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Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Analysis of underwriting income (loss) by segment and reconciliation to net income (loss) available to common shareholders

The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of underwriting income or loss to net income available to Arch common shareholders, summary information regarding net premiums written and earned by major line of business and net premiums written by location:

			Year Ended December 31, 2020
			Insurance						Reinsurance						Mortgage						Sub-Total						Other						Total
Gross premiums written (1)			$	4,688,562					$	3,472,086					$	1,473,999					$	9,632,691					$	728,546					$	10,088,068
Premiums ceded			(1,525,655)						(1,014,716)						(194,149)						(2,732,564)						(190,957)						(2,650,352)
Net premiums written			3,162,907						2,457,370						1,279,850						6,900,127						537,589						7,437,716
Change in unearned premiums			(291,487)						(295,141)						118,085						(468,543)						22,762						(445,781)
Net premiums earned			2,871,420						2,162,229						1,397,935						6,431,584						560,351						6,991,935
Other underwriting income (loss)			(31)						4,454						20,316						24,739						2,045						26,784
Losses and loss adjustment expenses			(2,092,453)						(1,628,320)						(528,344)						(4,249,117)						(440,482)						(4,689,599)
Acquisition expenses			(418,483)						(354,048)						(134,240)						(906,771)						(98,071)						(1,004,842)
Other operating expenses			(489,153)						(168,011)						(162,202)						(819,366)						(55,810)						(875,176)
Underwriting income (loss)			$	(128,700)					$	16,304					$	593,465					481,069						(31,967)						449,102
Net investment income																					401,908						117,700						519,608
Net realized gains (losses)																					813,781						9,679						823,460
Equity in net income (loss) of investments accounted for using the equity method																					146,693						—						146,693
Other income (loss)																					16,795						—						16,795
Corporate expenses																					(68,492)						—						(68,492)
Transaction costs and other																					(9,456)						(4,040)						(13,496)
Amortization of intangible assets																					(69,031)						—						(69,031)
Interest expense																					(120,214)						(23,242)						(143,456)
Net foreign exchange gains (losses)																					(80,161)						(3,473)						(83,634)
Income (loss) before income taxes																					1,512,892						64,657						1,577,549
Income tax expense																					(111,812)						(26)						(111,838)
Net income (loss)																					1,401,080						64,631						1,465,711
Amounts attributable to redeemable noncontrolling interests																					(2,997)						(4,117)						(7,114)
Amounts attributable to nonredeemable noncontrolling interests																					—						(53,076)						(53,076)
Net income (loss) available to Arch																					1,398,083						7,438						1,405,521
Preferred dividends																					(41,612)						—						(41,612)
Net income (loss) available to Arch common shareholders																					$	1,356,471					$	7,438					$	1,363,909
Underwriting Ratios
Loss ratio			72.9		%				75.3		%				37.8		%				66.1		%				78.6		%				67.1		%
Acquisition expense ratio			14.6		%				16.4		%				9.6		%				14.1		%				17.5		%				14.4		%
Other operating expense ratio			17.0		%				7.8		%				11.6		%				12.7		%				10.0		%				12.5		%
Combined ratio			104.5		%				99.5		%				59.0		%				92.9		%				106.1		%				94.0		%
Goodwill and intangible assets			$	280,978					$	18,963					$	385,272					$	685,213					$	7,650					$	692,863
Total investable assets																					$	26,856,295					$	2,657,612					$	29,513,907
Total assets																					39,791,983						3,490,314						43,282,297
Total liabilities																					26,789,149						2,505,707						29,294,856

(1)    Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total.

			Year Ended December 31, 2019
			Insurance						Reinsurance						Mortgage						Sub-Total						Other						Total
Gross premiums written (1)			$	3,907,993					$	2,323,223					$	1,466,265					$	7,695,645					$	754,881					$	8,138,960
Premiums ceded			(1,266,267)						(720,500)						(204,509)						(2,189,440)						(222,019)						(2,099,893)
Net premiums written			2,641,726						1,602,723						1,261,756						5,506,205						532,862						6,039,067
Change in unearned premiums			(244,646)						(136,334)						104,584						(276,396)						23,827						(252,569)
Net premiums earned			2,397,080						1,466,389						1,366,340						5,229,809						556,689						5,786,498
Other underwriting income			—						6,444						16,005						22,449						2,412						24,861
Losses and loss adjustment expenses			(1,615,475)						(1,011,329)						(53,513)						(2,680,317)						(453,135)						(3,133,452)
Acquisition expenses, net			(361,614)						(239,032)						(134,319)						(734,965)						(105,980)						(840,945)
Other operating expenses			(454,770)						(141,484)						(153,092)						(749,346)						(51,651)						(800,997)
Underwriting income (loss)			$	(34,779)					$	80,988					$	1,041,421					1,087,630						(51,665)						1,035,965
Net investment income																					491,067						136,671						627,738
Net realized gains (losses)																					348,037						15,161						363,198
Equity in net income (loss) of investments accounted for using the equity method																					123,672						—						123,672
Other income (loss)																					2,233						—						2,233
Corporate expenses																					(65,667)						—						(65,667)
Transaction costs and other																					(14,444)						—						(14,444)
Amortization of intangible assets																					(82,104)						—						(82,104)
Interest expense																					(93,735)						(27,137)						(120,872)
Net foreign exchange gains (losses)																					(9,252)						(11,357)						(20,609)
Income (loss) before income taxes																					1,787,437						61,673						1,849,110
Income tax (expense) benefit																					(155,790)						(20)						(155,810)
Net income (loss)																					1,631,647						61,653						1,693,300
Amounts attributable to redeemable noncontrolling interests																					—						(16,909)						(16,909)
Amounts attributable to nonredeemable noncontrolling interests																					—						(40,072)						(40,072)
Net income (loss) available to Arch																					1,631,647						4,672						1,636,319
Preferred dividends																					(41,612)						—						(41,612)
Net income (loss) available to Arch common shareholders																					$	1,590,035					$	4,672					$	1,594,707
Underwriting Ratios
Loss ratio			67.4		%				69.0		%				3.9		%				51.3		%				81.4		%				54.2		%
Acquisition expense ratio			15.1		%				16.3		%				9.8		%				14.1		%				19.0		%				14.5		%
Other operating expense ratio			19.0		%				9.6		%				11.2		%				14.3		%				9.3		%				13.8		%
Combined ratio			101.5		%				94.9		%				24.9		%				79.7		%				109.7		%				82.5		%
Goodwill and intangible assets			$	289,021					$	2,516					$	438,896					$	730,433					$	7,650					$	738,083
Total investable assets																					$	22,285,676					$	2,704,589					$	24,990,265
Total assets																					34,374,468						3,510,893						37,885,361
Total liabilities																					22,977,636						2,592,173						25,569,809

(1)    Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total.

			Year Ended December 31, 2018
			Insurance						Reinsurance						Mortgage						Sub-Total						Other						Total
Gross premiums written (1)			$	3,262,332					$	1,912,522					$	1,360,708					$	6,534,423					$	735,015					$	6,961,004
Premiums ceded			(1,050,207)						(539,950)						(202,833)						(1,791,851)						(130,840)						(1,614,257)
Net premiums written			2,212,125						1,372,572						1,157,875						4,742,572						604,175						5,346,747
Change in unearned premiums			(6,464)						(111,356)						28,361						(89,459)						(25,313)						(114,772)
Net premiums earned			2,205,661						1,261,216						1,186,236						4,653,113						578,862						5,231,975
Other underwriting income			—						(682)						13,033						12,351						2,722						15,073
Losses and loss adjustment expenses			(1,520,680)						(846,882)						(81,289)						(2,448,851)						(441,255)						(2,890,106)
Acquisition expenses, net			(349,702)						(211,280)						(118,595)						(679,577)						(125,558)						(805,135)
Other operating expenses			(364,138)						(133,350)						(142,432)						(639,920)						(37,889)						(677,809)
Underwriting income (loss)			$	(28,859)					$	69,022					$	856,953					897,116						(23,118)						873,998
Net investment income																					437,958						125,675						563,633
Net realized gains (losses)																					(287,258)						(120,915)						(408,173)
Equity in net income (loss) of investments accounted for using the equity method																					45,641						—						45,641
Other income (loss)																					2,419						—						2,419
Corporate expenses																					(58,608)						—						(58,608)
Transaction costs and other																					(11,386)						(9,000)						(20,386)
Amortization of intangible assets																					(105,670)						—						(105,670)
Interest expense																					(101,019)						(19,465)						(120,484)
Net foreign exchange gains (losses)																					58,711						10,691						69,402
Income (loss) before income taxes																					877,904						(36,132)						841,772
Income tax benefit																					(113,924)						(27)						(113,951)
Net income																					763,980						(36,159)						727,821
Amounts attributable to redeemable noncontrolling interests																					—						(18,357)						(18,357)
Amounts attributable to nonredeemable noncontrolling interests																					—						48,507						48,507
Net income (loss) available to Arch																					763,980						(6,009)						757,971
Preferred dividends																					(41,645)						—						(41,645)
Loss on redemption of preferred shares																					(2,710)						—						(2,710)
Net income (loss) available to Arch common shareholders																					$	719,625					$	(6,009)					$	713,616
Underwriting Ratios
Loss ratio			68.9		%				67.1		%				6.9		%				52.6		%				76.2		%				55.2		%
Acquisition expense ratio			15.9		%				16.8		%				10.0		%				14.6		%				21.7		%				15.4		%
Other operating expense ratio			16.5		%				10.6		%				12.0		%				13.8		%				6.5		%				13.0		%
Combined ratio			101.3		%				94.5		%				28.9		%				81.0		%				104.4		%				83.6		%
Goodwill and intangible assets			$	114,012					$	—					$	513,258					$	627,270					$	7,650					$	634,920
Total investable assets																					$	19,566,861					$	2,757,663					$	22,324,524
Total assets																					28,845,473						3,372,856						32,218,329
Total liabilities																					19,518,395						2,262,255						21,780,650

(1)    Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total.

Summary of information regarding net premiums written and earned by major line of business and net premiums written by location

The following tables provide summary information regarding net premiums earned by major line of business and net premiums written by underwriting location:

INSURANCE SEGMENT			Year Ended December 31,
			2020						2019						2018
Net premiums earned (1)
Property, energy, marine and aviation			$	517,247					$	298,966					$	205,069
Professional Lines (2)			655,872						499,224						458,425
Programs			432,854						414,103						389,186
Construction and national accounts			387,934						325,687						322,440
Excess and surplus casualty (3)			270,620						200,615						172,424
Travel, accident and health			190,944						305,085						297,147
Lenders products			114,687						66,079						94,248
Other (4)			301,262						287,321						266,722
Total			$	2,871,420					$	2,397,080					$	2,205,661
Net premiums written by underwriting location (1)
United States			$	2,158,415					$	1,983,476					$	1,736,651
Europe			856,572						559,214						401,974
Other			147,920						99,036						73,500
Total			$	3,162,907					$	2,641,726					$	2,212,125

(1)    Insurance segment results include premiums assumed through intersegment transactions and exclude premiums ceded through intersegment transactions.

(2)     Includes professional liability, executive assurance and healthcare business.

(3)    Includes casualty and contract binding business.

(4)    Includes alternative markets, excess workers' compensation and surety business.

REINSURANCE SEGMENT			Year Ended December 31,
			2020						2019						2018
Net premiums earned (1)
Property excluding property catastrophe			$	562,208					$	362,841					$	287,788
Property catastrophe			237,736						90,934						75,249
Other Specialty (2)			626,409						478,517						474,568
Casualty (3)			549,056						429,288						347,034
Marine and aviation			109,624						48,274						39,238
Other (4)			77,196						56,535						37,339
Total			$	2,162,229					$	1,466,389					$	1,261,216
Net premiums written by underwriting location (1)
United States			$	687,622					$	529,943					$	413,550
Bermuda			1,001,990						578,618						487,523
Europe and other			767,758						494,162						471,499
Total			$	2,457,370					$	1,602,723					$	1,372,572

(1)    Reinsurance segment results include premiums assumed through intersegment transactions and exclude premiums ceded through intersegment transactions.

(2)    Includes proportional motor, surety, accident and health, workers’ compensation catastrophe, agriculture, trade credit and other.

(3)    Includes executive assurance, professional liability, workers’ compensation, excess motor, healthcare and other.

(4)    Includes life, casualty clash and other.

MORTGAGE SEGMENT			Year Ended December 31,
			2020						2019						2018
Net premiums earned by underwriting location
United States			$	1,158,563					$	1,134,849					$	1,009,765
Other			239,372						231,491						176,471
Total			$	1,397,935					$	1,366,340					$	1,186,236
Net premiums written by underwriting location
United States			$	1,021,950					$	1,032,868					$	948,323
Other			257,900						228,888						209,552
Total			$	1,279,850					$	1,261,756					$	1,157,875

OTHER SEGMENT			Year Ended December 31,
			2020						2019						2018
Net premiums earned (1)
Casualty (2)			$	245,272					$	246,894					$	277,589
Other specialty (3)			186,717						185,547						204,485
Property catastrophe			23,037						13,399						10,998
Property excluding property catastrophe			1,130						3,503						2,802
Marine and aviation			429						—						—
Other (4)			103,766						107,346						82,988
Total			$	560,351					$	556,689					$	578,862
Net premiums written by underwriting location (1)
United States			$	115,471					$	127,176					$	49,800
Europe			97,753						52,065						91,635
Bermuda			324,365						353,621						462,740
Total			$	537,589					$	532,862					$	604,175

(1)    Other segment results include premiums assumed through intersegment transactions and exclude premiums ceded through intersegment transactions.

(2)    Includes professional liability, excess motor, programs and other.

(3)    Includes proportional motor and other.

(4)    Includes mortgage, US programs and other.

X

- Definition

Tabular disclosure of premiums written and earned by major line of business, and of net premiums by both client location and underwriting location.

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No definition available.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

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