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Arch Capital posts $1B Q2 profit as catastrophe losses rise
Cat losses rose to $201 million in Q2, contributing to a higher consolidated combined ratio of 83.5%.
Bermuda-based insurer and reinsurer Arch Capital Group Ltd. reported net income of about $1.0 billion in the second quarter of 2026, down roughly $200 million from the year-ago period, as catastrophe losses increased across its insurance and reinsurance operations.
Arch said after-tax operating income was $893 million in Q2, compared with $979 million in Q2 2025. Pre-tax current accident year catastrophic losses for its insurance and reinsurance segments, net of reinsurance and reinstatement premiums, rose to $201 million from $154 million.
Underwriting performance weakened despite some offsetting results, with favourable development in prior year loss reserves of $165 million, up from $139 million a year earlier. Group-wide gross premiums written fell 1.1% to $6.1 billion, while net premiums written declined by nearly 7% to $4.1 billion and net premiums earned dropped by more than 8% to $4.0 billion.
Arch also reported underwriting income down nearly 20% year-on-year to $657 million, as the combined ratio deteriorated by 2.3 percentage points to 83.5%. It reported a loss ratio of 55.1% and an expense ratio of 28.4%, while explaining that lower net premiums written this quarter reflected factors including non-renewals, share reductions and targeted increased retrocessions.