Arch Capital Group (ACGL) Q1 2026 earnings summary

Executive summary

• Delivered strong first quarter results with after-tax operating income of $901 million ($2.50 per share) and annualized net income ROE of 17.8%.

• Net income available to common shareholders rose to $1.0 billion ($2.88 per share), up from $564 million ($1.48 per share) year-over-year.

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

• Maintained disciplined underwriting and capital management amid a more competitive market, focusing on profitability over volume.

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

Financial highlights

• After-tax operating income was $901 million, or $2.50 per share, with annualized operating income ROE of 15.4%.

• 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 grew 1.7% in the quarter.

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

• $783 million of common stock repurchased in Q1, with an additional $311 million repurchased so far in Q2.

Outlook and guidance

• Market remains competitive, especially in property catastrophe and short tail lines, with downward rate pressure.

• Margins are expected to remain sustainable in the near term, with rates just below trend overall.

• Expense ratios expected to revert to historical levels in the second half of the year.

• Focus remains on specialty lines and disciplined underwriting to drive through-the-cycle returns.

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