Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Event

Hurricane Milton

The Company estimates that its 2024 fourth quarter results will be negatively impacted by Hurricane Milton, which occurred in October 2024. The Company currently estimates that the losses will be in a range of $275 million to $375 million, net of reinsurance and reinstatement premiums. This pre-tax preliminary loss estimate is based on industry insured losses ranging from $25 billion to $35 billion. The Company’s preliminary estimate for Hurricane Milton is based on currently available information derived from modeling techniques, industry assessments of exposure, preliminary claims information obtained from the Company’s clients and brokers to date and a review of in-force contracts. The Company’s actual losses from this event may vary materially from the estimates due to the inherent uncertainties in making such determinations.

Letter of Credit Facility Agreement

On October 30, 2024, Arch Reinsurance Ltd. (“Arch Re Bermuda”), a wholly-owned subsidiary of Arch Capital, entered into Amendment No. 4 to Letter of Credit Facility Agreement (“Amendment No. 4”), as the borrower with Lloyds Bank Corporate Markets plc, as Administrative Agent and L/C Agent, which amends the Letter of Credit Facility Agreement, dated as of November 3, 2020, as amended by Amendment No. 1 to Letter of Credit Facility Agreement dated as of October 29, 2021, as further amended by Amendment No. 2 and Joinder to Letter of Credit Facility Agreement dated as of October 27, 2022, and as further amended by Amendment No. 3 and Joinder to Letter of Credit Facility Agreement dated as of October 25, 2023 (the “Existing L/C Agreement”).

The Existing L/C Agreement, as amended by Amendment No. 4, provides for a $700 million facility for letters of credit, the size of which was increased by $170 million, from $530 million. As of October 31, 2024 $700 million face amount of letters of credit had been issued under the facility.

Special Cash Dividend

On November 7, 2024, the Company’s Board of Directors declared a special cash dividend of $1.9 billion to common shareholders, representing $5.00 per outstanding common share payable on December 4, 2024 to common shareholders of record on November 18, 2024.