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Arch Capital Q2 underwriting income drops as catastrophe losses rise
Underwriting income fell 19.7% year over year to $657 million, while Arch reported a 83.5% consolidated combined ratio.
Elevated catastrophe losses weighed on underwriting performance at Arch Capital Group Ltd. in the second quarter of 2026, pushing the company’s consolidated combined ratio to 83.5%. Insurance Business reports that underwriting income declined 19.7% year over year to $657 million for the three months ended June 30. Net premiums written fell 6.9% to $4.05 billion, and net premiums earned were 8.1% lower at $3.99 billion. The loss ratio rose two percentage points to 55.1%, while the underwriting expense ratio increased 0.3 points to 28.4%. Catastrophic activity added 7.6 points to the insurance loss ratio versus 2.9 points in the year-ago quarter. Pre-tax current accident year catastrophic losses, net of reinsurance and reinstatement premiums, totaled $201 million. Net income available to common shareholders was $1.05 billion, or $3 per diluted share, compared with $1.23 billion, or $3.23 per diluted share, in the second quarter of 2025.