I would now like to introduce your host for today's conference, Mr. Marc Grandisson and Mr. Francois Morin. Arch Capital Group Market Cap $28B Today's Change (-1.29%) -$0.95 Current Price $73.03 Price as of July 5, 2023, 12:58 p.m. For all stock-related matters, including change of address and dividend reinvestment, individual ARCH stockholders may contact American Stock Transfer at 1 (800) 937-5449 or www.amstock.com. MI has been vital to our ability to propel our P&C underwriting growth. So that's kind of how we -- that's the result of the business we have this quarter. And then once we saw some clear track ahead of us, we were able to accelerate even faster. As the current expected returns, we believe deploying meaningful capacity in our businesses currently represents our best option to maximize returns for the benefit of our shareholders. In terms of reserving, I'd say, two things. Our next question comes from the line of Ryan Tunis with Autonomous. Additionally, certain statements contained in the call that are not based on historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wouldn't that triangulate into margin improvement coming through in the reinsurance book in 2023? Maybe in 2 years or next year or 2 years time, but don't take a while because we need to show and see what's happening for. And third thing, as Marc said earlier, I think we'll be proven. Arch Resources, Inc. ( NYSE: ARCH) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Deck Slone - SVP, Strategy Paul Lang - CEO John Drexler - COO Matt. As Marc highlighted, we kicked off 2023 with excellent underwriting results across all the segments, and our investment income continued its upward path, benefiting from a higher interest rate environment and strong operating cash flows. What is not seen in the numbers, and we'll have a more thorough discussion at the Q1 call is that we've increased cat exposure across a wider range of sub zones, and that doesn't really come across through that Tri-County. [Operator. Our Mortgage segment had another excellent quarter with a combined ratio of 20% from strong performance across all our units. No. So depending on where you are in working , lesser get exposed to , cat exposed. So over time when the market gets harder, I think you will expect us and as part of the cycle management to underwrite more quota share versus excess of loss. Yes. Reinsurance typically react more quickly to the changing environment and primary insurance, and we are witnessing this phenomenon in these early stages of improvement in the property market. This content is reserved for subscribers Additionally, certain statements contained in the call that are not based on historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. CY 2022. I don't know the answer to that. The 1/1 renewals were more international, more national. The reconciliation to GAAP and definition of operating income can be found in the company's current report or Form 8-K furnished to the SEC yesterday, which contains the company's earnings press release and is available on the company's Web site. But as you know, for us, it's going to be incrementally, of course, accretive to our bottom line, but we're not -- it's not the biggest line of business for us. Pretax net investment income was $0.48 per share, up 41% from the third quarter of 2022. Our next question comes from the line of Brian Meredith with UBS. So I think overall, I think the market will take sort of a view that it's not there at 100% and they'll probably sort of factor in who is more -- is more or less exposed to those, but they get credit those more or less exposed. And then my second question, just looking at the insurance business, it sounds like you think that there maybe some inflection to accelerating growth again in '23. So where is that improvement coming from, is it mostly just better rates and in risk selection? Good question. And what you see in our results in our numbers is a sum total of the aggregation of all of these very decisions within our insurance or reinsurance units. You still think it's time to be fairly conservative in seeking yield less points? And when we're thinking about the segment's combined ratio, I feel like looking at my older notes, it was kind of mid-90s. While production volumes were down due to the lower level of originations in the market, we remain positive on the return prospects for this business. At Arch, we're deeply committed to the art and science of underwriting because we know that underwriting integrity over time solidified our conviction and agility to proactively respond to changing market positions. We look at the quality of the business and how it prices and what the expected returns are. So it's also one first step into it. I think we look at long-term trends. The bottom line increased 68.5% year over year. I mean if the market stays as it is right now, could it go up 10%, 12%, we think so, and I think it's a reasonable scenario. I think this number -- interesting, this number is one region, one area, one sub zone. Today, we're firing on all cylinders and I know we've got the right crew to bring in home. Well, that's typically where we book it. So there is definitely less banked for those years to get the right number, the right loss ratio pick. Thank you, Lisa. The market that wants the business right now was on 4 years ago, they'll probably not have the first bit at it. Transcript : Arch Capital Group Ltd., Q3 2022 Earnings Call, Oct 27, 2022 10/27/2022 | 11:00am EDT Good day, ladies and gentlemen, and welcome to the Third Quarter 2022 Arch [ Soft ] Capital Group Earnings Conference Call. I mean it's small ticket items. But yes, it's definitely a point of discussion, which I think [indiscernible] helps explain why we had the -- we continue to have this price increase in the GL, for instance. So it's a spread. Our insurance in force, the earnings foundation of the mortgage segment, grew to $513 billion at year end '22 as persistency increased due to higher mortgage rates. And we'll see how that develops for the rest of the year. I meant Stage 3 were recognizing some of the overreaction, but the smaller D&O is probably early stage or Stage 3, which is still very profitable and a little bit of decrease here and there or a slight increase. Yes. So first, the reinsurance react. I mean, in terms of. So it's not like it's included part of the overall coverages for cat or whatever else out there. But based on the in-force portfolio that we have currently for the first quarter, I mean, that's kind of how we see the exposure to cat losses. This period can be lengthy and it usually allows for still profitable growth, especially for the disciplined underwriters. If you look at the aggregate number, which is a better reflection there is [indiscernible] increase, that will be commensurate, it actually would -- you'll see the premium increase and the cap allocation increase are -- it will make sense to you. And those that we may not be getting pickup in margin, at least from the appearance the jury is not as to whether the losses -- the loss trend is truly positive. That's the first step that you need to understand and we could all realize, and I know we saw that historically is one of the key things that we need to -- that we work on. Our natural cat PML on a net basis stood at $970 million as of January 1 or 8% of tangible shareholders' equity. But it's all in a vibrant market. Where would you feel comfortable taking it if the market environment remains favorable? While we expect to continue to allocate more capital to the P&C segments for the next several years, I wish to remind our shareholders that we capitalize on the attractive return opportunities in our MI segment to the tune of $5.4 billion of underwriting income since 2017. At this time, all participants are in a listen only mode. We've been targeting, were targeting -- I mean our cat load in '22 was, call it, $80 million a quarter. And thirdly, I think that's also important, which creates more dislocation there is a shrinking of capacity at the individual players. I'll stick with the primary insurance segment, given I feel like most of the questions will probably be on reinsurance. So there's a long list of reasons or explanations as to why it is where it is now. I'm assuming most of these are just on reserves you put on around COVID when there were forbearance programs. I mean, the market was solid in '22 and get better at 1/1/23. I'm trying to think out loud, the third-party coming in, I don't see it being a case. I would now like to introduce your host for today's conference, Mr. Marc Grandisson and Mr. Francois Morin. The combined ratio, excluding prior year development, was 45% for the quarter and reflects our prudent approach to loss reserving, one of our key operating principles. The insurance market remains rational and disciplined. Well, we're running -- we're running about 90 now, and I think that we still continue to see improvement in pricing. And mostly, if it happens that we don't need it then we'll adjust it based on the data we see. Okay. And then Id one for Marc, I guess, on the man-made cat side, which isn't something we've talked about too much. I don't think it's going to move a whole lot from where it's been. The MI industry's underwriting discipline is encouraging and allows us to maintain our focus on risk selection to achieve adequate risk-adjusted return. Tracy, would you -- do you include D&O there, or you just wanted the ex-D&O, which lines specifically -- professional lines is a really broad market. Book value per share was up 9.9% in the quarter to $32.62 and down only 2.8% on the year, a great result considering the impact raising interest rates had on our fixed income portfolio with a difficult year in equity markets and the elevated catastrophe activity we experienced this year. It helps. But what's not really fully reflected and you should hear there are other things going on underneath the terms and conditions, deductibles are going up. Yes. This article is reserved for subscribers And as Marc mentioned, the PMLs we report represent a point in time estimate of the exposure from our in-force portfolio and the premium associated with the January 1 renewals will get reported in our financials starting next quarter. Also, I would add that we're an E&S player. Thanks for listening, guys. I think the third party capital you mentioned, theres still -- we're in a wait and see attitude. Next, our mortgage team, again, had an acceptable quarter, capping off an excellent year. Our peak zone PML is currently the U.S. Northeast and reflects some pockets of increased capacity we deployed at April 1 in response to good market opportunities ahead of the more active renewal period at June 1 and July 1. The MI industry is competitive, but faced with the current risk factors in the broader economy is acting rationally. Well, thank for the fulsome answers. Number one, one of the big reasons that we like to talk about is, you inherit some diversification within that portfolio that you otherwise would not necessarily get from a net excess of loss perspective. D&O, okay. Very good question, Elyse. We're always there, but we rebuild, we kindle them in a much major way because I talk to our producers, they'll tell you that we're a great partner of theirs, and that makes a big difference. The energy company reported $10.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.46 by $0.44. Our next question comes from the line of Elyse Greenspan with Wells Fargo. They're not fully risk adjusted, -- it's a really good question because it's a factor of a harder market or a softer market that when you see a rate -- the things that you can measure, you all incorporate into your calculation, but there are things that you cannot calculate or specifically isolate for input in your formula, right? CY 2023. And I don't know if you gave commentary also just on overall kind of rate increases on your primary insurance book this quarter. Arch Capital Group Ltd ( ACGL -0.11%) Q2 2021 Earnings Call Jul 29, 2021, 11:00. I would now like to turn the conference back over to Mr. Marc Grandisson for closing remarks. I think it probably blows certain people's minds that the valuations on property are just getting up to date and it seems kind of antiquated, but that's just, I guess, the way that the reinsurance maybe -- or sorry, the overall marketplace works. Thank you, Towanda. First, we were early in the 2019 to really lean into it. A core strategic tenant of Arch is that underwriting acumen and discipline through the cycle drive superior risk adjusted returns. Transcript : Arch Capital Group Ltd., Q4 2021 Earnings Call, Feb 10, 2022 ARCH CAPITAL GROUP LTD. Equities ACGL BMG0450A1053 PDF Report Calendar Company Financials Consensus Revisions Funds and ETFs Transcript : Arch Capital Group Ltd., Q4 2021 Earnings Call, Feb 10, 2022 February 10, 2022 at 11:00 am Last number we heard on the primary side, we're looking at pricing depending on the cat exposed, obviously, is more acute, but rate increases 40% to 50% plus, definitely, and a little bit less if you're intercoastal, if you win in land, it's many 10% to 15% increase. I think that is reflected in the pricing that we mentioned. And in our P&C growth, I want to emphasize that Arch is first and foremost, an underwriting company. You guys are growing your net premium in about 20% right now. Transcripts. I mean there's a lot of vetting going on comparing to and triangulating. The other things that are also going in the same direction, that's the trademark of a hard market, that is not fully reflected the extra backup that takes a brave that we don't see that we know collectively is there. Good morning, and welcome to the fourth quarter earnings call for Arch Capital Group. So I think I would say, D&O is normalizing for the large commercial, sort of a Stage four. Good morning, and welcome to Arch's earnings call for the first quarter of 2023. At the end of the quarter, over 80% of our net reserves at U.S. MI are from post-COVID accident periods. Quarterly income from operating affiliates stood at $36 million and was generated from good results [indiscernible] in summers. But I want treatment to tell you, 6/1 and 7/1 are not done yet, like people are still very actively for ended. Sir, you may begin. Net premiums earned were up slightly on a sequential basis reflecting the increased persistency of our insurance in force during the quarter at U.S. MI and good growth in our units outside of U.S. MI. The insurance one will be able to grab those increased rates and improve time on condition over the next 12 months. But still, I think our teams deserve a lot of credit for going after these opportunities, being responsive to the client needs, being -- providing good capacity with good ratings. So that's what allows us, we believe, the opportunity and room to grow the way we think we could grow in 2023. Net premium written by our reinsurance segment remained on its strong trajectory and grew by 51.5% over the same quarter last year. Print Page; RSS Feeds . We're seeing pricing discipline across the MI industry as rates have increased over the past year. And we really, really like this and we like to be closer to the rate change, right? We are poised to benefit from higher reinvestment rates coupled with the growth in invested assets. Please disable your ad-blocker and refresh. It's hardwired into how we operate the company. Arch Capital Group Ltd. Q2 2008 Earnings Call Transcript "A killer stock screener." Berry M., Switzerland Give wallmine a try - it's free. In terms of the segments results, I think they can all -- mortgages, again, the reported results, I mean significant reserve releases, which certainly helped the bottom line and the ROEs that are reported. But the one thing that we're -- that makes us being still want to be in there and not declare that this is over by any [indiscernible] is that the trends have been favorable to the OSC claims were down for the last 2 years. I think the biggest one for us was we had $25 million loss in Turkey, which is kind of what we do. I would actually like to compare probably more like a combination of 02, 03, maybe 04 in liability and maybe 06 or 07 on the property side. But we are proven in how we look at things. Thank you for your participation. We should see that improvement carrying on and staying around for more than this year. The 95% was meant as a target back in '16, '17 when interest rates were quite a bit lower, and it went down further. This article is reserved for subscribers Signed up already? Presentations Citi's 2022 Basic Materials Conference Presentation. Our mortgage segment operates on a different cycle than the P&C, but it remains a significant contributor to earnings, generating a healthy $243 million of underwriting income in the quarter as our high-quality insurance in force portfolio remained stable at $513 million. It would be reasonable to expect that the losses will be less than they are right now, but we have yet to see whether the portfolios go through these changes. More importantly, the underlying performance of the segment this quarter was very good with an ex-cat accident year combined ratio of 82.9% and a de minimis impact from current accident year capacity losses. I'm not seeing any further questions. Which will then lead to obviously further improvement from the distance as a reinsurer. So that's why I think you'll see some improvement, but it may not be necessarily enough to move the needle for the industry, even though it's a very, very healthy proposition that rates have gone through the roof as you can appreciate for the right reasons in those types of business. Famous Stage 4 is where the industry foresakes underwriting discipline and overly focuses on topline growth even as rate decreases accelerate. While fixed income market volatility was elevated intra-quarter because of the stress in the U.S. and Swiss banking systems and the implications for monetary policies of central banks, spreads at quarter end were generally consistent with those at year-end 2022. Some of them don't. I'm not showing any further questions in the queue. Should we expect to kind of the expected cat ratio to be higher? That's why I mentioned that we these are nonrecurring items. We don't have -- I don't have those handy. And then just lastly, the acquisition expense ratio has been kind of hard to pin down at Arch over the past few years, but it's gone up. We don't have all the detail around how much or by year, et cetera. So minimum premium is really -- a lot of times what happens and that 5% increase might be $50, right? Would you like to have closing remarks? Arch Capital Group Ltd (ACGL) CEO Marc Grandisson On Q1 2022 Results - Earnings Call Transcript Apr. And that seems to be sort of well also where the market is slowly migrating towards at least from the first indication. It's been going that way for a little while. Our commitment to being active yet disciplined capital allocators, remain a core principle of ours that should lead to long-term value creation and success. The contribution to the overall result was primarily led by our fixed income portfolio, which benefited from relatively stable interest rates and tightening credit spreads. As a reminder, this conference call is being recorded. And I think that -- and then at the end of the day, as when I look at it to make sure that we have -- we feel more comfortable than possibly the average bear out there, and we make sure that it's on a trajectory that is responsible and prudent as well. I missed about a minute of the call. I don't want to venture because also rather we all want to collect the veto keep in mind is 7/1 of '22 was also pretty good renewal floor, for instance, right? But obviously, the returns there don't show up in investment income. I think the reality is like the inventory is somewhat kind of commingled. Just quickly. Please. So we're benefiting from that, that's showing up in each of the four quarters. Is this happening to you frequently? I think there's a little bit of uncertainty with -- whole prices, are they about to come down, does that create some potential pressure? The interest rates are lower than they were before internationally. I'm pleased to share that for the fourth quarter of 2022, each of our three underwriting segments produced exceptional results. Arch Resources, Inc. 1 CityPlace Drive, Suite 300 St. Louis, MO 63141. Yes. And welcome to Arch Capital Group Fourth Quarter. But for your modeling, we kind of, I think, exercise. Investors (314) 994-2766; investorrelations@archrsc.com; Shareholder Services. But again, the smaller D&Os are not the big ticket items that you would expect, but a lot of them are going to be not for profit small policy. And I apologize, I'm going to try and sneak one more in here. So D&O, we expect similar trends that we saw in the last fourth quarter, it may change a little bit as a result of the overall thing that's happening in the marketplace. Understanding where you are at each point of the cycle for every product line and the nuances within each stage is critical to the timely allocation of capital to the areas of greatest opportunity. Our quarter's results were buoyed by a lower than average cat loss experience, a significant favorable development in mortgage reserves and a higher level of profitable earned premiums from our recent growth. Consequently, actual results may differ materially from those expressed or implied. And as big, if not has been -- probably, some of them are as big as a property cat -- property cat writing. I think it's probably just a function of how we book -- where our exposures are, right? So I think we have constructed our portfolio that we're very happy with, stayed away from what we perceive to be the more dangerous areas and underpriced areas. Find the latest Earnings Report Date for Arch Capital Group Ltd. Common Stock (ACGL) at Nasdaq.com. For more information on the risks and other factors that may affect future performance, investors should review periodic reports that are filed in the company with the SEC from time to time. I'll take that one, Elyse. I'm very pleased to share that once again, Arch had an excellent quarter on virtually every front. Tracy, our typical answer is, you tell me what the rate levels are like, and we'll tell you what we think we can do. Arch is an increasingly prominent provider of choice in the property and casualty space. The quarter back would hand the ball to the running back, we ran the ball to one side of the offensive line and then defensive line acted at blockers, allowing the running back to [indiscernible] it. But for the in-force book, we think, again, the credit quality has been excellent, and we think there is performing well. So that's what I think we're going to be seeing, that's why I'm also fairly optimistic is because we're going to have that repricing occurring throughout 2023 and beyond. Is this happening to you frequently? Management also may make reference to certain non-GAAP measures of financial performance. Well, we think -- yes, just a quick reminder, I think zones for us right now, we're kind of Northeast [indiscernible], we also have like Florida Tri-County, which is kind of at the same level. We didn't have as much exposure in the areas where the losses occurred. I think it's early right now. We still see a very, very stable, very good marketplace. This concludes the program. So the gravity, if you will, that it's increasing has been pretty nice. Earnings Revised 05/11/23 Q1 2023 Arch Capital Group Ltd Earnings Call 04/27/23 Other Revised 04/04/23 Arch Capital Group Ltd at Bank of America US Financials Conference 02/15/23 Earnings Revised 04/04/23 Q4 2022 Arch Capital Group Ltd Earnings Call 02/14/23. [indiscernible] the acquisitions are concentrated with large money central banks with no significant exposure to U.S. regional banks. Management also will make reference to some non-GAAP measures of financial performance. This quarter demonstrates the power of our strategy, namely our management of the underwriting cycle across the diversified specialty portfolio with a prudent reserving and underwriting stance. So that impacts the overall bottom line return on the business. We believe it's a better play for us at this point in time. I think there's been a lot of shifts in the mix of business over the years, right, as particularly as our insurance book in the UK has grown, that's a bit higher acquisition ratio, different kind of that reinsurance purchasing decision. We don't -- again, I wouldn't make that a trend. And then, how do you typically think about Florida from a reinsurance perspective. So it's a pretty good market to be there. The property market is still broadly dislocated, and we believe it will take further rate improvement before it finds equilibrium. No, it's hard to see anything at least, because I think that the psychology of the market is quarry of the kind of remediating what needs to be remediated in a property cat space at all levels. One thing worthy of mention is that the MI industry is acting in a disciplined and responsible manner. I think the most of my -- to Marc's point, I think a lot of the growth that we saw, at least at 1/1, will come through in regions that were, I'd say, we were probably a little bit underweight in the past. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. But in terms of core capital needs and supply and demand, I don't see a major shift. My name is Towanda, and I will be your coordinator for today. Good day, ladies and gentlemen. So it may not need as much of a pricing because we believe we're specifically in Europe, that we're -- we believe, not as well priced as ought to be based on the risk that you're taking. I think on our results, I don't think you would describe the improvement in terms of conditions. Arch Resources last posted its earnings data on April 27th, 2023. In the reinsurance segment, right, the -- the growth, exceptional really strong, but the underlying loss ratio, right, was did tick up from last year. Transcript : Arch Capital Group Ltd., Q1 2022 Earnings Call, Apr 28, 2022. News - Transcripts Arch Capital Group Ltd. (NASDAQ:ACGL) Q4 2022 Earnings Call Transcript Published on February 15, 2023 at 3:43 pm by Insider Monkey Transcripts in News,. And finally, Stage 4. I'm pleased to report that as a direct result of our premium growth momentum from the past few hard market years, we reported an excellent start to the year. So yes, there is a lot of -- obviously, a lot of activity there, a lot of rate increases there. If you have an ad-blocker enabled you may be blocked from proceeding. So we have grown a European exposure because the race course look pretty good there. We continue to see a broad array of opportunities to allocate capital where rates and terms and conditions allow for growth and attractive returns. Like how would you compare pricing to what you saw in January? That's policy year target effective [Technical Difficulty] its just expected, right, plus or minus, as you know, in our space, is volatility around the expected numbers, but this is long term expected. And why are you successful where others have failed? So it's still not certain where these lines will to be specific D&O. Image source: The Motley Fool. This year, they're both pretty good. So I think really that people are reflecting. Thank you, everyone, for listening to our story. We expect also continued opportunities due to the ongoing global uncertainties and remain optimistic that this disciplined behavior that we saw in the P&C industry for the last three years will persist as we move through Stage two of the cycles.

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