Arch Specialty Ins Co
Rating Date
June 2025
NAIC
Classification
Classification
Risk Adjusted
Capital Ratio #1
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Capital Ratio #2
Loss
Ratio
Ratio
Total
Assets
Assets
Capital
Net
Premiums
Premiums
Net
Income
Income
Major Rating Factors:
Fair profitability index (3.3 on a scale of 0 to 10) with operating losses during 2022, 2023, 2024 and the first three months of 2025. Return on equity has been low, averaging 0.1% over the past five years. Good overall results on stability tests (5.3) despite negative cash flow from operations for 2024. Strengths include potentially strong support from affiliation with Arch Capital Group Ltd. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (7.0) that can protect against increases in claims costs. Superior liquidity (9.6) with ample operational cash flow and liquid investments.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (31.2%), med mal (6.7%), comm multi (3.3%), product liab. (0.2%), personal/comm auto (0.2%), other (58.5%)
Licensed in:
(No states)
Principal Investments:
Investment grade bonds (89.5%), cash (9.1%), other (1.5%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
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Investments in Affiliates
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Corporate Info
Group Affiliation
Arch Capital Group Ltd
Investment Rating
Company Address
Harborside Three
Jersey City, NJ 07311
Jersey City, NJ 07311
Phone Number
(201) 743-4000
NAIC Number
21199
Website
Largest Affiliates