XML 39 R27.htm IDEA: XBRL DOCUMENT v3.23.2

Segment Information (Tables)

6 Months Ended

Jun. 30, 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
			June 30, 2023
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	1,955					$	2,544					$	347																	$	4,845
Premiums ceded			(501)						(835)						(82)																		(1,417)
Net premiums written			1,454						1,709						265																		3,428
Change in unearned premiums			(126)						(366)						29																		(463)
Net premiums earned			1,328						1,343						294																		2,965
Other underwriting income (loss)			—						3						3																		6
Losses and loss adjustment expenses			(761)						(743)						13																		(1,491)
Acquisition expenses			(264)						(290)						(7)																		(561)
Other operating expenses			(195)						(68)						(50)																		(313)
Underwriting income (loss)			$	108					$	245					$	253																	606
Net investment income																																	242
Net realized gains (losses)																																	(123)
Equity in net income (loss) of investment funds accounted for using the equity method																																	69
Other income (loss)																																	3
Corporate expenses (2)																																	(20)
Transaction costs and other (2)																																	(1)
Amortization of intangible assets																																	(24)
Interest expense																																	(33)
Net foreign exchange gains (losses)																																	(5)
Income (loss) before income taxes and income (loss) from operating affiliates																																	714
Income tax (expense) benefit																																	(67)
Income (loss) from operating affiliates																																	22
Net income (loss)																																	669
Net (income) loss attributable to noncontrolling interests																																	2
Net income (loss) available to Arch																																	671
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	661
Underwriting Ratios
Loss ratio			57.3		%				55.3		%				(4.5)		%																50.3		%
Acquisition expense ratio			19.9		%				21.6		%				2.4		%																18.9		%
Other operating expense ratio			14.7		%				5.0		%				17.1		%																10.6		%
Combined ratio			91.9		%				81.9		%				15.0		%																79.8		%
Goodwill and intangible assets			$	228					$	146					$	401																	$	775

(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
			June 30, 2022
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	1,705					$	1,793					$	372																	$	3,870
Premiums ceded			(477)						(630)						(78)																		(1,185)
Net premiums written			1,228						1,163						294																		2,685
Change in unearned premiums			(126)						(235)						2																		(359)
Net premiums earned			1,102						928						296																		2,326
Other underwriting income (loss)			—						5						(2)																		3
Losses and loss adjustment expenses			(630)						(538)						65																		(1,103)
Acquisition expenses			(214)						(189)						(10)																		(413)
Other operating expenses			(161)						(66)						(50)																		(277)
Underwriting income (loss)			$	97					$	140					$	299																	536
Net investment income																																	106
Net realized gains (losses)																																	(267)
Equity in net income (loss) of investment funds accounted for using the equity method																																	58
Other income (loss)																																	(12)
Corporate expenses (2)																																	(28)
Transaction costs and other (2)																																	—
Amortization of intangible assets																																	(27)
Interest expense																																	(33)
Net foreign exchange gains (losses)																																	88
Income (loss) before income taxes and income (loss) from operating affiliates																																	421
Income tax (expense) benefit																																	(22)
Income (loss) from operating affiliates																																	5
Net income (loss)																																	404
Net (income) loss attributable to noncontrolling interests																																	—
Net income (loss) available to Arch																																	404
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	394
Underwriting Ratios
Loss ratio			57.1		%				57.9		%				(21.9)		%																47.4		%
Acquisition expense ratio			19.4		%				20.4		%				3.4		%																17.8		%
Other operating expense ratio			14.6		%				7.1		%				17.0		%																11.9		%
Combined ratio			91.1		%				85.4		%				(1.5)		%																77.1		%
Goodwill and intangible assets			$	237					$	166					$	465																	$	868

(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.’

			Six Months Ended
			June 30, 2023
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	3,934					$	5,004					$	690																	$	9,625
Premiums ceded			(1,043)						(1,569)						(164)																		(2,773)
Net premiums written			2,891						3,435						526																		6,852
Change in unearned premiums			(306)						(762)						64																		(1,004)
Net premiums earned			2,585						2,673						590																		5,848
Other underwriting income (loss)			—						7						9																		16
Losses and loss adjustment expenses			(1,464)						(1,509)						11																		(2,962)
Acquisition expenses			(509)						(571)						(14)																		(1,094)
Other operating expenses			(390)						(142)						(100)																		(632)
Underwriting income (loss)			$	222					$	458					$	496																	$	1,176
Net investment income																																	441
Net realized gains (losses)																																	(106)
Equity in net income (loss) of investment funds accounted for using the equity method																																	117
Other income (loss)																																	14
Corporate expenses (2)																																	(49)
Transaction costs and other (2)																																	(2)
Amortization of intangible assets																																	(47)
Interest expense																																	(65)
Net foreign exchange gains (losses)																																	(23)
Income (loss) before income taxes and income (loss) from operating affiliates																																	1,456
Income tax (expense) benefit																																	(131)
Income (loss) from operating affiliates																																	61
Net income (loss)																																	1,386
Net (income) loss attributable to noncontrolling interests																																	—
Net income (loss) available to Arch																																	1,386
Preferred dividends																																	(20)
Net income (loss) available to Arch common shareholders																																	$	1,366
Underwriting Ratios
Loss ratio			56.6		%				56.5		%				(1.9)		%																50.6		%
Acquisition expense ratio			19.7		%				21.3		%				2.4		%																18.7		%
Other operating expense ratio			15.1		%				5.3		%				17.0		%																10.8		%
Combined ratio			91.4		%				83.1		%				17.5		%																80.1		%

(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.’

			Six Months Ended
			June 30, 2022
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	3,425					$	3,512					$	737																	$	7,671
Premiums ceded			(990)						(1,210)						(155)																		(2,352)
Net premiums written			2,435						2,302						582																		5,319
Change in unearned premiums			(306)						(570)						4																		(872)
Net premiums earned			2,129						1,732						586																		4,447
Other underwriting income (loss)			—						6						3																		9
Losses and loss adjustment expenses			(1,231)						(992)						119																		(2,104)
Acquisition expenses			(410)						(361)						(20)																		(791)
Other operating expenses			(328)						(136)						(103)																		(567)
Underwriting income (loss)			$	160					$	249					$	585																	$	994
Net investment income																																	186
Net realized gains (losses)																																	(559)
Equity in net income (loss) of investment funds accounted for using the equity method																																	94
Other income (loss)																																	(21)
Corporate expenses (2)																																	(60)
Transaction costs and other (2)																																	—
Amortization of intangible assets																																	(54)
Interest expense																																	(66)
Net foreign exchange gains (losses)																																	92
Income (loss) before income taxes and income (loss) from operating affiliates																																	606
Income tax (expense) benefit																																	(34)
Income (loss) from operating affiliates																																	30
Net income (loss)																																	602
Net (income) loss attributable to noncontrolling interests																																	(2)
Net income (loss) available to Arch																																	600
Preferred dividends																																	(20)
Net income (loss) available to Arch common shareholders																																	$	580
Underwriting Ratios
Loss ratio			57.8		%				57.3		%				(20.4)		%																47.3		%
Acquisition expense ratio			19.2		%				20.9		%				3.5		%																17.8		%
Other operating expense ratio			15.4		%				7.8		%				17.7		%																12.8		%
Combined ratio			92.4		%				86.0		%				0.8		%																77.9		%

(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.’

X

- 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

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration