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Segment Information (Tables)

9 Months Ended

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.’

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 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

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- References

No definition available.

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