Arch Capital Group Ltd - 5.45% PRF PERPETUAL USD 25 - Ser F 1/1000 th Int

Exceptional profitability + strong capital returns (good/surprising) - After-tax operating income: $910m ( $2.67/share ), annualized operating ROACE ~16%. - Net income return on average common equity: ~18.1%, helped by equity method investment performance ($224m pre-tax net income impact in the quarter). - Buybacks: ~14.8m shares / ~$1.4b in the quarter; ~$100m more bought in October (through last night). - Capital return pace: through 9 months of 2026, repurchased about ~109% of net income—management expects continuing returns given strong earnings and excess capital.

Underwriting performance strong despite competitive markets; ex-cat remains excellent (good) - Overall ex-cat accident year combined ratio: 81.2% (up 70 bps YoY, but still strong); underwriting included $179m favorable prior-year development (4.5 points). - Cat losses (net): $234m in the quarter, including events tied to the Iran conflict. - Insurance segment: $108m underwriting income, combined ratio 94.4%; ex-cat current accident year ~89.2%. - Reinsurance segment: $393m underwriting income, combined ratio 78.3% aided by light CAT. - Mortgage segment: $201m underwriting income—good credit/delinquency and strong cure activity.

Growth is selective/limited in insurance; reinsurance top line is intentionally down (good + challenge) - Insurance premium: gross +7.8%, net +2.7% YoY (helped by new captive program in alternative markets and marine war risk premium tied to Iran conflict). - Underlying insurance growth outlook: management reiterates low single-digit underlying growth expectations (not chasing volume). - Reinsurance premium: ~8% decline YoY (abundant capacity); management is reducing participation where returns don’t meet targets and using more third‑party capital to optimize net exposure. - Key message: Arch will not become an “index of the market”—they will grow only where pricing/terms are adequate.