Arch Capital Group (ACGL) Q1 2026 earnings summary

Executive summary

• Net income available to common shareholders rose to $1.037 billion ($2.88 per share), up from $564 million ($1.48 per share) year-over-year, with a 17.8% annualized net income ROE and 15.4% operating ROE, reflecting disciplined underwriting and capital management.

• Book value per share increased 1.7% to $66.19 at March 31, 2026.

• Achieved $22.8B in gross premiums written for the trailing twelve months ending March 31, 2026, with a combined ratio of 80.8%.

• Repurchased $783 million of common shares in Q1 2026; share repurchase authorization increased by $3.0 billion in April 2026.

• Maintains strong financial strength ratings: AA- (S&P) and A+ (A.M. Best), and operates globally across insurance, reinsurance, and mortgage segments.

Financial highlights

• Net income available to common shareholders was $1,037 million, up from $564 million in Q1 2025.

• After-tax operating income was $901 million ($2.50 per share), up from $587 million ($1.54 per share) year-over-year.

• Net investment income was $408 million, up from $378 million year-over-year.

• Gross premiums written were $6.43 billion for the quarter, down 0.6% year-over-year; net premiums written were $4.35 billion, down 3.7%.

• Book value per share plus accumulated dividends grew at a 15.8% CAGR since inception.

Outlook and guidance

• Market remains competitive, especially in property catastrophe and short tail lines, but rates and terms remain attractive; focus remains on risk selection and capital allocation to segments with best risk-adjusted returns.

• Margins expected to be sustainable in the near future, with expense ratios expected to revert to historical levels in the second half of the year.

• Growth in SME business expected to materialize more in 2027 after recent system migration.

• Capital will be allocated to the most attractive risk-adjusted opportunities, with priorities on reinvestment, deleveraging, and shareholder returns.