Arch Capital Group Ltd. announced its 2025 first quarter results. The results included:
- Net income available to Arch common shareholders of $564 million, or $1.48 per share, representing an 11.1% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.1 billion, or $2.92 per share, for the 2024 first quarter.
- After-tax operating income available to Arch common shareholders(1) of $587 million, or $1.54 per share, representing an 11.5% annualized operating return on average common equity(1), compared to $933 million, or $2.45 per share, for the 2024 first quarter.
- Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $547 million, primarily related to the California wildfires.
- Favorable development in prior year loss reserves, net of related adjustments, of $167 million.
- Combined ratio excluding catastrophic activity and prior year development(1)of 81.0%, compared to 80.8% for the 2024 first quarter.
- Share repurchases of approximately $196 million.
- Book value per common share of $55.15 at March 31, 2025, a 3.8% increase from December 31, 2024.
Nicolas Papadopoulo, Arch CEO, commented, “We delivered solid results this quarter despite the losses arising from the California wildfires, resulting in an annualized operating return on equity of 11.5%. Although the market has generally become more competitive, we remain optimistic about our prospects to deliver long-term shareholder value. For a company with a strong underwriting culture like Arch, this is a market where we can stand out.”
