Arch Capital Insurance Segment Hit by Margin and Pricing Pressures
Arch Capital’s Insurance segment reported a sharp drop in underwriting income, falling 79.1% to $27 million in Q2 2026, as the combined ratio deteriorated 510 basis points to 98.5%. Softer property pricing and intensified competition are pressuring premium growth and margins, with catastrophe losses adding risk. Casualty and specialty lines remain resilient, helping offset some pressure, though further rate declines could weigh on returns.