Arch Capital Group’s reinsurance segment generated $393 million in underwriting income in Q3 2026, retaining its position as the group’s largest underwriting contributor and delivering a 78.3% combined ratio despite lower premium volumes than a year earlier.
Underwriting income in the reinsurance segment fell from $482 in Q3 2025, while net premiums earned declined 10.3% to $1.807 billion.
Meanwhile, net premiums written in reinsurance decreased 9.3% to $1.576 billion in Q3 2026, and gross premiums written in the segment fell 8% to $2.313 billion.
The reinsurance segment’s combined ratio increased by 2.2 percentage points to 78.3% from 76.1% a year earlier, as a higher loss ratio partly offset improvements in acquisition and other operating expense ratios, but remained well below 100%, indicating continued underwriting profitability.
Across the group, Arch recorded total underwriting income of $702 million for Q3 2026, down 19.4% from $871 million in the same period of 2025.
The firm’s gross premiums written remained broadly stable at $5.391 billion in Q3 2026 against $5.410 billion a year earlier, while net premiums written declined 3% to $3.845 billion and net premiums earned fell 6.3% to $4.014 billion.
Arch’s insurance segment generated $108 million in underwriting income in Q3 2026, down from $129 million a year earlier, as its combined ratio edged up to 94.4% from 93.4%, reflecting an increase in the loss ratio to 60.8% from 59%.
Meanwhile, underwriting income in the mortgage segment fell to $201 million from $260 million in the prior-year quarter, as net premiums earned declined to $270 million from $301 million and the combined ratio rose to 25.5% from 13.5%.
Outside underwriting, net investment income rose to $451 million in Q3 2026 from $408 million a year earlier. However, income before income tax and income from operating affiliates declined to $1.186 billion from $1.503 billion, while net income available to Arch common shareholders fell to $1.025 billion from $1.340 billion in the prior-year quarter.
Arch CEO Nicolas Papadopoulo commented, “We delivered a strong quarter, driven by solid underwriting performance across our three segments and continued strength from our investment portfolio.
“We are operating in a transitioning market where conditions are increasingly uneven, but we are prepared and welcome the challenge. The market will continue to evolve, but our core principles will not, and we remain focused on producing superior risk-adjusted returns over the long term.
“As Arch celebrates its first 25 years, I want to thank our employees for what we have built together: a global franchise, a strong brand and a culture anchored in our Values. I also want to thank our investors for their continued confidence in Arch.”
