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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
The Company classifies its businesses into three segments – insurance, reinsurance and mortgage. The Company determined its segments using the management approach described in accounting guidance regarding disclosures about segments of an enterprise and related information. The accounting policies of the segments are the same as those used for the preparation of the Company’s consolidated financial statements. Intersegment business is allocated to the segment accountable for the underwriting results.
The Company’s insurance, reinsurance and mortgage segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company’s CODMs, the Chief Executive Officer of Arch Capital and the Chief Financial Officer and Treasurer of Arch Capital. The CODMs do not assess performance, measure return on equity or make resource allocation decisions on a line of business basis. Management measures segment performance for its three segments based on underwriting income or loss. The Company does not manage its assets by segment, with the exception of goodwill and intangible assets, and, accordingly, investment income is not allocated to each underwriting segment.
The Company’s insurance segment primarily consists of commercial insurance lines of business, with a focus on specialty insurance products. These products are mainly offered in North America, Bermuda, the United Kingdom, continental Europe and Australia. Products offered in North America include: commercial automobile; commercial multiperil; other liability—claims made, which includes financial and professional lines; other liability—occurrence, which includes admitted and excess and surplus casualty lines; property and short-tail specialty; workers compensation; and other. Products offered across the Company’s International units include: property and short-tail specialty; and casualty and other.
The Company’s reinsurance segment offers reinsurance products on a worldwide basis. Product lines of business include: casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe; and other.
The Company’s mortgage segment consists of U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), each a government sponsored entity (“GSE”) and also through non GSE approved entities (combined “Arch MI U.S.”); reinsurance and underwriting services related to U.S. credit-risk transfer (“CRT”) business which are predominately with the GSEs and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans primarily in Australia and Europe.
The Company’s results also include net investment income, net realized gains or losses (which includes realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investment funds accounted for using the equity method, other income (loss), corporate expenses, transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

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, summary information regarding net premiums written and earned by major line of business and net premiums written by location:
Year Ended December 31, 2024
InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$9,053 $11,112 $1,351 $21,511 
Premiums ceded (1)(2,179)(3,366)(239)(5,779)
Net premiums written6,874 7,746 1,112 15,732 
Change in unearned premiums(247)(504)119 (632)
Net premiums earned6,627 7,242 1,231 15,100 
Other underwriting income— 9 17 26 
Losses and loss adjustment expenses(4,070)(4,327)55 (8,342)
Acquisition expenses(1,217)(1,432)(2)(2,651)
Other operating expenses (2)(995)(270)(207)(1,472)
Underwriting income$345 $1,222 $1,094 2,661 
Net investment income1,495 
Net realized gains (losses)197 
Equity in net income (loss) of investments accounted for using the equity method580 
Other income (loss)42 
Corporate expenses (119)
Transaction costs and other(81)
Amortization of intangible assets(235)
Interest expense(141)
Net foreign exchange gains (losses)75 
Income (loss) before income taxes and income (loss) from operating affiliates4,474 
Income tax (expense) benefit(362)
Income (loss) from operating affiliates200 
Net income (loss) available to Arch4,312 
Preferred dividends(40)
Net income (loss) available to Arch common shareholders$4,272 
Underwriting Ratios
Loss ratio61.4 %59.7 %-4.4 %55.2 %
Acquisition expense ratio18.4 %19.8 %0.2 %17.6 %
Other operating expense ratio15.0 %3.7 %16.8 %9.7 %
Combined ratio94.8 %83.2 %12.6 %82.5 %
Goodwill and intangible assets$916 $102 $333 $1,351 
Total investable assets$41,388 
Total assets70,906 
Total liabilities50,086 
(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)    Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
Year Ended December 31, 2023
InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$7,911 $9,113 $1,387 $18,403 
Premiums ceded (1)(2,049)(2,559)(335)(4,935)
Net premiums written5,862 6,554 1,052 13,468 
Change in unearned premiums(416)(718)106 (1,028)
Net premiums earned5,446 5,836 1,158 12,440 
Other underwriting income— 17 14 31 
Losses and loss adjustment expenses(3,122)(3,227)103 (6,246)
Acquisition expenses, net(1,055)(1,240)(17)(2,312)
Other operating expenses (2)(819)(288)(194)(1,301)
Underwriting income (loss)$450 $1,098 $1,064 2,612 
Net investment income1,023 
Net realized gains (losses)(165)
Equity in net income (loss) of investments accounted for using the equity method278 
Other income (loss)27 
Corporate expenses(96)
Transaction costs and other(6)
Amortization of intangible assets(95)
Interest expense(133)
Net foreign exchange gains (losses)(60)
Income (loss) before income taxes and income (loss) from operating affiliates3,385 
Income tax (expense) benefit873 
Income (loss) from operating affiliates184 
Net income (loss)4,442 
Amounts attributable to redeemable noncontrolling interests1 
Net income (loss) available to Arch4,443 
Preferred dividends(40)
Net income (loss) available to Arch common shareholders$4,403 
Underwriting Ratios
Loss ratio57.3 %55.3 %-8.9 %50.2 %
Acquisition expense ratio19.4 %21.2 %1.4 %18.6 %
Other operating expense ratio15.0 %4.9 %16.8 %10.5 %
Combined ratio91.7 %81.4 %9.3 %79.3 %
Goodwill and intangible assets$224 $130 $377 $731 
Total investable assets$34,589 
Total assets58,906 
Total liabilities40,551 
(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)    Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
Year Ended December 31, 2022
InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$6,931 $6,948 $1,455 $15,327 
Premiums ceded (1)(1,910)(2,024)(322)(4,249)
Net premiums written5,021 4,924 1,133 11,078 
Change in unearned premiums(461)(965)27 (1,399)
Net premiums earned4,560 3,959 1,160 9,679 
Other underwriting income— 5 8 13 
Losses and loss adjustment expenses(2,784)(2,568)324 (5,028)
Acquisition expenses, net(887)(813)(40)(1,740)
Other operating expenses (2)(665)(268)(195)(1,128)
Underwriting income (loss)$224 $315 $1,257 1,796 
Net investment income496 
Net realized gains (losses)(663)
Equity in net income (loss) of investments accounted for using the equity method115 
Other income (loss)(27)
Corporate expenses(95)
Transaction costs and other— 
Amortization of intangible assets(106)
Interest expense(131)
Net foreign exchange gains (losses)102 
Income (loss) before income taxes and income (loss) from operating affiliates1,487 
Income tax (expense) benefit(80)
Income (loss) from operating affiliates75 
Net income1,482 
Amounts attributable to redeemable noncontrolling interests(6)
Net income (loss) available to Arch1,476 
Preferred dividends(40)
Net income (loss) available to Arch common shareholders$1,436 
Underwriting Ratios
Loss ratio61.0 %64.9 %-28.0 %51.9 %
Acquisition expense ratio19.4 %20.5 %3.5 %18.0 %
Other operating expense ratio14.6 %6.8 %16.8 %11.7 %
Combined ratio95.0 %92.2 %-7.7 %81.6 %
Goodwill and intangible assets$229 $145 $430 $804 
Total investable assets$28,065 
Total assets47,990 
Total liabilities35,069 
(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)    Other operating expenses primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
The following tables provide summary information regarding net premiums earned by major line of business and net premiums written by underwriting location:
INSURANCE SEGMENTYear Ended December 31,
202420232022
Net premiums earned
North America
Property and short-tail specialty$1,165 $976 $746 
Other liability - occurrence942618509
Other liability - claims made843866874
Workers compensation549495415
Commercial automobile459343287
Commercial multi-peril435193197
Other309290255
Total North America4,7023,7813,283
International
Property and short-tail specialty$1,050 $885 $613 
Casualty and other875780664
Total International 1,9251,6651,277
Total$6,627 $5,446 $4,560 
Net premiums written by underwriting location
North America$4,869 $3,995 $3,527 
International2,0051,8671,494 
Total$6,874 $5,862 $5,021 
REINSURANCE SEGMENTYear Ended December 31,
202420232022
Net premiums earned
Other specialty$2,619 $2,097 $1,378 
Property excluding property catastrophe2,1481,6451,090
Casualty1,0881,005855
Property catastrophe959742367
Marine and aviation276229159
Other152118110
Total$7,242 $5,836 $3,959 
Net premiums written by underwriting location
Bermuda$3,425 $3,288 $2,561 
United States2,1351,7561,247 
Europe and other2,1861,5101,116 
Total$7,746 $6,554 $4,924 
MORTGAGE SEGMENTYear Ended December 31,
202420232022
Net premiums earned
U.S. primary mortgage insurance$845 $759 $804 
U.S. credit risk transfer (CRT) and other213220196
International mortgage insurance/reinsurance173179160
Total$1,231 $1,158 $1,160 
Net premiums written by underwriting location
United States$823 $743 $781 
Other289 309 352 
Total$1,112 $1,052 $1,133