Arch Capital Group Ltd (NASDAQ:ACGL) stock rose 0.05% (As on February 10, 11:22:39 AM UTC-4, Source: Google Finance) after the company’s fourth-quarter profit rose, as the insurer benefited from strong underwriting performance and investment returns. Gross premiums written increased slightly by 1.1% to $4.81 billion, while net premiums earned rose 2.7% to $4.26 billion compared to the year-ago quarter. The company’s insurance segment saw a 2.3% increase in gross premiums written, while the reinsurance segment’s gross premiums remained relatively flat with a 0.2% increase. Gross premiums written by the mortgage segment in the 2025 fourth quarter were 1.5% lower than in the 2024 fourth quarter, while net premiums written were 3.6% lower than in the 2024 fourth quarter. Investment income continued to strengthen, with pre-tax net investment income rising to $434 million from $405 million in the prior-year quarter. The company also reported $155 million in equity income from investments accounted for using the equity method. U.S. insurers are benefiting as macroeconomic uncertainty and recession fears promote spending on risk-mitigating offerings by households and businesses. The insurer reported a pre-tax catastrophe loss of $164 million, net of reinsurance and reinstatement premiums. Arch reported a combined ratio of 80.6%, compared with 85% a year earlier. Book value per common share of $65.11 at December 31, 2025, a 4.5% increase from September 30, 2025. Net investment income for the 2025 fourth quarter primarily reflected growth in average invested assets, due in part to strong operating cash flows. On a pre-tax basis, net foreign exchange losses were $6 million for the 2025 fourth quarter, compared to net foreign exchange gains of $106 million for the 2024 fourth quarter.

ACGL in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.98, beating the analysts’ estimates for the adjusted earnings per share of $2.56. Net income available to common shareholders reached $1.2 billion, or $3.35 per share, representing a 21.2% annualized return on average common equity. Underwriting income jumped 32.3% to $827 million, with the company’s combined ratio improving to 80.6% from 85.0% in the same quarter last year. This improvement reflected lower catastrophe losses, which totaled $164 million for the quarter, and favorable development in prior year loss reserves of $118 million.

Additionally, during the quarter, Arch Capital repurchased $798 million of shares and reported book value per common share of $65.11 as of December 31, 2025, a 4.5% increase from the previous quarter.