Arch Capital Group . Depositary Shares Each Representing 1/1000th Interest In A Share Of5.45% Non-cumulative Preferred Shares Series F Stock Earnings Reports

Arch delivered a solid 1Q26 driven by disciplined underwriting, strong reinsurance and mortgage performance, and active capital management. Key financials: after-tax operating income of $901 million ($2.50/share), book value per share +1.7% for the quarter, and $783 million of share repurchases in 1Q (plus an additional $311 million since quarter-end). Segment results: Insurance underwriting income of $66M (management prioritizing profitability over growth; certain program nonrenewals to reduce NPW by ~$250M in 2026), Reinsurance underwriting income of $441M with a 76% combined ratio (fourth consecutive quarter below 80%), and Mortgage underwriting income of $221M with continued strong credit quality (U.S. delinquencies normalized to ~2.06%). Investments contributed meaningfully (~$408M of investment income in the quarter) and the portfolio remains short-duration, high-quality. There was $200M of pretax favorable prior-year development across segments (notably influenced by a commutation), and current-quarter catastrophe and man-made losses (winter storms, Iran-related political/terror exposures) were manageable within expectations. Management emphasized its cycle-management approach: dynamically reducing exposure where returns fall below thresholds, selectively growing in casualty and specialty areas, cautious stance on competitive E&S property and certain large-account spaces, and ongoing investment in data/AI (notably used to accelerate a successful 18-month systems migration of a middle-market acquisition). Capital allocation priorities are to deploy into the business first and return excess capital via buybacks when organic opportunities don’t meet return thresholds; the Board increased the repurchase authorization by $3 billion. Overall message: Arch believes its underwriting discipline, analytics/AI investments, diversified platform, and flexible capital deployment position it to sustain attractive returns across the cycle.