AM Best has upgraded Arch Capital Group and its subsidiaries’ ratings, citing the firm’s strong operating performance and a proven track record of delivering superior underwriting results and investment returns, even during softer market conditions.
The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook of the FSRs is stable.
At the same time, AM Best has upgraded the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) of Arch Capital Group Ltd. (Arch Capital) (Bermuda), the ultimate holding company; Arch Capital Group (US) Inc (Delaware); and Arch Capital Finance LLC (Delaware).
In addition, AM Best has also upgraded the Long-Term Issue Credit Ratings (Long-Term IR) for the debt issuances of Arch. The outlook of these Credit Ratings has been revised to stable from positive.
AM Best said Arch’s ratings reflect its balance sheet strength, which the agency assesses as strongest, a favourable business profile and appropriate enterprise risk management.
The agency added that the upgrades also reflect Arch’s operating performance, which has “consistently outperformed” most peers with lower volatility.
AM Best further highlighted Arch’s distinctive diversification, underpinned by a substantial mortgage insurance business alongside its reinsurance and insurance operations.
Together, these three segments reportedly provide multiple, durable profit and revenue streams that, supported by superior risk selection, have delivered consistently strong operating results.
AM Best continued, “Recent evidence of the group’s earnings diversification, risk management culture and risk selection efficacy was shown through the first quarter of 2025, when the group continued to produce positive underwriting results that outperformed peers in the wake of the California wildfires.
“Though the reinsurance market has seen favourable rates and terms and conditions, particularly in the period after the Jan. 1, 2023, renewal season, Arch has a long, proven track record, even in softer market years, of producing superior underwriting results and investment returns. In the recent hard market cycle, the group has continued to differentiate itself from its peers.”
About the Author
