Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
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Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Financial Statements, Financial Statement Schedules and Exhibits.
| 1. | Financial Statements |
Included in Part II – see Item 8 of this report.
| 2. | Financial Statement Schedules |
| Page No. | |
| III. Supplementary Insurance Information | |
| For the years ended December 31, 2014, 2013 and 2012 | 218 |
| IV. Reinsurance | |
| For the years ended December 31, 2014, 2013 and 2012 | 219 |
| VI. Supplementary Information for Property and Casualty Insurance Underwriters | |
| For the years ended December 31, 2014, 2013 and 2012 | 220 |
Schedules other than those listed above are omitted for the reason that they are not applicable or the information is provided in Item 8 of this report.
| 3. | Exhibits |
| Exhibit Number | Description | |
| 3.1 | Memorandum of Association of ACGL(b) | |
| 3.2 | Bye-Laws of ACGL(x) | |
| 3.3 | ACGL Certificate of Deposit of Memorandum of Increase of Share Capital(x) | |
| 4.1 | Certificate of Designations of Series C Non-Cumulative Preferred Shares(aa) | |
| 4.2.1 | Specimen Common Share Certificate(c) | |
| 4.2.2 | Specimen Series C Non-Cumulative Preferred Share Certificate(aa) | |
| 4.3 | Indenture and First Supplemental Indenture, dated as of May 4, 2004, between ACGL and JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank) (“JPMCB”)(h) | |
| 4.3 | Indenture and First Supplemental Indenture, dated as of December 13, 2013, between Arch Capital Group (U.S.) Inc. (“Arch U.S.”), ACGL and The Bank of New York Mellon, as trustee (jj) | |
| 10.1.1 | ACGL 2002 Long Term Incentive and Share Award Plan (“2002 Plan”)(e)† | |
| 10.1.2 | First Amendment to the 2002 Plan(f)† | |
| 10.1.3 | Second Amendment to the 2002 Plan(t)† | |
| 10.2 | Second Amended and Restated ACGL Incentive Compensation Plan(t)† | |
| 10.3 | ACGL 2007 Long Term Incentive and Share Award Plan(o)† | |
| 10.4.1 | ACGL 2012 Long Term Incentive and Share Award Plan(z)† | |
| 10.4.2 | ACGL 2007 Employee Share Purchase Plan (“2007 ESPP”)(o)† | |
| 10.4.3 | Amendment to ACGL 2007 ESPP, dated as of November 7, 2007(p)† | |
| 10.5.1 | Restricted Share Unit Agreement-Constantine Iordanou-February 20, 2003 grant (“February RSU Agreement”)(g), First Amendment to February RSU Agreement-December 9, 2008 grant(t) and Second Amendment to February RSU Agreement-July 9, 2009 grant(u)† | |
| 10.5.2 | Restricted Share Unit Agreement with ACGL-Mark D. Lyons-May 9, 2008 grant(s), May 6, 2009 grant(v), May 5, 2010 grant(w), May 6, 2011 grant(y) and May 9, 2012 grant (dd)† | |
| 10.5.3 | Restricted Share Unit Agreement with ACGL - David McElroy - September 6, 2012 grant(hh) and May 9, 2013 grant(ii)† |
| 10.5.4 | Restricted Share Agreement with ACGL-Mark D. Lyons-September 6, 2012 grant(hh)† | |
| 10.5.5 | Restricted Share Agreements with ACGL substantially in the form signed by each of Constantine Iordanou, Louis T. Petrillo, W. Preston Hutchings and Marc Grandisson-November 12, 2012 grants(hh)† | |
| 10.5.6 | Restricted Share Agreements with ACGL substantially in the form signed by each of Constantine Iordanou, Louis T. Petrillo, W. Preston Hutchings, David H. McElroy and Marc Grandisson-May 9, 2012 grant(dd)† | |
| 10.5.7 | Restricted Share Agreements with ACGL substantially in the form signed by each of Constantine Iordanou, Louis T. Petrillo, W. Preston Hutchings, Mark D. Lyons and Marc Grandisson-May 9, 2013 grants (ii)† | |
| 10.5.8 | Restricted Share Agreement with ACGL. substantially in the form signed by the Non-Employee Directors of Arch Capital Group Ltd. for May 9, 2014 grants (ll)† | |
| 10.5.9 | Restricted Share Agreement with ACGL substantially in the form signed by each of Constantine Iordanou, Mark D. Lyons, Marc Grandisson, W. Preston Hutchings and Louis T. Petrillo for May 13, 2014 grants (ll)† | |
| 10.5.10 | Restricted Share Unit Agreement, dated as of May 13, 2014, between Arch Capital Group Ltd. and David McElroy (ll)† | |
| 10.5.11 | Restricted Share Agreement with Arch Capital Group Ltd. substantially in the form signed by each of Louis J. Paglia and Eugene S. Sunshine for July 14, 2014 grants (nn)† | |
| 10.6.1 | Stock Option Agreement with ACGL-Marc Grandisson- November 15, 2005 grant(m)† | |
| 10.6.2 | Stock Option Agreements with ACGL and Constantine Iordanou, John D. Vollaro and Marc Grandisson-February 23, 2006 grants(n)† | |
| 10.6.3 | Stock Option Agreement with ACGL and W. Preston Hutchings-February 23, 2006 grant(n)† | |
| 10.7.1 | Share Appreciation Right Agreement with ACGL substantially in the form signed by Louis T. Petrillo and W. Preston Hutchings-May 11, 2007 grants(p)† | |
| 10.7.2 | Share Appreciation Right Agreement with ACGL substantially in the form signed by Constantine Iordanou, John D. Vollaro and Marc Grandisson-May 11, 2007 grants(p)† | |
| 10.7.3 | Share Appreciation Right Agreement with ACGL substantially in the form signed by each of Constantine Iordanou, John D. Vollaro, Marc Grandisson, W. Preston Hutchings, Mark D. Lyons and Louis T. Petrillo-May 9, 2008 grants(s)† | |
| 10.7.4 | Share Appreciation Right Agreement with ACGL substantially in the form signed by each of Constantine Iordanou, Marc Grandisson, W. Preston Hutchings, Mark D. Lyons, John D. Vollaro and Louis T. Petrillo-May 6, 2009 grants(v)† | |
| 10.7.5 | Share Appreciation Right Agreement with ACGL substantially in the form signed by each of Constantine Iordanou, Marc Grandisson, W. Preston Hutchings, Mark D. Lyons and Louis T. Petrillo-May 5, 2010 grants(w) May 6, 2011 grants(y), May 9, 2012 grants(dd) and May 9, 2013 grants (includes David H. McElroy) (ii)† | |
| 10.7.6 | Share Appreciation Right Agreement with ACGL-Constantine Iordanou-February 25, 2010 grant(dd),February 29, 2012 grant (dd) and September 6, 2012 grants (hh)† | |
| 10.7.7 | Share Appreciation Right Agreement with ACGL-David H. McElroy-June 8, 2009 grant (ff) and September 6, 2012 grants (hh)† | |
| 10.7.8 | Share Appreciation Right Agreement with ACGL-Mark D. Lyons-September 6, 2012 grant (hh)† | |
| 10.7.9 | Share Appreciation Right Agreement with ACGL substantially in the form signed by each of Constantine Iordanou, Marc Grandisson, W. Preston Hutchings and Louis T. Petrillo-November 12, 2012 grants (hh)† | |
| 10.7.10 | Share Appreciation Right Agreement with Arch Capital Group Ltd. substantially in the form signed by each of Constantine Iordanou, Mark D. Lyons, Marc Grandisson, W. Preston Hutchings, David McElroy and Louis T. Petrillo for May 13, 2014 grants (ll)† | |
| 10.7.11 | Share Appreciation Right Agreement, dated as of February 28, 2014 between Arch Capital Group Ltd. and Mark D. Lyons (ll)† | |
| 10.7.12 | Share Appreciation Right Agreement, dated as of February 28, 2014 between Arch Capital Group Ltd. and Constantine Iordanou (ll)† | |
| 10.8 | Employment and Change in Control Agreement, dated as of May 5, 2000, between ACGL and Louis T. Petrillo(a) and Amendment to Change in Control Agreement, dated as of December 31, 2008(t)† | |
| 10.9 | Employment Agreement, dated as of October 23, 2001, among ACGL, Arch Re Bermuda and Marc Grandisson(d), First Amendment to same, dated as of November 16, 2005(m) and Second Amendment to same, dated as of November 24, 2008(t)† | |
| 10.10 | Employment Letter Agreement, dated as of May 29, 2005, between ACGL and W. Preston Hutchings(l) and Amendment to same, dated as of May 21, 2008(q)† | |
| 10.11 | Employment Agreement, dated as of October 27, 2008, between ACGL and John D. Vollaro(r)† | |
| 10.12 | Employment Agreement, dated as of July 25, 2012, between ACGL and Mark D. Lyons(bb)† | |
| 10.13 | Employment Agreement, dated as of June 5, 2009, between Arch Insurance Group Inc. and David McElroy(cc) and Amendment to same, dated as of July 25, 2012(cc)† | |
| 10.14 | Amended and Restated Employment Agreement, dated October 1, 2014, between Arch Capital Group Ltd. and Constantine Iordanou (mm) | |
| 10.15 | Assumption of Change in Control Agreements(c)† |
| 10.16 | Arch U.S. Executive Supplemental Non-Qualified Savings and Retirement Plan(t)† | |
| 10.17 | Asset Purchase Agreement, dated as of February 7, 2013 (“PMI Asset Purchase Agreement”), by and among the Receiver of PMI Mortgage Insurance Co. in Rehabilitation on behalf of PMI Mortgage Insurance Co. (the “Receiver”), Arch U.S. MI Services Inc. and Arch U.S.(ee) and the Amendment No.1, dated as of May 31, 2013, to the PMI Asset Purchase Agreement (gg) | |
| 10.18 | Stock Purchase Agreement, dated as of February 7, 2013 (“CMG Stock Purchase Agreement”), by and among the Receiver, CMFG Life Insurance Company, CMG Mortgage Insurance Company, Arch U.S. MI Holdings Inc. and Arch U.S.(ee) and Amendment No. 1, dated as of May 31, 2013, to the CMG Stock Purchase Agreement (gg) | |
| 10.19.1 | Stock Purchase Agreement, dated as of May 13, 2004, by and among Protective Underwriting Services, Inc. (“Protective”), Arch Capital Holdings Ltd. (“Arch Capital Holdings”) and ACGL, as amended by Amendment No. 1, dated as of July 9, 2004, Amendment No. 2, dated as of July 13, 2004, Amendment No. 3, dated as of July 16, 2004 and Amendment No. 4, dated as of July 28, 2004(i) | |
| 10.19.2 | Waiver Letter Agreement related to the Stock Purchase Agreement, dated as of October 5, 2004, signed by Arch Capital Holdings, ACGL and Protective(j) | |
| 10.20 | Amended and Restated Credit Agreement, dated as of June 30, 2014, by and among Arch Capital Group Ltd. and its subsidiaries, Arch Capital Group (U.S.) Inc., Arch Reinsurance Ltd., Arch Reinsurance Company, Arch Reinsurance Europe Underwriting Limited, Arch Insurance Company, Arch Specialty Insurance Company and Arch Insurance Company (Europe) Limited, and Bank of America, N.A., as Administrative Agent, Fronting Bank and L/C Administrator, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association, as Co-Syndication Agents, U.S. Bank National Association and Lloyds Bank plc, as Co-Documentation Agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Book Managers and the other lenders party thereto (kk) | |
| 12 | Statement regarding computation of ratios (filed herewith) | |
| 21 | Subsidiaries of Registrant (filed herewith) | |
| 23 | Consent of PricewaterhouseCoopers LLP (filed herewith) | |
| 24 | Power of Attorney (filed herewith) | |
| 25 | Form T-1 Statement of Eligibility of Trustee(k)(jj) | |
| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
| 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
| 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
| 101 | The following financial information from ACGL’s Annual Report on Form 10-K for the year ended December 31, 2014 formatted in XBRL: (i) Consolidated Balance Sheets at December 31, 2014 and 2013; (ii) Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012; (iv) Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2014, 2013 and 2012; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012; and (vi) Notes to Consolidated Financial Statements (filed herewith) |
| (a) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on September 8, 2000, and incorporated by reference. |
| (b) | Filed as an annex to our Definitive Proxy Statement/Prospectus included in our Registration Statement on Form S-4 (No. 333-45418), as filed with the SEC on September 26, 2000, and incorporated by reference. |
| (c) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the SEC on April 2, 2001, and incorporated by reference. |
| (d) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on January 4, 2002, and incorporated by reference. |
| (e) | Filed as an exhibit to our Report on Form 10-Q for the period ended June 30, 2002, as filed with the SEC on August 14, 2002, and incorporated by reference. |
| (f) | Filed as an exhibit to our Report on Form 10-Q for the period ended September 30, 2003, as filed with the SEC on November 12, 2003, and incorporated by reference. |
| (g) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2003, as filed with the SEC on March 10, 2004, and incorporated by reference. |
| (h) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on May 7, 2004, and incorporated by reference. |
| (i) | Filed as an exhibit to our Report on Form 10-Q for the period ended June 30, 2004, as filed with the SEC on August 9, 2004, and incorporated by reference. |
| (j) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on October 8, 2004, and incorporated by reference. |
| (k) | Revised form of agreement originally filed as an exhibit to our Report on Form 8-K, as filed with the SEC on September 28, 2004, and incorporated by reference. |
| (l) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on June 9, 2005, and incorporated by reference. |
| (m) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the SEC on March 13, 2006, and incorporated by reference. |
| (n) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2006, as filed with the SEC on November 9, 2006, and incorporated by reference. |
| (o) | Filed as an appendix to our Definitive Proxy Statement, as filed with the SEC on April 3, 2007, and incorporated by reference. |
| (p) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the SEC on February 29, 2008, and incorporated by reference. |
| (q) | Filed as an exhibit to our Report on Form 10-Q for the period ending June 30, 2008, as filed with the SEC on August 8, 2008, and incorporated by reference. |
| (r) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on October 28, 2008, and incorporated by reference. |
| (s) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2008, as filed with the SEC on November 10, 2008, and incorporated by reference. |
| (t) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on March 2, 2009, and incorporated by reference. |
| (u) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2009, as filed with the SEC on November 9, 2009, and incorporated by reference. |
| (v) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the SEC on February 26, 2010, and incorporated by reference. |
| (w) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2010, as filed with the SEC on November 8, 2010, and incorporated by reference. |
| (x) | Filed as an exhibit to our Annual Report on Form 10-K for the period ending December 31, 2010, as filed with the SEC on February 28, 2011, and incorporated by reference. |
| (y) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2011, as filed with the SEC on November 8, 2011, and incorporated by reference. |
| (z) | Filed as an appendix to our Definitive Proxy Statement, as filed with the SEC on March 27, 2012, and incorporated by reference. |
| (aa) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on April 2, 2012, and incorporated by reference. |
| (bb) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on July 30, 2012, and incorporated by reference. |
| (cc) | Filed as an exhibit to our Report on Form 10-Q for the period ending June 30, 2012, as filed with the SEC on August 8, 2012, and incorporated by reference. |
| (dd) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2012, as filed with the SEC on November 9, 2012, and incorporated by reference. |
| (ee) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on February 8, 2013, and incorporated by reference. |
| (ff) | Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 1, 2013, and incorporated by reference. |
| (gg) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on June 5, 2013, and incorporated by reference. |
| (hh) | Filed as an exhibit to our Report on Form 10-Q for the period ending June 30, 2013, as filed with the SEC on August 9, 2013, and incorporated by reference. |
| (ii) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2013, as filed with the SEC on November 8, 2013, and incorporated by reference. |
| (jj) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on December 13, 2013, and incorporated by reference. |
| (kk) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on July 1, 2014, and incorporated by reference. |
| (ll) | Filed as an exhibit to our Report on Form 10-Q for the period ending June 30, 2014, as filed with the SEC on August 8, 2014, and incorporated by reference. |
| (mm) | Filed as an exhibit to our Report on Form 8-K, as filed with the SEC on October 6, 2014, and incorporated by reference. |
| (nn) | Filed as an exhibit to our Report on Form 10-Q for the period ending September 30, 2014, as filed with the SEC on November 7, 2014, and incorporated by reference. |
† Management contract or compensatory plan or arrangement.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ARCH CAPITAL GROUP LTD. (Registrant) | |||
| By: | /s/ Constantine Iordanou | ||
| Name: | Constantine Iordanou | ||
| Title: | Chairman of the Board of Directors, President & Chief Executive Officer |
February 27, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| Name | Title | Date |
| /s/ Constantine Iordanou | ||
| Constantine Iordanou | Chairman of the Board of Directors, President and Chief Executive Officer (Principal Executive Officer) | February 27, 2015 |
| /s/ Mark D. Lyons | ||
| Mark D. Lyons | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Principal Accounting Officer) | February 27, 2015 |
| * | ||
| John L. Bunce. Jr. | Director | February 27, 2015 |
| * | ||
| Eric W. Doppstadt | Director | February 27, 2015 |
| * | ||
| Kewsong Lee | Director | February 27, 2015 |
| * | ||
| Yiorgos Lillikas | Director | February 27, 2015 |
| Name | Title | Date |
| * | ||
| James J. Meenaghan | Director | February 27, 2015 |
| * | ||
| Deanna M. Mulligan | Director | February 27, 2015 |
| * | ||
| Louis J. Paglia | Director | February 27, 2015 |
| * | ||
| John M. Pasquesi | Director | February 27, 2015 |
| * | ||
| Brian S. Posner | Director | February 27, 2015 |
| * | ||
| Eugene S. Sunshine | Director | February 27, 2015 |
| * | ||
| John D. Vollaro | Director | February 27, 2015 |
| * | By Mark D. Lyons, as attorney-in-fact and agent, pursuant to a power of attorney, a copy of which has been filed with the Securities and Exchange Commission as Exhibit 24 to this report. |
| /s/ Mark D. Lyons | ||
| Name: | Mark D. Lyons Attorney-in-Fact |
SCHEDULE III
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
(U.S. dollars in thousands)
| Deferred Acquisition Costs, Net | Reserves for Losses and Loss Adjustment Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income (1) | Net Losses and Loss Adjustment Expenses Incurred | Amortization of Deferred Acquisition Costs | Other Operating Expenses (2) | Net Premiums Written | |||||||||||||||||
| December 31, 2014 | |||||||||||||||||||||||||
| Insurance | $178,545 | $6,161,500 | $1,237,099 | $2,017,370 | NM | $1,260,953 | $316,308 | $335,157 | $2,146,654 | ||||||||||||||||
| Reinsurance | 148,130 | 2,690,070 | 666,233 | 1,279,328 | NM | 532,450 | 261,438 | 147,964 | 1,265,991 | ||||||||||||||||
| Mortgage | 38,321 | 118,550 | 148,232 | 193,573 | NM | 55,674 | 49,400 | 66,891 | 204,837 | ||||||||||||||||
| Other | 49,529 | 66,328 | 180,014 | 103,477 | NM | 70,173 | 30,116 | 6,268 | 274,456 | ||||||||||||||||
| Total | $414,525 | $9,036,448 | $2,231,578 | $3,593,748 | NM | $1,919,250 | $657,262 | $556,280 | $3,891,938 | ||||||||||||||||
| December 31, 2013 | |||||||||||||||||||||||||
| Insurance | 158,121 | 6,137,121 | 1,192,188 | 1,876,014 | NM | 1,188,445 | 311,904 | 315,387 | 1,948,796 | ||||||||||||||||
| Reinsurance | 167,642 | 2,680,288 | 612,725 | 1,218,672 | NM | 486,236 | 234,373 | 134,563 | 1,313,001 | ||||||||||||||||
| Mortgage | 16,551 | 7,287 | 91,452 | 51,266 | NM | 4,743 | 17,826 | 8,377 | 89,570 | ||||||||||||||||
| Total | $342,314 | $8,824,696 | $1,896,365 | $3,145,952 | NM | $1,679,424 | $564,103 | $458,327 | $3,351,367 | ||||||||||||||||
| December 31, 2012 | |||||||||||||||||||||||||
| Insurance | $141,962 | $6,149,247 | $1,077,211 | $1,800,343 | NM | $1,283,841 | $298,983 | $307,489 | $1,825,334 | ||||||||||||||||
| Reinsurance | 106,677 | 2,781,424 | 517,619 | 1,118,127 | NM | 574,821 | 204,903 | 118,245 | 1,158,790 | ||||||||||||||||
| Mortgage | 14,183 | 2,621 | 53,148 | 16,670 | NM | 2,615 | 4,998 | 4,301 | 68,111 | ||||||||||||||||
| Total | $262,822 | $8,933,292 | $1,647,978 | $2,935,140 | NM | $1,861,277 | $508,884 | $430,035 | $3,052,235 |
| (1) | The Company does not manage its assets by segment and, accordingly, net investment income is not allocated to each underwriting segment. See Note 5 for information related to the ‘other’ segment. |
| (2) | Certain other operating expenses relate to the Company’s corporate segment (non-underwriting). Such amounts are not reflected in the table above. See Note 5. |
SCHEDULE IV
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
REINSURANCE
(U.S. dollars in thousands)
| Gross Amount | Ceded to Other Companies (1) | Assumed From Other Companies (1) | Net Amount | Percentage of Amount Assumed to Net | ||||||||||||||
| Year Ended December 31, 2014 | ||||||||||||||||||
| Premiums Written: | ||||||||||||||||||
| Insurance | $ | 2,974,996 | $ | (862,015 | ) | $ | 33,673 | $ | 2,146,654 | 1.6 | % | |||||||
| Reinsurance | 22,405 | (261,255 | ) | 1,504,841 | 1,265,991 | 118.9 | % | |||||||||||
| Mortgage | 103,545 | (22,519 | ) | 123,811 | 204,837 | 60.4 | % | |||||||||||
| Other | — | (14,171 | ) | 288,627 | 274,456 | 105.2 | % | |||||||||||
| Total | $ | 3,100,946 | $ | (948,678 | ) | $ | 1,739,670 | $ | 3,891,938 | 44.7 | % | |||||||
| Year Ended December 31, 2013 | ||||||||||||||||||
| Premiums Written: | ||||||||||||||||||
| Insurance | $ | 2,682,446 | $ | (763,713 | ) | $ | 30,063 | $ | 1,948,796 | 1.5 | % | |||||||
| Reinsurance | 72,136 | (86,620 | ) | 1,327,485 | 1,313,001 | 101.1 | % | |||||||||||
| Mortgage | — | — | 89,570 | 89,570 | 100.0 | % | ||||||||||||
| Total | $ | 2,754,582 | $ | (845,256 | ) | $ | 1,442,041 | $ | 3,351,367 | 43.0 | % | |||||||
| Year Ended December 31, 2012 | ||||||||||||||||||
| Premiums Written: | ||||||||||||||||||
| Insurance | $ | 2,562,788 | $ | (768,625 | ) | $ | 31,171 | $ | 1,825,334 | 1.7 | % | |||||||
| Reinsurance | 111,076 | (55,099 | ) | 1,102,813 | 1,158,790 | 95.2 | % | |||||||||||
| Mortgage | — | — | 68,111 | 68,111 | 100.0 | % | ||||||||||||
| Total | $ | 2,673,864 | $ | (816,926 | ) | $ | 1,195,297 | $ | 3,052,235 | 39.2 | % |
| (1) | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions and are included in the gross premiums written of each segment. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. |
SCHEDULE VI
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS
(U.S. dollars in thousands)
| Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | |||||||||||||||||||||||
| Affiliation with Registrant | Deferred Acquisition Costs, Net | Reserves for Losses and Loss Adjustment Expenses | Discount, if any, deducted in Column C | Unearned Premiums | Net Premiums Earned | Net Investment Income | Net Losses and Loss Adjustment Expenses Incurred Related to | Amortization of Deferred Acquisition Costs | Net Paid Losses and Loss Adjustment Expenses | Net Premiums Written | |||||||||||||||||||||||
| (a) Current Year | (b) Prior Years | ||||||||||||||||||||||||||||||||
| Consolidated Subsidiaries | |||||||||||||||||||||||||||||||||
| 2014 | $ | 414,525 | $ | 9,036,448 | $ | 14,732 | $ | 2,231,578 | $ | 3,593,748 | $ | 302,585 | $ | 2,246,152 | $ | (326,902 | ) | $ | 657,262 | $ | 1,697,736 | $ | 3,891,938 | ||||||||||
| 2013 | 342,314 | 8,824,696 | 12,539 | 1,896,365 | 3,145,952 | 267,219 | 1,943,466 | (264,042 | ) | 564,103 | 1,708,817 | 3,351,367 | |||||||||||||||||||||
| 2012 | 262,822 | 8,933,292 | 10,485 | 1,647,978 | 2,935,140 | 294,895 | 2,082,805 | (221,528 | ) | 508,884 | 1,465,379 | 3,052,235 |
Previous: Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES