$ACGL · ARCH CAPITAL GROUP LTD.
Arch Capital Group filed its Q3 2026 Form 10-Q. Net income available to Arch fell to $1.035B from $1.350B a year earlier, while total revenues declined 8.9% to $4.655B. Diluted EPS dropped to $3.00 from $3.56. Net premiums earned fell to $4.014B from $4.285B, and the company swung to $99M in net realized losses versus $210M in gains a year ago. Shareholders' equity available to Arch declined to $22.99B from $24.21B at year-end 2025, driven by a $1.076B accumulated other comprehensive loss.
- Net income available to Arch fell 23% YoY to $1.035B in Q3 2026.
- Total revenues declined 8.9% YoY to $4.655B.
- Diluted EPS fell to $3.00 from $3.56 a year earlier.
- Net realized losses were $99M versus $210M in gains in Q3 2025.
- Shareholders' equity fell to $22.99B from $24.21B at year-end 2025.
Extended-hours last trade of $111.96 is +1.16% vs the $110.68 regular close, suggesting a modestly positive after-hours reaction despite the earnings decline.
A 23% earnings decline plus a $1.2B book-value hit from unrealized investment losses shows both underwriting and investment headwinds hitting Arch simultaneously.
The premium decline and swing to investment losses reflect a softening underwriting environment and rising-rate pressure on fixed-income portfolios across the P&C reinsurance sector.
A $1.157B nine-month unrealized loss on available-for-sale investments and $1.076B accumulated other comprehensive loss signal interest-rate sensitivity in the fixed-income portfolio.