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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KgWdTcOttqr2/dbETwC7jSCvDn2uII/pIeO2X7xoStGO3yZUiXHIT5Zwii6U4JdF
 mczXaDc1tYUgcyMWoVve/A==

<SEC-DOCUMENT>0000898822-07-000828.txt : 20070615
<SEC-HEADER>0000898822-07-000828.hdr.sgml : 20070615
<ACCEPTANCE-DATETIME>20070615211628
ACCESSION NUMBER:		0000898822-07-000828
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070614
FILED AS OF DATE:		20070615
DATE AS OF CHANGE:		20070615

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARCH CAPITAL GROUP LTD.
		CENTRAL INDEX KEY:			0000947484
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		WESSEX HOUSE
		STREET 2:		45 REID STREET
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 12
		BUSINESS PHONE:		441-278-9250

	MAIL ADDRESS:	
		STREET 1:		WESSEX HOUSE
		STREET 2:		45 REID STREET
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 12

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ARCH CAPITAL GROUP LTD
		DATE OF NAME CHANGE:	20000508

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RISK CAPITAL HOLDINGS INC
		DATE OF NAME CHANGE:	19950816

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RISK CAPITAL RE INC
		DATE OF NAME CHANGE:	19950703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LEE KEWSONG
		CENTRAL INDEX KEY:			0001220640

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16209
		FILM NUMBER:		07924410

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		2128789219

	MAIL ADDRESS:	
		STREET 1:		C/O WARBURG PINCUS LLC
		STREET 2:		466 LEXINGTON AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>kewsong_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-06-14</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000947484</issuerCik>
        <issuerName>ARCH CAPITAL GROUP LTD.</issuerName>
        <issuerTradingSymbol>ACGL</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001220640</rptOwnerCik>
            <rptOwnerName>LEE KEWSONG</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O WARBURG PINCUS LLC</rptOwnerStreet1>
            <rptOwnerStreet2>466 LEXINGTON AVE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10017</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares, $0.01 par value per share</value>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </securityTitle>
            <transactionDate>
                <value>2007-06-14</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F3"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2984963</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>10974322</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares, $0.01 par value per share</value>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </securityTitle>
            <transactionDate>
                <value>2007-06-14</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>19124</value>
                    <footnoteId id="F3"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>92833</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Security holders are Warburg Pincus (Bermuda) Private Equity VIII, L.P., (&quot;WP VIII Bermuda&quot;), Warburg Pincus (Bermuda)
 International Partners, L.P. (&quot;WPIP Bermuda&quot;) and Warburg Pincus Netherlands International Partners I, C.V. (&quot;WPIP
 Netherlands I&quot;). Warburg Pincus (Bermuda) Private Equity Ltd. (&quot;WP VIII Bermuda Ltd.&quot;) is sole general partner of WP
 VIII Bermuda. Warburg Pincus (Bermuda) International Ltd. (&quot;WPIP Bermuda Ltd.&quot;) is sole general partner of WPIP Bermuda.
 Warburg Pincus Partners, LLC (&quot;WPP LLC&quot;), subsidiary of Warburg Pincus &amp; Co. (&quot;WP&quot;), is sole general partner of WPIP
 Netherlands I. WP VIII Bermuda, WPIP Bermuda and WPIP Netherlands I are managed by Warburg Pincus LLC (&quot;WP LLC&quot;). WP VIII
 Bermuda, WPIP Bermuda, WPIP Netherlands I, WP VIII Bermuda Ltd., WPIP Bermuda Ltd., WPP LLC, WP and WP LLC are referred to
 herein as &quot;Warburg Pincus Entities.&quot;</footnote>
        <footnote id="F2">Kewsong Lee 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. Other than 9,944 Common Shares of the
 Issuer which were granted to and are directly owned by Mr. Lee in consideration of his service as a director of the Issuer
 and 82,889 Common Shares, 19,124 of which were received by Mr. Lee pursuant to the distribution described in footnote (3)
 below, the Warburg Pincus Entities own 10,974,322 Common Shares. Mr. Lee may be deemed to have an indirect pecuniary
 interest (within the meaning of Rule 16a-1 under the Securities Exchange Act of 1934) in an indeterminate portion of the
 shares owned by WP VIII Bermuda, WPIP Bermuda and WPIP Netherlands I. Mr. Lee disclaims beneficial ownership of all
 shares owned by the Warburg Pincus Entities.</footnote>
        <footnote id="F3">On June 14, 2007, WP VIII Bermuda, WPIP Bermuda and WPIP Netherlands I distributed an aggregate 2,984,963 Common Shares to
 their limited and general partners. Mr. Lee received 19,124 Common Shares pursuant to the distributions.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Kewsong Lee</signatureName>
        <signatureDate>2007-06-15</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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