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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Analysis of underwriting income or loss by segment and reconciliation to net income 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:

			Three Months Ended
			March 31, 2023
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	1,979					$	2,460					$	343																	$	4,780
Premiums ceded			(542)						(734)						(82)																		(1,356)
Net premiums written			1,437						1,726						261																		3,424
Change in unearned premiums			(180)						(396)						35																		(541)
Net premiums earned			1,257						1,330						296																		2,883
Other underwriting income (loss)			—						4						6																		10
Losses and loss adjustment expenses			(703)						(766)						(2)																		(1,471)
Acquisition expenses			(245)						(281)						(7)																		(533)
Other operating expenses			(195)						(74)						(50)																		(319)
Underwriting income (loss)			$	114					$	213					$	243																	570
Net investment income																																	199
Net realized gains (losses)																																	17
Equity in net income (loss) of investment funds accounted for using the equity method																																	48
Other income (loss)																																	11
Corporate expenses (2)																																	(29)
Transaction costs and other (2)																																	(1)
Amortization of intangible assets																																	(23)
Interest expense																																	(32)
Net foreign exchange gains (losses)																																	(18)
Income (loss) before income taxes and income (loss) from operating affiliates																																	742
Income tax (expense) benefit																																	(64)
Income (loss) from operating affiliates																																	39
Net income (loss)																																	717
Amounts attributable to redeemable noncontrolling interests																																	(2)
Net income (loss) available to Arch																																	715
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	705
Underwriting Ratios
Loss ratio			55.9		%				57.6		%				0.6		%																51.0		%
Acquisition expense ratio			19.5		%				21.1		%				2.5		%																18.5		%
Other operating expense ratio			15.5		%				5.6		%				16.9		%																11.1		%
Combined ratio			90.9		%				84.3		%				20.0		%																80.6		%
Goodwill and intangible assets			$	228					$	142					$	415																	$	785

(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.

(2)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘transaction costs and other.’

			Three Months Ended
			March 31, 2022
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	1,720					$	1,719					$	365																	$	3,801
Premiums ceded			(513)						(580)						(77)																		(1,167)
Net premiums written			1,207						1,139						288																		2,634
Change in unearned premiums			(180)						(335)						2																		(513)
Net premiums earned			1,027						804						290																		2,121
Other underwriting income (loss)			—						1						5																		6
Losses and loss adjustment expenses			(601)						(454)						54																		(1,001)
Acquisition expenses			(196)						(172)						(10)																		(378)
Other operating expenses			(167)						(70)						(53)																		(290)
Underwriting income (loss)			$	63					$	109					$	286																	458
Net investment income																																	80
Net realized gains (losses)																																	(292)
Equity in net income (loss) of investment funds accounted for using the equity method																																	36
Other income (loss)																																	(9)
Corporate expenses (2)																																	(32)
Transaction costs and other (2)																																	—
Amortization of intangible assets																																	(27)
Interest expense																																	(33)
Net foreign exchange gains (losses)																																	4
Income (loss) before income taxes and income (loss) from operating affiliates																																	185
Income tax (expense) benefit																																	(12)
Income (loss) from operating affiliates																																	25
Net income (loss)																																	198
Amounts attributable to redeemable noncontrolling interests																																	(2)
Net income (loss) available to Arch																																	196
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	186
Underwriting Ratios
Loss ratio			58.5		%				56.5		%				(18.9)		%																47.2		%
Acquisition expense ratio			19.1		%				21.4		%				3.6		%																17.8		%
Other operating expense ratio			16.2		%				8.7		%				18.4		%																13.7		%
Combined ratio			93.8		%				86.6		%				3.1		%																78.7		%
Goodwill and intangible assets			$	249					$	184					$	493																	$	926

(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.

(2)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘transaction costs and other.’

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- Definition

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
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-25

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

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No definition available.

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