XML 43 R30.htm IDEA: XBRL DOCUMENT
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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2024
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
| September 30, 2024
| Insurance |  | Reinsurance |  | Mortgage |  |  |  |  |  | Total
Gross premiums written (1) | $ | 2,341 |  |  | $ | 2,763 |  |  | $ | 339 |  |  |  |  |  |  | $ | 5,440 |
Premiums ceded (1) | (521) |  |  | (818) |  |  | (57) |  |  |  |  |  |  | (1,393) |
Net premiums written | 1,820 |  |  | 1,945 |  |  | 282 |  |  |  |  |  |  | 4,047 |
Change in unearned premiums | (55) |  |  | (53) |  |  | 31 |  |  |  |  |  |  | (77) |
Net premiums earned | 1,765 |  |  | 1,892 |  |  | 313 |  |  |  |  |  |  | 3,970 |
Other underwriting income (loss) | — |  |  | 2 |  |  | 3 |  |  |  |  |  |  | 5 |
Losses and loss adjustment expenses | (1,087) |  |  | (1,317) |  |  | 1 |  |  |  |  |  |  | (2,403) |
Acquisition expenses | (308) |  |  | (374) |  |  | 1 |  |  |  |  |  |  | (681) |
Other operating expenses | (250) |  |  | (54) |  |  | (49) |  |  |  |  |  |  | (353) |
Underwriting income (loss) | $ | 120 |  |  | $ | 149 |  |  | $ | 269 |  |  |  |  |  |  | 538 |
Net investment income |  |  |  |  |  |  |  |  |  |  | 399 |
Net realized gains (losses) |  |  |  |  |  |  |  |  |  |  | 169 |
Equity in net income (loss) of investment funds accounted for using the equity method |  |  |  |  |  |  |  |  |  |  | 171 |
Other income (loss) |  |  |  |  |  |  |  |  |  |  | 8 |
Corporate expenses (2) |  |  |  |  |  |  |  |  |  |  | (19) |
Transaction costs and other (2) |  |  |  |  |  |  |  |  |  |  | (30) |
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (88) |
Interest expense |  |  |  |  |  |  |  |  |  |  | (35) |
Net foreign exchange gains (losses) |  |  |  |  |  |  |  |  |  |  | (63) |
Income (loss) before income taxes and income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 1,050 |
Income tax (expense) benefit |  |  |  |  |  |  |  |  |  |  | (98) |
Income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 36 |
Net income (loss) available to Arch |  |  |  |  |  |  |  |  |  |  | 988 |
Preferred dividends |  |  |  |  |  |  |  |  |  |  | (10) |
Net income (loss) available to Arch common shareholders |  |  |  |  |  |  |  |  |  |  | $ | 978 |
Underwriting Ratios |  |  |  |  |  |  |  |  |  |  |
Loss ratio | 61.6 | % |  | 69.6 | % |  | (0.4) | % |  |  |  |  |  | 60.5 | %
Acquisition expense ratio | 17.4 | % |  | 19.8 | % |  | (0.4) | % |  |  |  |  |  | 17.2 | %
Other operating expense ratio | 14.1 | % |  | 2.9 | % |  | 15.6 | % |  |  |  |  |  | 8.9 | %
Combined ratio | 93.1 | % |  | 92.3 | % |  | 14.8 | % |  |  |  |  |  | 86.6 | %
Goodwill and intangible assets | $ | 1,025 |  |  | $ | 113 |  |  | $ | 348 |  |  |  |  |  |  | $ | 1,486 |
(1) Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations. (2) Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘transaction costs and other.’
| Three Months Ended
| September 30, 2023
| Insurance |  | Reinsurance |  | Mortgage |  |  |  |  |  | Total
Gross premiums written (1) | $ | 2,043 |  |  | $ | 2,138 |  |  | $ | 347 |  |  |  |  |  |  | $ | 4,527 |
Premiums ceded (1) | (521) |  |  | (576) |  |  | (76) |  |  |  |  |  |  | (1,172) |
Net premiums written | 1,522 |  |  | 1,562 |  |  | 271 |  |  |  |  |  |  | 3,355 |
Change in unearned premiums | (110) |  |  | (19) |  |  | 22 |  |  |  |  |  |  | (107) |
Net premiums earned | 1,412 |  |  | 1,543 |  |  | 293 |  |  |  |  |  |  | 3,248 |
Other underwriting income (loss) | — |  |  | 2 |  |  | 3 |  |  |  |  |  |  | 5 |
Losses and loss adjustment expenses | (812) |  |  | (870) |  |  | 35 |  |  |  |  |  |  | (1,647) |
Acquisition expenses | (269) |  |  | (304) |  |  | (2) |  |  |  |  |  |  | (575) |
Other operating expenses | (202) |  |  | (61) |  |  | (47) |  |  |  |  |  |  | (310) |
Underwriting income (loss) | $ | 129 |  |  | $ | 310 |  |  | $ | 282 |  |  |  |  |  |  | 721 |
Net investment income |  |  |  |  |  |  |  |  |  |  | 269 |
Net realized gains (losses) |  |  |  |  |  |  |  |  |  |  | (248) |
Equity in net income (loss) of investment funds accounted for using the equity method |  |  |  |  |  |  |  |  |  |  | 59 |
Other income (loss) |  |  |  |  |  |  |  |  |  |  | (4) |
Corporate expenses (2) |  |  |  |  |  |  |  |  |  |  | (20) |
Transaction costs and other (2) |  |  |  |  |  |  |  |  |  |  | — |
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (24) |
Interest expense |  |  |  |  |  |  |  |  |  |  | (34) |
Net foreign exchange gains (losses) |  |  |  |  |  |  |  |  |  |  | 22 |
Income (loss) before income taxes and income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 741 |
Income tax (expense) benefit |  |  |  |  |  |  |  |  |  |  | (72) |
Income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 54 |
Net income (loss) available to Arch |  |  |  |  |  |  |  |  |  |  | 723 |
Preferred dividends |  |  |  |  |  |  |  |  |  |  | (10) |
Net income (loss) available to Arch common shareholders |  |  |  |  |  |  |  |  |  |  | $ | 713 |
Underwriting Ratios |  |  |  |  |  |  |  |  |  |  |
Loss ratio | 57.5 | % |  | 56.4 | % |  | (12.1) | % |  |  |  |  |  | 50.7 | %
Acquisition expense ratio | 19.1 | % |  | 19.7 | % |  | 0.6 | % |  |  |  |  |  | 17.7 | %
Other operating expense ratio | 14.3 | % |  | 3.9 | % |  | 16.2 | % |  |  |  |  |  | 9.5 | %
Combined ratio | 90.9 | % |  | 80.0 | % |  | 4.7 | % |  |  |  |  |  | 77.9 | %
Goodwill and intangible assets | $ | 220 |  |  | $ | 132 |  |  | $ | 387 |  |  |  |  |  |  | $ | 739 |
(1) Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations. (2) Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘transaction costs and other.’
| Nine Months Ended
| September 30, 2024
| Insurance |  | Reinsurance |  | Mortgage |  |  |  |  |  | Total
Gross premiums written (1) | $ | 6,569 |  |  | $ | 9,171 |  |  | $ | 1,020 |  |  |  |  |  |  | $ | 16,755 |
Premiums ceded (1) | (1,649) |  |  | (3,013) |  |  | (185) |  |  |  |  |  |  | (4,842) |
Net premiums written | 4,920 |  |  | 6,158 |  |  | 835 |  |  |  |  |  |  | 11,913 |
Change in unearned premiums | (226) |  |  | (820) |  |  | 90 |  |  |  |  |  |  | (956) |
Net premiums earned | 4,694 |  |  | 5,338 |  |  | 925 |  |  |  |  |  |  | 10,957 |
Other underwriting income (loss) | — |  |  | 5 |  |  | 15 |  |  |  |  |  |  | 20 |
Losses and loss adjustment expenses | (2,789) |  |  | (3,206) |  |  | 37 |  |  |  |  |  |  | (5,958) |
Acquisition expenses | (872) |  |  | (1,050) |  |  | 1 |  |  |  |  |  |  | (1,921) |
Other operating expenses | (718) |  |  | (193) |  |  | (151) |  |  |  |  |  |  | (1,062) |
Underwriting income (loss) | $ | 315 |  |  | $ | 894 |  |  | $ | 827 |  |  |  |  |  |  | 2,036 |
Net investment income |  |  |  |  |  |  |  |  |  |  | 1,090 |
Net realized gains (losses) |  |  |  |  |  |  |  |  |  |  | 358 |
Equity in net income (loss) of investment funds accounted for using the equity method |  |  |  |  |  |  |  |  |  |  | 437 |
Other income (loss) |  |  |  |  |  |  |  |  |  |  | 30 |
Corporate expenses (2) |  |  |  |  |  |  |  |  |  |  | (88) |
Transaction costs and other (2) |  |  |  |  |  |  |  |  |  |  | (55) |
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (136) |
Interest expense |  |  |  |  |  |  |  |  |  |  | (104) |
Net foreign exchange gains (losses) |  |  |  |  |  |  |  |  |  |  | (31) |
Income (loss) before income taxes and income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 3,537 |
Income tax (expense) benefit |  |  |  |  |  |  |  |  |  |  | (296) |
Income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 136 |
Net income (loss) available to Arch |  |  |  |  |  |  |  |  |  |  | 3,377 |
Preferred dividends |  |  |  |  |  |  |  |  |  |  | (30) |
Net income (loss) available to Arch common shareholders |  |  |  |  |  |  |  |  |  |  | $ | 3,347 |
Underwriting Ratios |  |  |  |  |  |  |  |  |  |  |
Loss ratio | 59.4 | % |  | 60.1 | % |  | (4.0) | % |  |  |  |  |  | 54.4 | %
Acquisition expense ratio | 18.6 | % |  | 19.7 | % |  | (0.1) | % |  |  |  |  |  | 17.5 | %
Other operating expense ratio | 15.3 | % |  | 3.6 | % |  | 16.3 | % |  |  |  |  |  | 9.7 | %
Combined ratio | 93.3 | % |  | 83.4 | % |  | 12.2 | % |  |  |  |  |  | 81.6 | %
(1) Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations. (2) Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘transaction costs and other.’
| Nine Months Ended
| September 30, 2023
| Insurance |  | Reinsurance |  | Mortgage |  |  |  |  |  | Total
Gross premiums written (1) | $ | 5,977 |  |  | $ | 7,142 |  |  | $ | 1,037 |  |  |  |  |  |  | $ | 14,152 |
Premiums ceded (1) | (1,564) |  |  | (2,145) |  |  | (240) |  |  |  |  |  |  | (3,945) |
Net premiums written | 4,413 |  |  | 4,997 |  |  | 797 |  |  |  |  |  |  | 10,207 |
Change in unearned premiums | (416) |  |  | (781) |  |  | 86 |  |  |  |  |  |  | (1,111) |
Net premiums earned | 3,997 |  |  | 4,216 |  |  | 883 |  |  |  |  |  |  | 9,096 |
Other underwriting income (loss) | — |  |  | 9 |  |  | 12 |  |  |  |  |  |  | 21 |
Losses and loss adjustment expenses | (2,276) |  |  | (2,379) |  |  | 46 |  |  |  |  |  |  | (4,609) |
Acquisition expenses | (778) |  |  | (875) |  |  | (16) |  |  |  |  |  |  | (1,669) |
Other operating expenses | (592) |  |  | (203) |  |  | (147) |  |  |  |  |  |  | (942) |
Underwriting income (loss) | $ | 351 |  |  | $ | 768 |  |  | $ | 778 |  |  |  |  |  |  | 1,897 |
Net investment income |  |  |  |  |  |  |  |  |  |  | 710 |
Net realized gains (losses) |  |  |  |  |  |  |  |  |  |  | (354) |
Equity in net income (loss) of investment funds accounted for using the equity method |  |  |  |  |  |  |  |  |  |  | 176 |
Other income (loss) |  |  |  |  |  |  |  |  |  |  | 10 |
Corporate expenses (2) |  |  |  |  |  |  |  |  |  |  | (69) |
Transaction costs and other (2) |  |  |  |  |  |  |  |  |  |  | (2) |
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (71) |
Interest expense |  |  |  |  |  |  |  |  |  |  | (99) |
Net foreign exchange gains (losses) |  |  |  |  |  |  |  |  |  |  | (1) |
Income (loss) before income taxes and income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 2,197 |
Income tax (expense) benefit |  |  |  |  |  |  |  |  |  |  | (203) |
Income (loss) from operating affiliates |  |  |  |  |  |  |  |  |  |  | 115 |
Net income (loss) available to Arch |  |  |  |  |  |  |  |  |  |  | 2,109 |
Preferred dividends |  |  |  |  |  |  |  |  |  |  | (30) |
Net income (loss) available to Arch common shareholders |  |  |  |  |  |  |  |  |  |  | $ | 2,079 |
Underwriting Ratios |  |  |  |  |  |  |  |  |  |  |
Loss ratio | 57.0 | % |  | 56.4 | % |  | (5.3) | % |  |  |  |  |  | 50.7 | %
Acquisition expense ratio | 19.5 | % |  | 20.7 | % |  | 1.8 | % |  |  |  |  |  | 18.3 | %
Other operating expense ratio | 14.8 | % |  | 4.8 | % |  | 16.7 | % |  |  |  |  |  | 10.4 | %
Combined ratio | 91.3 | % |  | 81.9 | % |  | 13.2 | % |  |  |  |  |  | 79.4 | %
(1) Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations. (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 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: 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 3: 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
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