Arch Capital Group Ltd. (NASDAQ: ACGL) Q2 2025 Earnings | 08/01/2025

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Arch Capital Group Ltd. reported a robust second quarter of 2025, delivering net income available to common shareholders of $1.2 billion, or $3.23 per share, representing a 22.9% annualized return on average common equity. After-tax operating income came in at $979 million, or $2.58 per share, beating analyst expectations and reflecting only a marginal year-over-year change. These results were underpinned by a disciplined underwriting approach and dynamic capital management amid heightened market volatility. The company’s combined ratio excluding catastrophic activity and prior year development was 80.9%, up from 76.7% in the prior-year quarter, while total gross premiums written surged 15.1% to $6.2 billion, and net premiums written increased by 15% to $4.3 billion. Operating revenues grew nearly 21% year over year, buoyed by higher net premiums earned and improved net investment income, which jumped to $405 million for the quarter. Shareholder value creation was reflected in a book value per share of $59.17 as of June 30, 2025, up 7.3% sequentially and 11.4% year-to-date. Arch Capital repurchased approximately $163 million of shares during the quarter. Catastrophic losses for the current accident year totaled $154 million, a decline from the previous year, while reserve releases contributed $139 million of favorable development. The loss ratio was 53.1%, and the combined ratio stood at 81.2%. Segment results included continued growth in both Insurance and Reinsurance, with the Insurance segment supported by the first full quarter contribution from the U.S. MidCorp and Entertainment insurance businesses acquired in 2024. The company ended the quarter with $983 million in cash and maintained stable debt levels, positioning it with strong liquidity for ongoing expansion and shareholder returns. Management emphasized strategic cycle management and capital discipline, and remains optimistic for continued superior returns across market cycles as Arch Capital leverages its diversified global platform. About Inside Ticker: For more expert analysis and real-time updates on Arch Capital Group Ltd. (NASDAQ: ACGL) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #ArchCapital #ACGL #Q22025 #Earnings #FinancialResults #NetIncome #EPS #PremiumGrowth #InvestmentIncome #CombinedRatio #BookValue #ShareRepurchase #Underwriting #Insurance #Reinsurance #CapitalManagement #CycleManagement #Dividend #ShareholderReturns #InsideTicker #2025Outlook #RiskManagement #SegmentPerformance #MCEAcquisition #GlobalInsurance