Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Registrant

SCHEDULE II

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(U.S. dollars in millions)

Balance Sheet

(Parent Company Only)


	December 31,
	2025		2024
Assets
Total investments	$	40	$	43
Cash	13		13
Investments in subsidiaries	25,275		22,035
Investment in operating affiliates	3		3
Due from subsidiaries and affiliates	16		6






Other assets	194		66
Total assets	$	25,541	$	22,166

Liabilities
Senior notes	$	1,288	$	1,287
Due to subsidiaries and affiliates	6		11
Other liabilities	41		48
Total liabilities	1,335		1,346



Shareholders' Equity
Non-cumulative preferred shares	830		830

Common shares ($0.0011 par, shares issued: 599.8 and 595.6)	1		1
Additional paid-in capital	2,735		2,510
Retained earnings	27,045		22,686
Accumulated other comprehensive income (loss), net of deferred income tax	5		(720)
Common shares held in treasury, at cost (shares: 240.8 and 219.2)	(6,410)		(4,487)
Total shareholders' equity	$	24,206	$	20,820
Total liabilities and shareholders' equity	$	25,541	$	22,166

The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

Statement of Income

(Parent Company Only)


	Year Ended
	December 31,
	2025		2024		2023

Revenues
Net investment income	$	3	$	5	$	2
Net realized gains (losses)	(10)		(4)		—
Total revenues	(7)		1		2

Expenses



Corporate expenses	57		116		93

Interest expense	59		59		59

Total expenses	116		175		152

Income (loss) before income taxes and income (loss) from operating affiliates	(123)		(174)		(150)

Income tax (expense) benefit	58		—		41
Income (loss) from operating affiliates	(1)		(1)		(1)
Income (loss) before equity in net income of subsidiaries	(66)		(175)		(110)
Equity in net income of subsidiaries	4,465		4,487		4,553


Net income available to Arch	4,399		4,312		4,443
Preferred dividends	(40)		(40)		(40)

Net income available to Arch common shareholders	$	4,359	$	4,272	$	4,403

The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

Statement of Cash Flows

(Parent Company Only)


	Year Ended
	December 31,
	2025		2024		2023

Operating Activities:








Net Cash Provided By Operating Activities	$	1,873	$	2,398	$	46

Investing Activities:
Net (purchases) sales of short-term investments	3		(26)		(8)

Acquisitions, net of cash	—		(450)		—
Other	10		5		1
Net Cash Used For Investing Activities	13		(471)		(7)

Financing Activities:
Purchases of common shares under share repurchase program	(1,889)		(24)		—
Proceeds from common shares issued, net	50		7		(2)





Common dividends paid	(7)		(1,866)		—
Preferred dividends paid	(40)		(40)		(40)
Net Cash Used For Financing Activities	(1,886)		(1,923)		(42)

Increase (decrease) in cash and restricted cash	—		4		(3)
Cash and restricted cash, beginning of year	13		9		12
Cash and restricted cash, end of period	$	13	$	13	$	9

The financial information for the parent company (Arch Capital Group Ltd.) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.