Arch Capital (ACGL) Q4 2025 Earnings Transcript

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Tue, February 10, 2026 astatine 10:36 AM CST 45 min read

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Tuesday, February 10, 2026 astatine 10 a.m. ET

• President and Chief Underwriting Officer — Nicolas Papadopoulo

• Executive Vice President, Chief Financial Officer, and Treasurer — François Morin

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Nicolas Papadopoulo: Good morning, and invited to our 4th fourth net call. We concluded different exceptional twelvemonth by generating $1.1 cardinal of after-tax operating income successful the 4th quarter, up 26% from the aforesaid play successful 2024. Our quarterly consolidated combined ratio of 80.6% reflects fantabulous underwriting results crossed the group. For the afloat year, we produced $3.7 cardinal of after-tax operating income, a caller high, resulting successful after-tax operating net per stock of $9.84 and a 17.1% annualized operating instrumentality connected mean communal equity for 2025. Continued beardown operating currency flows and superior procreation enabled the repurchase of $1.9 cardinal of Arch communal banal successful 2025.

We powerfully judge our banal is simply a bully semipermanent concern and stock buybacks correspond an businesslike mode to instrumentality excess superior to our shareholders for the time. Since our inception, Arch's committedness to maximize semipermanent shareholder worth has been unwavering. In 2025, publication worth per share, our preferred measurement of worth creation, accrued by 22.6%. Since our commencement successful 2001, publication worth per stock has grown astatine a compound yearly maturation complaint successful excess of 15%, placing america astatine the apical of our adjacent group. We stay assured successful our quality to present beardown returns passim the underwriting rhythm and to physique connected a bequest of disciplined execution and accordant results. We caput into 2026 with measured optimism.

We are starting from a presumption of strength, but admit that contention is expanding successful respective lines of business. In an evolving market, the location playbook, which has served america good implicit the years, is simply a differentiator that remains arsenic valid and effectual arsenic ever. Our playbook is anchored by an underwriting civilization defined by heavy expertise and disciplined hazard selection. Combined with a diversified concern model, a proven grounds of best-in-class rhythm management, and the strengths of the Arch brand, we are well-positioned to consistently present superior results for our shareholders. I volition present supply updates connected our reporting segments. I'll statesman with our security group, which delivered $119 cardinal of underwriting income successful the 4th quarter.

Underwriting show was solid, with an underlying ex-cat combined ratio of 90.8% successful the quarter, akin to the 4th fourth past year. Gross premium instrumentality accrued 2% from 2024. In North America, we proceed to turn successful specialty casualty lines including alternate markets, construction, and E&S casualty. As for our planetary units, we accrued writings done our Bermuda level and successful Continental Europe. I volition enactment that we experienced a year-over-year diminution successful nett premium instrumentality which François volition explicate successful his remarks.