XML 71 R56.htm IDEA: XBRL DOCUMENT
v3.22.4

Share-Based Compensation (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Valuation assumptions |
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Dividend yield | — | % |  | — | % |  | — | %
Expected volatility | 24.0 | % |  | 24.2 | % |  | 16.6 | %
Risk free interest rate | 2.0 | % |  | 1.0 | % |  | 1.2 | %
Expected option life | 6.0 years |  | 6.0 years |  | 6.0 years
Option activity | A summary of stock option and SAR activity under the Company’s Long Term Incentive and Share Award Plans during 2022 is presented below:
| Year Ended December 31, 2022
| Number of Options / SARs |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term |  | Aggregate Intrinsic Value
Outstanding, beginning of year | 17,083,160 |  |  | $ | 25.06 |  |  |  |  |
Granted | 784,963 |  |  | $ | 47.46 |  |  |  |  |
Exercised | (3,412,371) |  |  | $ | 16.91 |  |  |  |  |
Forfeited or expired | (34,851) |  |  | $ | 39.96 |  |  |  |  |
Outstanding, end of year | 14,420,901 |  |  | $ | 28.17 |  |  | 4.37 |  | $ | 499,051 |
Exercisable, end of year | 12,433,470 |  |  | $ | 26.20 |  |  | 3.77 |  | $ | 454,769 |
Weighted average grant date fair value |
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Weighted average grant date fair value | $ | 13.26 |  |  | $ | 9.22 |  |  | $ | 8.14 |
Aggregate intrinsic value of Options/SARs exercised | $ | 113,409 |  |  | $ | 47,074 |  |  | $ | 59,723 |
Unvested restricted share and unit activity | A summary of restricted share and restricted unit activity under the Company’s Long Term Incentive and Share Award Plans for 2022 is presented below:
| Restricted Common Shares |  | Restricted Unit Awards
Unvested Shares: |  |  |
Unvested balance, beginning of year | 2,070,837 |  |  | 699,866 |
Granted | 914,694 |  |  | 174,699 |
Vested | (744,096) |  |  | (330,144) |
Forfeited | (75,881) |  |  | (27,128) |
Unvested balance, end of year | 2,165,554 |  |  | 517,293 |
Weighted Average Grant Date Fair Value: |  |  |
Unvested balance, beginning of year | $ | 36.35 |  |  | $ | 33.29 |
Granted | $ | 47.45 |  |  | $ | 47.50 |
Vested | $ | 38.21 |  |  | $ | 34.38 |
Forfeited | $ | 41.13 |  |  | $ | 37.51 |
Unvested balance, end of year | $ | 40.23 |  |  | $ | 37.17 |
Performance shares and units, valuation assumptions |
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Expected volatility | 38.1 | % |  | 37.5 | % |  | 18.1 | %
Risk free interest rate | 1.7 | % |  | 0.3 | % |  | 1.1 | %
Unvested performance share and unit activity |
| Performance Shares |  | Performance Units
Unvested Shares: |  |  |
Unvested balance, beginning of year | 1,861,760 |  |  | 29,770 |
Granted | 669,742 |  |  | 21,030 |
Performance adjustment (1) (2) | (54,904) |  |  | 8,921 |
Vested | (583,544) |  |  | (19,695) |
Forfeited | (10,138) |  |  | (316) |
Unvested balance, end of year | 1,882,916 |  |  | 39,710 |
Weighted Average Grant Date Fair Value: |  |  |
Unvested balance, beginning of year | $ | 38.93 |  |  | $ | 38.71 |
Granted | $ | 49.91 |  |  | $ | 49.91 |
Performance adjustment (1) (2) | $ | 36.07 |  |  | $ | 35.83 |
Vested | $ | 36.07 |  |  | $ | 35.83 |
Forfeited | $ | 49.91 |  |  | $ | 49.91 |
Unvested balance, end of year | $ | 43.75 |  |  | $ | 45.33 |
(1) The performance adjustment represents the difference between the number of performance shares granted and earned, which vested following the end of the performance period. The performance shares were granted at the maximum level of achievement. (2) The performance adjustment represents the change in PSUs, which vested following the end of the performance period. The performance units were granted at the target level of achievement.
Share based compensation expense | The following tables present pre-tax and after-tax share-based compensation expense recognized as well as the unrecognized compensation cost associated with unvested awards and the weighted average period over which it is expected to be recognized.
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Pre-Tax |  |  |  |  |
Stock options and SARs | $ | 11,891 |  |  | $ | 12,316 |  |  | $ | 11,744 |
Restricted share and unit awards | 50,278 |  |  | 46,817 |  |  | 41,284 |
Performance awards | 21,510 |  |  | 23,696 |  |  | 14,729 |
ESPP | 3,993 |  |  | 3,751 |  |  | 2,135 |
Total | $ | 87,672 |  |  | $ | 86,580 |  |  | $ | 69,892 |
After-Tax |  |  |  |  |
Stock options and SARs | $ | 10,726 |  |  | $ | 10,927 |  |  | $ | 10,388 |
Restricted share and unit awards | 42,346 |  |  | 39,349 |  |  | 34,599 |
Performance awards | 19,794 |  |  | 21,920 |  |  | 13,380 |
ESPP | 3,660 |  |  | 3,471 |  |  | 1,978 |
Total | $ | 76,526 |  |  | $ | 75,667 |  |  | $ | 60,345 |
Unrecognized compensation cost |
| December 31, 2022
| Stock Options and SARs |  | Restricted Common Shares and Units |  | Performance Common Shares and Units
Unrecognized compensation cost related to unvested awards | $ | 6,357 |  |  | $ | 42,096 |  |  | $ | 7,520 |
Weighted average recognition period (years) | 0.75 |  | 1.00 |  | 0.48
Restricted Common Shares And Restricted Units |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
Weighted average grant date fair value of restricted stock | The following table presents the weighted average grant date fair value of restricted shares and restricted unit awards granted and the aggregate fair value of restricted shares and unit awards vesting in each year.
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Restricted shares and restricted unit awards granted | 1,089,393 |  |  | 1,261,773 |  |  | 1,535,330 |
Weighted average grant date fair value | $ | 47.45 |  |  | $ | 36.12 |  |  | $ | 37.55 |
Aggregate fair value of vested restricted share and unit awards | $ | 78,129 |  |  | $ | 65,477 |  |  | $ | 39,703 |
Performance Common Shares and Units |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
Weighted average grant date fair value of restricted stock | The following table presents the weighted average grant date fair values of performance awards granted.
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Performance awards | 690,772 |  |  | 685,104 |  |  | 557,204 |
Weighted average grant date fair value | $ | 49.91 |  |  | $ | 37.38 |  |  | $ | 44.17 |

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of share based awards other than stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References No definition available. + Details
Name: | acgl_ScheduleofSharebasedPaymentAwardOtherThanStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | acgl_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the weighted-average grant-date fair value of other than option equity instruments granted during the year. + References No definition available. + Details
Name: | acgl_SharebasedCompensationArrangementbySharebasedPaymentAwardOtherThanOptionsGrantsinPeriodWeightedAverageGrantDateFairValueTableTextBlock
Namespace Prefix: | acgl_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested restricted stock units. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of cost not yet recognized and weighted-average period over which cost is expected to be recognized for nonvested award under share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfUnrecognizedCompensationCostNonvestedAwardsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the weighted-average grant-date fair value of equity options or other equity instruments granted during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of number and weighted-average grant date fair value for nonvested performance shares. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_ShareBasedCompensationPerformanceSharesAwardUnvestedActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_AwardTypeAxis=acgl_RestrictedCommonSharesAndRestrictedUnitsMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_AwardTypeAxis=us-gaap_PerformanceSharesMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |