XML 42 R30.htm IDEA: XBRL DOCUMENT v3.25.1

Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	2,645					$	3,494					$	326																	$	6,463
Premiums ceded (1)			(712)						(1,178)						(60)																		(1,948)
Net premiums written			1,933						2,316						266																		4,515
Change in unearned premiums			(73)						(288)						34																		(327)
Net premiums earned			1,860						2,028						300																		4,188
Other underwriting income (loss) (2)			3						39						11																		53
Losses and loss adjustment expenses			(1,228)						(1,356)						(3)																		(2,587)
Acquisition expenses			(343)						(417)						(4)																		(764)
Other operating expenses (3)			(294)						(127)						(52)																		(473)
Underwriting income (loss)			$	(2)					$	167					$	252																	417
Net investment income																																	378
Net realized gains (losses)																																	3
Equity in net income of investments accounted for using the equity method																																	53
Other income (loss)																																	(2)
Corporate expenses (4)																																	(50)
Transaction costs and other (4)																																	(10)
Amortization of intangible assets																																	(49)
Interest expense																																	(35)
Net foreign exchange gains (losses)																																	(27)
Income (loss) before income taxes and income (loss) from operating affiliates																																	678
Income tax (expense) benefit																																	(121)
Income (loss) from operating affiliates																																	17
Net income (loss) available to Arch																																	574
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	564
Underwriting Ratios
Loss ratio			66.0		%				66.9		%				1.1		%																61.8		%
Acquisition expense ratio			18.5		%				20.6		%				1.3		%																18.3		%
Other operating expense ratio (5)			15.6		%				4.3		%				13.7		%																10.0		%
Combined ratio			100.1		%				91.8		%				16.1		%																90.1		%
Goodwill and intangible assets			$	878					$	102					$	328																	$	1,308

(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 underwriting income (loss)’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)    ‘Other operating expenses’ primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.

(4)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’

(5)    The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income (loss).’

			Three Months Ended
			March 31, 2024
			Insurance						Reinsurance						Mortgage																		Total
Gross premiums written (1)			$	2,126					$	3,467					$	341																	$	5,933
Premiums ceded (1)			(584)						(1,201)						(64)																		(1,848)
Net premiums written			1,542						2,266						277																		4,085
Change in unearned premiums			(91)						(600)						28																		(663)
Net premiums earned			1,451						1,666						305																		3,422
Other underwriting income (loss)			—						2						10																		12
Losses and loss adjustment expenses			(854)						(883)						9																		(1,728)
Acquisition expenses			(276)						(331)						—																		(607)
Other operating expenses (2)			(235)						(75)						(53)																		(363)
Underwriting income (loss)			$	86					$	379					$	271																	736
Net investment income																																	327
Net realized gains (losses)																																	67
Equity in net income of investments accounted for using the equity method																																	99
Other income (loss)																																	14
Corporate expenses (3)																																	(46)
Transaction costs and other (3)																																	(7)
Amortization of intangible assets																																	(21)
Interest expense																																	(34)
Net foreign exchange gains (losses)																																	31
Income (loss) before income taxes and income (loss) from operating affiliates																																	1,166
Income tax (expense) benefit																																	(101)
Income (loss) from operating affiliates																																	55
Net income (loss) available to Arch																																	1,120
Preferred dividends																																	(10)
Net income (loss) available to Arch common shareholders																																	$	1,110
Underwriting Ratios
Loss ratio			58.9		%				53.0		%				(3.0)		%																50.5		%
Acquisition expense ratio			19.0		%				19.9		%				—		%																17.7		%
Other operating expense ratio			16.2		%				4.5		%				17.5		%																10.6		%
Combined ratio			94.1		%				77.4		%				14.5		%																78.8		%
Goodwill and intangible assets			$	293					$	121					$	364																	$	778

(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.

(3)    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

+ 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