its 
subsidiaries which are party to the agreement were in 
compliance with all covenants contained therein at 
December 31, 2024.
Obligations of each borrower for letters of credit under the 
Secured Facility are secured by cash and eligible securities of 
such borrower and held in collateral accounts. Commitments 
under the Group Credit Facility may be increased up to, but 
not exceeding, an aggregate of $1.5 billion. Arch Capital has 
a one-time option to convert any or all outstanding revolving 
loans of Arch Capital and/or Arch-U.S. to term loans with the 
same terms as the revolving loans except that any 
prepayments may not be re-borrowed. Borrowings of 
revolving loans may be made at a variable rate based on 
Secured Overnight Financing Rate (“SOFR”). Secured letters 
of credit are available for issuance on behalf of certain Arch 
Capital subsidiaries. Arch Capital guarantees the obligations 
of Arch-U.S. and Arch U.S. MI Holdings Inc., Arch-U.S. 
guarantees the obligations of Arch Capital, and Arch Capital 
Finance LLC guarantees the obligations of Arch Capital and 
Arch-U.S. 
Other Credit Facilities
Arch Re Bermuda, a wholly-owned subsidiary of Arch 
Capital, has access to a $175 million unsecured letter of 
credit facility with Lloyds Bank Corporate Markets plc., 
which expires on September 27, 2025. At December 31, 
2024, this credit facility had $106 million of letters of credit 
outstanding and remaining capacity of $69 million.
Arch Re Bermuda also has access to a letter of credit facility 
with Lloyds Bank Corporate Markets plc., which expires on 
December 31, 2027. Such credit facility provides for a 
$700 million facility for letters of credit in respect of Tier 2 
Funds at Lloyds. As of December 31, 2024, $700 million 
face amount of letters of credit had been issued under this 
facility. 
In addition, Arch Re Bermuda had outstanding secured letters 
of credit through other facilities in the amount of $55 million, 
which were issued in the normal course of business (“LOC 
Facilities”). The principal purpose of the LOC Facilities is to 
issue, as required, evergreen standby letters of credit in favor 
of primary insurance or reinsurance counterparties with 
which certain of Arch Capital’s subsidiaries has entered into 
reinsurance arrangements. 
When issued, all secured letters of credit are secured by a 
portion of the investment portfolio. At December 31, 2024, 
these letters of credit were secured by investments with a fair 
value of $400 million. The Company had no outstanding 
revolving credit agreement borrowings at December 31, 2024 
and 2023.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
160
2024  FORM 10-K

Federal Home Loan Bank Membership
Certain subsidiaries of the Company are members of Federal 
Home Loan Banks (“FHLBs”). Members may borrow from 
the FHLBs at competitive rates subject to certain conditions. 
Conditions include maintaining sufficient collateral deposits 
for funding and a requirement to hold stock in the FHLBs 
related to both membership and outstanding advances. At 
December 31, 2024 and 2023, the Company had no advances 
outstanding under the FHLB program. 
20. Goodwill and Intangible Assets
The following table shows an analysis of goodwill and 
intangible assets:
Goodwill
Intangible 
assets 
(indefinite 
life)
Intangible 
assets (finite 
life)
Total
Net balance at 
Dec. 31, 2022
$ 
342 
$ 
69 
$ 
393 
$ 
804 
Acquisitions
 
— 
 
— 
 
11 
 
11 
Amortization
 
— 
 
— 
 
(95)  
(95) 
Impairment
 
(2)  
— 
 
— 
 
(2) 
Foreign currency 
movements and 
other adjustments
 
5 
 
1 
 
7 
 
13 
Net balance at 
Dec. 31, 2023
 
345 
 
70 
 
316 
 
731 
Acquisitions (1)
 
246 
 
9 
 
637 
 
892 
Amortization
 
— 
 
— 
 
(235)  
(235) 
Foreign currency 
movements and 
other adjustments 
(2)
 
(20)  
— 
 
(17)  
(37) 
Net balance at 
Dec. 31, 2024
$ 
571 
$ 
79 
$ 
701 
$ 
1,351 
Gross balance at 
Dec. 31, 2024
$ 
576 
$ 
80 
$ 
1,724 
$ 
2,380 
Accumulated 
amortization
 
— 
 
— 
 
(994)  
(994) 
Foreign currency 
movements and 
other adjustments
 
(5)  
(1)  
(29)  
(35) 
Net balance at 
Dec. 31, 2024
$ 
571 
$ 
79 
$ 
701 
$ 
1,351 
(1) 
Certain amounts for the Company’s 2024 acquisitions are considered
provisional. See note 2.
(2) 
Amount primarily related to the sale of Castel Underwriting Agencies 
Limited.
The following table presents the components of goodwill and 
intangible assets:
Gross 
Balance
Accumulated
Amortization
Foreign 
Currency 
Translation 
Adjustment 
and Other
Net
Balance
Dec. 31, 2024
Acquired 
insurance 
contracts
$ 
620 
$ 
(562) $ 
1 
$ 
59 
Operating 
platform
 
117 
 
(63)  
— 
 
54 
Distribution 
relationships
 
865 
 
(358)  
(30)  
477 
Goodwill
 
576 
 
— 
 
(5)  
571 
Insurance 
licenses
 
58 
 
— 
 
— 
 
58 
Syndicate 
capacity
 
22 
 
— 
 
(1)  
21 
Unfavorable 
service contract  
(10)  
10 
 
— 
 
— 
Other
 
132 
 
(21)  
— 
 
111 
Total
$ 
2,380 
$ 
(994) $ 
(35) $ 
1,351 
Dec. 31, 2023
Acquired 
insurance 
contracts
$ 
452 
$ 
(441) $ 
— 
$ 
11 
Operating 
platform
 
64 
 
(54)  
— 
 
10 
Distribution 
relationships
 
594 
 
(277)  
(23)  
294 
Goodwill
 
348 
 
— 
 
(3)  
345 
Insurance 
licenses
 
48 
 
— 
 
— 
 
48 
Syndicate 
capacity
 
22 
 
— 
 
— 
 
22 
Unfavorable 
service contract  
(10)  
10 
 
— 
 
— 
Other
 
5 
 
(4)  
— 
 
1 
Total
$ 
1,523 
$ 
(766) $ 
(26) $ 
731 
The estimated remaining amortization expense for the 
Company’s intangible assets with finite lives is as follows:
2025
$ 
193 
2026
 
115 
2027
 
88 
2028
 
73 
2029
 
60 
2030 and thereafter
 
172 
Total
$ 
701 
The estimated remaining useful lives of these assets range 
from one to twelve years at December 31, 2024. 
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
161
2024  FORM 10-K

21. Shareholders’ Equity
Authorized and Issued
The authorized share capital of Arch Capital consists of 1.8 
billion Common Shares, par value of $0.0011 per share, and 
50 million Preferred Shares, par value of $0.01 per share.
Common Shares
The following table presents a roll-forward of changes in 
Arch Capital’s issued and outstanding Common Shares:
Year Ended December 31,
2024
2023
2022
Common Shares:
Shares issued and 
outstanding, beginning 
of year
 
591.9 
 
588.3 
 
583.3 
Shares issued (1)
 
2.5 
 
2.8 
 
3.5 
Restricted shares issued, 
net of cancellations
 
1.2 
 
0.8 
 
1.5 
Shares issued and 
outstanding, end of year
 
595.6 
 
591.9 
 
588.3 
Common shares in 
treasury, end of year
 
(219.2)  
(218.5)  
(217.9) 
Shares issued and 
outstanding, end of year
 
376.4 
 
373.4 
 
370.4 
(1)
Includes shares issued from the exercise of stock options and stock 
appreciation rights, the vesting of restricted share units and shares 
issued from the employee share purchase plan. 
Special Cash Dividend
In 2024, the Board of Directors of Arch Capital (the “Board”) 
has declared and paid a special cash dividend of $1.9 billion 
to common shareholders, representing $5.00 per outstanding 
common share.
Share Repurchase Program
The Board has authorized the investment in Arch Capital’s 
common shares through a share repurchase program. At 
December 31, 2024, $996.8 million of share repurchases 
were available under the program. Repurchases under the 
program may be effected from time to time in open market. 
The timing and amount of the repurchase transactions under 
this program will depend on a variety of factors, including 
market 
conditions 
and 
corporate 
and 
regulatory 
considerations. 
Repurchases of Arch Capital’s common shares in connection 
with the share repurchase plan and other share-based 
transactions were held in the treasury under the cost method, 
and the cost of the common shares acquired is included in 
‘Common shares held in treasury, at cost.’ At December 31, 
2024, Arch Capital held 219.2 million shares for an aggregate 
cost of $4.5 billion in treasury, at cost.
The Company’s repurchases under the share repurchase 
program were as follows:
Year Ended December 31,
2024
2023
2022
Aggregate cost of shares 
repurchased
$ 
23.5 
$ 
— 
$ 
585.8 
Shares repurchased
 
0.3 
 
— 
 
12.9 
Average price per share 
repurchased
$ 
89.65 
$ 
— 
$ 
45.44 
Since the inception of the share repurchase program through 
December 31, 2024, Arch Capital has repurchased 
approximately 433.8 million common shares for an aggregate 
purchase price of $5.9 billion. 
Series G Preferred Shares
In June 2021, Arch Capital completed a $500 million 
underwritten public offering of 20.0 million depositary shares
(the “Depositary Shares”), each of which represents a 
1/1,000th interest in a share of its 4.55% Non-Cumulative 
Preferred Shares, Series G, $0.01 par value and $25,000 
liquidation preference per share (equivalent to $25 
liquidation preference per Depositary Share) (the “Series G 
Preferred Shares”). Each Depositary Share, evidenced by a 
depositary receipt, entitles the holder, through the depositary,
to a proportional fractional interest in all rights and 
preferences of the Series G Preferred Shares represented 
thereby (including any dividend, liquidation, redemption and 
voting rights).
Holders of Series G Preferred Shares will be entitled to 
receive dividend payments only when, as and if declared by 
the Board or a duly authorized committee of the Board. Any 
such dividends will be payable from, and including, the date 
of original issue on a noncumulative basis, quarterly in 
arrears on the last day of March, June, September and 
December of each year, at an annual rate of 4.55%. 
Dividends on the Series G Preferred Shares are not 
cumulative. The Company will be restricted from paying 
dividends on or repurchasing its common shares unless 
certain dividend payments are made on the Series G 
Preferred Shares. The Company may not declare or pay a 
dividend on the Series G Preferred Shares under certain 
circumstances, including if the Company is or, after giving 
effect to such payment, would be in breach of applicable 
individual or group solvency and liquidity requirements or 
applicable individual or group enhanced capital requirements 
(“ECR”). The Series G Preferred Shares may not be 
redeemed at any time if the ECR would be breached 
immediately before or after giving effect to such redemption, 
unless the Company replaces the capital represented by 
preference shares to be redeemed with capital having equal or 
better capital treatment.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
162
2024  FORM 10-K

Except in specified circumstances relating to certain tax or 
corporate events, the Series G Preferred Shares are not 
redeemable prior to June 11, 2026. On and after that date, the
Series G Preferred Shares will be redeemable at the 
Company’s option, in whole or in part, at a redemption price 
of $25,000 per share of the Series G Preferred Shares 
(equivalent to $25 per depositary share), plus any declared 
and unpaid dividends, without accumulation of any 
undeclared dividends to, but excluding, the redemption date. 
The Depositary Shares will be redeemed if and to the extent 
the related Series G Preferred Shares are redeemed by the 
Company. Neither the Depositary Shares nor the Series G 
Preferred Shares have a stated maturity, nor will they be 
subject to any sinking fund or mandatory redemption. The 
Series G Preferred Shares are not convertible into any other 
securities. The Series G Preferred Shares do not have voting 
rights, except under limited circumstances. 
Series F Preferred Shares
In August 2017 and November 2017, Arch Capital completed 
combined $330 million of underwritten public offerings 
($230 million in August 2017 and $100 million in November 
2017) of 13.2 million depositary shares (the “Series F 
Depositary Shares”), each of which represents a 1/1,000th 
interest in a share of its 5.45% Non-Cumulative Preferred 
Shares, Series F, with a $0.01 par value and $25,000 
liquidation preference per share (equivalent to $25 
liquidation preference per Series F Depositary Share) (the 
“Series F Preferred Shares”). Each Series F Depositary Share, 
evidenced by a depositary receipt, entitles the holder, through 
the depositary, to a proportional fractional interest in all 
rights and preferences of the Series F Preferred Shares 
represented thereby (including any dividend, liquidation, 
redemption and voting rights). 
Holders of Series F Preferred Shares will be entitled to 
receive dividend payments only when, as and if declared by 
the Board or a duly authorized committee of the board. Any 
such dividends will be payable from, and including, the date 
of original issue on a noncumulative basis, quarterly in 
arrears on the last day of March, June, September and 
December of each year, at an annual rate of 5.45%. 
Dividends on the Series F Preferred Shares are not 
cumulative. The Company will be restricted from paying 
dividends on or repurchasing its common shares unless 
certain dividend payments are made on the Series F Preferred 
Shares. 
Except in specified circumstances relating to certain tax or 
corporate events, the Series F Preferred Shares are not 
redeemable prior to August 17, 2022 (the fifth anniversary of 
the issue date). On and after that date, the Series F Preferred 
Shares will be redeemable at the Company’s option, in whole 
or in part, at a redemption price of $25,000 per share of the 
Series F Preferred Shares (equivalent to $25 per depositary 
share), plus any declared and unpaid dividends, without 
accumulation of any undeclared dividends to, but excluding, 
the redemption date. The Series F Depositary Shares will be 
redeemed if and to the extent the related Series F Preferred 
Shares are redeemed by the Company. Neither the Series F 
Depositary Shares nor the Series F Preferred Shares have a 
stated maturity, nor will they be subject to any sinking fund 
or mandatory redemption. The Series F Preferred Shares are 
not convertible into any other securities. The Series F 
Preferred Shares will not have voting rights, except under 
limited circumstances. 
22. Share-Based Compensation 
Long Term Incentive and Share Award Plans
The Company utilizes share-based compensation plans for 
officers, other employees and directors of Arch Capital and 
its subsidiaries to provide competitive compensation 
opportunities, to encourage long-term service, to recognize 
individual 
contributions 
and 
reward 
achievement 
of 
performance goals and to promote the creation of long-term 
value for shareholders by aligning the interests of such 
persons with those of shareholders.
The 2022 Long-Term Incentive and Share Award Plan (“the 
2022 Plan”) became effective as of May 4, 2022 following 
approval by shareholders of the Company. The 2022 Plan 
provides for the issuance of stock options, stock appreciation 
rights, restricted shares, restricted share units payable in 
common shares or cash, dividend equivalents, performance 
shares and performance units and other share-based awards 
to Arch Capital’s eligible employees and directors. The 
number of common shares reserved for grants under the 2022 
Plan, subject to anti-dilution adjustments in the event of 
certain changes in Arch Capital’s capital structure, is 
9.0 million; provided that no more than 6.0 million common 
shares may be issued as incentive stock options under Section 
422 of the Code. The 2022 Plan will terminate as to future 
awards on February 25, 2032. At December 31, 2024, 6.7 
million shares are available for future issuance.
The 2018 Long-Term Incentive and Share Award Plan (the 
“2018 Plan”) became effective as of May 9, 2018 following 
approval by shareholders of the Company. The 2018 Plan 
provides for the issuance of restricted stock units, 
performance units, restricted shares, performance shares, 
stock options and stock appreciation rights and other equity-
based awards to our eligible employees and directors. The 
2018 Plan authorizes the issuance of 34.5 million common 
shares; provided that no more than 6.0 million common 
shares may be issued as incentive stock options under Section 
422 of the Code. The 2018 Plan will terminate as to future 
awards on February 28, 2028. At December 31, 2024, 2.7 
million shares are available for future issuance.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
163
2024  FORM 10-K

Upon shareholder approval on May 4, 2023, the Amended 
and Restated Arch Capital Group Ltd. 2007 Employee Share 
Purchase Plan (the “ESPP”) became effective. The total 
common shares that may be purchased under the ESPP was 
increased by 3.0 million shares for a total of 12.75 million 
shares authorized. The purpose of the ESPP is to give 
employees of the Company an opportunity to purchase 
common shares through payroll deductions, thereby 
encouraging employees to share in the economic growth and 
success of the Company. The ESPP is designed to qualify as 
an “employee share purchase plan” under Section 423 of the 
Internal Revenue Code of 1986, as amended. At 
December 31, 2024, 3.2 million shares remain available for 
issuance. 
Stock Options and Stock Appreciation Rights
The Company generally issues stock options and SARs to 
eligible employees, with exercise prices equal to the fair 
market values of the Company’s Common Shares on the 
grant dates (adjusted for special dividends). Such grants 
generally vest over a three year period with one-third vesting 
on the first, second and third anniversaries of the grant date. 
In connection with the Company’s recent leadership 
transition in November 2024, the Compensation and Human 
Capital Committee approved the grant of equity awards, 
which consist of 1.75 million premium-priced stock options 
to eligible employees. The premium-priced stock options 
have an exercise price equal to 1.685 times the closing price 
of the Company's common shares on the grant date (or 
$161.24 per share) and will vest in full on the third 
anniversary of the grant date.
The grant date fair value is determined using the Black-
Scholes option valuation model. The expected life 
assumption is based on an expected term analysis, which 
incorporates the Company’s historical exercise experience. 
Expected volatility is based on the Company’s daily 
historical trading data of its common shares. The table below 
summarizes the assumptions used:
Year Ended December 31,
2024
2023
2022
Dividend yield
 — %
 — %
 — %
Expected volatility (1)
 26.5 %
 25.1 %
 24.0 %
Risk free interest rate (1)
 4.4 %
 4.1 %
 2.0 %
Expected option life (1)
9.0 years
6.0 years
6.0 years
(1) The 2024 period includes an expected volatility, risk free interest rate and 
expected option life of 26.65%, 4.39% and 10 years, respectively, related to 
the grant of 1.75 million premium-priced stock options.
A summary of stock option and SAR activity under the 
Company’s Long Term Incentive and Share Award Plans 
during 2024 is presented below:
Year Ended December 31, 2024
Number of 
Options / 
SARs
Weighted 
Average 
Exercise 
Price
Weighted 
Average 
Contractual 
Term
Aggregate 
Intrinsic 
Value
Outstanding, 
beginning of 
year
 12,536,593 
$ 
31.14 
Granted (1)
 2,172,916 
$ 
145.88 
Exercised
 (2,270,334) $ 
22.82 
Forfeited or 
expired
 
(10,141) $ 
46.47 
Outstanding, 
end of year
 12,429,034 
$ 
48.54 
4.69
$ 
665 
Exercisable, 
end of year
 9,710,426 
$ 
26.55 
3.40
$ 
639 
(1) Includes 1.75 million premium-priced stock options with a weighted 
average exercise price of $161.24 per share.
The aggregate intrinsic value of stock options and SARs 
exercised represents the difference between the exercise price 
of the stock options and SARs and the closing market price 
of the Company’s common shares on the exercise dates. 
During 2024, the Company received proceeds of $19 million 
from the exercise of stock options and recognized a tax 
benefit of $9 million from the exercise of stock options and 
SARs.
Year Ended December 31,
2024
2023
2022
Weighted average grant date fair 
value
$ 
29.03 
$ 
23.50 
$ 
13.26 
Aggregate intrinsic value of Options/
SARs exercised (in millions)
$ 
153 
$ 
116 
$ 
113 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ARCH CAPITAL
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Restricted Common Shares and Restricted Units
The Company also issues restricted share and unit awards to 
eligible employees and directors, for which the fair value is 
equal to the fair market values of the Company’s Common 
Shares on the grant dates. Restricted share and unit awards 
generally vest over a three year period with one-third vesting 
on the first, second and third anniversaries of the grant date.
A summary of restricted share and restricted unit activity 
under the Company’s Long Term Incentive and Share Award 
Plans for 2024 is presented below:
Number of 
Restricted
Common
Shares
Number of 
Restricted
Unit
Awards
Unvested Shares:
Unvested balance, beginning of year
 
1,524,605 
 
305,928 
Granted
 
835,843 
 
146,496 
Vested
 
(809,174)  
(154,710) 
Forfeited
 
(22,733)  
(16,621) 
Unvested balance, end of year
 
1,528,541 
 
281,093 
Weighted Average Grant Date Fair 
Value:
Unvested balance, beginning of year
$ 
54.57 
$ 
55.63 
Granted
$ 
90.32 
$ 
87.21 
Vested
$ 
49.88 
$ 
50.57 
Forfeited
$ 
72.05 
$ 
77.53 
Unvested balance, end of year
$ 
76.34 
$ 
73.58 
The following table presents the weighted average grant date 
fair value of restricted shares and restricted unit awards 
granted and the aggregate fair value of restricted shares and 
unit awards vesting in each year.
Year Ended December 31,
2024
2023
2022
Number of restricted shares and 
restricted unit awards granted 
 982,339 
 825,191 
 1,089,393 
Weighted average grant date fair value
$ 89.86 
$ 69.42 
$ 47.45 
Aggregate fair value of vested restricted 
share and unit awards (in millions)
$ 
85 
$ 
122 
$ 
51 
The aggregate intrinsic value of restricted units outstanding at 
December 31, 2024 was $26 million.
 Performance Awards
The Company also issues performance share and unit awards 
(“performance awards”) to eligible employees, which are 
earned based on the achievement of pre-established 
threshold, target and maximum goals over three-year 
performance periods. Final payouts depend on the level of 
achievement along with each employees continued service 
through the vest date, and can vary between 0% and 200%. 
The grant date fair value of the performance awards is 
measured using a Monte Carlo simulation model, which 
incorporated the assumptions summarized in the table below. 
Expected volatility is based on the Company’s daily 
historical trading data of its common shares. The cumulative 
compensation expense recognized and unrecognized as of 
any reporting period date represents the adjusted estimate of 
performance shares and units that will ultimately be awarded, 
valued at their original grant date fair values.
Year Ended December 31,
2024
2023
2022
Expected volatility
 25.3 %
 30.4 %
 38.1 %
Risk free interest rate
 4.5 %
 4.6 %
 1.7 %
Number of 
Performance
Shares
Number of 
Performance
Units
Unvested Shares:
Unvested balance, beginning of year  
1,880,696 
 
49,594 
Granted
 
476,906 
 
15,728 
Performance adjustment (1) (2)
 
— 
 
10,698 
Vested
 
(674,406)  
(21,396) 
Forfeited
 
(3,820)  
(1,687) 
Unvested balance, end of year
 
1,679,376 
 
52,937 
Weighted Average Grant Date 
Fair Value:
Unvested balance, beginning of year $ 
52.47 
$ 
56.15 
Granted
$ 
93.28 
$ 
93.24 
Performance adjustment (1) (2)
$ 
0.00 
$ 
37.38 
Vested
$ 
37.38 
$ 
37.38 
Forfeited
$ 
75.41 
$ 
68.61 
Unvested balance, end of year
$ 
70.07 
$ 
70.57 
(1) 
The performance adjustment represents the difference between the 
number of performance shares granted and earned, which vested 
following the end of the performance period. The performance shares 
were granted at the maximum level of achievement.
(2) 
The performance adjustment represents the change in PSUs, which 
vested following the end of the performance period. The performance 
units were granted at the target level of achievement.
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The following table presents the weighted average grant date 
fair values of performance awards granted. 
Year Ended December 31,
2024
2023
2022
Number of performance awards
 492,634 
 568,576 
 690,772 
Weighted average grant date fair value
$ 93.28 
$ 74.09 
$ 49.91 
Aggregate fair value of vested 
performance share and unit awards (in 
millions)
$ 
61 
$ 
14 
$ 
27 
The aggregate intrinsic value of performance units 
outstanding at December 31, 2024 was $5 million.
The issuance of share-based awards and amortization thereon 
has no effect on the Company’s consolidated shareholders’ 
equity.
Share-Based Compensation Expense
The following tables present pre-tax and after-tax share-
based compensation expense recognized as well as the 
unrecognized compensation cost associated with unvested 
awards and the weighted average period over which it is 
expected to be recognized:
Year Ended December 31,
2024
2023
2022
Pre-Tax
Stock options and SARs
$ 
15 
$ 
11 
$ 
12 
Restricted share and unit awards
 
57 
 
54 
 
50 
Performance awards
 
55 
 
23 
 
22 
ESPP
 
6 
 
4 
 
4 
Total
$ 
133 
$ 
92 
$ 
88 
After-Tax
Stock options and SARs
$ 
13 
$ 
10 
$ 
11 
Restricted share and unit awards
 
48 
 
45 
 
42 
Performance awards
 
50 
 
21 
 
20 
ESPP
 
5 
 
4 
 
4 
Total
$ 
116 
$ 
80 
$ 
77 
December 31, 2024
Stock 
Options and 
SARs (1)
Restricted 
Common
Shares and 
Units (1)
Performance 
Common 
Shares and 
Units
Unrecognized compensation 
cost related to unvested 
awards
$ 
55 
$ 
70 
$ 
12 
Weighted average 
recognition period (years)
2.08
1.21
0.38
(1) Includes awards granted in connection with 1.75 million premium-priced 
stock options and 0.3 million time-vested restricted shares granted in 
November 2024. 
23. Retirement Plans
For purposes of providing employees with retirement 
benefits, the Company maintains defined contribution 
retirement plans. Contributions are based on the participants’ 
eligible compensation. For 2024, 2023 and 2022, the 
Company expensed $86 million, $77 million and $67 million, 
respectively, related to these retirement plans.
24. Legal Proceedings
The Company, in common with the insurance industry in 
general, is subject to litigation and arbitration in the normal 
course of its business. As of December 31, 2024, the 
Company was not a party to any litigation or arbitration 
which is expected by management to have a material adverse 
effect on the Company’s results of operations and financial 
condition and liquidity. 
25. Statutory Information
The Company’s insurance and reinsurance subsidiaries are 
subject to insurance and/or reinsurance laws and regulations 
in the jurisdictions in which they operate. These regulations 
include certain restrictions on the amount of dividends or 
other distributions available to shareholders without prior 
approval of the insurance regulatory authorities.
The actual and required statutory capital and surplus for the 
Company’s principal operating subsidiaries at December 31, 
2024 and 2023:
December 31,
2024
2023
Actual capital and surplus (1):
Bermuda
$ 
28,422 
$ 
24,120 
Ireland
 
1,476 
 
1,148 
United States
 
7,547 
 
6,897 
United Kingdom
 
1,585 
 
1,367 
Canada
 
83 
 
83 
Australia
 
377 
 
366 
Required capital and surplus:
Bermuda
$ 
8,344 
$ 
7,112 
Ireland
 
1,142 
 
942 
United States
 
2,152 
 
1,895 
United Kingdom
 
1,302 
 
1,192 
Canada
 
57 
 
53 
Australia
 
143 
 
179 
(1)
Such amounts include ownership interests in affiliated insurance and 
reinsurance subsidiaries.
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There were no state-prescribed or permitted regulatory 
accounting practices for any of the Company’s insurance or 
reinsurance entities that resulted in reported statutory surplus 
that differed from that which would have been reported under 
the prescribed practices of the respective regulatory 
authorities, including the National Association of Insurance 
Commissioners. The differences between statutory financial 
statements and statements prepared in accordance with 
GAAP vary by jurisdiction, however, with the primary 
differences being that statutory financial statements may not 
reflect deferred acquisition costs, certain net deferred income 
tax assets, goodwill and intangible assets, unrealized 
appreciation or depreciation on debt securities and certain 
unauthorized 
reinsurance 
recoverables 
and 
include 
contingency reserves.
The statutory net income (loss) for the Company’s principal 
operating subsidiaries for 2024, 2023 and 2022 was as 
follows:
Year Ended December 31,
2024
2023
2022
Statutory net income (loss):
Bermuda
$ 
4,750 
$ 
3,519 
$ 
1,730 
Ireland
 
62 
 
53 
 
(53) 
United States
 
918 
 
592 
 
220 
United Kingdom
 
41 
 
72 
 
57 
Canada
 
6 
 
6 
 
9 
Australia
 
54 
 
68 
 
39 
Bermuda
The Company’s Bermuda insurance and reinsurance 
subsidiaries are subject to the Bermuda Insurance Act 1978 
and related regulations, each as amended (the “Insurance 
Act”). Arch Re Bermuda, the Company’s principal 
reinsurance and insurance subsidiary, is dual licensed as a 
Class 4 general business insurer and a Class C long-term 
insurer while Arch Group Reinsurance Ltd. (“AGRL”) is 
registered as a Class 3A general insurer and provides 
affiliated quota share reinsurance covering certain U.S. 
business. The Insurance Act requires that both entities 
maintain minimum statutory capital and surplus equal to the 
greater of a minimum solvency margin and the enhanced 
capital requirement (“ECR”) as determined by the Bermuda 
Monetary Authority (“BMA”). The ECR is calculated based 
on the Bermuda Solvency Capital Requirement model, a risk-
based model that takes into account the risk characteristics of 
different 
aspects 
of 
the 
company’s 
business. 
At December 31, 2024 and 2023, the actual and required 
capital and surplus were based on the economic balance sheet 
requirements.
Under the Insurance Act, Arch Re Bermuda and AGRL are 
restricted with respect to the payment of dividends. Each 
entity is prohibited from declaring or paying in any financial 
year dividends of more than 25% of its total statutory capital 
and surplus (as shown on its previous financial year’s 
statutory balance sheet) unless it files, at least seven days 
before payment of such dividends, with the BMA an affidavit 
stating that it will continue to meet the required margins 
following the declaration of those dividends. Accordingly, 
Arch Re Bermuda can pay approximately $5.5 billion to 
Arch Capital during 2025 without providing an affidavit to 
the BMA. Dividends or distributions, if any, made by AGRL 
would result in an increase in available capital at Arch-U.S.
Ireland
The Company has three Irish subsidiaries: Arch Re Europe, 
an authorized life and non-life reinsurer, Arch Insurance 
(EU), an authorized non-life insurer and Arch Underwriting 
Europe, a registered insurance and reinsurance intermediary. 
Irish authorized reinsurers and insurers, such as Arch Re 
Europe, Arch Insurance (EU) and Irish intermediaries, and 
Arch Underwriters Europe, are subject to the general body of 
Irish laws and regulations including the provisions of the 
Companies Act 2014. As part of the Company’s Brexit plan, 
Arch Insurance (EU) received approval from the Central 
Bank of Ireland (“CBI”) to expand the nature of its business 
in 2019 and commenced writing insurance lines in the 
European Economic Area in 2020, and the Part VII Transfer 
was completed at the end of December 2020. Arch Re 
Europe, Arch Insurance (EU) and Arch Underwriters Europe 
are subject to the supervision of the CBI and must comply 
with Irish insurance acts and regulations as well as with 
directions and guidance issued by the CBI. Arch Re Europe 
and Arch Insurance (EU) are required to maintain a minimum 
level of capital. At December 31, 2024 and 2023, these 
requirements were met.
The amount of dividends these subsidiaries are permitted to 
declare is limited to accumulated, realized profits, so far as 
not previously utilized by distribution or capitalization, less 
its accumulated, realized losses, so far as not previously 
written off in a reduction or reorganization of capital duly 
made. The solvency and capital requirements must still be 
met following any distribution. Dividends or distributions, if 
any, made by Arch Re Europe would result in an increase in 
available capital at Arch Re Bermuda.
United States
The Company’s U.S. insurance and reinsurance subsidiaries 
are subject to insurance laws and regulations in the 
jurisdictions in which they operate. The ability of the 
Company’s regulated insurance subsidiaries to pay dividends 
or make distributions is dependent on their ability to meet 
applicable regulatory standards. These regulations include 
restrictions that limit the amount of dividends or other 
distributions, such as loans or cash advances, available to 
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shareholders without prior approval of the insurance 
regulatory authorities.
Dividends or distributions, if any, made by Arch Re U.S. 
would result in an increase in available capital at Arch-U.S., 
the Company’s U.S. holding company. Arch Re U.S. can 
declare a maximum of approximately $339 million of 
dividends during 2025 subject to the approval of the 
Commissioner of the Delaware Department of Insurance. 
AMIC and UGRIC are approved as eligible mortgage 
insurers by Fannie Mae and Freddie Mac, subject to their 
comprehensive requirements, known as the Private Mortgage 
Insurer Eligibility Requirements or “PMIERs.” The GSEs 
amend the PMIERs from time to time at their discretion and 
most recently issued PMIERs Guidance 2024-01 on August 
21, 2024 (effective March 31, 2025 with a corresponding 
transition schedule through September 30, 2026), to 
incorporate new deductions to the definition of “available 
assets” for investment risk. Further, the amount of assets 
required to satisfy the revised financial requirements of the 
PMIERs may be affected by many factors, including macro-
economic conditions, the size and composition of our 
mortgage insurance portfolio, and the amount of risk ceded to 
reinsurers that may be deducted in our calculation of 
“minimum required assets.” 
The Company’s U.S. mortgage insurance subsidiaries are 
also subject to regulation by their respective domiciliary and 
primary regulators, which include the Wisconsin Office of 
the Commissioner of Insurance (“Wisconsin OCI”) and the 
North Carolina Department of Insurance (“NC DOI”), as well 
as the state insurance departments in each state in which they 
are licensed. As mandated by state insurance laws, mortgage 
insurers are generally mono-line companies. Each company 
is subject to the statutory requirements of their domiciliary 
regulator as to payment of dividends and return of capital; the 
GSEs may also impart limitations on dividends with respect 
to the Company’s eligible mortgage insurers, such as if 
available assets fall below the required minimum assets. 
Under respective state law, the Company’s U.S. mortgage 
subsidiaries can declare a maximum of approximately $237 
million of ordinary dividends in 2025, however, dividend 
capacity is limited by the respective companies unassigned 
surplus amounts. Such dividends would increase the 
available capital at Arch U.S. MI Holdings Inc., a subsidiary 
of Arch-U.S. 
Mortgage insurance companies licensed in Wisconsin or 
North Carolina are required to establish contingency loss 
reserves for purposes of statutory accounting in an amount 
equal to at least 50% of net earned premiums. These amounts 
generally cannot be withdrawn for a period of 10 years and 
are separate liabilities for statutory accounting purposes, 
which affects the ability to pay dividends. However, with 
prior regulatory approval, a mortgage insurance company 
may make early withdrawals from the contingency reserve 
when incurred losses exceed 35% of net premiums earned in 
a calendar year.
Under Wisconsin and North Carolina law, as well as that of 
14 other states, a mortgage insurer must maintain a minimum 
amount of statutory capital relative to its risk in force in order 
for the mortgage insurer to continue to write new business. 
While formulations of minimum capital vary in certain 
jurisdictions, the most common measure applied allows for a 
maximum risk-to-capital ratio of 25 to 1. Wisconsin and 
North Carolina require mortgage insurers to maintain a 
“minimum policyholder position” calculated in accordance 
with their respective regulations. Policyholders' position 
consists primarily of statutory policyholders' surplus plus the 
contingency loss reserves.
United Kingdom
The Prudential Regulation Authority (“PRA”) and the 
Financial Conduct Authority (“FCA”) regulate insurance and 
reinsurance companies and the FCA regulates firms carrying 
on insurance mediation activities operating in the U.K., both 
under the Financial Services and Markets Act 2000. In May 
2004, Arch Insurance (U.K.) was granted the relevant 
permissions for the classes of insurance business which it 
underwrites in the U.K. AMAL currently manages our 
Lloyd’s Syndicates pursuant to its authorizations by the U.K. 
regulators and Lloyd’s. All U.K. companies are also subject 
to a range of statutory provisions, including the laws and 
regulations of the Companies Act 2006 (as amended) (the 
“U.K. Companies Act”).
Arch Insurance (U.K.) and AMAL must maintain a margin of 
solvency at all times under the Solvency II Directive from the 
European Insurance and Occupational Pensions Authority. 
The regulations stipulate that insurers are required to 
maintain the minimum capital requirement and solvency 
capital requirement at all times. At December 31, 2024 and 
2023, these requirements were met.
As corporate members of Lloyd’s, AMAL (as managing 
agent of the Company’s Lloyd’s Syndicates) and each 
syndicate’s respective corporate members are subject to the 
oversight of the Council of Lloyd’s. The capital required to 
support a Syndicate’s underwriting capacity, or funds at 
Lloyd’s, is assessed annually and is determined by Lloyd’s in 
accordance with the capital adequacy rules established by the 
PRA. The Company has provided capital to support the 
underwriting of our Lloyd’s Syndicates in the form of 
pledged assets and letters of credit provided by Arch Re 
Bermuda. The amount which the Company provides as funds 
at Lloyd’s is not available for distribution to the Company for 
the payment of dividends. Lloyd’s is supervised by the PRA 
and required to implement certain rules prescribed by the 
PRA under the Lloyd’s Act of 1982 regarding the operation 
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of the Lloyd’s market. With respect to managing agents and 
corporate members, Lloyd’s prescribes certain minimum 
standards relating to management and control, solvency and 
other 
requirements 
and 
monitors 
managing 
agents’ 
compliance with such standards.
Under U.K. law, all U.K. companies are restricted from 
declaring a dividend to their shareholders unless they have 
“profits available for distribution.” The calculation as to 
whether a company has sufficient profits is based on its 
accumulated realized profits minus its accumulated realized 
losses. U.K. insurance regulatory laws do not prohibit the 
payment of dividends, but the PRA or FCA, as applicable, 
requires 
that 
insurance 
companies 
and 
insurance 
intermediaries maintain certain solvency margins and may 
restrict the payment of a dividend by Arch Insurance (U.K.) 
and AMAL.
Canada
Arch Insurance Canada and the Canadian branch of Arch Re 
U.S. (“Arch Re Canada”) are subject to federal, as well as 
provincial and territorial, regulation in Canada. The Office of 
the Superintendent of Financial Institutions (“OSFI”) is the 
federal regulatory body that, under the Insurance Companies 
Act (Canada), regulates federal Canadian and non-Canadian 
insurance companies operating in Canada. Arch Insurance 
Canada and Arch Re Canada are subject to regulation in the 
provinces and territories in which they underwrite insurance/
reinsurance, and the primary goal of insurance/reinsurance 
regulation at the provincial and territorial levels is to govern 
the market conduct of insurance/reinsurance companies. Arch 
Insurance Canada is licensed to carry on insurance business 
by OSFI and in each province and territory. Arch Re Canada 
is licensed to carry-on reinsurance business by OSFI and in 
the provinces of Ontario and Quebec. 
Under the Insurance Companies Act (Canada), Arch 
Insurance Canada is required to maintain an adequate amount 
of capital in Canada, calculated in accordance with a test 
promulgated by OSFI called the Minimum Capital Test 
(“MCT”), and Arch Re Canada is required to maintain an 
adequate margin of assets over liabilities in Canada, 
calculated in accordance with a test promulgated by OSFI 
called the Branch Adequacy of Assets Test. Under the 
Insurance Companies Act (Canada), approval of the Minister 
of Finance (Canada) is required in connection with certain 
acquisitions of shares of, or control of, Canadian insurance 
companies such as Arch Insurance Canada, and notice to and/
or approval of OSFI is required in connection with the 
payment of dividends by or redemption of shares by 
Canadian insurance companies such as Arch Insurance 
Canada.
Australia
The Australian Prudential Regulation Authority (“APRA”) is 
an independent statutory authority responsible for prudential 
supervision of institutions across banking, insurance and 
superannuation and promotes financial stability in Australia. 
Arch Indemnity has been authorized to conduct monoline 
lenders’ mortgage insurance business in Australia since June 
2002 and was acquired by Arch Capital on August 30, 2021 
and since that date is the primary provider of lenders’ 
mortgage insurance for the group. Arch Indemnity has also 
been licensed by the Australian Securities and Investments 
Commission (“ASIC”) since March 2011 to engage in credit 
activities in Australia. Arch LMI Pty Ltd. (“Arch LMI”) was 
formerly authorized by APRA in January 2019 to conduct 
monoline lenders’ mortgage insurance business in Australia; 
however, in December 2022, we converted Arch LMI to a 
services company for our Australian lenders mortgage 
insurance operations and the company relinquished its APRA 
authorization. Major regulatory requirements that are 
applicable to Arch Indemnity in general as an insurance 
provider and financial institution in Australia include 
requirements and compliance with minimum capital levels; 
risk management strategy; corporate governance standards, 
privacy legislation on the collection, use and storage of 
personal information; cyber security obligations imposed by 
APRA and ASIC; modern slavery legislation; anti-money 
laundering and counter-terrorism legislation. At December 
31, 2024 and 2023, these requirements were met.
Arch Capital also conducts property and casualty insurance 
business in Australia through the Company’s Lloyd’s 
platform. This insurance business is managed by and 
distributed through local coverholders and is subject to 
Lloyd’s Supervision. In addition, the business is subject to 
local Australian prudential regulatory oversight by APRA, 
and additional separate financial services market conduct 
regulation by the Australian Securities and Investments 
Commission.
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26. 
Subsequent Events
California Wildfires
The Company estimates that its 2025 first quarter results will 
be negatively impacted by the California wildfires, which 
occurred in January 2025. The Company currently estimates 
that the losses will be in a range of $450 million to 
$550 million, net of reinsurance and reinstatement premiums. 
This pre-tax preliminary loss estimate is based on industry 
insured losses ranging from $35 billion to $45 billion. The 
Company’s preliminary estimate is based on currently 
available information derived from modeling techniques, 
industry assessments of exposure, preliminary claims 
information obtained from the Company’s clients and brokers 
to date and a review of in-force contracts. The Company’s 
actual losses from this event may vary materially from the 
estimates due to the inherent uncertainties in making such 
determinations.
Share Repurchases
From January 1 to February 27, 2025, the Company 
repurchased approximately 2.0 million common shares for an 
aggregate purchase price of $180 million. At February 27, 
2025, approximately $817 million of repurchases were 
available under the Company’s share repurchase program.
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND 
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
In connection with the filing of this Form 10-K, our 
management, with the participation of the Chief Executive 
Officer and Chief Financial Officer, conducted an evaluation 
of 
our 
disclosure 
controls 
and 
procedures, 
as 
of 
December 31, 2024, for the purposes set forth in the 
applicable rules under the Securities Exchange Act of 1934, 
as amended (the “Exchange Act”). Disclosure controls and 
procedures are the controls and other procedures designed to 
ensure that information required to be disclosed in the reports 
filed or submitted under the Exchange Act is recorded, 
processed, summarized and reported within the time periods 
specified in the SEC’s rules and forms, and that such 
information 
is 
accumulated 
and 
communicated 
to 
management, including the Chief Executive Officer and 
Chief Financial Officer, as appropriate to allow timely 
decisions regarding required disclosure. Based on that 
evaluation, the Chief Executive Officer and Chief Financial 
Officer concluded that, as of December 31, 2024, the 
Company’s disclosure controls and procedures were 
effective.
Management’s Annual Report on Internal Control Over 
Financial Reporting
Our management is responsible for establishing and 
maintaining 
adequate 
internal 
control 
over 
financial 
reporting, as defined in Rules 13a-15(f) and 15d-15(f) under 
the 
Exchange 
Act. 
Our 
management 
assessed 
the 
effectiveness of our internal control over financial reporting 
as of December 31, 2024. In making this assessment, 
management used the criteria set forth by the Committee of 
Sponsoring Organizations (“COSO”) of the Treadway 
Commission in Internal Control-Integrated Framework 
(2013).
Because of its inherent limitations, internal control over 
financial reporting may not prevent or detect misstatements. 
Also, projections of any evaluation of effectiveness to future 
periods are subject to the risk that controls may become 
inadequate because of changes in conditions, or that the 
degree of compliance with the policies or procedures may 
deteriorate. 
On August 1, 2024, we completed the MCE Acquisition, and 
we are currently integrating the MCE Acquisition into our 
internal control system. Consistent with guidance issued by 
the SEC, we exclude the MCE Acquisition from our 
evaluation of the effectiveness of the Company’s disclosure 
controls and procedures described above and our assessment 
of internal control over financial reporting as of December 
31, 2024. The MCE Acquisition represents 1.6% of total 
assets, and 3.5% of total revenues as of December 31, 2024.
Based on our assessment, management determined that, as of 
December 31, 2024, our internal control over financial 
reporting was effective. The effectiveness of our internal 
control over financial reporting as of December 31, 2024 has 
been 
audited 
by 
PricewaterhouseCoopers 
LLP, 
an 
independent registered public accounting firm, as stated in 
their report included in Item 8.
Changes in Internal Control Over Financial Reporting
Other than the item noted above, there have been no changes 
in internal control over financial reporting that occurred 
during the fiscal quarter ended December 31, 2024 that have 
materially affected, or are reasonably likely to materially 
affect, our internal control over financial reporting.
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ITEM 9B. OTHER INFORMATION
During the three months ended December 31, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of 
the Securities Exchange Act of 1934) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading 
arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item is incorporated by 
reference from the information to be included in our 
definitive proxy statement (“Proxy Statement”) for our 
annual meeting of shareholders to be held in 2025, which we 
intend to file with the SEC pursuant to Regulation 14A no 
later than 120 days after the end of the Company’s fiscal year 
which ended on December 31, 2024. Copies of our code of 
ethics applicable to our chief executive officer, chief 
financial officer and principal accounting officer or controller 
are available free of charge to investors upon written request 
addressed to the attention of Arch Capital’s corporate 
secretary, Waterloo House, 100 Pitts Bay Road, Pembroke 
HM 08, Bermuda. In addition, our code of ethics and certain 
other basic corporate documents, including the charters of 
our 
audit 
committee, 
compensation 
committee 
and 
nominating committee are posted on our website located at 
www.archgroup.com.
If any substantive amendments are made to the code of ethics 
or if there is a grant of a waiver, including any implicit 
waiver, we will disclose the nature of such amendment or 
waiver on our website or in a report on Form 8-K, to the 
extent required by applicable law or the rules and regulations 
of any exchange applicable to us. Our website address is 
intended to be an inactive, textual reference only and none of 
the material on our website is incorporated by reference into 
this report.
We have adopted an insider trading policy that establishes the 
procedures directors, officers and employees of the Company 
must follow to comply with U.S. regulations on disclosure 
and insider trading. It is also the policy of the Company to 
comply with all applicable securities laws when transacting 
in its own securities. A copy of the Company’s insider 
trading policy is included as Exhibit 19.1 in this Form 10-K.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated by reference from the information to be included in the Proxy Statement 
which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal 
year ended on December 31, 2024, which Proxy Statement is incorporated by reference.
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND 
RELATED STOCKHOLDER MATTERS
Other than the information set forth below, the information required by this item is incorporated by reference from the 
information to be included in the Proxy Statement which we intend to file pursuant to Regulation 14A with the SEC no later 
than 120 days after the end of the Company’s fiscal year ended on December 31, 2024, which Proxy Statement is incorporated 
by reference.
The following information is as of December 31, 2024:
Column A
Column B
Column C
Plan Category
Number of Securities to 
be Issued Upon Exercise 
of Outstanding Stock 
Options(1), Warrants 
and Rights
Weighted-Average 
Exercise Price of 
Outstanding
Stock Options(1), 
Warrants and Rights ($)
Number of Securities 
Remaining Available for 
Future Issuance Under 
Equity Compensation 
Plans (Excluding 
Securities Reflected in 
Column A)
Equity compensation plans approved by security holders
 
12.8 
 
$ 
48.54 
 
 
12.5  
Equity compensation plans not approved by security holders
 
— 
 
 
— 
 
 
—  
Total
 
12.8 
 
$ 
48.54 
 
 
12.5 (2)
________________________
(1) 
Includes all vested and unvested stock options outstanding of 12.5 million and restricted stock and performance units outstanding of 0.3 million. The 
weighted average exercise price does not take into account restricted stock units. In addition, the weighted average remaining contractual life of the 
Company's outstanding exercisable stock options and SARs at December 31, 2024 was 4.7 years.
(2) 
Includes 3.1 million common shares remaining available for future issuance under our Employee Share Purchase Plan and 9.4 million common shares 
remaining available for future issuance under our equity compensation plans. Shares available for future issuance under our equity compensation plans 
may be issued in the form of stock options, SARs, restricted shares, restricted share units payable in common shares or cash, share awards in lieu of cash 
awards, dividend equivalents, performance shares and performance units and other share-based awards. In addition, 7.4 million common shares, or 59.2% 
of the 12.5 million common shares remaining available for future issuance may be issued in connection with full value awards (i.e., awards other than 
stock options or SARs). 
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR 
INDEPENDENCE
The information required by this item is incorporated by reference from the information to be included in the Proxy Statement 
which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal 
year ended on December 31, 2024, which Proxy Statement is incorporated by reference.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is incorporated by reference from the information to be included in our Proxy Statement 
which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal 
year ended on December 31, 2024, which Proxy Statement is incorporated by reference.
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PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Financial Statements, Financial Statement Schedules and Exhibits.
1. Financial Statements
Included in Part II – see Item 8 of this report.
2. Financial Statement Schedules
Page No.
II. Condensed Financial Information of Registrant
As of December 31, 2024 and 2023, and for the years ended December 31, 2024, 2023 and 2022
180
III. Supplementary Insurance Information
For the years ended December 31, 2024, 2023 and 2022
183
IV. Reinsurance
For the years ended December 31, 2024, 2023 and 2022
184
VI. Supplementary Information for Property and Casualty Insurance Underwriters
For the years ended December 31, 2024, 2023 and 2022
185
Schedules other than those listed above are omitted for the reason that they are not applicable or the information is provided in 
Item 8 of this report.
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3. Exhibits
Incorporated by Reference
Exhibit 
Number
Exhibit Description
Form
Original 
Number
Date Filed
Filed 
Herewith
3.1
Memorandum of Association of ACGL
S-4
3.1
September 8, 2000
3.2
Bye-Laws of ACGL
10-Q
3
August 5, 2016
3.3
ACGL Certificate of Deposit of Memorandum of Increase of Share Capital
10-K
3.3
February 28, 2011
4.1
Indenture, dated as of May 4, 2004, between ACGL, as issuer, and The Bank of New 
York Mellon, as successor trustee to JPMorgan Chase Bank, N.A. (formerly 
JPMorgan Chase Bank) (“JPMCB”), as trustee
8-K
99.2
May 7, 2004
4.2
First Supplemental Indenture, dated as of May 4, 2004, between ACGL, as issuer, 
and JPMCB, as trustee
8-K
99.3
May 7, 2004
4.3
Second Supplemental Indenture, dated as of June 30, 2020, by and between Arch 
Capital Group Ltd. and The Bank of New York Mellon (including the form of Global 
Notes for the Notes).
8-K
4.2
June 30, 2020
4.4.1
Indenture, dated as of December 13, 2013, among Arch Capital Group (U.S.) Inc. 
(“Arch U.S.”), as issuer, ACGL, as guarantor, and The Bank of New York Mellon 
(“BNYM”), as trustee
8-K
4.1
December 13, 2013
4.4.2
First Supplemental Indenture, dated as of December 13, 2013, among Arch U.S., as 
issuer, ACGL, as guarantor, and BNYM, as trustee
8-K
4.2
December 13, 2013
4.4.3
Second Supplemental Indenture, dated as of May 10, 2018, among Arch Capital 
Finance LLC, as issuer, ACGL, as guarantor, and BNYM, as trustee
8-K
4.1
May 15, 2018
4.5.1
Deposit Agreement, dated August 17, 2017, between ACGL, as issuer, and AST, as 
depositary, registrar and transfer agent and as dividend disbursing agent and 
redemption agent, and the holders from time to time of the depositary receipts
8-K
4.3
August 17, 2017
4.5.2
Deposit Agreement, dated June 11, 2021, between ACGL, as issuer, and AST, as 
depositary, registrar and transfer agent and as dividend disbursing agent and 
redemption agent, and the holders from time to time of the depositary receipts
8-K
4.3
June 11, 2021
4.6.1
Form of Depositary Receipt, dated August 17, 2017
8-K
4.4
August 17, 2017
4.6.2
Form of Depositary Receipt, dated June 11, 2021
8-K
4.4
June 11, 2021
4.7.1
Indenture, dated as of December 8, 2016, among Arch Capital Finance LLC, as 
issuer, ACGL, as guarantor, and BNYM, as trustee
8-K
4.1
December 9, 2016
4.7.2
First Supplemental Indenture, dated as of December 8, 2016, among Arch Capital 
Finance LLC, as issuer, ACGL, as guarantor, and BNYM, as trustee
8-K
4.2
December 9, 2016
4.8.1
Certificate of Designations of Series F Non-Cumulative Preferred Shares
8-K
4.1
August 17, 2017
4.8.2
Certificate of Designations of Series G Non-Cumulative Preferred Shares
8-K
4.1
June 11, 2021
4.8.3
Specimen Common Share Certificate
10-K
4.1
April 2, 2001
4.8.4
Specimen Series F Non-Cumulative Preferred Share Certificate
8-K
4.2
August 17, 2017
4.8.5
Specimen Series G Non-Cumulative Preferred Share Certificate
8-K
4.2
June 11, 2021
4.9
Description of Securities
10-K
4.8
February 25, 2022
10.1.1
Third Amended and Restated ACGL Incentive Compensation Plan†
10-Q
10.7
August 5, 2016
10.1.2
First Amendment to Third Amended and Restated ACGL Incentive Compensation 
Plan†
10-Q
10.1
May 5, 2017
10.1.3
Second Amendment to Third Amended and Restated ACGL Incentive Compensation 
Plan†
10-K
10.2.3
February 25, 2022
10.1.4
Third Amendment to Third Amended and Restated ACGL Incentive Compensation 
Plan†
10-Q
10.1
May 4, 2023
10.2.1
ACGL 2015 Long Term Incentive and Share Award Plan†
DEF 14A
March 26, 2015
10.2.2
ACGL 2018 Long Term Incentive and Share Award Plan†
DEF 14A
March 28, 2018
10.2.3
ACGL Amended and Restated 2007 Employee Share Purchase Plan†
DEF 14A
March 23, 2023
10.2.4
ACGL 2022 Long Term Incentive and Share Award Plan†
8-K
10.1
May 4, 2022
10.3.1
Form of Restricted Share Agreement for Named Executive Officers and certain 
Executive Officers of ACGL and subsidiaries†
10-Q
10.3
August 8, 2018
10.3.2
Form of Restricted Share Agreement between ACGL and each of the Non-Employee 
Directors of ACGL†
10-Q
10.6
August 8, 2018
10.3.3
Form of Performance Restricted Share Agreement for Named Executive Officers and 
certain Executive Officers of ACGL and subsidiaries†
10-Q
10.5
August 8, 2018
10.3.4
Form of Non-Qualified Stock Option Agreement, dated as of May 13, 2015, between 
ACGL and each of Marc Grandisson†
10-Q
10.3
August 7, 2015
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10.3.5
Form of Non-Qualified Stock Option Agreement, dated as of May 13, 2016, between 
ACGL and each of Marc Grandisson, Nicolas Papadopoulo, Maamoun Rajeh and 
Louis T. Petrillo†
10-Q
10.3
August 5, 2016
10.3.6
Form of Non-Qualified Stock Option Agreement, dated as of May 8, 2017, between 
ACGL and each of Marc Grandisson, Nicolas Papadopoulo, Maamoun Rajeh and 
Louis T. Petrillo†
10-Q
10.5
August 4, 2017
10.3.7
Non-Qualified Stock Option Agreement, dated as of September 19, 2017, between 
ACGL and Maamoun Rajeh†
10-K
10.5.6
February 28, 2018
10.3.8
Non-Qualified Stock Option Agreement, dated as of September 19, 2017, between 
ACGL and Nicolas Papadopoulo† 
10-K
10.5.7
February 28, 2018
10.3.9
Form of Non-Qualified Stock Option Agreement for Named Executive Officers and 
certain Executive Officers of ACGL and subsidiaries† 
10-Q
10.4
August 8, 2018
10.3.10
Non-Qualified Stock Option Agreement, dated as of April 9, 2018, between ACGL 
and Marc Grandisson† 
10-Q
10.5
May 9, 2018
10.4.1
Employment Agreement, dated as of October 27, 2008, between ACGL and John D. 
Vollaro†
8-K
10.1
October 28, 2008
10.4.2
Amendment to Employment Agreement, dated February 27, 2015, between ACGL 
and John D. Vollaro†
10-Q
10.1
May 8, 2015
10.4.3
Second Amendment to Employment Agreement, dated as of January 1, 2018, 
between ACGL and John D. Vollaro†
10-Q
10.1
May 9, 2018
10.5
Employment Agreement, dated as of September 19, 2017 between ACGL and 
Maamoun Rajeh†
10-Q
10.26
November 3, 2017
10.6
Employment Agreement, dated as of September 19, 2017 between ACGL and 
Nicholas Papadopoulo†
10-Q
10.27
November 3, 2017
10.7
Employment Agreement, dated as of May 25, 2018, between ACGL and François 
Morin†
8-K/A
10.1
July 26, 2018
10.8
Employment Agreement, dated as of April 9, 2018, between ACGL and Marc 
Grandisson†
8-K/A
10.1
April 11, 2018
10.9
Employment Agreement, dated as of November 13, 2018, between Arch Capital 
Services Inc. and Louis Petrillo†
10-K
10.16
February 28, 2019
10.10
Employment Agreement dated as of October 1,2019 between Arch Capital Group 
Ltd. and David Gansberg †
10-K
10.16
February 28, 2020
10.11
Employment Agreement dated as of May 7, 2021 between Arch Capital Group Ltd. 
and Christine Todd †
10-Q
10.1
August 5, 2021
10.12
Arch U.S. Executive Supplemental Non-Qualified Savings and Retirement Plan†
10-K
10.24
March 2, 2009
10.13.1
Third Amended and Restated Credit Agreement, dated as of December 17, 2019, by 
and among ACGL, certain of its subsidiaries as subsidiary borrowers, Bank of 
America, N.A., as Administrative Agent, Fronting Bank and L/C Administrator, and 
the lenders party thereto
8-K
10.1
December 18, 2019
10.13.2
First Amendment to Third Amended and Restated Credit Agreement, dated as of 
August 12, 2020 by and among Arch Capital Group Ltd., the other Loan Parties 
party hereto, the Lenders party hereto, and Bank of America, N.A., as Administrative 
Agent.
10-Q
10.1
November 4, 2021
10.13.3
The LIBOR Transition Amendment to the Third Amended and Restated Credit 
Agreement, dated as of September 29, 2021.
10-Q
10.2
November 4, 2021
10.13.4
Second Amendment to Third Amended and Restated Credit Agreement, effective as 
of April 7, 2022, by and among Arch Capital Group Ltd., certain of its subsidiaries, 
Bank of America, N.A., as Administrative Agent, and the lenders party thereto
8-K
10.1
April 12, 2022
10.13.5
Fourth Amended and Restated Credit Agreement, dated as of August 23, 2023, by 
and among Arch Capital Group Ltd., certain of its subsidiaries, Bank of America, 
N.A., as Administrative Agent, and the lenders party thereto(1)
10-Q
10.1
November 9, 2023
10.14
Letter of Credit Facility Agreement, dated as of September 27, 2023, by and between 
Arch Reinsurance Ltd., as the borrower and Lloyds Bank Corporate Markets plc, as 
the L/C Issuer
8-K
10.1
October 2, 2023
10.15
Amendment No. 3 and Joinder to Letter of Credit Facility Agreement, dated as of 
October 25, 2023, by and between Arch Reinsurance Ltd., as the borrower and 
Lloyds Bank Corporate Markets plc, as the Administrative Agent and L/C Agent.
8-K
10.1
October 30, 2023
10.16.1
Master Transaction Agreement, dated as of April 5, 2024, by and between Allianz 
Global Risks US Insurance Company and Arch Capital Group Ltd.
8-K
10.1
April 5, 2024
10.16.2
Amendment No. 1 to Master Transaction Agreement, dated as of August 1, 2024, by 
and among Arch Capital Group Ltd., Allianz Global Risks US Insurance.
8-K
2.2
August 1, 2024
10.17
Amendment to Employment Agreement, dated as of October 13, 2024, between 
ACGL and Nicolas Papadopoulo †
10-Q
10.2
November 7, 2024
10.18
Amendment No. 4 to Letter of Credit Facility Agreement dated as of October 30, 
2024 by and between Arch Reinsurance Ltd., as the borrower and Lloyds Bank.
8-K
10.1
November 4, 2024
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10.19
Amendment to Employment Agreement, dated as of November 7, 2024, between 
Arch U.S. MI Services Inc. and David Gansberg †
8-K
10.1
November 8, 2024
10.20
Amendment to Employment Agreement, dated as of November 7, 2024, between 
Arch Capital Group Ltd. and Maamoun Rajeh †
8-K
10.2
November 8, 2024
10.21
Form of Non-Qualified Stock Option Outperformance Award Agreement for Named 
Executive Officers and certain Executive Officers of ACGL and subsidiaries†
X
10.22
Form of Restricted Share Outperformance Award Agreement between ACGL and 
each of Nicolas Papadopoulo, Maamoun Rajeh and David Gansberg†
X
10.23
Form of Restricted Share Outperformance Award Agreement between ACGL and 
each of François Morin, Christine Todd and certain other Executive Officers of 
ACGL†
X
10.24
Second Amendment to Employment Agreement, dated as of December 11, 2024, 
between Arch Capital Group (U.S.) Inc. and David Gansberg†
X
19.1
Policy Statement on Insider Trading and Confidential Information
X
21
Subsidiaries of Registrant
X
23
Consent of PricewaterhouseCoopers LLP
X
24
Power of Attorney
X
31.1
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
X
31.2
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
X
32.1
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
X
32.2
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
X
97.1
Policy relating to recovery of erroneously awarded compensation, as required by 
Nasdaq listing standards adopted pursuant to 17 CFR 240.10D.
10-K
97.1
February 23, 2024
101
The following financial information from ACGL’s Annual Report on Form 10-K for the 
year ended December 31, 2024 formatted in Inline XBRL: (i) Consolidated Balance 
Sheets at December 31, 2024 and 2023; (ii) Consolidated Statements of Income for the 
years ended December 31, 2024, 2023 and 2022; (iii) Consolidated Statements of 
Comprehensive Income for the years ended December 31, 2024, 2023 and 2022; (iv) 
Consolidated Statements of Changes in Shareholders’ Equity for the years ended 
December 31, 2024, 2023 and 2022; (v) Consolidated Statements of Cash Flows for the 
years ended December 31, 2024, 2023 and 2022; and (vi) Notes to Consolidated 
Financial Statements
X
104
Cover Page Interactive Data File (embedded within the Inline XBRL document) 
†
Management contract or compensatory plan or arrangement.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly 
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 
ARCH CAPITAL GROUP LTD.
(Registrant)
By:
/s/ Nicolas Papadopoulo
Name:
Nicolas Papadopoulo
Title:
Chief Executive Officer (Principal Executive Officer)
February 27, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following 
persons on behalf of the Registrant and in the capacities and on the dates indicated.
Name
Title
Date
/s/ Nicolas Papadopoulo
Nicolas Papadopoulo
Chief Executive Officer (Principal Executive Officer)
February 27, 2025
/s/ François Morin
François Morin
Executive Vice President and Chief Financial Officer (Principal Financial 
Officer and Principal Accounting Officer) and Treasurer
February 27, 2025
*
John M. Pasquesi
Chair of the Board
February 27, 2025
*
John L. Bunce, Jr.
Director
February 27, 2025
*
Francis Ebong
Director
February 27, 2025
*
Laurie S. Goodman
Director
February 27, 2025
*
Daniel J. Houston
Director
February 27, 2025
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Name
Title
Date
*
Moira Kilcoyne
Director
February 27, 2025
*
Eileen Mallesch
Director
February 27, 2025
*
Alexander Moczarski
Director
February 27, 2025
*
Brian S. Posner
Director
February 27, 2025
*
Eugene S. Sunshine
Director
February 27, 2025
*
Neal Triplett
Director
February 27, 2025
*
John D. Vollaro
Director
February 27, 2025
___________________
* 
By François Morin, as attorney-in-fact and agent, pursuant to a power of attorney, a copy of which has been filed with the 
Securities and Exchange Commission as Exhibit 24 to this report.
/s/ François Morin
Name:
François Morin
Attorney-in-Fact
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SCHEDULE II
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(U.S. dollars in millions)
Balance Sheet
(Parent Company Only)
December 31,
2024
2023
Assets
Total investments
$ 
43 
$ 
17 
Cash
 
13 
 
9 
Investments in subsidiaries
 
22,035 
 
19,590 
Investment in operating affiliates
 
3 
 
4 
Due from subsidiaries and affiliates
 
6 
 
— 
Other assets
 
66 
 
58 
Total assets
$ 
22,166 
$ 
19,678 
Liabilities
Senior notes
$ 
1,287 
$ 
1,287 
Due to subsidiaries and affiliates
 
11 
 
— 
Other liabilities
 
48 
 
38 
Total liabilities
 
1,346 
 
1,325 
Shareholders' Equity
Non-cumulative preferred shares
 
830 
 
830 
Common shares ($0.0011 par, shares issued: 595.6 and 591.9)
 
1 
 
1 
Additional paid-in capital
 
2,510 
 
2,327 
Retained earnings
 
22,686 
 
20,295 
Accumulated other comprehensive income (loss), net of deferred income tax
 
(720)  
(676) 
Common shares held in treasury, at cost (shares: 219.2 and 218.5)
 
(4,487)  
(4,424) 
Total shareholders' equity
$ 
20,820 
$ 
18,353 
Total liabilities and shareholders' equity
$ 
22,166 
$ 
19,678 
The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and 
Notes thereto.
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SCHEDULE II
(continued)
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(U.S. dollars in millions)
Statement of Income
(Parent Company Only)
Year Ended
December 31,
2024
2023
2022
Revenues
Net investment income
$ 
5 
$ 
2 
$ 
2 
Net realized gains (losses)
 
(4)  
— 
 
— 
Total revenues
 
1 
 
2 
 
2 
Expenses
Corporate expenses
 
116 
 
93 
 
86 
Interest expense
 
59 
 
59 
 
59 
Total expenses
 
175 
 
152 
 
145 
Income (loss) before income taxes and income (loss) from operating affiliates
 
(174)  
(150)  
(143) 
Income tax (expense) benefit
 
— 
 
41 
 
— 
Income (loss) from operating affiliates
 
(1)  
(1)  
(1) 
Income (loss) before equity in net income of subsidiaries
 
(175)  
(110)  
(144) 
Equity in net income of subsidiaries
 
4,487 
 
4,553 
 
1,593 
Net income available to Arch
 
4,312 
 
4,443 
 
1,449 
Preferred dividends
 
(40)  
(40)  
(40) 
Net income available to Arch common shareholders
$ 
4,272 
$ 
4,403 
$ 
1,409 
The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and 
Notes thereto.
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SCHEDULE II
(continued)
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(U.S. dollars in millions)
Statement of Cash Flows
(Parent Company Only)
Year Ended
December 31,
2024
2023
2022
Operating Activities:
Net Cash Provided By Operating Activities
$ 
2,398 
$ 
46 
$ 
621 
Investing Activities:
Net (purchases) sales of short-term investments
 
(26)  
(8)  
(5) 
Acquisitions, net of cash
 
(450)  
— 
 
— 
Other
 
5 
 
1 
 
(1) 
Net Cash Used For Investing Activities
 
(471)  
(7)  
(6) 
Financing Activities:
Purchases of common shares under share repurchase program
 
(24)  
— 
 
(586) 
Proceeds from common shares issued, net
 
7 
 
(2)  
6 
Common dividends paid
 
(1,866)  
— 
 
— 
Preferred dividends paid
 
(40)  
(40)  
(40) 
Net Cash Used For Financing Activities
 
(1,923)  
(42)  
(620) 
Increase (decrease) in cash and restricted cash
 
4 
 
(3)  
(5) 
Cash and restricted cash, beginning of year
 
9 
 
12 
 
17 
Cash and restricted cash, end of period
$ 
13 
$ 
9 
$ 
12 
The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and 
Notes thereto.
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SCHEDULE III
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
(U.S. dollars in millions)
Deferred 
Acquisition 
Costs
Reserves for 
Losses and 
Loss 
Adjustment 
Expenses
Unearned 
Premiums
Net 
Premiums 
Earned
Net 
Investment 
Income (1)
Net Losses 
and Loss 
Adjustment 
Expenses 
Incurred
Amortization 
of Deferred 
Acquisition 
Costs
Other 
Operating 
Expenses (2)
Net 
Premiums 
Written
December 31, 2024
Insurance
 
$696  
$16,277  
$4,857  
$6,627 
NM  
$4,070  
$1,217  
$995  
$6,874 
Reinsurance
 
981  
12,567  
4,891  
7,242 
NM  
4,327  
1,432  
270  
7,746 
Mortgage
 
57  
525  
470  
1,231 
NM  
(55)  
2  
207  
1,112 
Total
 
$1,734  
$29,369  
$10,218  
$15,100 
NM  
$8,342  
$2,651  
$1,472  
$15,732 
December 31, 2023
Insurance
 
$566  
$12,250  
$3,917  
$5,446 
NM  
$3,122  
$1,055  
$819  
$5,862 
Reinsurance
 
901  
9,924  
4,254  
5,836 
NM  
3,227  
1,240  
288  
6,554 
Mortgage
 
64  
578  
637  
1,158 
NM  
(103)  
17  
194  
1,052 
Total
 
$1,531  
$22,752  
$8,808  
$12,440 
NM  
$6,246  
$2,312  
$1,301  
$13,468 
December 31, 2022
Insurance
 
$301  
$11,017  
$3,382  
$4,560 
NM  
$2,784  
$887  
$665  
$5,021 
Reinsurance
 
992  
8,306  
3,206  
3,959 
NM  
2,568  
813  
268  
4,924 
Mortgage
 
(30)  
709  
749  
1,160 
NM  
(324)  
40  
195  
1,133 
Total
 
$1,263  
$20,032  
$7,337  
$9,679 
NM  
$5,028  
$1,740  
$1,128  
$11,078 
(1) 
The Company does not manage its assets by segment and, accordingly, net investment income is not allocated to each underwriting segment. 
(2) 
Certain other operating expenses relate to the Company’s corporate items. Such amounts are not reflected in the table above. See note 4, “Segment 
Information,” to our consolidated financial statements in Item 8 for information.
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183
2024 FORM 10-K

SCHEDULE IV
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
REINSURANCE
(U.S. dollars in millions)
Gross Amount
Ceded to Other 
Companies (1)
Assumed From 
Other 
Companies (1)
Net 
Amount
Percentage of 
Amount 
Assumed to Net
Year Ended December 31, 2024
Premiums Written:
Insurance
$ 
7,970 
$ 
(2,179) $ 
1,083 
$ 
6,874 
 15.8 %
Reinsurance
 
956 
 
(3,366)  
10,156 
 
7,746 
 131.1 %
Mortgage
 
1,130 
 
(239)  
221 
 
1,112 
 19.9 %
Total
$ 
10,056 
$ 
(5,779) $ 
11,455 
$ 
15,732 
 72.8 %
Year Ended December 31, 2023
Premiums Written:
Insurance
$ 
7,865 
$ 
(2,049) $ 
46 
$ 
5,862 
 0.8 %
Reinsurance
 
626 
 
(2,559)  
8,487 
 
6,554 
 129.5 %
Mortgage
 
1,161 
 
(335)  
226 
 
1,052 
 21.5 %
Total
$ 
9,652 
$ 
(4,935) $ 
8,751 
$ 
13,468 
 65.0 %
Year Ended December 31, 2022
Premiums Written:
Insurance
$ 
6,889 
$ 
(1,910) $ 
42 
$ 
5,021 
 0.8 %
Reinsurance
 
397 
 
(2,024)  
6,553 
 
4,924 
 133.1 %
Mortgage
 
1,256 
 
(322)  
199 
 
1,133 
 17.6 %
Total
$ 
8,542 
$ 
(4,249) $ 
6,785 
$ 
11,078 
 61.2 %
(1) 
Certain amounts included in the gross premiums written of each segment are related to intersegment transactions and are included in the gross premiums 
written of each segment. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown 
in the table above due to the elimination of intersegment transactions in the total.
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ARCH CAPITAL
184
2024 FORM 10-K

SCHEDULE VI
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS
(U.S. dollars in millions)
Column A
Column B
Column C
Column D
Column E
Column F
Column G
Column H
Column I
Column J
Column K
Affiliation 
with 
Registrant
Deferred 
Acquisition 
Costs
Reserves 
for Losses 
and Loss 
Adjustment 
Expenses
Discount, if 
any, 
deducted 
in Column 
C
Unearned 
Premiums
Net 
Premiums 
Earned
Net 
Investment 
Income
Net Losses and Loss 
Adjustment Expenses 
Incurred Related to
Amortization 
of Deferred 
Acquisition 
Costs
Net Paid 
Losses and 
Loss 
Adjustment 
Expenses
Net 
Premiums 
Written
(a) 
Current 
Year
(b)
Prior 
Years
Consolidated 
Subsidiaries
2024
$ 
1,734 $ 
29,369 $ 
68 $ 
10,218 $ 
15,100 $ 
1,495 $ 
8,849 $ 
(507) $ 
2,651 $ 
5,073 $ 
15,732 
2023
 
1,531  
22,752  
66  
8,808  
12,440  
1,023  
6,784  
(538)  
2,312  
4,093  
13,468 
2022
 
1,263  
20,032  
61  
7,337  
9,679  
496  
5,797  
(769)  
1,740  
3,141  
11,078 
ITEM 16.  
FORM 10-K SUMMARY
Not applicable.
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ARCH CAPITAL
185
2024 FORM 10-K

DIRECTORS
John M. Pasquesi 3,4,6
Chair of the Board
Managing Member of Otter Capital LLC
John L. Bunce, Jr. 3,4,5
Managing Director and Founder of Greyhawk Capital Management, 
LLC and Managing Director and Founder of Steel Box, LLC
Francis Ebong 1,2,5
Chief Service Experience Officer at PayPal
Laurie S. Goodman 1,5,6
Institute Fellow at the Urban Institute and Founder of its Housing 
Finance Policy Center
Daniel J. Houston 2,5
Executive Chairman of the Principal Financial Group Board of Directors
Moira Kilcoyne 1,2,5
Former Managing Director, Co-Chief Information Officer
of Morgan Stanley
Eileen Mallesch 1,6
Former Senior Vice President and Chief Financial Officer of  
Nationwide Property and Casualty Segment, Nationwide Mutual 
Insurance Company
Alexander Moczarski 2,6
Former Chairman of Marsh McLennan Companies, International
Brian S. Posner 2,4
President of Point Rider Group LLC
Eugene S. Sunshine 1,2,5
Former Senior Vice President for Business and Finance at 
Northwestern University
Neal Triplett 4,6
President and Chief Executive Officer of the Duke University 
Management Company
John D. Vollaro 4,6
Senior Advisor and former Executive Vice President, Chief Financial 
Officer and Treasurer, Arch Capital Group Ltd.
OFFICERS
Nicolas Papadopoulo 3
Chief Executive Officer
Director
David E. Gansberg
President 
Maamoun Rajeh
President 
Jennifer Centrone
Chief Human Resources Officer
Chris Hovey
Chief Operations Officer
François Morin
Chief Financial Officer and Treasurer
Louis T. Petrillo
General Counsel
Jay Rajendra
Chief Strategy and Innovation Officer
Christine Todd
Chief Investment Officer
1 Audit Committee
2 Compensation and Human Capital Committee
3 Executive Committee
4 Finance, Investment and Risk Committee 
5 Nominating and Governance Committee 
6 Underwriting Oversight Committee
CORPORATE ADDRESS
Waterloo House, Ground Floor 
100 Pitts Bay Road
Pembroke HM 08, Bermuda
T: 441 278 9250
MARKET INFORMATION
The common shares of Arch Capital Group Ltd. are listed on the 
NASDAQ Global Select Market under the symbol ACGL.
 
TRANSFER AGENT
Equiniti Trust Company, LLC 
48 Wall Street, 23rd Floor
New York, NY  10043
SHAREHOLDER INQUIRIES
                       shareholderinfo@archgroup.com
SHAREHOLDER INFORMATION
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ARCH CAPITAL GROUP LTD.