Q2 FY26 · Ended Jun 30, 2026 · View SEC filing
Arch let premiums shrink as prices softened and handed the capital back: diluted shares fell to 348.8 million in a year
Net premiums earned fell to $3,985 million from $4,337 million, and net realized gains on investments swung to a $17 million loss from a $229 million gain. In reinsurance the filing points to pricing pressures and higher retentions by cedants in property and short-tail lines, along with "targeted increased retrocessions", meaning Arch passed more of its own risk to other reinsurers.
Losses and loss adjustment expenses fell 4.7%, slower than total revenues, so they rose to 47.0% of revenue from 44.2% a year earlier. The filing attributes the insurance segment's higher current year losses to catastrophe activity "primarily related to the Iran conflict and severe conductive storms in the U.S.", while reinsurance benefited from "relatively light catastrophe losses."
Acquisition expenses fell 12.9% to $718 million as less business came in, but other operating expenses rose 3.7% to $471 million, 10.1% of revenue against 8.7% a year earlier. The filing ties the insurance expense ratio to "transitional expenses associated with the MCE Acquisition, and a lower level of net premiums earned." Arch chose not to renew some of the middle market programs it bought from Allianz.
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Business Lens describes Arch Capital Group from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.
