Arch Capital's quarterly profit hit by softer underwriting, higher catastrophe losses

Chubb

28/07/2026 23:01

July 28 (Reuters) - Specialty insurer and reinsurer Arch Capital Group ACGL.O reported a 16.6% drop in second-quarter profit on Tuesday, hurt by higher catastrophe losses and weaker underwriting results.
Results were weighed down by higher catastrophe claims from severe weather events, lower earned premiums and a decline in underwriting income, as elevated losses pushed up the insurer's combined ratio despite continued strength in investment income.
Here are some more details:
The insurer's underwriting income fell about 20% to $657 million during the quarter, from a year ago.
Gross premiums written fell 1.1% to $6.13 billion in the three months ended June 30. 
Pre-tax catastrophic losses, net of insurance and reinstatement premiums, were $201 million as compared to $154 million a year earlier.
Arch Capital reported a combined ratio of 83.5% versus 81.2% a year ago. A figure below 100% indicates premiums exceeded claims and expenses.
Net income available to Arch common shareholders was $1 billion, or $3 per share, for the reported quarter, compared with $1.2 billion, or $3.23 per share, a year earlier.
The Pembroke Bermuda-based insurer's net investment income rose to $417 million in the second quarter, from $405 million a year earlier. 
The results contrast with those of peers W.R. Berkley WRB.N and Chubb CB.BN, who reported higher quarterly profits on strong underwriting, last week.

 (Reporting by Rishab Shaju in Bengaluru; Editing by Shilpi Majumdar)
 ((Rishab.shaju@thomsonreuters.com ; +91 9048142177))