艾奇资本 2024年度报告

FINANCIAL HIGHLIGHTS TO OUR SHAREHOLDERS 2024 was a year of growth and transformation for Arch. We set new company records for underwriting income,investment income and after-tax operating income available toArch common shareholders, and our strong capital position ledthe Board to approve our first special dividend of $5 per commonshare, directly returning capital back to you, our shareholders.In addition to the special dividend, investors experienced a13% increase in book value per common share (BVPS) and anannualized net income return on average common equity ofnearly 23% for the year. NICOLAS PAPADOPOULOCEO, ARCH CAPITAL GROUP LTD. Our three main business segments and the investment group all contributed to our2024 results, once again demonstrating the strength of our diversified platform.Arch’s Insurance and Reinsurance property and casualty (P&C) underwriting teamswrote $14.6 billion of net premium, generating nearly $1.6 billion of underwritingincome. Our Mortgage segment, which operates within a different underwritingcycle, delivered more than $1 billion of underwriting income for the thirdconsecutive year, while our investment group generated a record $1.5 billion of netinvestment income. We believe Arch's long track record of success is a product of our strong culture anda well-established set of operating principles that guide our decision-making. Bothof these traits are critically important to our ongoing success. The resiliency of our management team and experience of our leaders are hallmarksof our success. Our deep bench of executives helped facilitate a smooth leadershiptransition last year upon the retirement of former CEO Marc Grandisson, whosededicated service helped establish Arch as an industry leader. I'm grateful for the opportunity to lead this outstanding company, and I amfocused on fostering our unique culture to continue delivering exceptional valueto our shareholders. Last year, we also promoted two longtime Arch executives,David Gansberg and Maamoun Rajeh, to be Presidents of Arch Capital Group. Weare fortunate to have Maamoun and David’s leadership experience, insights andinstitutional knowledge to help guide the company. UNDERWRITING INCOME ($M) Underwriting StrategyOur focus is on underwriting specialty lines, which benefit from the MortgageThe Mortgage segment provides profitable diversification that differentiates Arch from our peers by producing a steady stream ofreliable earnings. In 2024, the segment generated $1.1 billion ofunderwriting income while writing $1.1 billion of net premium. Highmortgage interest rates compared to the last decade, combinedwith tight housing supply, limited new origination activity. However,persistency of our in-force portfolio remains strong, and the creditquality of homebuyers with loans we insure continues to be excellent. knowledge and expertise of skilled underwriters. By combining ourdeep specialty experience with the power of data, we drive insightsthat inform profitable underwriting decisions. The compensation ofour senior underwriters is linked to long-term profitability to ensurealignment with shareholder results. At the enterprise level, we prioritize expected profitability overmarket share and allocate capital to the lines of business with themost attractive risk-adjusted returns. Throughout the current hardmarket, we have deployed capital into our P&C segments that offerthe best opportunity for growth and solid risk-adjusted returns. Investment ResultsThe substantial growth of our P&C units during this hard market increased our investable assets to $41.4 billion at the end of 2024,a 20% increase from the end of 2023. This “float” is a materialcontributor to our net income and should serve as a tailwind forfuture earnings generation. InsuranceThe Insurance group wrote $6.9 billion of net premium in 2024, a 17% increase from 2023, while delivering $345 million ofunderwriting income in a year when catastrophic activity weighedon profitability. Our acquisition of Allianz's U.S. MidCorp andEntertainment insurance businesses in North America meaningfullyexpanded our presence in the U.S. middle market, a key area ofexpected future growth. Capital ManagementOne of Arch's core operating principles is being prudent and disciplined stewards of the capital entrusted to us. In 2024, strongearnings provided an opportunity to deploy capital across theCompany organically and strategically while also returning capitaldirectly to you, our shareholders. Reinsurance2024 marked another year of excellent performance for the Reinsurance segment, which delivered $1.2 billion of underwritingincome, a new high for Arch Re. The team also wrote a record$7.7 billion of net premium, an 18% increase from 2023. ArchRe has established itself as a top 10 global reinsurance providerby becoming the first choice for our distribution partnersand cedants and consistently providing creative solutions tochallenging problems. Organic:Capital was dir