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SEC filingNet income surged 82% to $1.0B, driven by disciplined underwriting and lower catastrophe losses, despite a slight revenue decline.
Net income for the first quarter of 2026 was $1.0 billion, an 82.4% increase from $574.0 million in the prior-year quarter. This significant improvement was primarily driven by lower catastrophe losses and favorable prior-year reserve development, reflecting disciplined underwriting across our segments. Diluted earnings per share rose to $2.88 from $1.48, a 94.6% increase.
Revenue decreased 3.3% to $4.5 billion from $4.7 billion in the prior-year quarter. The decline was primarily due to competitive pressures and reduced property catastrophe writings, as we maintained our focus on profitability over volume. Overall, market conditions remained favorable; however, topline growth in the segment was essentially flat, reflecting a focus on profitability over volume as competitive pressures persist.
While specific segment results are not detailed in the authoritative packet, the overall underwriting performance benefited from lower catastrophe losses and favorable reserve development. The reinsurance segment continued to demonstrate strong underwriting discipline, actively managing the cycle by selectively writing new business where returns are attractive and reducing participation where pricing does not meet our minimum return thresholds.
Management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of Arch Capital’s share price over time. We remain focused on disciplined underwriting and capital allocation to navigate competitive market conditions and deliver long-term shareholder value.