Arch Capital Group Ltd. announced its second‑quarter results, posting adjusted earnings per share of $2.56, which exceeded the consensus estimate of $2.47. Revenue for the quarter was $6.13 billion, substantially above the $4.37 billion forecast, yet it represented a 1.1% decline year‑over‑year from $6.20 billion in the comparable period of 2025. Net income available to common shareholders amounted to $1.0 billion, or $3.00 per share, down from $1.2 billion, or $3.23 per share, in Q2 2025.
The combined ratio, excluding catastrophic activity and prior‑year development, stood at 82.5%, compared with 80.9% in the prior year period. Pre‑tax current accident‑year catastrophic losses totaled $201 million, while the company recorded $165 million of favorable development in prior‑year loss reserves.
CEO Nicolas Papadopoulo said the quarter was strong, driven by solid underwriting performance across the three segments and reflecting the continued strength of the diversified platform and disciplined execution.
Segment‑level underwriting results showed the insurance segment generated $27 million of underwriting income, a 79.1% drop from $129 million a year earlier, with a combined ratio of 98.5% versus 93.4% previously. The reinsurance segment contributed $410 million of underwriting income and posted a combined ratio of 77.5%. The mortgage segment delivered $220 million of underwriting income and achieved a combined ratio of 22.8%.
During the quarter, Arch Capital repurchased $1.2 billion of its own shares and completed a $2.0 billion senior notes offering in June. Despite the earnings beat, the stock fell 2.3% in after‑hours trading following the release.