Arch Capital Group (ACGL) Q2 2026 earnings summary

Executive summary

• After-tax operating income was $893 million ($2.56 per share), with strong underwriting across all segments, though down from $979 million ($2.58 per share) in Q2 2025.

• Net income available to common shareholders was $1.0 billion ($3.00 per share), down from $1.2 billion ($3.23 per share) in Q2 2025, with an 18.0% annualized net income return on average common equity.

• Book value per share increased 2.8% in the quarter to $68.04 at June 30, 2026, and 4.5% year-to-date.

• Achieved $22.8B in gross premiums written for the trailing twelve months ending June 30, 2026, with a global presence and diversified specialty insurance, reinsurance, and mortgage segments.

• Maintained strong financial strength ratings (AA- S&P, A+ A.M. Best) and S&P 500 Index membership.

Financial highlights

• Gross premiums written were $6.13 billion for the quarter, down 1.1% year-over-year; net premiums written were $4.05 billion, down 6.9%.

• Net premiums written in insurance declined 5.1% year-over-year due to non-renewal of certain program business.

• Reinsurance net premiums written fell 10.4% year-over-year, reflecting lower rates and increased retrocession.

• Net investment income was $417 million for the quarter, with equity method investments adding $196 million; TTM net investment income and equity method investments contributed $2.31B.

• Cash flow from operations was $1.3 billion for the quarter.

Outlook and guidance

• Management expects continued capital return via share buybacks, especially as growth opportunities moderate.

• Emphasizes continued focus on specialty insurance, disciplined underwriting, and capital allocation to sustain superior risk-adjusted returns.

• Competitive pressures are expected to persist, particularly in property and short tail lines, while casualty lines and middle market commercial business continue to see rate increases.

• Mortgage insurance is expected to remain a steady earnings contributor.

• Management incentivized for long-term profitability and cycle management, aiming to write more business in favorable conditions and less when conditions deteriorate.