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Form 8-K - Current report - Item 5.07 Item 8.01 Item 9.01

Arch Capital Group Ltd

Announcement: ACGL 8-K Special Filing

Part 1: Analysis of the performance of Arch Capital Group Ltd.

Arch Capital Group Ltd. seems to be performing well, as evidenced by the growth in book value per share by 8.4% for the 2023 first quarter. The annualized net income return on average common equity was 22.3%, compared to 6.5% for the 2022 first quarter. The underwriting income from the mortgage segment is also encouraging, generating $243 million in the 2023 first quarter. Meanwhile, Arch Capital’s underwriting teams continue to take advantage of favorable market conditions and allocate capital to sectors with more significant returns, which is a part of their long-term value delivery strategy. The current property casualty environment offers opportunities to Arch, as demonstrated by the growth in their premium numbers. Inflation has been a major concern across the industry, but Arch has adopted a proactive analysis and incorporating emerging trends into their pricing and reserving system to mitigate its impact.

In their insurance segment, Arch has been taking advantage of favorable market conditions and continues to obtain rates above trend. The 2023 first quarter saw a property catastrophe net premiums written increase, nearly double from the 2022 first quarter. Arch remains disciplined in their behavior, and their underwriting teams are free to allocate capital to their diversified specialties with underwriting cycle management. The property market is dislocated, and it may take further rate improvement before it finds the desired equilibrium. The mortgage segment has also been shaping its portfolio with a focus on credit quality and data-driven risk selection. As of March 31, 2023, the delinquency rate is at 1.65%, the lowest since March 31, 2020.

Part 2: Forward-looking analysis

Based on Arch Capital Group Ltd.’s performance, it seems to be on the right track. Arch Capital has set an objective to deliver long term value for its shareholders, and it has demonstrated that with an increase in book value per share and a high annualized net income return on average common equity. Arch is poised to take advantage of the property casualty environment as there are still opportunities for growth. The premium numbers reflect these opportunities. Arch is strategically allocating capital to sectors that offer better returns than its cost of capital. Management has also been proactive in analyzing inflation trends to mitigate its impact on their business.

Arch Capital is well-positioned to take advantage of the current property casualty environment due to its underwriting cycle management strategy by actively allocating capital to sectors that offer the best returns on investments. Arch’s underwriters have the degrees of freedom necessary to deploy capital across their diversified specialty-focused platform. This approach should enable Arch to generate more resilient and stable underwriting incomes over the long-term. Therefore, Arch is confident that they can continue to deliver long-term value to its shareholders by leveraging opportunities, such as dislocations in the property market and pricing improvement on the primary side of the reinsurance market.

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Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Arch Capital Group Delivers Strong Growth

Form 8-K - Current report - Item 2.02 Item 9.01

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Arch Capital beats expectations with sustained growth in premiums and strong earnings
Current Analysis:
Arch Capital showed sustained growth in premiums, with the net premiums written growing by 51% and 21% in the reinsurance and insurance segments respectively. Despite increased catastrophic activity in 2022, the company maintained improved underwriting margins by rebalancing their mix of businesses and integrating a strategy to protect capital in the soft market while increasing their writing in the hard market. The firm expanded its specialty portfolio and is committed to agile cycle management with a focus on risk-adjusted returns.

Forward-Looking Analysis:
Arch Capital expects to deliver long-term value for shareholders by allocating capital across a diversified specialty portfolio with attractive returns. The company aims to capitalize on rate-on-rate increases by expanding writings in their property and casualty segments. While the worldwide insurance industry remains highly competitive and subject to an underwriting cycle, Arch Capital aims to sustain stability by keeping pricing discipline, terms and conditions, and limits management stable across most lines. The company's disciplined approach to pricing, underwriting, and expansion of its specialty lines could support its competitive position amidst industry shifts and changes in economic conditions.

Announcement: ACGL 10-K Annual Report

Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend]

Announcement: ACGL 8-K Special Filing

Announcement: ACGL 8-K Special Filing

Arch Capital Group Delivers Strong Growth

Arch Capital Group Delivers Strong Growth

Announcement: ACGL 8-K Special Filing

Announcement: ACGL 8-K Special Filing

Announcement: ACGL 8-K Special Filing

Announcement: ACGL 8-K Special Filing

Announcement: ACGL 10-K Annual Report

Announcement: ACGL 10-K Annual Report

Announcement: ACGL SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ACGL SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment