Arch Capital Group Ltd - 5.25% PRF PERPETUAL USD 25 - Ser E 1/1000th Int

Strong earnings + underwriting profitability (but some cat headwinds): - 2Q26 after-tax operating income: $893m ($2.56 EPS). - 1H repurchases: $1.95b. - Overall ex-cat accident year combined ratio: 82.5%, +160 bps YoY (mix/rates and some cat impact). - Favorable prior-year development: $165m pre-tax (4.1 points) across all 3 segments (mainly short-tail). - Cat losses (net): $201m in the quarter from Iran conflict + severe convective storms in the U.S.

Insurance segment: losses hurt, but underlying pricing discipline & “soft market early” framing: - Insurance underwriting income: $27m; impacted by Iran-related catastrophe losses. - Insurance current accident year ex-cat combined ratio: 91.6%. - Non-cat fundamentals: management expects underlying performance roughly around current levels; no major “loss pick” assumption changes beyond normal rate-over-trend. - North America pressure: competition rising, especially property/short-tail; rate increases continue in many casualty lines, while D&O pricing rebounds slowly and cyber rate declines are moderating. - Premium headwinds: net premiums written -5.1% YoY, driven by nonrenewal of some program business and reduced E&S property writing.

Reinsurance: very strong ex-cat profitability, but pricing/mix are pressuring growth: - Reinsurance underwriting income: $410m. - Reinsurance current accident year ex-cat combined ratio: 79.9% (up 270 bps YoY, mainly mix shift and lower property pricing). - Net premiums written: -10% YoY due to clients retaining more risk, increased competition lowering rates, and higher cession/third-party capital (net-to-gross impacted). - Outlook/expectation: within expectations as market softens; management cautioned property cat is stressed and volatility is higher in reinsurance, with run-rate potentially a bit higher ex-cat than “ideal” in the near term.