Non-renewals and cat losses impact Arch’s Q3 reinsurance result

Arch Capital’s third-quarter reinsurance performance weakened as non-renewals and catastrophe losses weighed on premium growth and underwriting margins, despite growth in its insurance segment.

Reinsurance GWP came in at $2.3 billion from $2.5 billion in 2025 with the combined ratio at 78.3% from 76.1% a year earlier.

Arch’s insurance segment saw growth in GWP of 7.8% to $2.8 billion for the quarter against $2.6 billion the year prior.

A 5.7-point increase in the loss ratio attributed to the Middle East conflict added a point to the insurance segment combined ratio year-on-year to 94.4% from 93.4%.

Total Q3 GWP for the group was marginally down to $5.39 billion from $5.41 billion in 2025 and margins deteriorated by 2.7 points in the combined ratio to 82.5% from 79.8% the year prior.

Global interest rate and bond yield pressure had a negative impact on investment income, reducing net income for the third quarter by 23% to $1 billion from $1.3 billion in 2025.

Arch CEO Nicolas Papadopoulo said: “We delivered a strong quarter, driven by solid underwriting performance across our three segments and continued strength from our investment portfolio. We are operating in a transitioning market where conditions are increasingly uneven, but we are prepared and welcome the challenge.

“The market will continue to evolve, but our core principles will not, and we remain focused on producing superior risk-adjusted returns over the long term. As Arch celebrates its first 25 years, I want to thank our employees for what we have built together: a global franchise, a strong brand and a culture anchored in our values.”

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