Profile: Arch Capital Group Ltd (ACGL.OQ)
13 Dec 2018
Arch Capital Group Ltd. (ACGL), incorporated on September 22, 2000, provides insurance, reinsurance and mortgage insurance through its wholly owned subsidiaries. The Company provides a range of property, casualty and mortgage insurance and reinsurance lines. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The Company's insurance, reinsurance and mortgage segments are underwriting segments. The insurance segment's product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other, which includes alternative market risks and excess workers' compensation. The reinsurance segment's product lines include casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and other, which includes life reinsurance and casualty clash businesses. The mortgage segment includes the results of Arch Mortgage Insurance Company (Arch MI U.S.) and Arch Mortgage Insurance Designated Activity Company (Arch MI Europe), which are providers of mortgage insurance products and services to the United States and European markets. The corporate (non-underwriting) segment results include net investment income and interest expense. The other segment includes the results of Watford Holdings Ltd. (Watford Re).
The Company's insurance operations are conducted in Bermuda, the United States, Europe, Canada, Australia and South Africa. Its insurance operations in Bermuda are conducted through Arch Insurance (Bermuda), a division of Arch Re Bermuda and Alternative Re Limited. In the United States, its insurance group's principal insurance subsidiaries are Arch Insurance Company (Arch Insurance), Arch Specialty Insurance Company (Arch Specialty), Arch Indemnity Insurance Company (Arch Indemnity) and Arch Excess & Surplus Insurance Company (Arch E&S). Arch Insurance is an admitted insurer in approximately 50 states, the District of Columbia, Puerto Rico, the United States Virgin Islands and Guam. Arch Specialty is an excess and surplus lines insurer in approximately 49 states, the District of Columbia, Puerto Rico and the United States Virgin Islands, and an insurer in a state. Arch Indemnity is an insurer in approximately 49 states and the District of Columbia. Arch E&S is an excess and surplus lines insurer in approximately 47 states and the District of Columbia and an insurer in a state. Arch Insurance Canada Ltd. (Arch Insurance Canada) is a Canada-based domestic company, which is authorized in all Canadian provinces and territories.
The insurance group's European operations are conducted on approximately two platforms, including Arch Insurance Company (Europe) Limited (Arch Insurance Company Europe) and Arch Syndicate 2012 (the United Kingdom insurance operations are collectively referred to as Arch Insurance Europe). Arch Insurance Europe conducts its operations from London. Arch Insurance Company Europe is approved as an excess and surplus lines insurer in approximately 27 states and the District of Columbia, and also has branches in Denmark, Germany, Italy and Spain. Arch Underwriting at Lloyd's Ltd (AUAL) is the managing agent of Arch Syndicate 2012 and is responsible for the daily management of Arch Syndicate 2012. Arch Underwriting at Lloyd's (Australia) Pty Ltd, and Arch Underwriting Managers at Lloyd's (South Africa) (Pty) Limited are Lloyd's services companies, which underwrite for Arch Syndicate 2012.
The Company's insurance group writes business on both an admitted and non-admitted basis. Its insurance group focuses on the areas, including construction and national accounts, which includes casualty coverages to various accounts in the construction industry and a range of products for various national accounts, specializing in loss sensitive primary casualty insurance programs (including deductible, self-insured retention and retrospectively rated programs); excess and surplus casualty, which consists of casualty insurance coverages, including middle market energy business and contract binding, which provides casualty coverage through a network of appointed agents to small and medium risks; lenders products, which include collateral protection, debt cancellation and service contract reimbursement products to banks, credit unions, automotive dealerships and original equipment manufacturers and other specialty programs that pertain to automotive lending and leasing; professional lines, which include directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity and other financial related coverages for corporate, private equity, venture capital, real estate investment trust, limited partnership, financial institution and not-for-profit clients of all sizes and medical professional and general liability insurance coverages for the healthcare industry, and programs, which include package policies, underwriting workers' compensation and umbrella liability business in support of desirable package programs, targeting program managers with expertise and products offering general liability, commercial automobile, inland marine and property business with minimal catastrophe exposure. Its focus areas also include property, energy, marine and aviation, which include general property insurance coverages, including catastrophe-exposed property coverage, for commercial clients, coverages for marine include hull, war, specie and liability, and aviation and stand-alone terrorism; travel, accident and health, which include specialty travel and accident and related insurance products for individual, group travelers, travel agents and suppliers, as well as accident and health, which provides accident, disability and medical plan insurance coverages for employer groups, medical plan members, students and other participant groups. The Company's insurance group's Other area includes alternative market risks (including captive insurance programs), excess workers' compensation and employer's liability insurance coverages for qualified self-insured groups, associations and trusts, and contract and commercial surety coverages, including contract bonds (payment and performance bonds) for various contractors and commercial surety bonds.
The Company's reinsurance operations are conducted through its reinsurance subsidiaries, Arch Re Bermuda, Arch Re U.S. and Arch Re Europe and Gulf Reinsurance Limited. Arch Re U.S. is a reinsurer in approximately 50 states and the District of Columbia, and the provinces of Ontario and Quebec in Canada. The Company's property facultative reinsurance operations are conducted through Arch Re U.S. with certain executive functions conducted through Arch Re Facultative Underwriters Inc. located in Farmington, Connecticut.
The Company's reinsurance group writes business on both a proportional and non-proportional basis, and writes both treaty and facultative business. The Company's reinsurance group focuses on areas, such as casualty, property catastrophe, other specialty, property catastrophe, marine and aviation, and other. Its reinsurance group provides coverage to ceding company clients on third-party liability and workers' compensation exposures from ceding company clients, primarily on a treaty basis. The exposures include executive assurance, professional liability, workers' compensation, excess and umbrella liability, and excess motor and healthcare business. It provides coverage for energy, hull, cargo, specie, liability and transit, and aviation business, including airline and general aviation risks. Business written also includes space business, which includes coverages for satellite assembly, launch and operation for commercial space programs. It also provides coverage to ceding company clients for non-excess motor, including the United Kingdom business emanating from a client, and other lines, including surety, accident and health, workers' compensation catastrophe, agriculture, trade credit and political risk.
The Company's reinsurance group provides protection for catastrophic losses that are covered in the underlying policies written by reinsureds, including hurricane, earthquake, flood, tornado, hail and fire, and coverage for other perils on a case-by-case basis. Property catastrophe reinsurance provides coverage on an excess of loss basis when aggregate losses and loss adjustment expense from a single occurrence of a covered peril exceed the retention specified in the contract. Property excluding property catastrophe provides coverage for both personal lines and commercial property exposures, and principally covers buildings, structures, equipment and contents. In addition, facultative business is written, which focuses on commercial property risks on an excess of loss basis. Its other business area includes life reinsurance business on both a proportional and non-proportional basis, casualty clash business and non-traditional business.
The Company's mortgage group includes direct mortgage insurance in the United States provided by Arch MI U.S.; mortgage reinsurance provided primarily by Arch Re Bermuda to mortgage insurers on both a proportional and non-proportional basis globally; direct mortgage insurance in Europe provided by Arch MI Europe, and various risk-sharing products provided primarily by Arch Re Bermuda to government agencies and mortgage lenders. Arch MI U.S. operates in approximately 50 states, the District of Columbia and Puerto Rico. Arch Mortgage Guaranty Company offers direct mortgage insurance to the United States mortgage lenders with respect to mortgages that lenders intend to retain in portfolio or include in non-agency securitizations. The Company's mortgage group focuses on the areas, including direct mortgage insurance in the United States, direct mortgage insurance in Europe and other countries, reinsurance, and other credit risk-sharing products.
The Company competes with Alleghany Corporation, Allied World Assurance Company, Ltd., American Financial Group, Inc., American International Group, Inc., Aspen Insurance Holdings Limited, AXIS Capital Holdings Limited, Berkshire Hathaway, Inc., Chubb Limited, CNA Financial Corp., Endurance Specialty Holdings Ltd., Fairfax Financial Holdings Limited, The Hartford Financial Services Group, Inc., Ironshore Inc., Liberty Mutual Insurance, Lloyd's, Markel Insurance Company, RLI Corp., Tokio Marine HCC, The Travelers Companies, W.R. Berkley Corp., XL Group Ltd and Zurich Insurance Group, Alleghany Corporation, Argo International Holdings, Ltd., AXIS Capital Holdings Limited, Berkshire Hathaway, Inc., Chubb Limited, Endurance Specialty Holdings Ltd., Everest Re Group Ltd., Hannover Ruckversicherung AG, Lloyd's, Markel Global Reinsurance, Munich Re Group, PartnerRe Ltd., RenaissanceRe Holdings Ltd., SCOR Global P&C, SCOR Global Life, Swiss Reinsurance Company, Third Point Reinsurance Ltd., Validus Holdings Ltd. and XL Group Ltd.
Arch Capital Group Ltd
Waterloo House, 100 Pitts Bay Ro
PEMBROKE HM 08