Fixed maturities available for sale, at fair value (USD, millions)

Short-term investments available for sale, at fair value (USD, millions)

Equity securities, at fair value (USD, millions)

Other investments, at fair value (USD, millions)

Investments accounted for using the equity method (USD, millions)

Total investments (USD, millions)

Cash (USD, millions)

Accrued investment income (USD, millions)

Investment in operating affiliates (USD, millions)

Premiums receivable (net) (USD, millions)

Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses (net) (USD, millions)

Contractholder receivables (net) (USD, millions)

Ceded unearned premiums (USD, millions)

Deferred acquisition costs (USD, millions)

Receivable for securities sold (USD, millions)

Goodwill and intangible assets (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Reserve for losses and loss adjustment expenses (USD, millions)

Unearned premiums (USD, millions)

Reinsurance balances payable (USD, millions)

Contractholder payables (USD, millions)

Collateral held for insured obligations (USD, millions)

Senior notes (USD, millions)

Payable for securities purchased (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Redeemable noncontrolling interests (USD, millions)

Non-cumulative preferred shares (USD, millions)

Common shares (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (loss), net of deferred income tax (USD, millions)

Common shares held in treasury, at cost (USD, millions)

Total shareholders' equity available to Arch (USD, millions)

Total liabilities, noncontrolling interests and shareholders' equity (USD, millions)

07b32bbd981c987d06e0e589b20892eefe1c148ae399ca17423269f6828e4baf

Insurance

- United States

- Europe

- Asia and Pacific

- Other

- North America

- International

- Total Insurance

Reinsurance

- Bermuda

- Europe and Other

- Total Reinsurance

Mortgage

- Total Mortgage

Other Segment

- Total Other Segment

Total Net Premiums Written

4ebe6528a55c155d96df67c2154538229dc326a2dd9235ae451e4a8e6c3c1511

514b923dc828948bd0ac5909052a38d5746cc3abae3d9d7bf41d1d02ca8c8206

4f1238591832bea20bce6c3628ba1e517a1b9bfe8778518aaac4654d1b57e89e

42b3089f9819f36ed1b202f4f66a1d536269d189bc33f1fdce33333442551d71

53f5f8f02c00b4c3bac99e0b5834333561094b3e525eb6fcca901d66e1448947

Net Premiums Earned (USD, millions)

Net Investment Income (USD, millions)

Net Realized Gains (Losses) (USD, millions)

Other Underwriting Income (USD, millions)

Equity in Net Income (Loss) of Investment Funds Accounted for Using the Equity Method (USD, millions)

Other Income (Loss) (USD, millions)

Total Revenues (USD, millions)

Losses and Loss Adjustment Expenses (USD, millions)

Acquisition Expenses (USD, millions)

Other Operating Expenses (USD, millions)

Corporate Expenses (USD, millions)

Amortization of Intangible Assets (USD, millions)

Interest Expense (USD, millions)

Net Foreign Exchange (Gains) Losses (USD, millions)

Total Expenses (USD, millions)

Income (Loss) Before Income Taxes and Income (Loss) from Operating Affiliates (USD, millions)

Income Tax (Expense) Benefit (USD, millions)

Income (Loss) from Operating Affiliates (USD, millions)

Net Income (Loss) Available to Arch (USD, millions)

Preferred Dividends (USD, millions)

Net Income (Loss) Available to Arch Common Shareholders (USD, millions)

2a24cc3dd2b6e878b6d7829f20d1a06d63289b93f922827c468205c9073154dd

The documents indicate that the sharp drop in **short-term investments available for sale, at fair value** between Q3 2022 and Q4 2022 was not attributed to one specific factor. However, potential contributing factors could include **asset reallocation**, **maturities or sales of investments**, and **changes in market conditions** that impacted their fair value.  **[0000947484-23-000005_ex-992supplement123122.htm:6]** 

What factors contributed to the sharp drop in Short-term investments in Q4 2022?

The significant increase in **Premiums receivable (net)** in Q1 2023 was primarily driven by the marked growth in **net premiums written** and the timing of premium collections. Specifically, the **Reinsurance segment** experienced a **51.5% increase** in net premiums written, and the **Insurance segment** saw a **19.1% increase** compared to Q1 2022. Combined, these factors led to an increase of **$888 million** in premiums receivable from Q4 2022 to Q1 2023, highlighting the impact of both higher written premiums and the collection timing on the receivables.  **[0000947484-23-000052_ex-992supplement33123.htm:4]** **[0000947484-23-000052_ex-991release33123.htm:4]** **[0000947484-23-000052_ex-992supplement33123.htm:11]** **[0000947484-23-000052_ex-991release33123.htm:3]** **[0000947484-23-000052_ex-992supplement33123.htm:13]** 

What drove the significant increase in Premiums receivable in Q1 2023?

The **Receivable for securities sold** jumped significantly from **$12 million at Q4 2022** to **$84 million at Q1 2023**. However, the documents do not provide a specific explanation for the change.  **[0000947484-23-000052_ex-992supplement33123.htm:4]** 

Why did Receivable for securities sold jump in Q1 2023?

The **decline in Goodwill and intangible assets** by Q3 2023—from **$804 million** in Q4 2022 to **$739 million** in Q3 2023—is explained by the **amortization of intangible assets**, which amounted to **$71 million** over the nine months ended September 30, 2023.  **[0000947484-23-000102_acgl-20230930.htm:6]** **[0000947484-23-000102_acgl-20230930.htm:66]** 

What explains the decline in Goodwill and intangible assets by Q3 2023?

The marked increase in total assets in Q3 2023 was driven by several factors. **Growth in investments** played a key role, as investments increased by approximately **$4.1 billion** from **$27,293 million** to **$31,380 million**, reflecting strong net cash flows from operating activities.  **[ACGL_3363183_4]** **[0000947484-23-000102_acgl-20230930.htm:6]**  Additionally, there was a significant **increase in premiums receivable** from **$3,625 million** to **$4,937 million**, which indicates higher business volumes resulting from growth in net premiums written.  **[0000947484-23-000102_acgl-20230930.htm:6]** **[0000947484-23-000093_ex-992supplement93023.htm:9]**  The company also experienced rises in **ceded unearned premiums** (from **$1,799 million** to **$2,444 million**) and **deferred acquisition costs** (from **$1,264 million** to **$1,483 million**), both of which contributed to the overall enhancement of its asset base.  **[0000947484-23-000102_acgl-20230930.htm:6]** 

What factors led to the marked increase in Total assets in Q3 2023?

529c7b2306ccfd671422e7906560a04c75a23431b84df6852c98e8512c7e7b43

Net income surged in Q4 2023 primarily because the company established a **net deferred tax asset of $1.18 billion** due to Bermuda’s new corporate income tax. Additionally, the **after-tax operating income** increased to **$945 million** compared to lower figures in Q4 2022, the company recorded **net realized gains of $189 million** (up from $80 million), and it benefited from a **favorable foreign exchange impact** with reduced losses of **$60 million** compared to $81 million the previous year.  **[0000947484-24-000007_ex-991release123123.htm:1]** **[0000947484-24-000007_ex-992supplement123123.htm:33]** **[0000947484-24-000007_ex-991release123123.htm:2]** 

Why did net income surge in Q4 2023?

The drastic shift in the income tax benefit in Q4 2023 was driven by the establishment of a **net deferred tax asset of $1.18 billion**, which was implemented in response to Bermuda's new corporate income tax. This significant tax plan change greatly impacted the company’s tax provision for that quarter.  **[0000947484-24-000007_ex-991release123123.htm:1]** **[0000947484-24-000020_acgl-20231231.htm:148]** **[0000947484-24-000007_ex-992supplement123123.htm:33]** 

What drove the drastic shift in income tax benefit in Q4 2023?

The **amortization of intangible assets** spike in **Q3 2024** was primarily due to the **MCE Acquisition**, which included intangible assets related to the **value of business acquired** and **distribution relationships**.  **[0000947484-24-000130_ex-991release93024.htm:6]** **[0000947484-24-000144_acgl-20240930.htm:61]** 

Why did amortization of intangible assets spike in Q3 2024?

The **significant increase** in full‐year net income in FY 2023 was primarily driven by several key factors. First, the enactment of Bermuda's new corporate income tax resulted in establishing a **net deferred tax asset of $1.18 billion**, which provided a substantial boost. Second, the company saw a marked improvement in operational performance, with **after‐tax operating income rising from $1,840 million in FY 2022 to $3,201 million in FY 2023**, reflecting stronger underwriting and profitability across segments. Third, there was a notable reduction in net realized losses, which decreased from **$663 million in FY 2022 to $165 million in FY 2023**. Finally, although the fiscal year experienced **net foreign exchange losses of $62 million** (compared to a gain of **$102 million in FY 2022**), this impact was not enough to offset the other significant positive factors.  **[0000947484-24-000007_ex-991release123123.htm:1]** **[0000947484-24-000007_ex-992supplement123123.htm:33]** **[0000947484-24-000020_acgl-20231231.htm:141]** 

What factors contributed to the significant full‐year net income increase in FY 2023?

The net realized gains turned positive in Q4 2023 primarily due to **two main factors**. First, the company **sold investments** that generated significant gains. Second, **favorable financial market movements** positively affected the performance of its derivatives, equity securities, and other investments measured at fair value, collectively driving the net realized gains to **$189 million** in Q4 2023.  **[0000947484-24-000007_ex-991release123123.htm:6]** 

How did net realized gains flip to a positive figure in Q4 2023?

cacebc26c1c90d121c3e03192a37e0bee0ec774a8f11a7406740beec5f57e47d

The significant increase in Operating Cash Flow in Q3 2023 was driven primarily by a **substantial rise in net income** (increasing from **$18 million** to **$723 million**), coupled with **favorable changes in working capital components**. Specifically, there were improvements such as **increased reinsurance balances payable**, a **notable decrease in premiums receivable**, and a **more moderate rise in loss reserves**, all of which collectively boosted the operating cash flows in Q3 2023.  **[0000947484-23-000093_ex-992supplement93023.htm:6]** **[0000947484-23-000093_ex-991release93023.htm:1]** 

Why did Operating Cash Flow nearly double in Q3 2023?

ACGL's operating cash flow in Q3 2024 reached **$2,018 million**, up significantly from **$1,518 million** in Q2 2024, driven by several key factors. **Higher net income** played a major role—with Q3 2024 net income at **$988 million**—which boosted cash inflows. Additionally, a substantial increase in the **reserve for losses and loss adjustment expenses** contributed **$1,078 million** to operating cash flow in Q3 2024. Improvements in **premiums receivable** added **$178 million** (compared to a negative effect in Q2 2024), while adjustments in **unearned premiums** and **reinsurance balances payable** also played supporting roles. These elements together explain the significant spike in operating cash flow in Q3 2024.  **[0000947484-24-000130_ex-992supplement93024.htm:6]** **[0000947484-24-000130_ex-991release93024.htm:1]** **[0000947484-24-000091_ex-992supplement63024.htm:6]** **[0000947484-25-000008_ex-992supplement123124.htm:6]** 

What drove the spike in Operating Cash Flow in Q3 2024?

The **FY 2023 capital expenditures** increased by only **$2 million** compared to FY 2022, which is a **minor change**. This slight increase does not necessarily indicate a significant increase in investment activity as per the available documents, which do not provide further explanation for any strategic shift in investment.  **[0000947484-24-000020_acgl-20231231.htm:192]** 

Does the higher capital expenditures in FY 2023 indicate increased investment activity?

The significant year-over-year increase in **Operating Cash Flow** was primarily driven by a **higher level of premiums collected** in FY 2023 compared to FY 2022, which reflected the company's strong operating performance. This boost in premiums played a key role in increasing the net cash provided by operating activities from **$3,816 million in FY 2022** to **$5,749 million in FY 2023**.  **[0000947484-24-000020_acgl-20231231.htm:192]** **[0000947484-24-000020_acgl-20231231.htm:167]** 

What factors contributed to the strong year-over-year increase in Operating Cash Flow?

74eae4f534fdc08b7ac4cff9e4680366bffc686a4aad21f609dece7c8f748875

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

5ab7c506cc6fe3eeab299d5ba64258a081ca1c52ce679942da11d17955af5281

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

420752720377a75edc0d259a35f1c5304b0ad7b06c6eecab07d824c6a327ec9c

Arch Capital Group Ltd (ACGL)

Financials