XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.22.4

Variable Interest Entity and Noncontrolling Interests | 12 Months Ended
--- | ---
Dec. 31, 2022
Variable Interest Entity and Noncontrolling Interest Disclosure [Abstract] |
Variable Interest Entity and Noncontrolling Interests | Somers Holdings Ltd. In March 2014, the Company invested $100.0 million and acquired 2,500,000 common shares of Somers. Somers was considered a VIE and the Company concluded that it was the primary beneficiary of Somers. In the 2020 fourth quarter, Arch Capital, Somers and Greysbridge, a wholly-owned subsidiary of Arch Capital, entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”). The merger and the related Greysbridge equity financing closed on July 1, 2021. Effective July 1, 2021, Somers is wholly owned by Greysbridge, and Greysbridge is owned 40% by the Company, 30% by certain investment funds managed by Kelso and 30% by certain investment funds managed by Warburg. Based on the governing documents of Greysbridge, the Company concluded that, while it retains significant influence over Somers, Somers no longer constitutes a variable interest entity. Accordingly, effective July 1, 2021, the Company no longer consolidates the results of Somers in its consolidated financial statements and footnotes. The Company classifies its investment as ‘investments in operating affiliates’ on the Company’s balance sheets and is accounted for under the equity method. The following table summarizes Somers’ cash flow from operating, investing and financing activities.
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Total cash provided by (used for): |  |  |  |
Operating activities | — |  |  | 46,991 |  |  | 181,736 |
Investing activities | — |  |  | 96,325 |  |  | 258,589 |
Financing activities | — |  |  | (2,042) |  |  | (335,776) |
Non-redeemable noncontrolling interests The following table sets forth activity in the non-redeemable noncontrolling interests:
| December 31,
| 2022 |  | 2021
Balance, beginning of year | $ | — |  |  | $ | 823,007 |
Impact of deconsolidation of Somers | — |  |  | (918,874) |
Additional paid in capital attributable to noncontrolling interests | — |  |  | 22,113 |
Amounts attributable to noncontrolling interests | — |  |  | 78,314 |
Other comprehensive (income) loss attributable to noncontrolling interests | — |  |  | (4,560) |
Balance, end of year | $ | — |  |  | $ | — |
Redeemable noncontrolling interests The following table sets forth activity in the redeemable noncontrolling interests:
| December 31,
| 2022 |  | 2021 |  | 2020
Balance, beginning of year | $ | 9,233 |  |  | $ | 58,548 |  |  | $ | 55,404 |
Impact of deconsolidation of Somers | — |  |  | (48,919) |  |  | — |
Other | 1,596 |  |  | (396) |  |  | 3,144 |
Balance, end of year | $ | 10,829 |  |  | $ | 9,233 |  |  | $ | 58,548 |
The portion of income or loss attributable to third party investors is recorded in the consolidated statements of income in ‘net (income) loss attributable to noncontrolling interests’ as summarized in the table below:
| December 31,
| 2022 |  | 2021 |  | 2020
Amounts attributable to non-redeemable noncontrolling interests | $ | — |  |  | $ | (78,314) |  |  | $ | (53,076) |
Amounts attributable to redeemable noncontrolling interests | (5,490) |  |  | (4,299) |  |  | (7,114) |
Net (income) loss attributable to noncontrolling interests | $ | (5,490) |  |  | $ | (82,613) |  |  | $ | (60,190) |
Bellemeade Re The Company has entered into aggregate excess of loss mortgage reinsurance agreements with various special purpose reinsurance companies domiciled in Bermuda (the “Bellemeade Agreements”). At the time the Bellemeade Agreements were entered into, the applicability of the accounting guidance that addresses VIEs was evaluated. As a result of the evaluation of the Bellemeade Agreements, the Company concluded that these entities are VIEs. However, given that the ceding insurers do not have the unilateral power to direct those activities that are significant to their economic performance, the Company does not consolidate such entities in its consolidated financial statements. The following table presents the total assets of the Bellemeade entities, as well as the Company’s maximum exposure to loss associated with these VIEs, calculated as the maximum historical observable spread between the benchmark index for each respective transaction and short term invested trust asset yields. The benchmark index for agreements effective prior to 2021 is based on one-month LIBOR, while the 2021 and later agreements benchmark index is based on the Secured Overnight Financing Rate (“SOFR”). SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions.
|  |  | December 31, 2022 |  |  |  |  |  | December 31, 2021
|  |  | Maximum Exposure to Loss |  |  |  |  |  | Maximum Exposure to Loss
Bellemeade Entities (Issue Date) | Total VIE Assets |  | On-Balance Sheet (Asset) Liability |  | Off-Balance Sheet |  | Total |  | Coverage Remaining from Reinsurers (1) |  | Total VIE Assets |  | On-Balance Sheet (Asset) Liability |  | Off-Balance Sheet |  | Total
2017-1 Ltd. (Oct-17) | $ | 36,679 |  |  | $ | (6) |  |  | $ | 14 |  |  | $ | 8 |  |  | $ | — |  |  | $ | 108,368 |  |  | $ | (159) |  |  | $ | 424 |  |  | $ | 265 |
2018-1 Ltd. (Apr-18) | 89,698 |  |  | (153) |  |  | 508 |  |  | 355 |  |  | — |  |  | 181,136 |  |  | (528) |  |  | 1,268 |  |  | 740 |
2018-3 Ltd. (Oct-18) | 199,237 |  |  | (250) |  |  | 771 |  |  | 521 |  |  | — |  |  | 302,563 |  |  | (1,018) |  |  | 2,496 |  |  | 1,478 |
2019-1 Ltd. (Mar-19) | 107,880 |  |  | (48) |  |  | 593 |  |  | 545 |  |  | — |  |  | 181,324 |  |  | (380) |  |  | 5,807 |  |  | 5,427 |
2019-2 Ltd. (Apr-19) | 325,462 |  |  | (206) |  |  | 4,356 |  |  | 4,150 |  |  | — |  |  | 398,316 |  |  | (515) |  |  | 3,998 |  |  | 3,483 |
2019-3 Ltd. (Jul-19) | 222,977 |  |  | (104) |  |  | 1,229 |  |  | 1,125 |  |  | — |  |  | 409,859 |  |  | (584) |  |  | 3,190 |  |  | 2,606 |
2019-4 Ltd. (Oct-19) | 266,124 |  |  | (142) |  |  | 3,640 |  |  | 3,498 |  |  | — |  |  | 411,954 |  |  | (462) |  |  | 4,759 |  |  | 4,297 |
2020-2 Ltd. (Sep-20) | 105,110 |  |  | (8) |  |  | 492 |  |  | 484 |  |  | — |  |  | 217,766 |  |  | (177) |  |  | 1,984 |  |  | 1,807 |
2020-3 Ltd. (Nov-20) | 243,891 |  |  | 53 |  |  | 2,872 |  |  | 2,925 |  |  | 7,079 |  |  | 348,818 |  |  | (128) |  |  | 5,793 |  |  | 5,665 |
2020-4 Ltd. (Dec-20) | 97,563 |  |  | 32 |  |  | 642 |  |  | 674 |  |  | 4,165 |  |  | 176,826 |  |  | (50) |  |  | 1,630 |  |  | 1,580 |
2021-1 Ltd. (Mar-21) | 467,469 |  |  | 239 |  |  | 2,743 |  |  | 2,982 |  |  | 35,798 |  |  | 568,986 |  |  | (303) |  |  | 3,283 |  |  | 2,980 |
2021-2 Ltd. (Jun-21) | 458,362 |  |  | 581 |  |  | 2,855 |  |  | 3,436 |  |  | 77,099 |  |  | 522,807 |  |  | 281 |  |  | 4,124 |  |  | 4,405 |
2021-3 Ltd. (Sep-21) | 489,927 |  |  | 217 |  |  | 2,704 |  |  | 2,921 |  |  | 127,032 |  |  | 507,873 |  |  | (411) |  |  | 3,446 |  |  | 3,035 |
2022-1 Ltd. (Jan-22) | 283,500 |  |  | 399 |  |  | 1,765 |  |  | 2,164 |  |  | 33,260 |  |  |  |  |  |  |  |  |
2022-2 Ltd. (Sep-22) | 201,005 |  |  | 1,172 |  |  | 1,616 |  |  | 2,788 |  |  | 126,160 |  |  |  |  |  |  |  |  |
Total | $ | 3,594,884 |  |  | $ | 1,776 |  |  | $ | 26,800 |  |  | $ | 28,576 |  |  | $ | 410,593 |  |  | $ | 4,336,596 |  |  | $ | (4,434) |  |  | $ | 42,202 |  |  | $ | 37,768 |
(1) Coverage from a separate panel of reinsurers remaining at December 31, 2022.

X
- Definition Variable Interest Entity and Noncontrolling Interest Disclosure [Abstract] + References No definition available. + Details
Name: | acgl_VariableInterestEntityandNoncontrollingInterestDisclosureAbstract
Namespace Prefix: | acgl_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss, and the entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References No definition available. + Details
Name: | acgl_VariableInterestEntityandNoncontrollingInterestsTextBlock
Namespace Prefix: | acgl_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration