Arch Capital Group (ACGL) 10-K risk factor changes: FY2022 vs FY2020

| ARCH CAPITAL | | | [removed: 33] [added: 37] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

[removed: - We] [added: *We] are subject to ongoing legal and policy actions around climate change which may result in [added: implications or] additional requirements which [removed: may] [added: could] prompt us to shift our risk selection and business strategy [removed: away] in ways which may adversely impact our results of [removed: operations.][added: operations.*]

- Governmental, regulatory and rating actions in response to the COVID-19 pandemic [added: have impacted us, and the continuation or reinstatement of such actions] may adversely affect our financial [removed: performance and our ability to conduct our businesses as we have in the past.][added: performance.]

- We could face unanticipated losses from war, terrorism, [removed: cyber-attacks,] [added: cyber attacks,] pandemics and political instability, and these or other unanticipated losses could have a material adverse effect on our financial condition and results of operations.

- The availability of reinsurance, retrocessional coverage and capital market transactions to limit our exposure to risks may be limited, and counterparty credit and other risks associated with our reinsurance arrangements may result in losses which could adversely affect our financial condition [removed: and results of operations.]

- [removed: Exposure] [added: We are exposed] to credit risk [removed: inherent] in certain of our business operations.

| ARCH CAPITAL | | | [removed: 34] [added: 38] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

- [removed: Applicable] [added: Our business is subject to applicable] laws and regulations relating to economic trade sanctions and foreign bribery [removed: laws.][added: laws, the violation of which could adversely affect our operations.]

- Disruption to the financial markets and [removed: the general] [added: weak] economic [removed: downturn] [added: conditions] resulting from [removed: COVID-19] [added: situations such as post pandemic imbalances, inflation and geopolitical conflict] may adversely and materially impact our investments, financial condition and results of operation.

[removed: - Foreign currency exchange rate fluctuation, as well as uncertainty] [added: *Uncertainty] relating to the determination of LIBOR and the [added: phasing out and] replacement [removed: thereof] [added: of LIBOR] with alternative benchmark [removed: rates.][added: rates may adversely impact us.*]

- [removed: The] [added: If the volume of low down payment mortgage originations declines, or if other government housing policies, practices or regulations change, the] amount of mortgage insurance we write in the U.S. could decline, which would reduce our [added: mortgage insurance] revenues.

- Changes to the role of the GSEs in the U.S. housing market or to GSE eligibility requirements for mortgage insurers could negatively impact our results of operations and financial [removed: condition,] [added: condition] or reduce our operating flexibility.

- [removed: Recently proposed] [added: Proposed] Treasury [removed: Regulations,] [added: Regulations issued on January 24, 2022,] if finalized in their current form, could (on prospective basis) cause our U.S. shareholders (including tax-exempt U.S. [removed: shareholders)to] [added: shareholders) to] be subject to current U.S. federal income tax on the portion of our earnings attributable to certain intercompany reinsurance income (whether or not [added: such income is] distributed).

- We may become subject to taxes in Bermuda after March 31, [removed: 2035.][added: 2035, which may have a material adverse effect on our results of operations.]

See [removed: [“Competition”](#i9aa6868b2b724c09bc653e55fc47166e_37)] [added: [“Competition”](#i00be03d4520d45dcbeeb6c59c24a8334_37)] in Item 1 for details on our competitors in each of the major segments we operate in.

| ARCH CAPITAL | | | [removed: 35] [added: 39] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

[added: These] consolidated entities may use their enhanced market power and broader capital base to negotiate price reductions for products and services that compete with ours, and we may experience rate declines and possibly write less business.

Historically, insurers and reinsurers have experienced significant fluctuations in operating results due to competition, frequency of occurrence or severity of catastrophic events, levels of capacity, general economic conditions, [added: inflation,] changes in equity, debt and other investment markets, changes in legislation, case law and prevailing concepts of liability and other factors.

[removed: In addition to] the nature of the property business, we believe that economic and geographic trends affecting insured property, including inflation, property value appreciation and geographic concentration tend to generally increase the size of losses from catastrophic events over time.

The COVID-19 pandemic [removed: has] resulted in a global slowdown of economic [removed: activity, and the magnitude of the impact of the pandemic] [added: activity] and [removed: the duration of the] disruption [removed: and resulting decline in] [added: of normal] business [removed: activity is still highly uncertain.][added: travel and working habits.]

The COVID-19 pandemic [removed: has] impacted our results of operations and [added: a reversion to the COVID-19 restrictions] could have a significant effect on our future business, results of operations and financial performance.

| ARCH CAPITAL | | | [removed: 36] [added: 40] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Uncertainty about complexities of climate change affects our ability to assess [added: with certainty the full impact of climate change and creates uncertainty about future trends and exposures.]

[removed: Climate] [added: Additionally, climate] change may make modeled outcomes less certain or produce new, non-modeled risks.

We attempt to manage our exposure to these risks relating to climate change through the use of underwriting controls, [removed: risk models, and the purchase of third-party reinsurance.]

Underwriting controls can include more restrictive underwriting criteria such as higher premiums and deductibles, [added: reduction in limits offered] or losses retained, and more specifically excluded policy risks.

Our [removed: deductible] [added: exposure] in connection with a catastrophic event is determined by market capacity, pricing conditions, regulatory capital [removed: requirements] [added: requirements, our perceptions of underlying risk] and surplus preservation.

| ARCH CAPITAL | | | [removed: 37] [added: 41] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

See [removed: [“Regulation”](#i9aa6868b2b724c09bc653e55fc47166e_43)] [added: [“Regulation”](#i00be03d4520d45dcbeeb6c59c24a8334_43)] in Item 1.

[removed: *We] [added: - We] are subject to ongoing legal and policy actions around climate change which may result in [added: implications or] additional requirements [removed: which may] [added: that could] prompt us to shift our risk selection and business strategy [removed: away] in ways which may adversely impact our results of [removed: operations.*][added: operations.]

We are subject to some of these changing laws, regulations and public policy debates, which are difficult to [removed: predict and quantify and may have an adverse impact on our business.]

Additionally, changes in regulations [added: or policies] relating to climate change or our own leadership decisions implemented as a result of assessing the impact of climate change on our business may result in an increase in the cost of doing business, or a decrease in premiums in certain lines of business.

We also continue to monitor changes across our industry and [added: geographies and the Board considers these exposures regularly.]

We may make strategic business decisions to address or respond to some of the legal and policy changes relating to climate change, but there is no assurance that these decisions will adequately address these [removed: exposures.][added: exposures or that they will not result in a material adverse effect on our results of operations, financial condition or share price.]

[removed: In some] cases, those policyholders and customers may not be able to shift their business strategies or adjust adequately to these changes, and their businesses may be negatively impacted or, in some cases, cease to exist.

Our leadership and Board are actively engaged in understanding the ever-changing ESG landscape and assessing our business operations to ensure that our business strategy reflects our [removed: values] [added: values,] that our success depends on our commitment to a diverse workforce, an informed and active dialogue about ESG issues with our customers and shareholders and the strength of our ERM framework.

We may be adversely impacted if [removed: key institution] shareholders [added: or investors] do not agree with, or are not satisfied with, our business strategy and approach to climate change and decide to sell or not purchase our equity or debt [removed: instruments.][added: instruments or to publicize their dissatisfaction.]

*Governmental, regulatory and rating actions in response to the COVID-19 pandemic [added: have impacted us, and the continuation or reinstatement of such actions] may adversely affect our financial [removed: performance and our ability to conduct our businesses as we have in the past.*][added: performance.*]

Actions of the federal, state and local government in the U.S. and other countries where we do business, to address and [added: mitigate the impact of COVID-19 impacted us.]

| ARCH CAPITAL | | | [removed: 38] [added: 42] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

*•*The effects of inflation and global recessionary conditions impact the insurance and reinsurance industry in ways which may negatively impact our business, financial condition and results of operations.

- The Russian invasion of Ukraine has created global instability and also resulted in the imposition of sanctions by the U.S., U.K. and EU on Russia and Russia-related businesses.

and results of operations.

- Adverse developments in the financial markets could have a material adverse effect on our results of operations, financial position and our businesses, and may also limit our access to capital; our policyholders, reinsurers and retrocessionaires may also be affected by such developments, which could adversely affect their ability to meet their obligations to us.

- Foreign currency exchange rate fluctuation may adversely affect our financial results.

- Uncertainty relating to the determination of the London Interbank Offered Rate (“LIBOR”) and the phasing out and replacement of LIBOR with alternative benchmark rates may adversely impact us.

- Our reinsurance subsidiaries may be required to provide collateral to ceding companies, by applicable regulators, their contracts or other commercial considerations.

Their ability to conduct business could be significantly and negatively affected if they are unable to do so.

- The continuing implementation of the Tax Cuts Act may have a material and adverse impact on our operations and financial condition.

We also compete on the basis of product offerings and other factors, such as our approach to ESG, and customers may be drawn to our competitors based on these factors.

*The effects of inflation and global recessionary conditions impact the insurance and reinsurance industry in ways which may negatively impact our business, financial condition and results of operations.*

General economic inflation has increased in recent quarters and may continue to remain at elevated levels for an extended period of time.

The potential also exists, after a catastrophe loss or pandemic events like COVID-19, for the development of inflationary pressures in a local economy.

This may have a material effect on the adequacy of our reserves for losses and loss adjustment expenses, especially in longer-tailed lines of business.

In addition, governmental actions in response to inflationary pressures, such as increasing interest rates, may have a material impact on the market value of our investment portfolio.

While we consider the anticipated effects of inflation in our pricing models, reserving processes and exposure management across all lines of business and types of loss including natural catastrophe events, the actual effects of inflation on our results cannot be accurately known until claims are settled.

In addition, there are different types of inflation relevant to certain lines of business, the impact of which is difficult to accurately assess at this time.

For example, in our mortgage business, the failure of general wages to keep pace with economic inflation, or increases in unemployment due to prolonged recessionary conditions, could prevent borrowers from being able to afford their mortgage payments and thereby increase the frequency of claims beyond our modeled results.

Global recessionary conditions, including inflation, the slow recovery of certain sectors from the pandemic, predicted slow growth rates across key markets and other factors, will impact the insurance and reinsurance industry.

There is great uncertainty around how severe and how long a recession will last on a global and local basis.

While our risk management and business strategy take recessionary conditions into account, we cannot accurately predict the full impact of a recession on our results of business operations.

In addition to

While we are shifting to a COVID-19 endemic approach, there is still uncertainty about the impact of COVID-19 variants in the long-term.

Continued macroeconomic volatility may persist affecting our businesses and related market opportunities.

Climate change and increasing catastrophic events could increase property damage to residential real estate secured by mortgages owned by the GSEs, and by extension could increase losses to CRT investors.

proprietary and third-party risk models, and the purchase of third-party reinsurance.

predict and quantify and may have an adverse impact on our business.

*The Russian invasion of Ukraine has created global instability and also resulted in the imposition of sanctions by the U.S., U.K. and EU on Russia and Russia-related businesses.*

The Russian invasion of Ukraine and ongoing hostilities have created a high level of uncertainty as well as disruption in certain sectors of the global economy.

It is impossible to predict whether Russia will expand hostilities to other countries in Europe or elsewhere.

A further prolonged war may also create uncertainty in the global economy in the form of oil shortages, inflationary pressures, loss of confidence and general increase in risks worldwide.

In response to this aggression, the governments of the U.S., U.K., EU and other countries have implemented several sanctions programs relating to, among other things, the import and transportation of Russian oil and gas and other goods originating in Russia.

Certain lines of business we write have been impacted by the sanctions, such as the marine and energy lines of business, although the extent of the impact will depend on the outcome of the war in Ukraine and the nature of future sanctions packages.

In some

While many of those actions have expired, been repealed or removed, it is difficult to predict whether such legislative bodies may choose to reintroduce legislation relating to the pandemic or continue to update existing regulations.

Some proposed bills would require policies providing business

estimate the amount of loss any given occurrence will generate.

Changes in the assumptions used

affected by the changes.

The impact of this case on Arch Insurance (U.K.)’s results of operations has been modest, and no further litigation has flowed from it that has significantly impacted Arch Insurance (U.K.).

- The U.K.’s withdrawal from the EU and the impact thereof.

- Adverse developments in the financial markets (including as a result of the COVID-19 pandemic) and their potential to limit our access to capital or adversely affect our policyholders, reinsurers and retrocessionaires.

- Uncertainty relating to the determination of LIBOR and the phasing out and replacement of LIBOR after 2021 may adversely affect the value of our investment portfolio, our cost of capital, net investment income and mortgage reinsurance costs.

- Inability of our reinsurance subsidiaries to provide required collateral.

- The impact of the enactment and continuing implementation of the Tax Cuts Act.

These

*Claims for natural and man-made catastrophic events could cause large losses and substantial volatility in our results of operations and could have a material adverse effect on our financial position and results of operations.*

We have large aggregate exposures to natural and man-made catastrophic events.

Natural catastrophes can be caused by various events, including hurricanes, floods, wildfires, tsunamis, windstorms, earthquakes, hailstorms, tornadoes, explosions, severe winter weather, fires, droughts and other natural disasters.

The frequency and severity of natural catastrophe activity has also been greater in recent years.

Due to climate change caused in part by human actions and other related factors.

Catastrophic events caused by humans may include acts of war, acts of terrorism and political instability.

Catastrophes can cause losses in non-property business such as workers’ compensation or general liability.

Actual losses from future catastrophic events may vary materially from estimates due to the inherent uncertainties in making such determinations resulting from several factors, including the potential inaccuracies and inadequacies in the data provided by clients, brokers and ceding companies, the modeling techniques and the application of such techniques, the contingent nature of business interruption exposures, the effects of any resultant demand surge on claims activity and attendant coverage issues.

In estimating our losses from catastrophic events our considerations can include factors such as overall market losses, additional claims information from our clients, multiple model views and proprietary scenario testing.

The emergence of variants of the original coronavirus, such as Delta or Omicron, create a high level of unpredictability for our business and the global economy.

A further prolonged COVID-19 pandemic, or a shift to a COVID-19 endemic approach, may result in fundamental shifts in the global economy which could materially and adversely impact our own employees and operations, as well as the business operations of third parties with whom we interact.

Continued maintenance of the low interest rates to combat the economic headwinds of the pandemic could negatively impact the net investment income in our fixed maturity portfolio.

Conversely, the tightening of financial conditions as the

pandemic threat to the economy eases may drive rising interest rates and increase the potential for realized and unrealized losses in the fixed income portion of the portfolio.

with certainty the full impact of climate change and creates uncertainty about future trends and exposures.

geographies and the Board considers these exposures regularly.

mitigate the impact of COVID-19, may adversely affect us.

Many insurers, including us, have also voluntarily provided, and may further provide, premium refunds to their customers.

We expect that certain mortgage loans may default or enter forbearance programs that allow borrowers to defer mortgage payments as borrowers face challenges related to COVID-19.

Under the GSEs’ PMIERs financial requirements, eligible insurers are required to hold additional risk-based required assets for delinquent mortgages.

However, this amount is reduced for mortgages backed by a property located in a FEMA Declared Major Disaster Area, among other requirements.

On June 30, 2020, as amended on September 29, 2020, December 4, 2020 and June 30, 2021, the GSEs published guidance clarifying the applicability of the reduced delinquent loan charges on loans (1) with their first missed payments occurring between March 1, 2020 and March 31,

2021, or (2) subject to a forbearance plan in response to a hardship related to COVID-19.

Additionally, through December 31, 2021, the GSEs temporarily required eligible insurers to obtain prior approval of dividends or entering into any new arrangements or altering any existing arrangements under tax sharing and intercompany expense-sharing agreements.

to (i) a mandatory deductible of 20% of our prior year’s direct earned premium for covered property and liability coverages, and (ii) an industry aggregate retention of $37.5 billion.

our financial condition in general.

Underwriting is

The availability and cost of reinsurance and retrocessional protection is subject to market conditions.

An inability of our reinsurers or

The impact of this case on Arch Insurance (U.K.)’s results of operations has been modest, but the larger impact of this “test case” and other litigation which may flow from it in the U.K. or other jurisdictions where we offer business interruption coverage, cannot be quantified or predicted with certainty at this time.

A prolonged COVID-19 pandemic could trigger further litigation on coverage and claims issues and potentially result in material and adverse outcomes and impact our business results.

joint ventures or partnerships.

The COVID-19 pandemic has placed increased and unanticipated demands on our IT systems in use by our customers and our workforce as much of the general workforce continues to work remotely.

Remote working may increase the risk of cyber security attacks or other data security incidents.

The following is a discussion and analysis of the financial condition and results of operations for the year ended December 31, [removed: 2021] [added: 2022] and [removed: 2020.][added: 2021.]

Comparisons between [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] have been omitted from this Form 10-K, but may be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K year ended December 31, [removed: 2020] [added: 2021] filed with the SEC.

Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed in this report, including the sections entitled “[Cautionary Note Regarding Forward-Looking [removed: Statements](#i9aa6868b2b724c09bc653e55fc47166e_13),”] [added: Statements](#i00be03d4520d45dcbeeb6c59c24a8334_13),”] and “[Risk [removed: Factors](#i9aa6868b2b724c09bc653e55fc47166e_49).”][added: Factors](#i00be03d4520d45dcbeeb6c59c24a8334_49).”]

This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto presented under [removed: Item 8.][added: [Item 8](#i00be03d4520d45dcbeeb6c59c24a8334_121).]

Arch Capital Group Ltd. (“Arch Capital” and, together with its subsidiaries, “we” or “us”) is a publicly listed Bermuda exempted company with approximately [removed: $16.3] [added: $15.6] billion in capital at December 31, [removed: 2021.][added: 2022 and is part of the S&P 500 index.]

Through operations in Bermuda, the United States, United Kingdom, Europe, [removed: Canada, Australia] [added: Canada] and [removed: Hong Kong,] [added: Australia,] we write specialty lines of property and casualty insurance and reinsurance, as well as mortgage insurance and reinsurance, on a worldwide basis.

In that cycle, a “hard” market is evidenced by high premium rates, restrictive underwriting standards, [removed: favorable] [added: narrow] terms and conditions, and [added: strong] underwriting [removed: gains.][added: profits for insurers.]

[added: A “hard” market typically attracts new capital and new entrants to the market and is eventually followed by] a “soft” [removed: market] [added: market,] which has [removed: the opposite] characteristics of low premium rates, relaxed underwriting standards, broader terms and conditions, and [added: lower] underwriting [removed: losses.][added: profits for insurers.]

As a result, we [removed: currently expect favorable market conditions to] continue [removed: in 2022,] [added: to show improved underwriting margins,] partially due to the compounding of rate-on-rate increases and the rebalancing of our mix of business.

We believe that this [removed: time-tested] [added: proven] strategy of protecting capital through soft markets and increasing [removed: our] writings in hard markets gives us the best chance to generate superior risk adjusted returns over time.

| ARCH CAPITAL | | | [removed: 57] [added: 61] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Rate improvements have enabled us to continue to expand writings in our property casualty [removed: segments as we have been for two years now.][added: segments.]

We remain committed to providing solutions across many offerings as the marketplace evolves, including the mortgage credit risk transfer programs initiated by government sponsored [removed: enterprises] [added: enterprises, or] (“GSEs”).

In addition, we [removed: enter] [added: have entered] into aggregate excess of loss mortgage reinsurance agreements with various special purpose reinsurance companies domiciled in Bermuda and [removed: issue] [added: have issued] mortgage insurance linked notes, increasing our protection for mortgage tail risk.

The Bellemeade structures [removed: provide] [added: provided] approximately [removed: $4.6] [added: $4.0] billion of aggregate reinsurance coverage at December 31, [removed: 2021.][added: 2022.]

Book value per share was [removed: $33.56] [added: $32.62] at December 31, [removed: 2021,] [added: 2022,] a [removed: 10.7% increase] [added: 2.8% decrease] from [removed: $30.31] [added: $33.56] at December 31, [removed: 2020.][added: 2021.]

After-tax operating income available to Arch common shareholders, a “non-GAAP measure” as defined in the SEC rules, represents net income available to Arch common shareholders, excluding net realized gains or [removed: losses,] [added: losses (which includes changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings),] equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or [removed: losses and] [added: losses,] transaction costs and other, [removed: net] [added: loss on redemption] of [added: preferred shares and] income taxes.

| ARCH CAPITAL | | | [removed: 58] [added: 62] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains [removed: and] [added: or] losses and the change in unrealized gains [removed: and] [added: or] losses generated by Arch’s investment portfolio.

(1) Our investment expenses were approximately [removed: 0.32%] [added: 0.28%] and [removed: 0.31%,] [added: 0.32%,] respectively, of average invested assets in [removed: 2021] [added: 2022] and [removed: 2020.][added: 2021.]

At December 31, [removed: 2021,] [added: 2022,] the benchmark return index had an average credit quality of “Aa3” by Moody’s, an estimated duration of [removed: 3.14] [added: 3.16] years.

| ICE [removed: BoAML] [added: BofAML] 1-5 Year [removed: U.S.] [added: US] Treasury Index | | | [removed: 15.00] [added: 12.00] | | |

| MSCI ACWI Net Total Return USD Index | | | [removed: 8.60] [added: 4.00] | | |

| Bloomberg Barclays [removed: CMBS Invest Grade] [added: ABS] Aaa Total Return Index | | | [removed: 5.00] [added: 3.00] | | |

| ICE [removed: BoAML U.S.] [added: BofAML US] Mortgage Backed Securities Index | | | 4.00 | | |

| ICE [removed: BoAML] [added: BofAML] 1-5 Year [removed: U.K.] [added: UK] Gilt Index | | | [removed: 4.00] [added: 4.25] | | |

| ICE [removed: BoAML] [added: BofAML] German Government 1-10 Year Index | | | [removed: 3.50] [added: 4.00] | | |

| ICE [removed: BoAML] [added: BofAML] 0-3 Month [removed: U.S.] [added: US] Treasury Bill Index | | | [removed: 3.25] [added: 3.00] | | |

| ICE [removed: BoAML] [added: BofAML] 1-10 Year [removed: U.S.] [added: US] Municipal Securities Index | | | 3.00 | | |

| ICE [removed: BoAML] [added: BofAML] 5-10 Year [removed: U.S.] [added: US] Treasury Index | | | 3.00 | | |

| ICE [removed: BoAML] [added: BofAML] 1-5 Year Australia Government Index | | | [removed: 2.75] [added: 2.50] | | |

| ICE [removed: BoAML U.S.] [added: BofAML US] High Yield Constrained Index | | | 2.50 | | |

| ICE [removed: BoAML] [added: BofAML] 1-5 Year Canada Government Index | | | [removed: 2.00] [added: 2.50] | | |

| [removed: Bloomberg Barclays CMBS:] [added: US RE Senior (Barclays CMBS] Erisa [removed: Eligible Unhedged USD] [added: Eligible)] | | | [removed: 0.90] [added: 0.83] | | |

| ICE [removed: BoAML 20+] [added: BofAML 15+] Year Canada Government Index | | | 0.50 | | |

This presentation includes the use of after-tax operating income available to Arch common shareholders, which is defined as net income available to Arch common shareholders, excluding net realized gains or [removed: losses,] [added: losses (which includes changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings),] equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and [removed: other] [added: other, loss on redemption of preferred shares] and income taxes, and the use of annualized operating return on average common equity.

[removed: The reconciliation of such measures to net income available to Arch common] shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included under “Results of Operations” below.

| ARCH CAPITAL | | | [removed: 59] [added: 63] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of our operations, the decision to realize [removed: investment gains or losses, the recognition of the change in the carrying value of investments accounted for using the fair value option in net realized gains or losses, the recognition of net impairment losses, the recognition of equity in net income or loss of investments accounted for using the equity method and the recognition of foreign exchange gains or losses] [added: these items] are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions.

In addition, changes in [added: the] allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

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| Overview | | | | | | | | | [62](#i00be03d4520d45dcbeeb6c59c24a8334_88) | | |

| Current Outlook | | | | | | | | | [62](#i00be03d4520d45dcbeeb6c59c24a8334_2235) | | |

| Financial Measures | | | | | | | | | [63](#i00be03d4520d45dcbeeb6c59c24a8334_2241) | | |

| Comments on Non-GAAP Measures | | | | | | | | | [64](#i00be03d4520d45dcbeeb6c59c24a8334_2247) | | |

| Results of Operations | | | | | | | | | [66](#i00be03d4520d45dcbeeb6c59c24a8334_91) | | |

| | | | Insurance Segment | | | | | | [67](#i00be03d4520d45dcbeeb6c59c24a8334_2254) | | |

| | | | Reinsurance Segment | | | | | | [68](#i00be03d4520d45dcbeeb6c59c24a8334_2261) | | |

| | | | Mortgage Segment | | | | | | [69](#i00be03d4520d45dcbeeb6c59c24a8334_2267) | | |

| | | | Corporate Segment | | | | | | [71](#i00be03d4520d45dcbeeb6c59c24a8334_2273) | | |

| Financial Condition | | | | | | | | | [80](#i00be03d4520d45dcbeeb6c59c24a8334_97) | | |

| Liquidity | | | | | | | | | [83](#i00be03d4520d45dcbeeb6c59c24a8334_100) | | |

| Capital Resources | | | | | | | | | [85](#i00be03d4520d45dcbeeb6c59c24a8334_103) | | |

| Contractual Obligations and Commitments | | | | | | | | | [88](#i00be03d4520d45dcbeeb6c59c24a8334_106) | | |

| Ratings | | | | | | | | | [89](#i00be03d4520d45dcbeeb6c59c24a8334_109) | | |

| Catastrophic Events and Severe Economic Events | | | | | | | | | [89](#i00be03d4520d45dcbeeb6c59c24a8334_112) | | |

| Market Sensitive Instruments and Risk Management | | | | | | | | | [91](#i00be03d4520d45dcbeeb6c59c24a8334_115) | | |

As we head into 2023, our objective remains the same, to deliver long term value for our shareholders.

Underwriting discipline is core to our culture and we are committed to agile cycle management with a focus on risk-adjusted returns.

2022 was our third consecutive year of sustained premium and revenue growth, supporting stronger and more stable earnings power for the near term.

Reinsurance segment’s net premiums written grew 51% as the team seized on market dislocations while our insurance segment grew a robust 21%.

We continue to see a broad array of opportunities to allocate capital where rates and terms and conditions allow for growth in attractive returns.

We continue to execute our cycle management strategy by actively allocating capital across a diversified, specialty portfolio where rates allow for returns that are higher than our cost of capital.

While we continue to allocate more capital to our property and casualty segments, it is important to note that we have capitalized on attractive returns from our mortgage segment with $1.3 billion of underwriting income in 2022.

The catastrophic activity in 2022 has significantly increased pressure on property catastrophe markets, which could have a ripple effect across all property and casualty lines.

In reinsurance, pricing for the January 1 renewals was strong.

Property catastrophe pricing and terms both improved, leading to the effective rate changes in the 30% to 50% range.

We anticipate that these trends will continue to the mid-year property catastrophe renewal period and should translate to strong property growth in 2023.

In insurance, underwriting conditions remain opportunistic as pricing discipline, terms and conditions, and limits management are stable across most lines.

This stability, combined with the uncertainties in the insurance market, should keep the market disciplined and sustain rate increases in most lines of business.

Our specialty business in the U.K. and the U.S. operations benefited from growth in professional liability, including cyber insurance, as well as travel where we believe relative returns are attractive.

Inflation continues to be a focus for our industry.

We proactively analyze available data and we incorporate emerging trends into our pricing and reserving.

We believe that this discipline, coupled with increases in future investment returns and prudent reserving, helps us somewhat mitigate inflation’s impact.

In mortgage, we continue to be thoughtful in how we manage our portfolio and, because of our diversified model, we have the ability to take a measured view of the business as just one component of our diversified enterprise.

Our mortgage business continues to deliver consistent underwriting results, once again demonstrating its sustainable earnings model.

Although higher interest rates affected new loan origination volume, our U.S. primary mortgage insurance in force grew to nearly $296 billion, reflecting a higher persistency rate.

The credit quality of homebuyers remains excellent and we believe our portfolio is well positioned for a variety of economic scenarios.

The decline in 2022 reflected negative total return on investments driven by rising interest rates on fixed maturities.

See “Comment on Non-GAAP Financial Measures.”

GENERAL

A hard market is eventually followed by

Our three areas of focus during the year have remained constant.

In our property and casualty segments we continued to focus and grow in sectors where rates allow for returns that are substantially higher than our cost of capital.

Our mortgage insurance segment has transitioned, for the most part, from forbearance to recovery and produced results that made a significant contribution to our underwriting income.

We have also continued to focus on actively managing our investments and capital to enhance our returns.

In keeping with our longstanding underwriting approach, we look for acceptable books of business to underwrite without sacrificing discipline.

Our corporate culture of being patient in soft markets while maintaining an agile mindset is a key to our success and allows us to seize opportunities when the odds for success are more in our favor.

The 2021 year reflected the benefits of attractive pricing in almost all of our insurance markets.

The property casualty industry is facing many degrees of uncertainty, including heightened catastrophe activity, rising inflation, COVID’s ongoing influence on the global economy and perennially low interest rates.

These factors continue to influence the trajectory and market acceptance of rate increases and reinforce why we remain optimistic that improved economics in the property casualty market will be sustainable for some time.

Rate momentum remained healthy and rate increases were well above the long-term loss cost trends and have spread to more lines than last year.

Our early focus on Lloyd’s and business in the U.K. has improved our scale and our economics in this market.

Some of our business lines that were most impacted by COVID, like travel, are recapturing some of the lost volume as both business and consumer travel increases.

In reinsurance, strong growth was observed across most of our lines of business, a reflection of our diversified specialty mix of business and our larger participation in quota share reinsurance which allows us to participate in the improved premium rates of cedents more directly.

We continue to write a portion of our overall book in catastrophe exposed business, which has the potential to increase the volatility of our operating results.

While property catastrophe rates were up broadly at January 1, 2022 renewals, the increases were not enough for us to deploy more capital into our peak zones.

However, we found many opportunities to grow in the other 93% of our reinsurance business that is specialty in nature, including property excluding property catastrophe.

For our U.S. primary mortgage operations, delinquencies continue to be lower than our expectations at the beginning of the COVID-19 pandemic.

Overall, the U.S. market remains competitive but rational and our mortgage business continues to generate returns on capital in the mid teens.

Outside of the U.S., we increased our writings in Australia as a result of the housing market remaining strong and due to our acquisition of Westpac’s LMI business.

The growth in 2021 reflected strong underwriting returns and income from operating affiliates.

See “Comment on Non-GAAP Financial Measures.” Our Operating ROAE was 11.5% for 2021, compared to 4.8% for 2020.

Returns for the 2021 period reflected strong underwriting returns and income from operating affiliates, while the 2020 period reflected the impact of COVID-19 on underwriting results.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Pre-tax total return (before investment expenses): | | | | | | | | | | | |

| Year Ended December 31, 2020 | | | 7.77 | | % | | | | 7.16 | | % |

Total return for our investment portfolio outperformed the benchmark return index in 2021 and reflected the impact of strong returns on alternatives and equities, partially offset by low returns on our fixed income portfolio.

| ICE BoAML 1-10 Year A - AAA U.S. Corporate Index | | | 21.00 | | % |

| ICE BoAML 3-5 Year Fixed Rate Asset Backed Securities Index | | | 7.00 | | |

| S&P Leveraged Loan Total Return Index | | | 5.20 | | |

| ICE BoAML 1-10 Year BBB U.S. Corporate Index | | | 4.00 | | |

| Bloomberg Barclays Global High Yield Total Return Index | | | 1.50 | | |

| Hedge Fund Research HFRX ED Distressed Restructuring Index (Flagship Funds) | | | 1.50 | | |

| Dow Jones Global ex-US Select Real Estate Securities Total Return Net Index | | | 0.90 | | |

| FTSE Nareit All Mortgage Capped Index Total Return USD | | | 0.90 | | |

| Total | | | 100.00 | | % |

As such, we consolidated the results of Somers in our consolidated financial statements through June 30, 2021.

| | | | 2021 | | | | | | 2020 | | |

Results in all periods presented reflected the impact of current insurance and reinsurance market conditions and the impact of low interest yields on our investment portfolio.

| ARCH CAPITAL | | | [removed: 89] [added: 93] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

We refer you to Item 1A [“Risk [removed: Factors”](#i9aa6868b2b724c09bc653e55fc47166e_49)] [added: Factors”](#i00be03d4520d45dcbeeb6c59c24a8334_49)] for a discussion of risk factors relating to our business.

Arch [removed: Capital, a publicly listed Bermuda exempted company with $16.3 billion in capital at December 31, 2021,] provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

For [removed: 2021,] [added: 2022,] we wrote [removed: $9.0] [added: $11.1] billion of net premiums and reported net income available to Arch common shareholders of [removed: $2.1] [added: $1.4] billion.

Book value per share was [removed: $33.56] [added: $32.62] at December 31, [removed: 2021,] [added: 2022,] compared to [removed: $30.31] [added: $33.56] per share at December 31, [removed: 2020.][added: 2021.]

[added: In October 2001, Arch Capital] launched an underwriting initiative to meet current and future demand in the global insurance and reinsurance markets that included the recruitment of new management teams and an equity capital infusion of $763.2 million, which created a strong capital base that was unencumbered by significant pre-2002 risks.

Our U.S. platform [removed: has grown] [added: grew] with the 2018 acquisition of McNeil & Company, Inc. (“McNeil”), a U.S. nationwide leader in specialized risk management and program administration.

Our reinsurance operations in Europe began in 2006 in [removed: offices in] Zurich, Switzerland and [added: with] the formation of a Danish underwriting agency in 2007.

[removed: On August 6,] [added: In] 2021, Arch Re Bermuda completed the acquisition of Somerset Bridge Group Limited, Southern Rock Holdings Limited and affiliates (“Somerset Group”).

The acquisition [removed: includes] [added: included] Somerset’s motor insurance managing general agent, distribution capabilities through [removed: direct and aggregator channels, affiliated insurer and fully integrated claims operation.]

| ARCH CAPITAL | | | 3 | | | [removed: 2021] [added: 2022] FORM 10-K | | |

These operations include providers [removed: that] [added: which] are also approved as eligible mortgage insurers by Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”), each a GSE.

We expanded our presence in Australia in August 2021 by acquiring Westpac Lenders Mortgage Insurance Limited, another [removed: APRA-approved] [added: APRA approved] writer of lenders’ mortgage insurance, which has since been renamed Arch Lenders Mortgage Indemnity Ltd. (“Arch Indemnity”).

It is our belief that our underwriting platform, our experienced management team and our strong capital base have enabled us to establish a strong presence in the markets [added: in which] we [removed: participate in.][added: participate.]

The merger and the related Greysbridge [removed: equity financing closed on July 1, 2021.]

[removed: Effective July 1, 2021,] Somers is wholly owned by Greysbridge, and Greysbridge is owned 40% by Arch, 30% by certain funds managed by Kelso & Company (“Kelso”) and 30% by certain funds managed by Warburg Pincus LLC (“Warburg”).

[added: In 2017, we acquired approximately 25% of Premia Holdings] Ltd. Premia Holdings Ltd. is the parent of Premia Reinsurance Ltd., a multi-line Bermuda reinsurance company (together with Premia Holdings Ltd., “Premia”).

Repurchases under the share repurchase program may be effected from time to time in open market or privately negotiated transactions through December 31, [removed: 2022.][added: 2024.]

Since the inception of the share repurchase program in February 2007 through December 31, [removed: 2021,] [added: 2022,] Arch Capital has repurchased [removed: 420.7] [added: 433.6] million common shares for an aggregate purchase price of [removed: $5.3] [added: $5.9] billion.

At December 31, [removed: 2021,] [added: 2022,] the total remaining authorization under the share repurchase program was [removed: $1.2] [added: $1.0] billion.

The timing and amount of the repurchase transactions under this program will depend on a variety of factors, including [added: results of operations,] market conditions and [removed: corporate and regulatory considerations.][added: the development of the economy, as well as other factors.]

During the [removed: 2021] [added: 2022] fiscal year, we repurchased [removed: 31,486,830] [added: 12,891,405] shares for an aggregate amount of [removed: $1.23 billion] [added: $585.8 million] under our share repurchase program.

We classify our businesses into three underwriting segments– insurance, reinsurance and mortgage and two operating segments– corporate and ‘other.’ For an analysis of our underwriting results by segment, see [note 4, “Segment [removed: Information,”](#i9aa6868b2b724c09bc653e55fc47166e_154)] [added: Information,”](#i00be03d4520d45dcbeeb6c59c24a8334_151)] to our consolidated financial statements in Item 8 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.”

The global pandemic resulting from the coronavirus (including variants of the coronavirus [removed: such as Delta and Omicron,] “COVID-19”) [removed: has] disrupted the global economy, causing a significant slowdown in economic activity around the world.

Businesses around the world, including ours, [removed: have been] [added: were] impacted by the restrictions on travel, some business activities and non-essential services and the [removed: reverberations of] severe curtailment of normal [removed: activities.]

| ARCH CAPITAL | | | 4 | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Our employees and businesses have adapted to the changing needs of our clients, customers and business [removed: partners.][added: partners with our 5,800 employees returning to the office under a hybrid work model.]

In the U.S., our insurance group’s principal insurance subsidiaries are Arch Insurance Company (“Arch Insurance”), Arch Specialty Insurance Company (“Arch Specialty”), Arch Indemnity Insurance Company (“Arch Indemnity Insurance”) and Arch Property [removed: &] Casualty Insurance Company (“Arch P&C”).

In 2019, Arch Insurance (EU), based in Dublin, Ireland, received authorization from the Central Bank of Ireland [removed: (“CBOI”)] [added: (“CBI”)] to expand its [added: authorized] classes of business as part of our plan to address the U.K.’s departure from the European Union (“Brexit”).

[removed: As] of January 2020, all of the insurance business in the European Union (“EU”) previously written by Arch Insurance (U.K.) is now written through Arch Insurance (EU).

Arch Insurance (EU) has branches in [removed: the EU in Denmark and] Italy and [removed: outside] the [removed: EU in the] U.K. [removed: At the end]

[added: At the end] of [removed: December] 2020, Arch Insurance (U.K.) received court approval in the U.K. to transfer its legacy book of business written in the European Economic Area (“EEA”) to Arch Insurance (EU) under Part VII of the U.K. Financial Services and Markets Act 2000.

We conduct insurance operations on several platforms in the U.K., including Arch Insurance (U.K.) and our Lloyd’s syndicates: Arch Syndicate 2012 (“Arch Syndicate 2012”) and Arch Syndicate 1955 (“Arch Syndicate [removed: 1955”).][added: 1955” and, together with Arch Syndicate 2012, our “Lloyd’s Syndicates”).]

Arch Managing Agency Limited (“AMAL”) is the managing agent of [removed: Arch Syndicate 2012 and Arch Syndicate 1955.][added: our Lloyd’s Syndicates.]

[removed: Our Lloyd’s syndicates] [added: These operations] provide us access to Lloyd’s extensive distribution network and worldwide licenses.

[removed: With] [added: As part of] the Barbican acquisition, we also acquired Castel Underwriting Agencies Limited (“Castel”) in the U.K. and Castel Underwriting Europe BV in the Netherlands, giving us additional underwriting intermediary capabilities for our underwriting platforms.

Collectively, the U.K. insurance operations are referred to as “Arch [removed: U.K.”.][added: U.K.” Arch U.K. conducts its operations from London and other locations in the U.K.]

As profitable underwriting opportunities are identified, our insurance group will continue to [removed: seek to make additions to] [added: grow] its product portfolio in order to take advantage of market trends.

| ARCH CAPITAL | | | 5 | | | [removed: 2021] [added: 2022] FORM 10-K | | |

[removed: insurance group has five regional offices, and the] executive in charge of each region is primarily responsible for all aspects of the marketing and distribution of our insurance group’s products, including the management of broker and other producer relationships in such executive’s respective region.

[removed: Therefore,] [added: We believe] our [removed: insurance group believes that its] ability to handle claims expeditiously and satisfactorily is a key to [removed: its] [added: our] success.

Arch Capital is a publicly listed Bermuda exempted company with approximately $15.6 billion in capital at December 31, 2022 and is part of the S&P 500 index.

direct and aggregator channels, affiliated insurer and fully integrated claims operation.

In December 2022, we converted Arch LMI into a services company for our Australian LMI operations and the company relinquished its APRA authorization.

equity financing closed on July 1, 2021.

We will consider share repurchases on an opportunistic basis.

activities.

During 2022, the restrictions relating to the pandemic were largely lifted in the regions where we do business, shifting us to an endemic stage in 2023.

As

Our U.S. insurance group has five regional offices, and the

One key to this philosophy is the adherence to uniform underwriting

It is the practice for the brokers and producers to make the client aware of any contingent commissions arrangements that may be in place with us.

primary obligations to insureds.

Arch Re Bermuda has also been approved in certain U.S. states as a “reciprocal jurisdiction reinsurer,” which allows ceding

companies to eliminate collateral requirements for reinsurance ceded to such reinsurers and still take credit for that reinsurance.

In December 2022, Arch Group Reinsurance Ltd. (“AGRL”) was registered as a Class 3A general business insurer carrying on affiliated reinsurance business pursuant to the Insurance Act of 1978 of Bermuda.

AGRL, a wholly-owned subsidiary of Arch-U.S., was established to provide internal quota share reinsurance covering certain U.S. lines of business.

AGRL will be a U.S. taxpayer through a section 953(d) voluntary election under the Internal Revenue Code of 1986, as amended.

It is our reinsurance group’s belief that employing actuaries on the front-end of

See [note 8, “Reinsurance,”](#i00be03d4520d45dcbeeb6c59c24a8334_163) to our consolidated financial statements in Item 8.

For a discussion of our risk management policies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Ceded

In December 2022, we converted Arch LMI to a services company for our Australian lenders mortgage insurance operations and the company relinquished its APRA authorization.

Arch LMI and Arch Indemnity are headquartered in Sydney, Australia.

residential loans.

Increasingly, Arch Insurance (EU) and Arch Re Bermuda are providing protection to European banks on structured capital relief transactions.

In Australia, Arch Indemnity provides lenders’ mortgage insurance on a flow basis to cover new originations and offers coverage through structured transactions to cover one or more portfolios of previously originated residential loans.

Exposure to climate risk has also been incorporated into the risk management framework of our mortgage group to monitor and manage our exposure to potential (i) losses related to the direct physical impact of extreme weather conditions or events in certain transactions; and/or (ii) adverse economic or housing market conditions caused by the physical impact of extreme weather conditions or events on a region or the financial impact of transitioning to a zero or low carbon economy on a region.

Generally, mortgage insurance policies exclude direct physical losses resulting from physical damages, such as damaged caused by extreme weather events, though we do have some exposure to physical damage in certain GSE credit risk transfer (“CRT”) transactions.

Additionally, we actively monitor developments in the housing market, financial regulation and public policy in the geographies where our mortgage group operates to facilitate implementation of laws, regulations and policies which support sustainable environmental behavior and mitigate the effects of climate change.

Climate Change Considerations

We are taking steps to address the effects of climate change and facilitate the transition toward decarbonization in all our underwriting segments.

We seek to identify business opportunities associated with environmentally friendly trends and incentivize responsible environmental behaviors.

We have adopted a thermal coal policy and provide environmentally sustainable insurance solutions in certain product lines.

In 2022, Arch employees began to return to offices globally as the pandemic eased.

We recognize the incredible resiliency of the team to work remotely for over two years while balancing that with the opportunity to maximize in-person collaboration across departments.

Arch is providing flexibility in our return to office model utilizing specific “office days” for teams as part of a hybrid working model.

wellness needs of our employees.

In addition to “embedding” inclusion into our talent processes, e.g., promotion reviews, over 500 employees (mostly managers) have attended our intensive, six-week Fostering Inclusive Leadership program.

Importantly, this program requires participants to complete a business-related project as well as attend group discussions, where participants focus on how to apply inclusive techniques into the work experience.

We continue to enhance our talent acquisition process through a new model which will modernize our approach to talent acquisition for candidates and hiring managers, while providing an enhanced ability to proactively source and build pipelines for the best diverse talent.

The model will help streamline this process across our Company by using a common platform and approach, which we can easily scale as we grow.

In October 2001, Arch Capital

In 2017, we acquired approximately 25% of Premia Holdings

Depending upon results of operations, market conditions and the development of the economy, as well as other factors, generally we will consider share repurchases on an opportunistic basis from time to time.

We have taken proactive steps to ensure the health and safety of our employees with the majority of our 5,200 employees working from home to maintain business continuity.

Where possible, we have encouraged employees to return to our offices,

taking into account their health and safety, as well as our changing business practices.

We remain committed to continuing to carrying on our business activities without interruption during these challenging times.

Arch U.K. conducts its operations from London and other locations in the U.K.

Our U.S.

One key to

Reinsurance recoverables are

U.S. offices in Morristown, New Jersey.

Non-

order to compare the cedent’s historical loss experience to industry averages;

management to offer mortgage insurance, reinsurance and other risk-sharing products in the U.S. and around the world.

Since 2011, Arch Insurance (EU) has offered mortgage insurance to European mortgage lenders.

In Australia, Arch LMI and Arch Indemnity provide lenders’ mortgage insurance on a direct basis.

Mae and Freddie Mac single family and multifamily risk sharing programs.

Arch Re Bermuda

In 2021, we conducted our bi-annual employee engagement survey.

We believe the results demonstrated the success of programs, such as our employee networks, regular Company-wide “town hall” meetings and other efforts to communicate more frequently and transparently with our employees.

Our employee overall engagement score was 87%, up from 84% and 10 points over the external norm.

Our values of embracing teamwork,

working hard and smart, continually pursuing innovation and improvement, striving to make a difference, and exhibiting honesty and integrity in all that we do were clearly reflected in the results.

While maintaining our emphasis on preservation of capital and liquidity, we expect our portfolio

relationships, premiums charged, contract terms and conditions, products and services offered, speed of claims payment, reputation, employee experience, and qualifications and local presence.

For other U.S. risk sharing products and non-U.S. mortgage insurance opportunities, we have also seen increased

competition from well capitalized and highly rated multi-line reinsurers.

It is our expectation that the depth and capacity of competitors from this segment will continue to increase over the next several years as more residential mortgage credit risk is borne by private capital.

we face or may face and to determine the capital necessary to ensure that our overall solvency needs are met at all times.

C long-term insurer, and is subject to the Insurance Act 1978 of Bermuda and related regulations, as amended (“Insurance Act”).

general business or long-term business enhanced capital requirements, minimum solvency margins or its general business minimum liquidity ratio or if the declaration or payment of such dividends would cause such a breach.

procedures; (iv) planning and coordinating through regular meetings held at least annually (or by other appropriate means) with other competent authorities, supervisory activities in respect of our Group; both as a going concern and in emergency situations (v) coordinating any enforcement action that may need to be taken against our Group or any Group members; and (vi) planning and coordinating meetings of colleges of supervisors in order to facilitate the carrying out of these functions.

distribution and service center, intellectual property and holding entities.

The Cyber Risk Management Code of Conduct was established in October 2020.

Generally, state regulatory authorities have broad regulatory powers over such matters as licenses, standards of solvency, premium

In April 2018, the U.S. and the EU entered into the Bilateral Agreement between the United States of America and the European Union on Prudential Matters Regarding Insurance and Reinsurance (the “EU-U.S. Covered Agreement”) that, among other things, would eliminate reinsurance collateral requirements for qualified U.S. reinsurers operating in the EU insurance market, and eliminate reinsurance collateral requirements under U.S. state insurance law for qualified reinsurers having their head office or domiciled in an EU member state.

The NAIC list of Reciprocal Jurisdictions includes Bermuda, Japan and Switzerland.

As of January 5, 2022, the NAIC reports that 46 U.S. states have adopted the 2019 amendments to the Credit for Reinsurance Model Law with an additional four considering amendments.

A significant and growing number of states have adopted versions of this model law, with more expected to follow.

As of December 31, [removed: 2021,] [added: 2022,] we were not a party to any litigation or arbitration which is expected by management to have a material adverse effect on our results of operations and financial condition and liquidity.

| | | | For the Fiscal Year Ended | | | December 31, [removed: 2021] [added: 2022] | | | Commission File No. | | | 001-16209 | | |

[removed: ][added: ]

The aggregate market value of the voting and non-voting common equity held by non-affiliates, computed by reference to the closing price as reported by the NASDAQ Stock Market as of the last business day of the Registrant’s most recently completed second fiscal quarter, was approximately [removed: $14.3] [added: $16.3] billion.

As of February [removed: 21, 2022,] [added: 17, 2023,] there were [removed: 379,042,099] [added: 371,196,508] of the registrant’s common shares outstanding.

Portions of Part III and Part IV incorporate by reference our definitive proxy statement for the [removed: 2022] [added: 2023] annual meeting of shareholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after December 31, [removed: 2021.][added: 2022.]

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| ITEM 7. | | | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#i9aa6868b2b724c09bc653e55fc47166e_85)] [added: OPERATIONS](#i00be03d4520d45dcbeeb6c59c24a8334_85)] | | | [removed: [57](#i9aa6868b2b724c09bc653e55fc47166e_85)] [added: [61](#i00be03d4520d45dcbeeb6c59c24a8334_85)] | | |

| ITEM 7A. | | | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET [removed: RISK](#i9aa6868b2b724c09bc653e55fc47166e_121)] [added: RISK](#i00be03d4520d45dcbeeb6c59c24a8334_118)] | | | [removed: [89](#i9aa6868b2b724c09bc653e55fc47166e_121)] [added: [93](#i00be03d4520d45dcbeeb6c59c24a8334_118)] | | |

| ITEM 8. | | | [FINANCIAL STATEMENTS AND SUPPLEMENTARY [removed: DATA](#i9aa6868b2b724c09bc653e55fc47166e_124)] [added: DATA](#i00be03d4520d45dcbeeb6c59c24a8334_121)] | | | [removed: [90](#i9aa6868b2b724c09bc653e55fc47166e_124)] [added: [94](#i00be03d4520d45dcbeeb6c59c24a8334_121)] | | |

| ITEM 9. | | | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL [removed: DISCLOSURE](#i9aa6868b2b724c09bc653e55fc47166e_232)] [added: DISCLOSURE](#i00be03d4520d45dcbeeb6c59c24a8334_229)] | | | [removed: [166](#i9aa6868b2b724c09bc653e55fc47166e_232)] [added: [169](#i00be03d4520d45dcbeeb6c59c24a8334_229)] | | |

| ITEM 9A. | | | [CONTROLS AND [removed: PROCEDURES](#i9aa6868b2b724c09bc653e55fc47166e_235)] [added: PROCEDURES](#i00be03d4520d45dcbeeb6c59c24a8334_232)] | | | [removed: [166](#i9aa6868b2b724c09bc653e55fc47166e_235)] [added: [169](#i00be03d4520d45dcbeeb6c59c24a8334_232)] | | |

| ITEM 9B. | | | [OTHER [removed: INFORMATION](#i9aa6868b2b724c09bc653e55fc47166e_238)] [added: INFORMATION](#i00be03d4520d45dcbeeb6c59c24a8334_235)] | | | [removed: [167](#i9aa6868b2b724c09bc653e55fc47166e_238)] [added: [170](#i00be03d4520d45dcbeeb6c59c24a8334_235)] | | |

| ITEM 9C. | | | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT [removed: INSPECTIONS](#i9aa6868b2b724c09bc653e55fc47166e_2268)] [added: INSPECTIONS](#i00be03d4520d45dcbeeb6c59c24a8334_238)] | | | [removed: [167](#i9aa6868b2b724c09bc653e55fc47166e_2268)] [added: [170](#i00be03d4520d45dcbeeb6c59c24a8334_238)] | | |

| ITEM 10. | | | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE [removed: GOVERNANCE](#i9aa6868b2b724c09bc653e55fc47166e_241)] [added: GOVERNANCE](#i00be03d4520d45dcbeeb6c59c24a8334_241)] | | | [removed: [167](#i9aa6868b2b724c09bc653e55fc47166e_241)] [added: [170](#i00be03d4520d45dcbeeb6c59c24a8334_241)] | | |

| ITEM 11. | | | [EXECUTIVE [removed: COMPENSATION](#i9aa6868b2b724c09bc653e55fc47166e_244)] [added: COMPENSATION](#i00be03d4520d45dcbeeb6c59c24a8334_244)] | | | [removed: [167](#i9aa6868b2b724c09bc653e55fc47166e_244)] [added: [170](#i00be03d4520d45dcbeeb6c59c24a8334_244)] | | |

| ITEM 12. | | | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER [removed: MATTERS](#i9aa6868b2b724c09bc653e55fc47166e_247)] [added: MATTERS](#i00be03d4520d45dcbeeb6c59c24a8334_247)] | | | [removed: [168](#i9aa6868b2b724c09bc653e55fc47166e_247)] [added: [171](#i00be03d4520d45dcbeeb6c59c24a8334_247)] | | |

| ITEM 13. | | | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR [removed: INDEPENDENCE](#i9aa6868b2b724c09bc653e55fc47166e_250)] [added: INDEPENDENCE](#i00be03d4520d45dcbeeb6c59c24a8334_250)] | | | [removed: [168](#i9aa6868b2b724c09bc653e55fc47166e_250)] [added: [171](#i00be03d4520d45dcbeeb6c59c24a8334_250)] | | |

| ITEM 14. | | | [PRINCIPAL ACCOUNTANT FEES AND [removed: SERVICES](#i9aa6868b2b724c09bc653e55fc47166e_253)] [added: SERVICES](#i00be03d4520d45dcbeeb6c59c24a8334_253)] | | | [removed: [168](#i9aa6868b2b724c09bc653e55fc47166e_253)] [added: [171](#i00be03d4520d45dcbeeb6c59c24a8334_253)] | | |

| ITEM 15. | | | [EXHIBITS AND FINANCIAL STATEMENT [removed: SCHEDULES](#i9aa6868b2b724c09bc653e55fc47166e_256)] [added: SCHEDULES](#i00be03d4520d45dcbeeb6c59c24a8334_256)] | | | [removed: [169](#i9aa6868b2b724c09bc653e55fc47166e_256)] [added: [172](#i00be03d4520d45dcbeeb6c59c24a8334_256)] | | |

| ITEM 16. | | | [FORM 10-K [removed: SUMMARY](#i9aa6868b2b724c09bc653e55fc47166e_271)] [added: SUMMARY](#i00be03d4520d45dcbeeb6c59c24a8334_271)] | | | [removed: [180](#i9aa6868b2b724c09bc653e55fc47166e_271)] [added: [183](#i00be03d4520d45dcbeeb6c59c24a8334_271)] | | |

| ARCH CAPITAL | | | 1 | | | [removed: 2021] [added: 2022] FORM 10-K | | |

- a disruption caused by [removed: cyber-attacks] [added: cyber attacks] or other technology breaches or failures on us or our business partners and service providers, which could negatively impact our business and/or expose us to litigation;

- statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of proposed legislation that would affect Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to us, our subsidiaries, brokers or customers, including [removed: new guidance implementing] the [removed: Tax Cuts and Jobs Act of 2017 and the] possible implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiatives; and

| ARCH CAPITAL | | | 2 | | | [removed: 2021] [added: 2022] FORM 10-K | | |

- changes in the method for determining the London Inter-bank Offered Rate (“LIBOR”) and the replacement of LIBOR with alternative benchmark rates;

However, as we continue to develop our business, we may open additional office locations in [removed: 2022.][added: 2023.]

| ARCH CAPITAL | | | [removed: 54] [added: 58] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

As of February [removed: 21, 2022,] [added: 17, 2023,] and based on information provided to us by our transfer agent and proxy solicitor, there were [removed: 1,052] [added: 1,150] holders of record of our common shares (NASDAQ: ACGL) and approximately [removed: 143,000] [added: 215,000] beneficial holders of our common shares.

The following table summarizes our purchases of common shares for the [removed: 2021] [added: 2022] fourth quarter:

| Period | | | | | | Total Number of Shares Purchased (1) | | | | | | Average Price Paid per Share | | | | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | | | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan or Programs [added: ($000’s)] (2) | | |

(2) Remaining amount available at December 31, [removed: 2021] [added: 2022] under Arch Capital’s [removed: $1.5] [added: $1.0] billion share repurchase authorization, authorized by the [removed: board] [added: Board] of [removed: directors] [added: Directors] of ACGL on [removed: October 8, 2021.][added: December 19, 2022.]

Repurchases under this authorization may be effected from time to time in open market or privately negotiated transactions through December 31, [removed: 2022.][added: 2024.]

| ARCH CAPITAL | | | [removed: 55] [added: 59] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

The following graph compares the cumulative total shareholder return on our common shares for each of the last five years through December 31, [removed: 2021] [added: 2022] to the cumulative total return, assuming reinvestment of dividends, of (1) S&P 500 Composite Stock Index (“S&P 500 Index”) and (2) the S&P 500 Property & Casualty Insurance Index.

[removed: ][added: ]

| | | | | | | [removed: Base .. Period.] [added: Base Period] | | | | | | | | | | | | | | | | | |

| | | | Company Name/Index | | | [removed: 12/31/16 | | |] 12/31/17 | | | 12/31/18 | | | 12/31/19 | | | 12/31/20 | | | 12/31/21 | | | [added: 12/31/22 | | |]

(2) The above graph assumes that the value of the investment was $100 on December 31, [removed: 2016.][added: 2017.]

| 10/1/2022-10/31/2022 | | | | | | 59,926 | | | | | | $ | 53.08 | | | | | — | | | | | | $ | 596,411 | |

| 11/1/2022-11/30/2022 | | | | | | 29,362 | | | | | | $ | 56.43 | | | | | — | | | | | | $ | 596,411 | |

| 12/1/2022-12/31/2022 | | | | | | 3,420 | | | | | | $ | 60.61 | | | | | — | | | | | | $ | 1,000,000 | |

| Total | | | | | | 92,708 | | | | | | $ | 54.42 | | | | | — | | | | | | $ | 1,000,000 | |

| l | | | Arch Capital Group Ltd. | | | $100.00 | | | $88.31 | | | $141.75 | | | $119.21 | | | $146.91 | | | $207.49 | | |

| n | | | S&P 500 Index | | | $100.00 | | | $95.62 | | | $125.72 | | | $148.85 | | | $191.58 | | | $156.88 | | |

| p | | | S&P 500 Property & Casualty Insurance Index | | | $100.00 | | | $95.31 | | | $119.97 | | | $128.31 | | | $153.05 | | | $181.93 | | |

| 10/1/2021-10/31/2021 | | | | | | 1,188,948 | | | | | | $ | 38.82 | | | | | 1,174,663 | | | | | | $ | 1,498,782 | |

| 11/1/2021-11/30/2021 | | | | | | 4,183,059 | | | | | | $ | 42.18 | | | | | 4,159,310 | | | | | | $ | 1,323,335 | |

| 12/1/2021-12/31/2021 | | | | | | 3,342,978 | | | | | | $ | 42.32 | | | | | 3,334,127 | | | | | | $ | 1,182,234 | |

| Total | | | | | | 8,714,985 | | | | | | $ | 41.78 | | | | | 8,668,100 | | | | | | $ | 1,182,234 | |

| l | | | Arch Capital Group Ltd. | | | $100.00 | | | $105.19 | | | $92.90 | | | $149.11 | | | $125.40 | | | $154.54 | | |

| n | | | S&P 500 Index | | | $100.00 | | | $121.83 | | | $116.49 | | | $153.17 | | | $181.35 | | | $233.41 | | |

| p | | | S&P 500 Property & Casualty Insurance Index | | | $100.00 | | | $122.39 | | | $116.64 | | | $146.82 | | | $157.04 | | | $187.31 | | |

| ARCH CAPITAL | | | [removed: 56] [added: 60] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| [Report of Independent Registered Public Accounting [removed: Firm](#i9aa6868b2b724c09bc653e55fc47166e_127)] [added: Firm](#i00be03d4520d45dcbeeb6c59c24a8334_124)] (PCAOB ID [removed: 238[)](#i9aa6868b2b724c09bc653e55fc47166e_127)] [added: 238[)](#i00be03d4520d45dcbeeb6c59c24a8334_124)] | | | | | | [removed: [91](#i9aa6868b2b724c09bc653e55fc47166e_127)] [added: [95](#i00be03d4520d45dcbeeb6c59c24a8334_124)] | | |

| [Consolidated Balance [removed: Sheets](#i9aa6868b2b724c09bc653e55fc47166e_130)] [added: Sheets](#i00be03d4520d45dcbeeb6c59c24a8334_127)] | | | | | | | | |

| | | | [removed: At] [added: For the years ended] December 31, [added: 2022,] 2021 and [removed: December 31,] 2020 | | | [removed: [93](#i9aa6868b2b724c09bc653e55fc47166e_130)] [added: [98](#i00be03d4520d45dcbeeb6c59c24a8334_130)] | | |

| [Consolidated Statements of [removed: Income](#i9aa6868b2b724c09bc653e55fc47166e_133)] [added: Comprehensive Income](#i00be03d4520d45dcbeeb6c59c24a8334_133)] | | | | | | | | |

| | | | For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [94](#i9aa6868b2b724c09bc653e55fc47166e_133)] [added: [99](#i00be03d4520d45dcbeeb6c59c24a8334_133)] | | |

| | | | For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [95](#i9aa6868b2b724c09bc653e55fc47166e_136)] [added: [100](#i00be03d4520d45dcbeeb6c59c24a8334_136)] | | |

| [Consolidated Statements of Changes in Shareholders’ [removed: Equity](#i9aa6868b2b724c09bc653e55fc47166e_139)] [added: Equity](#i00be03d4520d45dcbeeb6c59c24a8334_136)] | | | | | | | | |

| | | | For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [96](#i9aa6868b2b724c09bc653e55fc47166e_139)] [added: [101](#i00be03d4520d45dcbeeb6c59c24a8334_139)] | | |

| [Consolidated Statements of Cash [removed: Flows](#i9aa6868b2b724c09bc653e55fc47166e_142)] [added: Flows](#i00be03d4520d45dcbeeb6c59c24a8334_139)] | | | | | | | | |

| | | | [Note 3 - Significant Accounting [removed: Policies](#i9aa6868b2b724c09bc653e55fc47166e_151)] [added: Policies](#i00be03d4520d45dcbeeb6c59c24a8334_148)] | | | [removed: [98](#i9aa6868b2b724c09bc653e55fc47166e_151)] [added: [102](#i00be03d4520d45dcbeeb6c59c24a8334_148)] | | |

| | | | [Note 5 - Reserve for Losses and Loss Adjustment [removed: Expenses](#i9aa6868b2b724c09bc653e55fc47166e_157)] [added: Expenses](#i00be03d4520d45dcbeeb6c59c24a8334_154)] | | | [removed: [114](#i9aa6868b2b724c09bc653e55fc47166e_157)] [added: [118](#i00be03d4520d45dcbeeb6c59c24a8334_154)] | | |

| | | | [Note 6 - Short Duration [removed: Contracts](#i9aa6868b2b724c09bc653e55fc47166e_160)] [added: Contracts](#i00be03d4520d45dcbeeb6c59c24a8334_157)] | | | [removed: [116](#i9aa6868b2b724c09bc653e55fc47166e_160)] [added: [120](#i00be03d4520d45dcbeeb6c59c24a8334_157)] | | |

| | | | [Note 7 - Allowance for Expected Credit [removed: Losses](#i9aa6868b2b724c09bc653e55fc47166e_163)] [added: Losses](#i00be03d4520d45dcbeeb6c59c24a8334_160)] | | | [removed: [129](#i9aa6868b2b724c09bc653e55fc47166e_163)] [added: [133](#i00be03d4520d45dcbeeb6c59c24a8334_160)] | | |

| | | | [Note 12 - VIE and Noncontrolling [removed: Interests](#i9aa6868b2b724c09bc653e55fc47166e_178)] [added: Interests](#i00be03d4520d45dcbeeb6c59c24a8334_175)] | | | [removed: [145](#i9aa6868b2b724c09bc653e55fc47166e_178)] [added: [149](#i00be03d4520d45dcbeeb6c59c24a8334_175)] | | |

| | | | [Note 13 - Other Comprehensive Income [removed: (Loss)](#i9aa6868b2b724c09bc653e55fc47166e_181)] [added: (Loss)](#i00be03d4520d45dcbeeb6c59c24a8334_178)] | | | [removed: [148](#i9aa6868b2b724c09bc653e55fc47166e_181)] [added: [151](#i00be03d4520d45dcbeeb6c59c24a8334_178)] | | |

| | | | [Note 14 - Earnings Per Common [removed: Share](#i9aa6868b2b724c09bc653e55fc47166e_184)] [added: Share](#i00be03d4520d45dcbeeb6c59c24a8334_181)] | | | [removed: [150](#i9aa6868b2b724c09bc653e55fc47166e_184)] [added: [153](#i00be03d4520d45dcbeeb6c59c24a8334_181)] | | |

| | | | [Note 16 - Transactions with Related [removed: Parties](#i9aa6868b2b724c09bc653e55fc47166e_190)] [added: Parties](#i00be03d4520d45dcbeeb6c59c24a8334_187)] | | | [removed: [153](#i9aa6868b2b724c09bc653e55fc47166e_190)] [added: [156](#i00be03d4520d45dcbeeb6c59c24a8334_187)] | | |

| | | | [Note 18 - Commitments and [removed: Contingencies](#i9aa6868b2b724c09bc653e55fc47166e_196)] [added: Contingencies](#i00be03d4520d45dcbeeb6c59c24a8334_193)] | | | [removed: [154](#i9aa6868b2b724c09bc653e55fc47166e_196)] [added: [157](#i00be03d4520d45dcbeeb6c59c24a8334_193)] | | |

| | | | [Note 19 - Debt and Financing [removed: Arrangements](#i9aa6868b2b724c09bc653e55fc47166e_199)] [added: Arrangements](#i00be03d4520d45dcbeeb6c59c24a8334_196)] | | | [removed: [155](#i9aa6868b2b724c09bc653e55fc47166e_199)] [added: [158](#i00be03d4520d45dcbeeb6c59c24a8334_196)] | | |

| | | | [Note 20 - Goodwill and Intangible [removed: Assets](#i9aa6868b2b724c09bc653e55fc47166e_202)] [added: Assets](#i00be03d4520d45dcbeeb6c59c24a8334_199)] | | | [removed: [157](#i9aa6868b2b724c09bc653e55fc47166e_202)] [added: [160](#i00be03d4520d45dcbeeb6c59c24a8334_199)] | | |

| [added: Share based compensation] | | | [removed: [Note 22 - Share-Based Compensation](#i9aa6868b2b724c09bc653e55fc47166e_211)] [added: (9,159)] | | | [removed: [159](#i9aa6868b2b724c09bc653e55fc47166e_211)] | | | [added: (5,339) | | | | | | (2,533) | | |]

| ARCH CAPITAL | | | [removed: 90] [added: 94] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

We have audited the accompanying consolidated balance sheets of Arch Capital Group Ltd. and its subsidiaries (the “Company”) as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the related consolidated statements of income, of comprehensive income, of changes in shareholders’ [removed: equity,] [added: equity] and of cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in [removed: Internal] [added: *Internal] Control - Integrated [removed: Framework] [added: Framework*] (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in [removed: Internal] [added: *Internal] Control- Integrated [removed: Framework] [added: Framework*] (2013) issued by the COSO.

| ARCH CAPITAL | | | [removed: 91] [added: 95] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

As of December 31, [removed: 2021,] [added: 2022,] the Company’s total reserve for losses and loss adjustment expenses was [removed: $17.8] [added: $20.0] billion.

| ARCH CAPITAL | | | [removed: 92] [added: 96] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| | | | [added: 2022 | | | | | |] 2021 | | | | | | 2020 | | |

| Fixed maturities available for sale, at fair value (amortized cost: [removed: $17,973,823] [added: $21,281,863] and [removed: $18,143,305;] [added: $17,973,823;] net of allowance for credit losses: [removed: $2,883] [added: $41,355] and [removed: $2,397)] [added: $2,883)] | | | $ | [removed: 17,998,109] [added: 19,682,789] | | | | | $ | [removed: 18,717,825] [added: 17,998,109] | |

| Short-term investments available for sale, at fair value (amortized cost: [removed: $1,734,738] [added: $1,332,996] and [removed: $1,924,292;] [added: $1,734,738;] net of allowance for credit losses: $0 and $0 ) | | | [removed: 1,734,716] [added: 1,331,662] | | | | | | [removed: 1,924,922] [added: 1,734,716] | | |

| Equity securities, at fair value | | | [removed: 1,804,170] [added: 859,969] | | | | | | [removed: 1,444,830] [added: 1,804,170] | | |

| Other investments (portion measured at fair value: [removed: $1,973,550] [added: $1,644,197] and [removed: $3,824,796)] [added: $1,973,550)] | | | [removed: 1,973,550] [added: 1,644,197] | | | | | | [removed: 4,324,796] [added: 1,973,550] | | |

| Investments accounted for using the equity method | | | [removed: 3,077,611] [added: 3,774,310] | | | | | | [removed: 2,047,889] [added: 3,077,611] | | |

| Total investments | | | [removed: 26,588,156] [added: 27,292,927] | | | | | | [removed: 28,761,358] [added: 26,588,156] | | |

| Cash | | | [added: $ | 855,118 | | | | | $ |] 858,668 | | | | | [added: $] | 906,448 | | [removed: |]

| Accrued investment income | | | [removed: 85,453] [added: 158,680] | | | | | | [removed: 103,299] [added: 85,453] | | |

| Investment in operating affiliates | | | [removed: 1,135,655] [added: 964,604] | | | | | | [removed: 129,291] [added: 1,135,655] | | |

| Premiums receivable (net of allowance for credit losses: [removed: $39,958] [added: $35,402] and [removed: $37,781)] [added: $39,958)] | | | [removed: 2,633,280] [added: 3,624,777] | | | | | | [removed: 2,064,586] [added: 2,633,280] | | |

| | | | At December 31, 2022 and December 31, 2021 | | | [97](#i00be03d4520d45dcbeeb6c59c24a8334_127) | | |

| [Consolidated Statements of Income](#i00be03d4520d45dcbeeb6c59c24a8334_130) | | | | | | | | |

| | | | [Note 1 - General](#i00be03d4520d45dcbeeb6c59c24a8334_142) | | | [102](#i00be03d4520d45dcbeeb6c59c24a8334_142) | | |

| | | | [Note 2 - Acquisitions](#i00be03d4520d45dcbeeb6c59c24a8334_145) | | | [102](#i00be03d4520d45dcbeeb6c59c24a8334_145) | | |

| | | | [Note 4 - Segment Information](#i00be03d4520d45dcbeeb6c59c24a8334_151) | | | [111](#i00be03d4520d45dcbeeb6c59c24a8334_151) | | |

| | | | [Note 8 - Reinsurance](#i00be03d4520d45dcbeeb6c59c24a8334_163) | | | [134](#i00be03d4520d45dcbeeb6c59c24a8334_163) | | |

| | | | [Note 9 - Investment Information](#i00be03d4520d45dcbeeb6c59c24a8334_166) | | | [136](#i00be03d4520d45dcbeeb6c59c24a8334_166) | | |

| | | | [Note 10 - Fair Value](#i00be03d4520d45dcbeeb6c59c24a8334_169) | | | [142](#i00be03d4520d45dcbeeb6c59c24a8334_169) | | |

| | | | [Note 11 - Derivative Instruments](#i00be03d4520d45dcbeeb6c59c24a8334_172) | | | [148](#i00be03d4520d45dcbeeb6c59c24a8334_172) | | |

| | | | [Note 15 - Income Taxes](#i00be03d4520d45dcbeeb6c59c24a8334_184) | | | [153](#i00be03d4520d45dcbeeb6c59c24a8334_184) | | |

| | | | [Note 17 - Leases](#i00be03d4520d45dcbeeb6c59c24a8334_190) | | | [157](#i00be03d4520d45dcbeeb6c59c24a8334_190) | | |

| | | | [Note 21 - Shareholders’ Equity](#i00be03d4520d45dcbeeb6c59c24a8334_202) | | | [161](#i00be03d4520d45dcbeeb6c59c24a8334_202) | | |

| | | | [Note 22 - Share-Based Compensation](#i00be03d4520d45dcbeeb6c59c24a8334_208) | | | [162](#i00be03d4520d45dcbeeb6c59c24a8334_208) | | |

| | | | [Note 23 - Retirement Plans](#i00be03d4520d45dcbeeb6c59c24a8334_211) | | | [165](#i00be03d4520d45dcbeeb6c59c24a8334_211) | | |

| | | | [Note 24 - Legal Proceedings](#i00be03d4520d45dcbeeb6c59c24a8334_214) | | | [165](#i00be03d4520d45dcbeeb6c59c24a8334_214) | | |

| | | | [Note 25 - Statutory Information](#i00be03d4520d45dcbeeb6c59c24a8334_217) | | | [165](#i00be03d4520d45dcbeeb6c59c24a8334_217) | | |

February 24, 2023

| | | | 2022 | | | | | | 2021 | | |

| Cash | | | 855,118 | | | | | | 858,668 | | |

| Loss on redemption of preferred shares | | | — | | | | | | (15,101) | | | | | | — | | |

| Net income | | | $ | 1,482,423 | | | | | $ | 2,239,462 | | | | | $ | 1,465,711 | |

| Amortization of intangible assets | | | 106,200 | | | | | | 82,955 | | | | | | 69,031 | | |

The Company has reclassified the presentation of certain prior year information to conform to the current presentation.

the terms of the contract.

Primary mortgage insurance premiums written on

counterparty financial strength measures.

Evaluating the expected

Any

See [note 7, “Allowance for Expected Credit Losses”](#i00be03d4520d45dcbeeb6c59c24a8334_160) for additional information.

contractual terms, and the overall structure of the VIE.

Such ratios consider, among other things, rate changes and

See [note 7, “Allowance for Expected Credit Losses”](#i00be03d4520d45dcbeeb6c59c24a8334_160) for additional information.

decline in value of securities, a component of accumulated other comprehensive income, net of applicable deferred income tax.

on the achievement of the specified performance and service conditions.

Other finite-lived intangible assets, including

(s) Funds Held Arrangements

Funds held arrangements are agreements with a third party reinsurance company, where the reinsured retains the related assets on a funds held basis.

Investment returns produced by those assets are recorded as part of net investment income and net realized gains (losses) in the Company's consolidated results of operations.

Funds held as collateral by the Company are included in “Other liabilities” and changes to the funds held liability are reflected as part of interest expense in the Company’s consolidated results of operations.

The amendment deferred the sunset date from December 31, 2022 to December 31, 2024.

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| [Consolidated Statements of Comprehensive Income](#i9aa6868b2b724c09bc653e55fc47166e_136) | | | | | | | | |

| | | | For the years ended December 31, 2021, 2020 and 2019 | | | [97](#i9aa6868b2b724c09bc653e55fc47166e_142) | | |

| | | | [Note 1 - General](#i9aa6868b2b724c09bc653e55fc47166e_145) | | | [98](#i9aa6868b2b724c09bc653e55fc47166e_145) | | |

| | | | [Note 2 - Acquisitions](#i9aa6868b2b724c09bc653e55fc47166e_148) | | | [98](#i9aa6868b2b724c09bc653e55fc47166e_148) | | |

| | | | [Note 4 - Segment Information](#i9aa6868b2b724c09bc653e55fc47166e_154) | | | [107](#i9aa6868b2b724c09bc653e55fc47166e_154) | | |

| | | | [Note 8 - Reinsurance](#i9aa6868b2b724c09bc653e55fc47166e_166) | | | [130](#i9aa6868b2b724c09bc653e55fc47166e_166) | | |

| | | | [Note 9 - Investment Information](#i9aa6868b2b724c09bc653e55fc47166e_169) | | | [132](#i9aa6868b2b724c09bc653e55fc47166e_169) | | |

| | | | [Note 10 - Fair Value](#i9aa6868b2b724c09bc653e55fc47166e_172) | | | [138](#i9aa6868b2b724c09bc653e55fc47166e_172) | | |

| | | | [Note 11 - Derivative Instruments](#i9aa6868b2b724c09bc653e55fc47166e_175) | | | [144](#i9aa6868b2b724c09bc653e55fc47166e_175) | | |

| | | | [Note 15 - Income Taxes](#i9aa6868b2b724c09bc653e55fc47166e_187) | | | [150](#i9aa6868b2b724c09bc653e55fc47166e_187) | | |

| | | | [Note 17 - Leases](#i9aa6868b2b724c09bc653e55fc47166e_193) | | | [154](#i9aa6868b2b724c09bc653e55fc47166e_193) | | |

| | | | [Note 21 - Shareholders’ Equity](#i9aa6868b2b724c09bc653e55fc47166e_205) | | | [158](#i9aa6868b2b724c09bc653e55fc47166e_205) | | |

| | | | [Note 23 - Retirement Plans](#i9aa6868b2b724c09bc653e55fc47166e_214) | | | [162](#i9aa6868b2b724c09bc653e55fc47166e_214) | | |

| | | | [Note 24 - Legal Proceedings](#i9aa6868b2b724c09bc653e55fc47166e_217) | | | [162](#i9aa6868b2b724c09bc653e55fc47166e_217) | | |

| | | | [Note 25 - Statutory Information](#i9aa6868b2b724c09bc653e55fc47166e_220) | | | [162](#i9aa6868b2b724c09bc653e55fc47166e_220) | | |

| | | | [Note 26 - Subsequent Events](#i9aa6868b2b724c09bc653e55fc47166e_229) | | | [165](#i9aa6868b2b724c09bc653e55fc47166e_229) | | |

February 25, 2022

| Assets | | | | | | | | | | | |

| Collateral received under securities lending, at fair value (amortized cost: $0 and $301,089) | | | — | | | | | | 301,096 | | |

| Securities pledged under securities lending, at fair value (amortized cost: $0 and $294,493) | | | — | | | | | | 294,912 | | |

| Revolving credit agreement borrowings | | | — | | | | | | 155,687 | | |

| Securities lending payable | | | — | | | | | | 301,089 | | |

| | | | | | | | | | | | | | | | | | |

| Change in third party investment in redeemable noncontrolling interests | | | — | | | | | | — | | | | | | (161,882) | | |

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company has reclassified the presentation of certain prior year information to conform to the current presentation, including the correct presentation of ‘income (loss) from operating affiliates’ on its consolidated statements of income for all periods presented to reclass such item from ‘other income (loss)’.

The Company also changed its presentation of ‘investment in operating affiliates’ on its consolidated balance sheet for all periods presented to reclass such item from ‘other assets’.

Management views the impact of the prior period misclassification as not material to the financial statements on a quantitative and qualitative basis.

See [note](#i9aa6868b2b724c09bc653e55fc47166e_169) [9](#i9aa6868b2b724c09bc653e55fc47166e_169).

Upon completion of this transaction, the Company renamed WLMI

to Arch Lenders Mortgage Indemnity Limited (“Arch Indemnity”).

Barbican Group Holdings Limited

On November 29, 2019, the Company closed the acquisition of Barbican Group Holdings Limited and its subsidiaries (collectively, “Barbican”).

The Ardonagh Group

On January 1, 2019, the Company’s U.K. insurance operations entered into a transaction with The Ardonagh Group to acquire renewal rights for a U.K. commercial lines book of business, consisting of commercial property, casualty, motor, professional liability, personal accident and travel business.

and 1955 (“Arch Syndicate 1955”).

In addition, reinsurance contracts under which the Company assumes business

corridors, sublimits and caps.

In connection with the filing of this Form 10-K, our management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation, as of December 31, [removed: 2021,] [added: 2022,] for the purposes set forth in the applicable rules under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”).

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, [removed: 2021.][added: 2022.]

Based on our assessment, management determined that, as of December 31, [removed: 2021,] [added: 2022,] our internal control over financial reporting was effective.

The effectiveness of our internal control over financial reporting as of December 31, [removed: 2021] [added: 2022] has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report included in Item 8.

There have been no changes in internal control over financial reporting that occurred in connection with our evaluation required pursuant to Rules 13a-15 and 15d-15 under the Exchange Act during the fiscal quarter ended December 31, [removed: 2021] [added: 2022] that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

| ARCH CAPITAL | | | [removed: 166] [added: 169] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

The information required by this item is incorporated by reference from the information to be included in our definitive proxy statement (“Proxy Statement”) for our annual meeting of shareholders to be held in [removed: 2021,] [added: 2023,] which we intend to file with the SEC pursuant to Regulation 14A no later than 120 days after the end of the Company’s fiscal year which ended on December 31, [removed: 2021.][added: 2022.]

The information required by this item is incorporated by reference from the information to be included in the Proxy Statement which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal year ended on December 31, [removed: 2021,] [added: 2022,] which Proxy Statement is incorporated by reference.

| ARCH CAPITAL | | | [removed: 167] [added: 170] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

Other than the information set forth below, the information required by this item is incorporated by reference from the information to be included in the Proxy Statement which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal year ended on December 31, [removed: 2021,] [added: 2022,] which Proxy Statement is incorporated by reference.

The following information is as of December 31, [removed: 2021:][added: 2022:]

(1) Includes all vested and unvested stock options outstanding of [removed: 17,083,160] [added: 14,420,901] and restricted stock and performance units outstanding of [removed: 729,636.][added: 557,003.]

In addition, the weighted average remaining contractual life of the Company's outstanding exercisable stock options and SARs at December 31, [removed: 2021] [added: 2022] was 4.4 years.

(2) Includes [removed: 1,608,354] [added: 1,041,837] common shares remaining available for future issuance under our Employee Share Purchase Plan and [removed: 10,837,164] [added: 14,082,863] common shares remaining available for future issuance under our equity compensation plans.

In addition, [removed: 3,310,797] [added: 10,476,836] common shares, or [removed: 26.6%] [added: 69.3%] of the [removed: 12,445,518] [added: 15,124,700] common shares remaining available for future issuance may be issued in connection with full value awards (*i.e*., awards other than stock options or SARs).

| Equity compensation plans approved by security holders | | | 14,977,904 | | | | | | $ | 28.17 | | | | | 15,124,700 | | | | | |

| Total | | | 14,977,904 | | | | | | $ | 28.17 | | | | | 15,124,700 | | | (2) | | |

| Equity compensation plans approved by security holders | | | 17,812,796 | | | | | | $ | 25.06 | | | | | 12,445,518 | | | | | |

| Total | | | 17,812,796 | | | | | | $ | 25.06 | | | | | 12,445,518 | | | (2) | | |

The information required by this item is incorporated by reference from the information to be included in the Proxy Statement which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal year ended on December 31, [removed: 2021,] [added: 2022,] which Proxy Statement is incorporated by reference.

The information required by this item is incorporated by reference from the information to be included in our Proxy Statement which we intend to file pursuant to Regulation 14A with the SEC no later than 120 days after the end of the Company’s fiscal year ended on December 31, [removed: 2021,] [added: 2022,] which Proxy Statement is incorporated by reference.

| ARCH CAPITAL | | | [removed: 168] [added: 171] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

[added: |] (a) Financial Statements, Financial Statement Schedules and Exhibits. [added: | | | | | | | | |]

[removed: 1.Financial] [added: | 1. Financial] Statements [added: | | | | | | | | |]

[added: | | | |] Included in Part II – see Item 8 of this report. [added: | | | | | |]

[removed: 2.Financial] [added: | 2. Financial] Statement Schedules [added: | | | | | | | | |]

| | | | [added: | | |] Page No. | | |

| [II. Condensed Financial Information of [removed: Registrant](#i9aa6868b2b724c09bc653e55fc47166e_259)] [added: Registrant](#i00be03d4520d45dcbeeb6c59c24a8334_259)] | | | | | | [added: | | |]

| [added: | | |] As of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and for the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [175](#i9aa6868b2b724c09bc653e55fc47166e_259)] [added: [178](#i00be03d4520d45dcbeeb6c59c24a8334_259)] | | |

| [III. Supplementary Insurance [removed: Information](#i9aa6868b2b724c09bc653e55fc47166e_262)] [added: Information](#i00be03d4520d45dcbeeb6c59c24a8334_262)] | | | | | | [added: | | |]

| [added: | | |] For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [178](#i9aa6868b2b724c09bc653e55fc47166e_262)] [added: [181](#i00be03d4520d45dcbeeb6c59c24a8334_262)] | | |

| [IV. [removed: Reinsurance](#i9aa6868b2b724c09bc653e55fc47166e_265)] [added: Reinsurance](#i00be03d4520d45dcbeeb6c59c24a8334_265)] | | | | | | [added: | | |]

| [added: | | |] For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [179](#i9aa6868b2b724c09bc653e55fc47166e_265)] [added: [182](#i00be03d4520d45dcbeeb6c59c24a8334_265)] | | |

| [VI. Supplementary Information for Property and Casualty Insurance [removed: Underwriters](#i9aa6868b2b724c09bc653e55fc47166e_268)] [added: Underwriters](#i00be03d4520d45dcbeeb6c59c24a8334_268)] | | | | | | [added: | | |]

| [added: | | |] For the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [180](#i9aa6868b2b724c09bc653e55fc47166e_268)] [added: [183](#i00be03d4520d45dcbeeb6c59c24a8334_268)] | | |

| ARCH CAPITAL | | | [removed: 169] [added: 172] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| 3.5 | | | | | | [Specimen Series [removed: G Non-Cumulative] [added: G](http://www.sec.gov/Archives/edgar/data/947484/000094748421000078/exhibit42toformofsharecert.htm) [Non-Cumulative] Preferred Share Certificate](http://www.sec.gov/Archives/edgar/data/947484/000094748421000078/exhibit42toformofsharecert.htm) | | | | | | 8-K | | | | | | 4.2 | | | | | | June 11, 2021 | | | | | | | | |

| 4.5.2 | | | | | | [Deposit Agreement, dated June 11, 2021, between ACGL, as issuer, and AST, [removed: as](http://www.sec.gov/Archives/edgar/data/947484/000094748421000078/exhibit43todepositagreement.htm) [](http://www.sec.gov/Archives/edgar/data/947484/000094748421000078/exhibit43todepositagreement.htm)[depositary,] [added: as depositary,] registrar and transfer agent and as dividend disbursing agent and redemption agent, and the holders from time to time of the depositary receipts](http://www.sec.gov/Archives/edgar/data/947484/000094748421000078/exhibit43todepositagreement.htm) | | | | | | 8-K | | | | | | 4.3 | | | | | | June 11, 2021 | | | | | | | | |

| 4.8 | | | | | | [Description of [removed: Securities](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/ex48-descriptionofsecuriti.htm)] [added: Securities](http://www.sec.gov/Archives/edgar/data/947484/000094748422000015/ex48-descriptionofsecuriti.htm)] | | | | | | [added: 10-K] | | | | | | [added: 4.8] | | | | | | [added: February 25, 2022] | | | | | | [removed: X] | | |

| 10.2.3 | | | | | | [Second Amendment to Third Amended and Restated ACGL Incentive Compensation [removed: Plan](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/ex1023.htm)] [added: Plan](http://www.sec.gov/Archives/edgar/data/947484/000094748422000015/ex1023.htm)] | | | | | | [added: 10-K] | | | | | | [added: 4.8] | | | | | | [added: February 25, 2022] | | | | | | [removed: X] | | |

| ARCH CAPITAL | | | [removed: 170] [added: 173] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| 10.7.1 | | | | | | [Form of Share Appreciation Right Agreement, dated as of May 9, [removed: 2008,] [added: 2013,] between ACGL and each [removed: of, John D. Vollaro,] [added: of] Marc [removed: Grandisson] [added: Grandisson, Maamoun Rajeh] and Louis T. [removed: Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000110465908069596/a08-25739_1ex10d1.htm)] [added: Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000094748413000023/exhibit102shareappreciatio.htm)] | | | | | | 10-Q | | | | | | [removed: 10.1] [added: 10.2] | | | | | | November [removed: 10, 2008] [added: 8, 2013] | | | | | | | | |

| 10.7.2 | | | | | | [Form of Share Appreciation Right Agreement, dated as of May [removed: 6, 2009,] [added: 13, 2014,] between ACGL and each of Marc [removed: Grandisson] [added: Grandisson, Maamoun Rajeh] and [removed: John D. Vollaro†](http://www.sec.gov/Archives/edgar/data/947484/000104746910001560/a2196539zex-10_124.htm)] [added: Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000094748414000020/exhibit103sar51314.htm)] | | | | | | [removed: 10-K] [added: 10-Q] | | | | | | [removed: 10.12.4] [added: 10.3] | | | | | | [removed: February 26, 2010] [added: August 8, 2014] | | | | | | | | |

| [removed: 10.7.3] [added: 10.7.4] | | | | | | [removed: [Form of Share] [added: [Share] Appreciation Right Agreement, dated as of [removed: May 5, 2010,] [added: November 6, 2014,] between ACGL and [removed: each of] Marc [removed: Grandisson and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000110465910056851/a10-17488_1ex10d4.htm)] [added: Grandisson†](http://www.sec.gov/Archives/edgar/data/947484/000094748415000019/exhibit102mgsar.htm)] | | | | | | 10-Q | | | | | | [removed: 10.4] [added: 10.2] | | | | | | [removed: November] [added: May] 8, [removed: 2010] [added: 2015] | | | | | | | | |

| [removed: 10.7.4] [added: 10.7.3] | | | | | | [Share Appreciation Right Agreement, dated as of [removed: May 6, 2011,] [added: July 1, 2014,] between ACGL and [removed: Marc Grandisson†](http://www.sec.gov/Archives/edgar/data/947484/000110465911062033/a11-25791_1ex10d7.htm)] [added: Maamoun Rajeh†](http://www.sec.gov/Archives/edgar/data/947484/000094748417000097/ex101593017.htm)] | | | | | | 10-Q | | | | | | [removed: 10.7] [added: 10.15] | | | | | | November [removed: 8, 2011] [added: 3, 2017] | | | | | | | | |

| ARCH CAPITAL | | | [removed: 171] [added: 174] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| [removed: 10.18] [added: 10.18.1] | | | | | | [removed: [Third](http://www.sec.gov/Archives/edgar/data/947484/000094748419000069/ex101creditagreement.htm) [Amended] [added: [Third Amended] and Restated Credit Agreement, dated as of December [removed: 17,2019,] [added: 17, 2019,] by and among ACGL, certain of its subsidiaries as subsidiary borrowers, Bank of America, N.A., as Administrative Agent, Fronting Bank and L/C Administrator, and the lenders party thereto](http://www.sec.gov/Archives/edgar/data/947484/000094748419000069/ex101creditagreement.htm) | | | | | | 8-K | | | | | | 10.1 | | | | | | December 18, 2019 | | | | | | | | |

| [removed: 10.19] [added: 10.18.2] | | | | | | [First Amendment to Third Amended and Restated Credit Agreement, dated as [removed: of](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex101amendment1tobamlcredi.htm) [](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex101amendment1tobamlcredi.htm)[August] [added: of August] 12, 2020 by and among Arch Capital Group Ltd., the other Loan Parties party hereto, the Lenders party hereto, and Bank of America, N.A., [removed: as](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex101amendment1tobamlcredi.htm) [](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex101amendment1tobamlcredi.htm)[Administrative] [added: as Administrative] Agent](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex101amendment1tobamlcredi.htm). | | | | | | 10-Q | | | | | | 10.1 | | | | | | November 4, 2021 | | | | | | | | |

| [removed: 10.20] [added: 10.18.3] | | | | | | [The LIBOR Transition Amendment to the Third Amended and Restated [removed: Credit](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex102liboramendmenttobamlc.htm) [](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex102liboramendmenttobamlc.htm)[Agreement,] [added: Credit Agreement,] dated as of September 29, 2021.](http://www.sec.gov/Archives/edgar/data/0000947484/000094748421000145/ex102liboramendmenttobamlc.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | November 4, 2021 | | | | | | | | |

| 21 | | | | | | [Subsidiaries of [removed: Registrant](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex21.htm)] [added: Registrant](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex21.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 23 | | | | | | [Consent of PricewaterhouseCoopers [removed: LLP](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex23.htm)] [added: LLP](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex23.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 24 | | | | | | [Power of [removed: Attorney](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex24.htm)] [added: Attorney](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex24.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 31.1 | | | | | | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex311.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex311.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 31.2 | | | | | | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex312.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex312.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.1 | | | | | | [Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex321.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex321.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.2 | | | | | | [Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748422000015/a2021ex322.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/947484/000094748423000015/a2022ex322.htm)] | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 101 | | | | | | The following financial information from ACGL’s Annual Report on Form 10-K for the year ended December 31, [removed: 2021] [added: 2022] formatted in Inline XBRL: (i) Consolidated Balance Sheets at December 31, [removed: 2021] [added: 2022] and [removed: 2020;] [added: 2021;] (ii) Consolidated Statements of Income for the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019;] [added: 2020;] (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019;] [added: 2020;] (iv) Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019;] [added: 2020;] (v) Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019;] [added: 2020;] and (vi) Notes to Consolidated Financial Statements | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| ARCH CAPITAL | | | [removed: 172] [added: 175] | | | [removed: 2021] [added: 2022] FORM 10-K | | |

| Marc Grandisson | | | Chief Executive Officer (Principal Executive Officer) | | | February [removed: 25, 2022] [added: 24, 2023] | | |

| François Morin | | | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) and Treasurer | | | February [removed: 25, 2022] [added: 24, 2023] | | |

| John M. Pasquesi | | | Chairman of the Board | | | February [removed: 25, 2022] [added: 24, 2023] | | |

| John L. Bunce, Jr. | | | Director | | | February [removed: 25, 2022] [added: 24, 2023] | | |

| 10.3.6 | | | | | | [ACGL 2022 Long Term Incentive and Share Award Plan†](http://www.sec.gov/Archives/edgar/data/947484/000094748422000040/ex101acgl2022long-termince.htm) | | | | | | 8-K | | | | | | 10.1 | | | | | | May 4, 2022 | | | | | | | | |

| 10.18.4 | | | | | | [Second Amendment to Third Amended and Restated Credit Agreement, effective as of April 7, 2022, by and among Arch Capital Group Ltd., certain of its subsidiaries, Bank of America, N.A., as Administrative Agent, and the lenders party thereto](http://www.sec.gov/Archives/edgar/data/947484/000094748422000028/ex101creditagreement.htm) | | | | | | 8-K | | | | | | 10.1 | | | | | | April 12, 2022 | | | | | | | | |

February 24, 2023

| | | | | | | | | |

| | | | | | | | | |

| | | | 2022 | | | | | | 2021 | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | |

| | | | | | | | | |

| Other | | | (1,462) | | | | | | — | | | | | | — | | |

| | | | | | | | | |

| December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Insurance | | | $301,398 | | | $11,017,327 | | | $3,381,810 | | | $4,559,335 | | | NM | | | $2,782,945 | | | $885,866 | | | $665,472 | | | $5,020,642 | | |

| Reinsurance | | | 992,339 | | | 8,305,854 | | | 3,206,284 | | | 3,959,381 | | | NM | | | 2,568,843 | | | 813,555 | | | 267,531 | | | 4,923,976 | | |

| Mortgage | | | (29,867) | | | 708,762 | | | 748,908 | | | 1,159,361 | | | NM | | | (324,271) | | | 40,159 | | | 195,172 | | | 1,132,571 | | |

| Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total | | | $1,263,870 | | | $20,031,943 | | | $7,337,002 | | | $9,678,077 | | | NM | | | $5,027,517 | | | $1,739,580 | | | $1,128,175 | | | $11,077,189 | | |

| | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Insurance | | | $ | 6,889,358 | | | | | $ | (1,910,222) | | | | | $ | 41,506 | | | | | $ | 5,020,642 | | | | | 0.8 | | % |

| Reinsurance | | | 395,063 | | | | | | (2,024,462) | | | | | | 6,553,375 | | | | | | 4,923,976 | | | | | | 133.1 | | % |

| Mortgage | | | 1,256,366 | | | | | | (322,400) | | | | | | 198,605 | | | | | | 1,132,571 | | | | | | 17.5 | | % |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total | | | $ | 8,540,787 | | | | | $ | (4,249,258) | | | | | $ | 6,785,660 | | | | | $ | 11,077,189 | | | | | 61.3 | | % |

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2022 | | | $ | 1,263,870 | | $ | 20,031,943 | | $ | 60,536 | | $ | 7,337,002 | | $ | 9,678,077 | | $ | 496,547 | | $ | 5,798,528 | | $ | (771,011) | | $ | 1,739,580 | | $ | 3,141,948 | | $ | 11,077,189 | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| 10.7.5 | | | | | | [Share Appreciation Right Agreement, dated as of May 6, 2011, between ACGL and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000110465911062033/a11-25791_1ex10d12.htm) | | | | | | 10-Q | | | | | | 10.12 | | | | | | November 8, 2011 | | | | | | | | |

| 10.7.6 | | | | | | [Share Appreciation Right Agreement, dated as of May 6, 2011, between ACGL and Maamoun Rajeh†](http://www.sec.gov/Archives/edgar/data/947484/000094748417000097/ex10193017.htm) | | | | | | 10-Q | | | | | | 10.1 | | | | | | November 3, 2017 | | | | | | | | |

| 10.7.7 | | | | | | [Share Appreciation Right Agreement, dated as of May 9, 2012 between ACGL and Maamoun Rajeh†](http://www.sec.gov/Archives/edgar/data/947484/000094748417000097/ex10293017.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | November 3, 2017 | | | | | | | | |

| 10.7.8 | | | | | | [Form of Share Appreciation Right Agreement, dated as of May 9, 2012, between ACGL and each of Marc Grandisson and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000110465912076528/a12-20028_1ex10d3.htm) | | | | | | 10-Q | | | | | | 10.3 | | | | | | November 9, 2012 | | | | | | | | |

| 10.7.9 | | | | | | [Share Appreciation Right Agreement, dated as of July 1, 2012 between ACGL and Maamoun Rajeh†](http://www.sec.gov/Archives/edgar/data/947484/000094748417000097/ex10493017.htm) | | | | | | 10-Q | | | | | | 10.4 | | | | | | November 3, 2017 | | | | | | | | |

| 10.7.10 | | | | | | [Form of Share Appreciation Right Agreement, dated as of November 12, 2012, between ACGL and each of Marc Grandisson, Maamoun Rajeh and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000094748413000017/exhibit103.htm) | | | | | | 10-Q | | | | | | 10.3 | | | | | | August 9, 2013 | | | | | | | | |

| 10.7.11 | | | | | | [Form of Share Appreciation Right Agreement, dated as of May 9, 2013, between ACGL and each of Marc Grandisson, Maamoun Rajeh and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000094748413000023/exhibit102shareappreciatio.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | November 8, 2013 | | | | | | | | |

| 10.7.12 | | | | | | [Form of Share Appreciation Right Agreement, dated as of May 13, 2014, between ACGL and each of Marc Grandisson, Maamoun Rajeh and Louis T. Petrillo†](http://www.sec.gov/Archives/edgar/data/947484/000094748414000020/exhibit103sar51314.htm) | | | | | | 10-Q | | | | | | 10.3 | | | | | | August 8, 2014 | | | | | | | | |

| 10.7.13 | | | | | | [Share Appreciation Right Agreement, dated as of July 1, 2014, between ACGL and Maamoun Rajeh†](http://www.sec.gov/Archives/edgar/data/947484/000094748417000097/ex101593017.htm) | | | | | | 10-Q | | | | | | 10.15 | | | | | | November 3, 2017 | | | | | | | | |

| 10.7.14 | | | | | | [Share Appreciation Right Agreement, dated as of November 6, 2014, between ACGL and Marc Grandisson†](http://www.sec.gov/Archives/edgar/data/947484/000094748415000019/exhibit102mgsar.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | May 8, 2015 | | | | | | | | |

February 25, 2022

| Due to subsidiaries and affiliates | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | |

| December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Insurance | | | $188,684 | | | $7,900,328 | | | $1,991,496 | | | $2,397,080 | | | NM | | | $1,615,475 | | | $361,614 | | | $454,770 | | | $2,641,726 | | |

| Reinsurance | | | 197,856 | | | 4,270,013 | | | 971,776 | | | 1,466,389 | | | NM | | | 1,011,329 | | | 239,032 | | | 141,484 | | | 1,602,723 | | |

| Mortgage | | | 182,816 | | | 457,872 | | | 937,370 | | | 1,366,340 | | | NM | | | 53,513 | | | 134,319 | | | 153,092 | | | 1,261,756 | | |

| Other | | | 64,044 | | | 1,263,629 | | | 438,907 | | | 556,689 | | | NM | | | 453,135 | | | 105,980 | | | 51,651 | | | 532,862 | | |

| Total | | | $633,400 | | | $13,891,842 | | | $4,339,549 | | | $5,786,498 | | | NM | | | $3,133,452 | | | $840,945 | | | $800,997 | | | $6,039,067 | | |

| Insurance | | | $ | 3,879,752 | | | | | $ | (1,266,267) | | | | | $ | 28,241 | | | | | $ | 2,641,726 | | | | | 1.1 | | % |

| Reinsurance | | | 238,229 | | | | | | (720,500) | | | | | | 2,084,994 | | | | | | 1,602,723 | | | | | | 130.1 | | % |

| Mortgage | | | 1,224,373 | | | | | | (204,509) | | | | | | 241,892 | | | | | | 1,261,756 | | | | | | 19.2 | | % |

| Other | | | 339,169 | | | | | | (222,019) | | | | | | 415,712 | | | | | | 532,862 | | | | | | 78.0 | | % |

| Total | | | $ | 5,681,523 | | | | | $ | (2,099,893) | | | | | $ | 2,457,437 | | | | | $ | 6,039,067 | | | | | 40.7 | | % |

| 2019 | | | 633,400 | | | 13,891,842 | | | 22,012 | | | 4,339,549 | | | 5,786,498 | | | 627,738 | | | 3,297,037 | | | (163,585) | | | 840,945 | | | 2,383,255 | | | 6,039,067 | | |

| ARCH CAPITAL | | | [removed: 180] [added: 183] | | | [removed: 2021] [added: 2022] FORM 10-K | | |