SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

CARNEY SEAN

(Last)

(First)

(Middle)

(Street)

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
07/10/2003

3. Issuer Name and Ticker or Trading Symbol
ARCH CAPITAL GROUP LTD [ ACGL ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Shares, $.01 par value per share⁽¹⁾⁽²⁾	141	D

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Stock Option (right to buy)⁽³⁾	07/10/2003	07/10/2013	Common Shares, $.01 par value per share	300	35.54	D

Explanation of Responses:

1. The security holders are Warburg Pincus (Bermuda) Private Equity VIII, L.P. ('WP VIII Bermuda'), Warburg Pincus (Bermuda) International Partners, L.P. ('WPIP Bermuda'), Warburg Pincus Netherlands International Partners I, C.V. ('WPIP Netherlands I') and Warburg Pincus Netherlands International Partners II, C.V. ('WPIP Netherlands II'). Warburg Pincus (Bermuda) Private Equity Ltd. ('WP VIII Bermuda Ltd.') is the sole general partner of WP VIII Bermuda. Warburg Pincus (Bermuda) International Ltd. ('WPIP Bermuda Ltd.') is the sole general partner of WPIP Bermuda. Warburg, Pincus & Co. ('WP') is the sole general partner of WPIP Netherlands I and WPIP Netherlands II. WP VIII Bermuda, WPIP Bermuda, WPIP Netherlands I and WPIP Netherlands II are managed by Warburg Pincus LLC. ('WP LLC').

2. Sean Carney, a director of the Issuer, is a general partner of WP, a managing director and member of WP LLC and a beneficial owner of certain shares of capital stock of WP VIII Bermuda Ltd. and WPIP Bermuda Ltd. All shares (other than 141 Common Shares and options to purchase an aggregate of 300 Common Shares upon exercise of options granted to Sean Carney in consideration of his service as a director of the Issuer) indicated as owned by Sean Carney are included becasue of his affiliation with these Warburg Pincus entities. Sean Carney may be deemed to have an indirect pecuinary interest (within the meaning Rule 16a-1 under the Securities Exchange Act of 1934) in an indeterminate portion of the shares owned by WP VIII Bermuda, WPIP Bermuda, WPIP Netherlands I and WPIP Netherlands II. Sean Carney disclaims beneficial ownership of all shares owned by these Warburg entities.

3. The stock option will become exercisable in three equal annual installments commencing on July 10, 2003 and on the first and second anniversary thereof.

	/s/ Sean Carney	07/16/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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