Arch Capital's fourth-quarter profit falls on higher expenses

Arch Capital

10/02/2025 21:55

Feb 10 (Reuters) - Insurer Arch Capital Group  ACGL.O  posted a 60% fall in quarterly
profit on Monday, as elevated costs dragged gains made in investment income.
    Costs from higher expenses on investigating and settling claims led to its losses and loss
adjustment expenses to jump 45.6% to $2.38 billion, compared with $1.64 billion a year earlier.
    Arch Capital also forecast an insured market loss ranging from $35 billion to $45 billion
due to the California wildfires, with its share of the losses estimated somewhere between $450
million and $550 million. 
    Profit available to common shareholders was $925 million, or $2.42 per share, for the three
months ended December 31, compared with $2.32 billion, or $6.12 per share, last year.
    However, investment income was a bright spot for the company as higher interest rates have
boosted returns on insurers' bond investments while a stock rally, prompted by Donald Trump's
business-friendly comments, helped increase its equity portfolio. 
    The insurer's pre-tax net investment income grew 29.4% to $405 million in the quarter.
    

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Alan Barona)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com))