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Segment Information (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
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, 2022
| Insurance |  | Reinsurance |  | Mortgage |  | Sub-Total |  | Other |  | Total
Gross premiums written (1) | $ | 6,930,864 |  |  | $ | 6,948,438 |  |  | $ | 1,454,971 |  |  | $ | 15,326,447 |  |  | $ | — |  |  | $ | 15,326,447 |
Premiums ceded | (1,910,222) |  |  | (2,024,462) |  |  | (322,400) |  |  | (4,249,258) |  |  | — |  |  | (4,249,258) |
Net premiums written | 5,020,642 |  |  | 4,923,976 |  |  | 1,132,571 |  |  | 11,077,189 |  |  | — |  |  | 11,077,189 |
Change in unearned premiums | (461,307) |  |  | (964,595) |  |  | 26,790 |  |  | (1,399,112) |  |  | — |  |  | (1,399,112) |
Net premiums earned | 4,559,335 |  |  | 3,959,381 |  |  | 1,159,361 |  |  | 9,678,077 |  |  | — |  |  | 9,678,077 |
Other underwriting income | — |  |  | 4,871 |  |  | 8,356 |  |  | 13,227 |  |  | — |  |  | 13,227 |
Losses and loss adjustment expenses | (2,782,945) |  |  | (2,568,843) |  |  | 324,271 |  |  | (5,027,517) |  |  | — |  |  | (5,027,517) |
Acquisition expenses | (885,866) |  |  | (813,555) |  |  | (40,159) |  |  | (1,739,580) |  |  | — |  |  | (1,739,580) |
Other operating expenses | (665,472) |  |  | (267,531) |  |  | (195,172) |  |  | (1,128,175) |  |  | — |  |  | (1,128,175) |
Underwriting income | $ | 225,052 |  |  | $ | 314,323 |  |  | $ | 1,256,657 |  |  | 1,796,032 |  |  | — |  |  | 1,796,032 |
Net investment income |  |  |  |  |  |  | 496,547 |  |  | — |  |  | 496,547 |
Net realized gains (losses) |  |  |  |  |  |  | (662,734) |  |  | — |  |  | (662,734) |
Equity in net income (loss) of investments accounted for using the equity method |  |  |  |  |  |  | 115,856 |  |  | — |  |  | 115,856 |
Other income (loss) |  |  |  |  |  |  | (26,165) |  |  | — |  |  | (26,165) |
Corporate expenses |  |  |  |  |  |  | (94,390) |  |  | — |  |  | (94,390) |
Transaction costs and other |  |  |  |  |  |  | (1,092) |  |  | — |  |  | (1,092) |
Amortization of intangible assets |  |  |  |  |  |  | (106,200) |  |  | — |  |  | (106,200) |
Interest expense |  |  |  |  |  |  | (130,266) |  |  | — |  |  | (130,266) |
Net foreign exchange gains (losses) |  |  |  |  |  |  | 100,905 |  |  | — |  |  | 100,905 |
Income (loss) before income taxes and income (loss) from operating affiliates |  |  |  |  |  |  | 1,488,493 |  |  | — |  |  | 1,488,493 |
Income tax expense |  |  |  |  |  |  | (79,961) |  |  | — |  |  | (79,961) |
Income (loss) from operating affiliates |  |  |  |  |  |  | 73,891 |  |  | — |  |  | 73,891 |
Net income (loss) |  |  |  |  |  |  | 1,482,423 |  |  | — |  |  | 1,482,423 |
Amounts attributable to redeemable noncontrolling interests |  |  |  |  |  |  | (5,490) |  |  | — |  |  | (5,490) |
Net income (loss) available to Arch |  |  |  |  |  |  | 1,476,933 |  |  | — |  |  | 1,476,933 |
Preferred dividends |  |  |  |  |  |  | (40,736) |  |  | — |  |  | (40,736) |
Net income (loss) available to Arch common shareholders |  |  |  |  |  |  | $ | 1,436,197 |  |  | $ | — |  |  | $ | 1,436,197 |
Underwriting Ratios |  |  |  |  |  |  |  |  |  |  |
Loss ratio | 61.0 | % |  | 64.9 | % |  | -28.0 | % |  | 51.9 | % |  | — | % |  | 51.9 | %
Acquisition expense ratio | 19.4 | % |  | 20.5 | % |  | 3.5 | % |  | 18.0 | % |  | — | % |  | 18.0 | %
Other operating expense ratio | 14.6 | % |  | 6.8 | % |  | 16.8 | % |  | 11.7 | % |  | — | % |  | 11.7 | %
Combined ratio | 95.0 | % |  | 92.2 | % |  | -7.7 | % |  | 81.6 | % |  | — | % |  | 81.6 | %
Goodwill and intangible assets | $ | 228,532 |  |  | $ | 144,846 |  |  | $ | 430,911 |  |  | $ | 804,289 |  |  | $ | — |  |  | $ | 804,289 |
Total investable assets |  |  |  |  |  |  | $ | 28,065,497 |  |  | $ | — |  |  | $ | 28,065,497 |
Total assets |  |  |  |  |  |  | 47,990,507 |  |  | — |  |  | 47,990,507 |
Total liabilities |  |  |  |  |  |  | 35,069,605 |  |  | — |  |  | 35,069,605 |
(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, 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 | — |  |  | 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, net | (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 |  |  |  |  |  |  | (111,812) |  |  | (26) |  |  | (111,838) |
Income (loss) from operating affiliates |  |  |  |  |  |  | 16,766 |  |  | — |  |  | 16,766 |
Net income |  |  |  |  |  |  | 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.
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,
2022 |  | 2021 |  | 2020
Net premiums earned (1) |  |  |  |  |
Professional lines | $ | 1,314,236 |  |  | $ | 942,817 |  |  | $ | 655,872 |
Property, energy, marine and aviation | 772,388 |  | 667,892 |  | 506,182
Programs | 589,860 |  | 506,867 |  | 432,854
Travel, accident and health | 491,847 |  | 255,590 |  | 190,944
Construction and national accounts | 432,020 |  | 416,107 |  | 398,999
Excess and surplus casualty | 393,353 |  | 318,027 |  | 270,620
Warranty and lenders solutions | 127,222 |  | 153,958 |  | 114,687
Other | 438,409 |  | 365,210 |  | 301,262
Total | $ | 4,559,335 |  |  | $ | 3,626,468 |  |  | $ | 2,871,420 |
Net premiums written by underwriting location (1) |  |  |  |  |
United States | $ | 3,340,038 |  |  | $ | 2,813,039 |  |  | $ | 2,158,415 |
Europe | 1,405,719 |  | 1,125,192 |  | 856,572
Other | 274,885 |  |  | 209,962 |  |  | 147,920 |
Total | $ | 5,020,642 |  |  | $ | 4,148,193 |  |  | $ | 3,162,907 |
REINSURANCE SEGMENT | Year Ended December 31,
2022 |  | 2021 |  | 2020
Net premiums earned (1) |  |  |  |  |
Other specialty | $ | 1,377,880 |  |  | $ | 818,801 |  |  | $ | 626,409 |
Property excluding property catastrophe | 1,091,440 |  | 836,573 |  | 562,208
Casualty | 854,543 |  | 666,754 |  | 549,056
Property catastrophe | 366,991 |  | 280,738 |  | 237,736
Marine and aviation | 159,401 |  | 152,955 |  | 109,624
Other | 109,126 |  | 84,622 |  | 77,196
Total | $ | 3,959,381 |  |  | $ | 2,840,443 |  |  | $ | 2,162,229 |
Net premiums written by underwriting location (1) |  |  |  |  |
United States | $ | 1,246,507 |  |  | $ | 828,504 |  |  | $ | 687,622 |
Bermuda | 2,561,771 |  | 1,557,294 |  | 1,001,990 |
Europe and other | 1,115,698 |  | 868,576 |  | 767,758 |
Total | $ | 4,923,976 |  |  | $ | 3,254,374 |  |  | $ | 2,457,370 |
MORTGAGE SEGMENT | Year Ended December 31,
2022 |  | 2021 |  | 2020
Net premiums earned by underwriting location |  |  |  |  |
United States | $ | 815,519 |  |  | $ | 970,507 |  |  | $ | 1,158,563 |
Other | 343,842 |  |  | 312,912 |  |  | 239,372 |
Total | $ | 1,159,361 |  |  | $ | 1,283,419 |  |  | $ | 1,397,935 |
Net premiums written by underwriting location |  |  |  |  |
United States | $ | 780,256 |  |  | $ | 914,477 |  |  | $ | 1,021,950 |
Other | 352,315 |  |  | 346,591 |  |  | 257,900 |
Total | $ | 1,132,571 |  |  | $ | 1,261,068 |  |  | $ | 1,279,850 |
(1) Segment results include premiums assumed through intersegment transactions and exclude premiums ceded through intersegment transactions.
OTHER SEGMENT | Year Ended December 31,
2022 |  | 2021 |  | 2020
Net premiums earned (1) |  |  |  |  |
Casualty | $ | — |  |  | $ | 138,551 |  |  | $ | 245,272 |
Other specialty | — |  |  | 118,356 |  |  | 186,717 |
Property catastrophe | — |  |  | 15,235 |  |  | 23,037 |
Property excluding property catastrophe | — |  |  | 6,578 |  |  | 1,130 |
Marine and aviation | — |  |  | 190 |  |  | 429 |
Other | — |  |  | 53,058 |  |  | 103,766 |
Total | $ | — |  |  | $ | 331,968 |  |  | $ | 560,351 |
Net premiums written by underwriting location (1) |  |  |  |  |
United States | $ | — |  |  | $ | 63,403 |  |  | $ | 115,471 |
Europe | — |  |  | 91,499 |  |  | 97,753 |
Bermuda | — |  |  | 199,800 |  |  | 324,365 |
Total | $ | — |  |  | $ | 354,702 |  |  | $ | 537,589 |
(1) Segment results include premiums assumed through intersegment transactions and exclude premiums ceded through intersegment transactions.

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- References No definition available. + Details
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