Arch reports $1bn Q1 net income as profits nearly double year-on-year

Arch reported net income of $1.04bn for Q1 2026, nearly doubling year-on-year, as improved underwriting performance and lower catastrophe losses offset broadly stable gross written premiums.

Gross written premiums held steady at $6.42 billion in Q1, 2026 compared to $6.46 million in the same quarter year prior. 

The combined ratio made an 8.4-point improvement, landing on 81.7%, improved from 90.1% in the first quarter of 2025. Considering the benign start to the year, particularly compared to 2025, which saw wildfire rip through results, the combined ratio, excluding catastrophic activity and prior-year development, changed little, landing at 82.3% in Q1, 2026 compared to 81.0% in Q1, 2025.

Net income almost doubled, totalling $1.037 billion at the end of the first quarter 2026 compared to $564 million in the same period year prior. 

In the insurance segment, gross premiums written in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, net premiums written were 1.4% lower than in the 2025 first quarter, and the underwriting combined ratio landed at 96.5%, a 3.6-point improvement.

Arch acknowledged that: “The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires”

In the reinsurance segment, gross premiums written in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, net premiums written were 6.0% lower, and the reinsurance combined ratio made a 15.9 ppts improvement to finish up on 75.9%. 

The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, which Arch attributes primarily to California wildfires.

Nicolas Papadopoulo (pictured), Arch CEO, said: “We started the year on an excellent note, delivering an annualised operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation. Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”

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