Question · Q3 2025
Andrew E. Andersen asked about Arch Capital's expectations for 1/1 property cat renewals, specifically regarding whether returns of around 20% are still achievable and how ILS (Insurance-Linked Securities) might influence return levels and industry capital.
Answer
Nicolas Papadopoulo (CEO) expressed bullishness on the cat side, liking the margins. He noted that while the market peaked in July 2024 and saw 5-10% price decreases in 2025, rates had doubled from 2021-2024, leaving the company in a good position. He anticipates continued demand and attractive margins despite expected rate pressure.