Arch Capital Group Ltd. said its board of directors have approved a $2 billion increase to the company’s share repurchase program, giving the insurer more flexibility in capital allocation.
The move lifts the total authorization for buybacks to about $2.3 billion as of Sept. 4, 2025, after factoring in repurchases already made during the third quarter, the company said. Repurchases may take place in the open market or through privately negotiated deals, subject to market conditions and regulatory considerations.
“The increased authorization provides management flexibility in deploying excess capital generated by our underwriting operations,” Arch Capital Group CEO Nicolas Papadopoulo said. “We have always believed that capital allocation is a critical role of management, and this authorization allows us the opportunity to deliver additional shareholder value.”
Arch reported strong second-quarter results for 2025. Net income available to common shareholders reached $1.2 billion, or $3.23 per share, representing a 22.9% annualized return on average common equity. After-tax operating income was $979 million, or $2.58 per share, with an 18.2% annualized return on equity. The company recorded combined ratios—excluding catastrophic activity and prior-year development—of 80.9%, compared with 76.7% a year earlier.
Arch reported gross premiums written of $6.196 billion, and underwriting income of $818 million, reflecting a 7.3% increase over the prior year’s quarter. Book value per common share reached $59.17 on June 30, 2025, marking a 7.3% gain from March 31.
Arch’s credit profile improved mid-year, with S&P raising its long-term issuer and financial strength ratings on the company’s core re/insurance subsidiaries to ‘AA-’ from ‘A+’, and the issuer credit rating on the holding company to ‘A’ from ‘A-’, accompanied by a stable outlook.
Arch Capital, included in the S&P 500 Index, offers insurance, reinsurance and mortgage insurance globally through its subsidiaries.
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