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Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021
			Insurance						Reinsurance						Mortgage						Sub-Total						Other						Total
Gross premiums written (1)			$	5,867,734					$	5,093,930					$	1,507,825					$	12,463,788					$	457,465					$	12,752,487
Premiums ceded			(1,719,541)						(1,839,556)						(246,757)						(3,800,153)						(102,763)						(3,734,150)
Net premiums written			4,148,193						3,254,374						1,261,068						8,663,635						354,702						9,018,337
Change in unearned premiums			(521,725)						(413,931)						22,351						(913,305)						(22,734)						(936,039)
Net premiums earned			3,626,468						2,840,443						1,283,419						7,750,330						331,968						8,082,298
Other underwriting income (loss)			—						3,669						17,665						21,334						739						22,073
Losses and loss adjustment expenses			(2,344,365)						(1,924,719)						(56,677)						(4,325,761)						(259,042)						(4,584,803)
Acquisition expenses			(606,265)						(536,754)						(97,418)						(1,240,437)						(62,741)						(1,303,178)
Other operating expenses			(558,906)						(212,810)						(194,010)						(965,726)						(32,869)						(998,595)
Underwriting income (loss)			$	116,932					$	169,829					$	952,979					1,239,740						(21,945)						1,217,795
Net investment income																					346,808						42,310						389,118
Net realized gains (losses)																					299,207						80,638						379,845
Equity in net income (loss) of investments accounted for using the equity method																					366,402						—						366,402
Other income (loss)																					10,244						—						10,244
Corporate expenses																					(77,119)						—						(77,119)
Transaction costs and other																					(1,103)						(935)						(2,038)
Amortization of intangible assets																					(82,057)						(898)						(82,955)
Interest expense																					(131,060)						(8,410)						(139,470)
Net foreign exchange gains (losses)																					42,854						(1,325)						41,529
Income (loss) before income taxes and income (loss) from operating affiliates																					2,013,916						89,435						2,103,351
Income tax expense																					(128,348)						(234)						(128,582)
Income (loss) from operating affiliates																					264,693						—						264,693
Net income (loss)																					2,150,261						89,201						2,239,462
Amounts attributable to redeemable noncontrolling interests																					(2,346)						(1,953)						(4,299)
Amounts attributable to nonredeemable noncontrolling interests																					—						(78,314)						(78,314)
Net income (loss) available to Arch																					2,147,915						8,934						2,156,849
Preferred dividends																					(48,343)						—						(48,343)
Loss on redemption of preferred shares																					(15,101)						—						(15,101)
Net income (loss) available to Arch common shareholders																					$	2,084,471					$	8,934					$	2,093,405
Underwriting Ratios
Loss ratio			64.6		%				67.8		%				4.4		%				55.8		%				78.0		%				56.7		%
Acquisition expense ratio			16.7		%				18.9		%				7.6		%				16.0		%				18.9		%				16.1		%
Other operating expense ratio			15.4		%				7.5		%				15.1		%				12.5		%				9.9		%				12.4		%
Combined ratio			96.7		%				94.2		%				27.1		%				84.3		%				106.8		%				85.2		%
Goodwill and intangible assets			$	256,434					$	183,523					$	505,026					$	944,983					$	—					$	944,983
Total investable assets																					$	27,442,153					$	—					$	27,442,153
Total assets																					45,100,945						—						45,100,945
Total liabilities																					31,545,816						—						31,545,816

(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, 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			(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, net			(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)																					29						—						29
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 and income (loss) from operating affiliates																					1,496,126						64,657						1,560,783
Income tax (expense) benefit																					(111,812)						(26)						(111,838)
Income (loss) from operating affiliates																					16,766						—						16,766
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
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 and income (loss) from operating affiliates																					1,785,204						61,673						1,846,877
Income tax benefit																					(155,790)						(20)						(155,810)
Income (loss) from operating affiliates																					2,233						—						2,233
Net income																					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.

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,
			2021						2020						2019
Net premiums earned (1)
Professional Lines (2)			$	942,817					$	655,872					$	499,224
Property, energy, marine and aviation			702,693						517,247						298,966
Programs			506,867						432,854						414,103
Construction and national accounts			381,306						387,934						325,687
Excess and surplus casualty (3)			318,027						270,620						200,615
Travel, accident and health			255,590						190,944						305,085
Lenders products			153,958						114,687						66,079
Other (4)			365,210						301,262						287,321
Total			$	3,626,468					$	2,871,420					$	2,397,080
Net premiums written by underwriting location (1)
United States			$	2,813,039					$	2,158,415					$	1,983,476
Europe			1,125,192						856,572						559,214
Other			209,962						147,920						99,036
Total			$	4,148,193					$	3,162,907					$	2,641,726

(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,
			2021						2020						2019
Net premiums earned (1)
Property excluding property catastrophe			$	836,573					$	562,208					$	362,841
Other Specialty (2)			818,801						626,409						478,517
Casualty (3)			666,754						549,056						429,288
Property catastrophe			280,738						237,736						90,934
Marine and aviation			152,955						109,624						48,274
Other (4)			84,622						77,196						56,535
Total			$	2,840,443					$	2,162,229					$	1,466,389
Net premiums written by underwriting location (1)
United States			$	828,504					$	687,622					$	529,943
Bermuda			1,557,294						1,001,990						578,618
Europe and other			868,576						767,758						494,162
Total			$	3,254,374					$	2,457,370					$	1,602,723

(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,
			2021						2020						2019
Net premiums earned by underwriting location
United States			$	970,507					$	1,158,563					$	1,134,849
Other			312,912						239,372						231,491
Total			$	1,283,419					$	1,397,935					$	1,366,340
Net premiums written by underwriting location
United States			$	914,477					$	1,021,950					$	1,032,868
Other			346,591						257,900						228,888
Total			$	1,261,068					$	1,279,850					$	1,261,756

OTHER SEGMENT			Year Ended December 31,
			2021						2020						2019
Net premiums earned (1)
Casualty (2)			$	138,551					$	245,272					$	246,894
Other specialty (3)			118,356						186,717						185,547
Property catastrophe			15,235						23,037						13,399
Property excluding property catastrophe			6,578						1,130						3,503
Marine and aviation			190						429						—
Other (4)			53,058						103,766						107,346
Total			$	331,968					$	560,351					$	556,689
Net premiums written by underwriting location (1)
United States			$	63,403					$	115,471					$	127,176
Europe			91,499						$	97,753					$	52,065
Bermuda			199,800						$	324,365					$	353,621
Total			$	354,702					$	537,589					$	532,862

(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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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
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 30
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