Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed consolidating balance sheet

		June 30, 2018
Condensed Consolidating Balance Sheet		Arch Capital (Parent Guarantor)		Arch-U.S. (Subsidiary Issuer)		Other Arch Capital Subsidiaries		Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Assets
Total investments		$	134	$	198,122	$	21,353,862	$	(14,700	)	$	21,537,418
Cash		7,033		27,513		492,082		—			526,628
Investments in subsidiaries		9,455,746		4,033,568		—		(13,489,314		)	—
Due from subsidiaries and affiliates		—		2		1,849,468		(1,849,470		)	—
Premiums receivable		—		—		1,897,517		(546,207		)	1,351,310
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses		—		—		8,441,528		(5,714,225		)	2,727,303
Contractholder receivables		—		—		2,044,322		—			2,044,322
Ceded unearned premiums		—		—		1,821,539		(806,876		)	1,014,663
Deferred acquisition costs		—		—		633,454		(63,637		)	569,817
Goodwill and intangible assets		—		—		593,008		—			593,008
Other assets		12,978		56,042		1,555,017		(135,386		)	1,488,651
	Total assets	$	9,475,891	$	4,315,247	$	40,681,797	$	(22,619,815	)	$	31,853,120
Liabilities
Reserve for losses and loss adjustment expenses		$	—	$	—	$	16,855,050	$	(5,430,713	)	$	11,424,337
Unearned premiums		—		—		4,640,416		(806,876		)	3,833,540
Reinsurance balances payable		—		—		957,289		(546,207		)	411,082
Contractholder payables		—		—		2,044,322		—			2,044,322
Collateral held for insured obligations		—		—		257,396					257,396
Senior notes		297,101		494,672		941,438		—			1,733,211
Revolving credit agreement borrowings		—		—		572,289		—			572,289
Due to subsidiaries and affiliates		1,824		536,747		1,310,899		(1,849,470		)	—
Other liabilities		13,211		29,304		1,785,950		(482,535		)	1,345,930
	Total liabilities	312,136		1,060,723		29,365,049		(9,115,801		)	21,622,107
Redeemable noncontrolling interests		—		—		220,805		(14,700		)	206,105
Shareholders’ Equity
Total shareholders’ equity available to Arch		9,163,755		3,254,524		10,234,790		(13,489,314		)	9,163,755
Non-redeemable noncontrolling interests		—		—		861,153		—			861,153
	Total shareholders’ equity	9,163,755		3,254,524		11,095,943		(13,489,314		)	10,024,908
	Total liabilities, noncontrolling interests and shareholders’ equity	$	9,475,891	$	4,315,247	$	40,681,797	$	(22,619,815	)	$	31,853,120

		December 31, 2017
Condensed Consolidating Balance Sheet		Arch Capital (Parent Guarantor)		Arch-U.S. (Subsidiary Issuer)		Other Arch Capital Subsidiaries		Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Assets
Total investments		$	96,540	$	46,281	$	21,711,891	$	(14,700	)	$	21,840,012
Cash		9,997		30,380		565,822		—			606,199
Investments in subsidiaries		9,396,621		4,097,765		—		(13,494,386		)	—
Due from subsidiaries and affiliates		394		—		1,828,864		(1,829,258		)	—
Premiums receivable		—		—		2,967,701		(1,832,452		)	1,135,249
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses		—		—		8,442,192		(5,902,049		)	2,540,143
Contractholder receivables		—		—		1,978,414		—			1,978,414
Ceded unearned premiums		—		—		2,165,789		(1,239,178		)	926,611
Deferred acquisition costs		—		—		693,053		(157,229		)	535,824
Goodwill and intangible assets		—		—		652,611		—			652,611
Other assets		13,176		49,585		1,860,505		(86,671		)	1,836,595
	Total assets	$	9,516,728	$	4,224,011	$	42,866,842	$	(24,555,923	)	$	32,051,658
Liabilities
Reserve for losses and loss adjustment expenses		$	—	$	—	$	17,236,401	$	(5,852,609	)	$	11,383,792
Unearned premiums		—		—		4,861,491		(1,239,177		)	3,622,314
Reinsurance balances payable		—		—		2,155,947		(1,832,451		)	323,496
Contractholder payables		—		—		1,978,414		—			1,978,414
Collateral held for insured obligations		—		—		240,183		—			240,183
Senior notes		297,053		494,621		941,210		—			1,732,884
Revolving credit agreement borrowings		—		—		816,132		—			816,132
Due to subsidiaries and affiliates		235		536,919		1,292,104		(1,829,258		)	—
Other liabilities		22,838		29,317		1,949,696		(293,343		)	1,708,508
	Total liabilities	320,126		1,060,857		31,471,578		(11,046,838		)	21,805,723
Redeemable noncontrolling interests		—		—		220,622		(14,700		)	205,922
Shareholders’ Equity
Total shareholders’ equity available to Arch		9,196,602		3,163,154		10,331,231		(13,494,385		)	9,196,602
Non-redeemable noncontrolling interests		—		—		843,411		—			843,411
	Total shareholders’ equity	9,196,602		3,163,154		11,174,642		(13,494,385		)	10,040,013
	Total liabilities, noncontrolling interests and shareholders’ equity	$	9,516,728	$	4,224,011	$	42,866,842	$	(24,555,923	)	$	32,051,658

Condensed consolidating statement of income and comprehensive income

		Three Months Ended June 30, 2018
Condensed Consolidating Statement of Income and Comprehensive Income		Arch Capital (Parent Guarantor)			Arch-U.S. (Subsidiary Issuer)			Other Arch Capital Subsidiaries			Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Revenues
Net premiums earned		$	—		$	—		$	1,336,763		$	—		$	1,336,763
Net investment income		15			560			157,532			(22,439		)	135,668
Net realized gains (losses)		—			—			(76,611		)	—			(76,611		)
Net impairment losses recognized in earnings		—			—			(470		)	—			(470		)
Other underwriting income		—			—			3,874			—			3,874
Equity in net income (loss) of investment funds accounted for using the equity method		—			—			8,472			—			8,472
Other income (loss)		2,339			—			774			—			3,113
	Total revenues	2,354			560			1,430,334			(22,439		)	1,410,809
Expenses
Losses and loss adjustment expenses		—			—			726,153			—			726,153
Acquisition expenses		—			—			202,838			—			202,838
Other operating expenses		—			—			176,181			—			176,181
Corporate expenses		16,642			470			5,400			—			22,512
Amortization of intangible assets		—			—			26,472			—			26,472
Interest expense		5,537			12,013			34,911			(22,117		)	30,344
Net foreign exchange (gains) losses		—			—			(43,357		)	(10,349		)	(53,706		)
	Total expenses	22,179			12,483			1,128,598			(32,466		)	1,130,794
Income (loss) before income taxes		(19,825		)	(11,923		)	301,736			10,027			280,015
Income tax (expense) benefit		—			2,477			(26,145		)	—			(23,668		)
Income (loss) before equity in net income of subsidiaries		(19,825		)	(9,446		)	275,591			10,027			256,347
Equity in net income of subsidiaries		263,471			86,727			—			(350,198		)	—
Net income		243,646			77,281			275,591			(340,171		)	256,347
Net (income) loss attributable to noncontrolling interests		—			—			(13,023		)	322			(12,701		)
Net income available to Arch		243,646			77,281			262,568			(339,849		)	243,646
Preferred dividends		(10,403		)	—			—			—			(10,403		)
Net income available to Arch common shareholders		$	233,243		$	77,281		$	262,568		$	(339,849	)	$	233,243
Comprehensive income available to Arch		$	183,500		$	70,066		$	212,802		$	(282,868	)	$	183,500

		Three Months Ended June 30, 2017
Condensed Consolidating Statement of Income and Comprehensive Income		Arch Capital (Parent Guarantor)			Arch-U.S. (Subsidiary Issuer)			Other Arch Capital Subsidiaries			Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Revenues
Net premiums earned		$	—		$	—		$	1,240,874		$	—		$	1,240,874
Net investment income		1			184			133,627			(22,688		)	111,124
Net realized gains (losses)		—			—			21,735			—			21,735
Net impairment losses recognized in earnings		—			—			(1,730		)	—			(1,730		)
Other underwriting income		—			—			4,822			—			4,822
Equity in net income (loss) of investment funds accounted for using the equity method		—			—			32,706			—			32,706
Other income (loss)		(437		)	—			(1,557		)	—			(1,994		)
	Total revenues	(436		)	184			1,430,477			(22,688		)	1,407,537
Expenses
Losses and loss adjustment expenses		—			—			689,860			—			689,860
Acquisition expenses		—			—			190,436			—			190,436
Other operating expenses		—			—			169,981			—			169,981
Corporate expenses		21,816			1,309			1,751			—			24,876
Amortization of intangible assets		—			—			30,824			—			30,824
Interest expense		6,075			11,989			33,050			(22,365		)	28,749
Net foreign exchange (gains) losses		—			—			29,843			9,700			39,543
	Total expenses	27,891			13,298			1,145,745			(12,665		)	1,174,269
Income (loss) before income taxes		(28,327		)	(13,114		)	284,732			(10,023		)	233,268
Income tax (expense) benefit		—			4,069			(38,238		)	—			(34,169		)
Income (loss) before equity in net income of subsidiaries		(28,327		)	(9,045		)	246,494			(10,023		)	199,099
Equity in net income of subsidiaries		213,494			86,156			—			(299,650		)	—
Net income		185,167			77,111			246,494			(309,673		)	199,099
Net (income) loss attributable to noncontrolling interests		—			—			(14,254		)	322			(13,932		)
Net income available to Arch		185,167			77,111			232,240			(309,351		)	185,167
Preferred dividends		(11,349		)	—			—			—			(11,349		)
Net income available to Arch common shareholders		$	173,818		$	77,111		$	232,240		$	(309,351	)	$	173,818
Comprehensive income available to Arch		$	279,285		$	105,302		$	475,747		$	(581,049	)	$	279,285

Condensed consolidating statement of cash flows

		Six Months Ended June 30, 2018
Condensed Consolidating Statement of Cash Flows		Arch Capital (Parent Guarantor)			Arch-U.S. (Subsidiary Issuer)			Other Arch Capital Subsidiaries			Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Operating Activities
	Net Cash Provided By (Used For) Operating Activities	$	201,487		$	149,576		$	1,010,703		$	(864,880	)	$	496,886
Investing Activities
Purchases of fixed maturity investments		—			(125,440		)	(17,347,846		)	605,716			(16,867,570		)
Purchases of equity securities		—			—			(679,663		)	—			(679,663		)
Purchases of other investments		—			—			(1,017,147		)	—			(1,017,147		)
Proceeds from the sales of fixed maturity investments		—			33,793			16,662,466			(605,716		)	16,090,543
Proceeds from the sales of equity securities		—			—			622,068			—			622,068
Proceeds from the sales, redemptions and maturities of other investments		—			—			773,298			—			773,298
Proceeds from redemptions and maturities of fixed maturity investments		—			—			511,448			—			511,448
Net settlements of derivative instruments		—			—			4,498			—			4,498
Net (purchases) sales of short-term investments		96,446			(59,798		)	415,253			—			451,901
Change in cash collateral related to securities lending		—			—			176,304			—			176,304
Contributions to subsidiaries		—			(1,000		)	(22,595		)	23,595			—
Purchases of fixed assets		(71		)	—			(13,171		)	—			(13,242		)
Other		(4		)	—			49,965			—			49,961
	Net Cash Provided By (Used For) Investing Activities	96,371			(152,445		)	134,878			23,595			102,399
Financing Activities
Redemption of preferred shares		(92,555		)	—			—			—			(92,555		)
Purchases of common shares under share repurchase program		(173,575		)	—			—			—			(173,575		)
Proceeds from common shares issued, net		(13,851		)	—			23,595			(23,595		)	(13,851		)
Proceeds from borrowings		—			—			130,579			—			130,579
Repayments of borrowings		—			—			(373,000		)	—			(373,000		)
Change in cash collateral related to securities lending		—			—			(176,304		)	—			(176,304		)
Dividends paid to redeemable noncontrolling interests		—			—			(9,632		)	638			(8,994		)
Dividends paid to parent (1)		—			—			(864,242		)	864,242			—
Other		—			—			(4,489		)	—			(4,489		)
Preferred dividends paid		(20,840		)	—			—			—			(20,840		)
	Net Cash Provided By (Used For) Financing Activities	(300,821		)	—			(1,273,493		)	841,285			(733,029		)
Effects of exchange rates changes on foreign currency cash and restricted cash		—			—			(10,431		)	—			(10,431		)
Increase (decrease) in cash and restricted cash		(2,963		)	(2,869		)	(138,343		)	—			(144,175		)
Cash and restricted cash, beginning of year		10,048			30,380			686,856			—			727,284
Cash and restricted cash, end of period		$	7,085		$	27,511		$	548,513		$	—		$	583,109

(1)     Dividends received by parent are included in net cash provided by (used for) operating activities.

		Six Months Ended June 30, 2017
Condensed Consolidating Statement of Cash Flows		Arch Capital (Parent Guarantor)			Arch-U.S. (Subsidiary Issuer)			Other Arch Capital Subsidiaries			Consolidating Adjustments and Eliminations			Arch Capital Consolidated
Operating Activities
	Net Cash Provided By (Used For) Operating Activities	$	7,483		$	27,853		$	956,437		$	(458,238	)	$	533,535
Investing Activities
Purchases of fixed maturity investments		—			—			(19,899,326		)	—			(19,899,326		)
Purchases of equity securities		—			—			(400,155		)	—			(400,155		)
Purchases of other investments		—			—			(883,704		)	—			(883,704		)
Proceeds from the sales of fixed maturity investments		—			—			19,611,680			—			19,611,680
Proceeds from the sales of equity securities		—			—			473,064			—			473,064
Proceeds from the sales, redemptions and maturities of other investments		—			—			614,494			—			614,494
Proceeds from redemptions and maturities of fixed maturity investments		—			—			447,941			—			447,941
Net settlements of derivative instruments		—			—			(5,984		)	—			(5,984		)
Net (purchases) sales of short-term investments		2,354			(27,896		)	(419,661		)	—			(445,203		)
Change in cash collateral related to securities lending		—			—			175,693			—			175,693
Contributions to subsidiaries		20,641			(72,900		)	(342,950		)	395,209			—
Issuance of intercompany loans		—			—			(47,000		)	47,000			—
Repayment of intercompany loans		—			47,000			—			(47,000		)	—
Purchases of fixed assets		(18		)	(10		)	(11,075		)	—			(11,103		)
Other		—			—			54,129			(20,641		)	33,488
	Net Cash Provided By (Used For) Investing Activities	22,977			(53,806		)	(632,854		)	374,568			(289,115		)
Financing Activities
Proceeds from common shares issued, net		(6,838		)	—			395,209			(395,209		)	(6,838		)
Repayments of borrowings		—			—			(72,000		)	—			(72,000		)
Change in cash collateral related to securities lending		—			—			(175,693		)	—			(175,693		)
Dividends paid to redeemable noncontrolling interests		—			—			(9,632		)	638			(8,994		)
Dividends paid to parent (1)		—			—			(457,600		)	457,600			—
Other		—			—			(62,339		)	20,641			(41,698		)
Preferred dividends paid		(22,567		)	—			—			—			(22,567		)
	Net Cash Provided By (Used For) Financing Activities	(29,405		)	—			(382,055		)	83,670			(327,790		)
Effects of exchange rates changes on foreign currency cash and restricted cash		—			—			9,616			—			9,616
Increase (decrease) in cash and restricted cash		1,055			(25,953		)	(48,856		)	—			(73,754		)
Cash and restricted cash, beginning of year		1,738			71,955			895,876			—			969,569
Cash and restricted cash, end of period		$	2,793		$	46,002		$	847,020		$	—		$	895,815

(1)     Dividends received by parent are included in net cash provided by (used for) operating activities.