Arch Capital Group

“RATINGS Our ability to underwrite business is affected by the quality of our claims paying ability and financial strength ratings as evaluated by independent agencies. Such ratings from third party internationally recognized statistical rating organizations or agencies are instrumental in establishing the financial security of companies in our industry. The primary users of such ratings include commercial and investment banks, policyholders, brokers, ceding companies and investors.”

Annual report 2025A · The company itself

“Our U.S. based insurance operating subsidiaries are subject to extensive governmental regulation and supervision by the states and jurisdictions in which they are domiciled, licensed and/or approved to conduct business. The insurance laws and regulations of the state of domicile have the most significant impact on operations.”

Annual report 2025A · The company itself

“State insurance regulation and supervision is designed to protect policyholders rather than investors. Generally, state regulatory authorities have broad regulatory powers over such matters as licenses, standards of solvency, premium rates, policy forms, marketing practices, claims practices, investments, methods of accounting, form and content of financial statements, certain aspects of governance, ERM, amounts we are required to hold as reserves for future payments, minimum capital and surplus requirements, annual and other report filings and transactions among affiliates.”

Annual report 2025A · The company itself

“In addition to regulation applicable generally to U.S. insurance and reinsurance companies, our U.S. mortgage insurance operations are affected by federal and state regulation relating to mortgage insurers, mortgage lenders, and the origination, purchase and sale of residential mortgages.”

Annual report 2025A · The company itself

“Arch Insurance Company and Arch Reinsurance Company are approved by BFS as “Certified Companies” meaning that they are permitted to insure and reinsure surety bond business, including federal surety bonds, subject to certain underwriting restrictions and BFS supervision.”

Annual report 2025A · The company itself

“The financial requirements require an eligible mortgage insurer’s available assets, which generally include only the most liquid assets of an insurer to meet or exceed “minimum required assets” as of each quarter end. In August 2024, the GSEs updated PMIERs to incorporate new deductions to the definition of available assets for investment risk. This update became effective March 31, 2025, but the impact will be phased in through September 30, 2026.”

Annual report 2025A · The company itself

“The objectives of the PRA are to promote the safety and soundness of all firms it supervises and to secure an appropriate degree of protection for policyholders.”

Annual report 2025A · The company itself

“Arch Insurance (U.K.), and the corporate members of our Lloyd’s Syndicates are required to meet economic risk-based solvency requirements based on Solvency II.”

Annual report 2025A · The company itself

“However, in 2022, HM Treasury set out the U.K. government’s final reform package on the Solvency II framework in the U.K. Significant changes introduced by these reforms included the reduction in risk margin by 30% for non-life insurers and the removal of branch capital requirements.”

Annual report 2025A · The company itself

“Beginning June 30, 2026, the PRA can request submission of a U.K. insurer’s Solvent Exit Analysis (“SEA”). U.K. insurers (other than those in passive run-off, third country branches and Lloyd’s managing agents) are expected to provide and maintain an SEA documenting preparations for an orderly solvent exit.”

Annual report 2025A · The company itself

“Under FSMA, the prior consent of the PRA or FCA, as applicable, is required, before any person can become a controller or increase its control over any regulated company, including Arch Insurance (U.K.), or over the parent undertaking of any regulated company. Therefore, the PRA's or FCA's prior consent, as applicable, is required before any person can become a controller of Arch Capital.”

Annual report 2025A · The company itself

“U.K. insurance regulatory laws do not prohibit the payment of dividends, but the PRA or FCA, as applicable, requires that insurance companies, insurance intermediaries and other regulated entities maintain certain solvency margins and may restrict the payment of a dividend by Arch Insurance (U.K.) or AMAL, for example.”

Annual report 2025A · The company itself

“Arch Re Europe and Arch Insurance (EU) are required to comply with Solvency II requirements.”

Annual report 2025A · The company itself

“Arch Re Europe and Arch Insurance (EU) are required to meet economic risk-based solvency requirements imposed under Solvency II.”

Annual report 2025A · The company itself

“Under Irish law, the prior consent of the CBI is required before any person can acquire or increase a qualifying holding in an Irish insurer or reinsurer, including Arch Insurance (EU) and Arch Re Europe, or their parent undertakings.”

Annual report 2025A · The company itself

“Solvency II took effect in full on January 1, 2016. Solvency II imposes economic risk-based solvency requirements across all EU Member States and consists of three pillars: Pillar I-quantitative capital requirements, based on a valuation of the entire balance sheet; Pillar II-qualitative regulatory review, which includes governance, internal controls, enterprise risk management and supervisory review process; and Pillar III-market discipline, which is accomplished through reporting of the insurer’s financial condition to regulators and the public.”

Annual report 2025A · The company itself

“In addition to the above Solvency II reform proposals, the European Commission continues to promote the development of the Insurance Recovery and Resolution Directive (“IRRD”). The IRRD aims to harmonize national laws on recovery and resolution of (re)insurance undertakings. The European Parliament and the Council voted to adopt the IRRD in April 2024 and November 2024 respectively. The IRRD entered into force on January 28, 2025 and will apply two years from this date.”

Annual report 2025A · The company itself

“The Digital Operational Resilience Act (“DORA”) entered into force in January 2023. The core aim of DORA is to prevent and mitigate cyber threats and sets uniform requirements for the security of network and information systems of financial sector entities (including (re)insurers) as well as critical third parties which provide ICT (information and communication technology)-related services, such as cloud platforms or data analytics services. Certain of our in-scope Irish entities are required to comply with the obligations set out under DORA since January 17, 2025.”

Annual report 2025A · The company itself

“In August 2025, EIOPA issued an Opinion on Artificial Intelligence Governance and Risk management. The opinion provides guidance on the interpretation of insurance-focused legislation in the context of AI systems which may not have existed when the legislation entered into force. It sets out expectations, which are risk-based and proportionate in approach, relating to insurers’ governance and risk-management systems in the context of AI and seeks to ensure consistency among national supervisory authorities in their approach to supervision of AI.”

Annual report 2025A · The company itself

“In 2022, the European Commission adopted a proposal for the Corporate Sustainability Due Diligence Directive (“CSDDD”). The CSDDD entered into force in July 2024 and its obligations will come into effect on a phased basis depending on an in-scope entity’s turnover threshold, employee count and jurisdiction of incorporation. The main focus of the CSDDD is for in-scope entities to conduct due diligence on human rights and environmental impacts within such in-scope entities, their subsidiaries and across its value chain.”

Annual report 2025A · The company itself

“•Our insurance, reinsurance and mortgage subsidiaries are subject to supervision and regulation. Changes to existing regulation and supervisory standards, or failure to comply with applicable requirements, could adversely affect our business and results of operations. •We are subject to ongoing legal and policy actions around climate change which may result in additional requirements that could prompt us to shift our risk selection and business strategy in ways which may adversely impact our results of operations. •Sanctions imposed by the U.S., U.K. and EU on Russia and Russia-related businesses have impacted certain sectors in which we write business. •Certain U.S. policies and actions have created geopolitical risks which are not possible to manage or predict, some of which may result in uncertainty in the global markets.”

Annual report 2025A · The company itself

“Our insurance, reinsurance and mortgage subsidiaries are subject to supervision and regulation. Changes to existing regulation and supervisory standards, or failure to comply with applicable requirements, could adversely affect our business and results of operation. Our insurance and reinsurance subsidiaries conduct business globally and are subject to varying degrees of regulation in the various jurisdictions in which they conduct business, including by state, federal and national insurance regulators.”

Annual report 2025A · The company itself

“In August 2024, we were added to the list of IAIGs, subjecting our global operations to additional regulation and scrutiny.”

Annual report 2025A · The company itself

“We are subject to many laws and regulations relating to the adequacy of cybersecurity programs and business resiliency, including the SEC Cybersecurity Rules, and comprehensive privacy, security and business resiliency laws in the EU such as GDPR and DORA.”

Annual report 2025A · The company itself

“Our operational risks include the ongoing obligation to comply with applicable laws, regulations, regulatory expectations, and legal standards across all jurisdictions where Arch conducts business. Additionally, operational risk and losses can result from, among other things, fraud, errors, failure to document transactions properly or to obtain proper internal authorization, failure to comply with regulatory requirements across all jurisdictions where Arch conducts business, information technology or information security failures and failure to train employees appropriately or adequately.”

Annual report 2025A · The company itself

“The proposal would increase the capital charges for mortgages held in portfolio and eliminate the capital relief currently afforded mortgage loans protected by private mortgage insurance, which could adversely affect the volume of mortgages originated by banks subject to the rule and the demand for mortgage insurance.”

Annual report 2025A · The company itself

“The proposed SECR and CRR amendments improve the capital relief EU banks receive from insurance-based SRT transactions in which the Company participates.”

Annual report 2025A · The company itself

“As a result, our income may be taxed in jurisdictions where it is not currently taxed and at higher rates of tax than currently taxed, which may substantially increase our effective tax rate.”

Annual report 2025A · The company itself

“Thus, with effect from January 1, 2025, Arch Capital is subject to tax on income or profits under the Bermuda CIT Act. It is expected that the Bermuda CIT Act generally will prevent or mitigate the risk of other adopting countries from collecting “top-up” taxes from Bermuda companies to reach the 15% minimum rate, although the continued evolution of the implementation of Pillar II may in some cases mean that the Bermuda CIT Act does not avoid a “top-up” tax in all scenarios.”

Annual report 2025A · The company itself

“In the U.S., we employ a sales force to directly sell mortgage insurance products and services to our customers, which include mortgage originators such as mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions and community banks.”

Annual report 2025A · The company itself

“Strategy. The mortgage insurance market operates on a distinct underwriting cycle, with demand driven mainly by the housing market and general economic conditions. As a result, the creation of the mortgage group provides us with a more diverse revenue stream. Our mortgage group’s strategy is to capitalize on its financial capacity, mortgage insurance technology platform, operational flexibility and experienced management to offer mortgage insurance, reinsurance and other risk-sharing products in the U.S., Europe, the U.K. and Australia.”

Annual report 2025A · The company itself

“For our U.S. and Australian mortgage insurance businesses, in addition to utilizing reinsurance, we have developed proprietary risk models that simulate the maximum loss resulting from severe economic events impacting the housing market. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Catastrophic Events and Severe Economic Events.””

Annual report 2025A · The company itself

“Borrowers default for a variety of reasons, including a reduction of income, unemployment, divorce, illness, inability to manage credit, rising interest rate levels and declining home prices.”

Annual report 2025A · The company itself

“In addition, Arch MI U.S. and other private mortgage insurers increasingly compete with multi-line reinsurers and capital markets alternatives to private mortgage insurance. The GSEs continued their respective mortgage CRT programs, including the use of front and back-end transactions with multi-line reinsurers, with approximately 25 unique (re)insurers that regularly participate in transactions in addition to funded credit investors. These transactions continue to create opportunities for multi-line property casualty reinsurance groups and capital markets participants.”

Annual report 2025A · The company itself

“For our U.S. mortgage insurance business, in addition to utilizing reinsurance, we have developed a proprietary risk model that simulates the maximum probable loss resulting from a severe economic event impacting the housing market.”

Annual report 2025A · The company itself

“The mix of business in our insured loan portfolio may affect losses. The presence of multiple higher-risk characteristics in a loan materially increases the likelihood of a claim unless there are other characteristics to mitigate the risk.”

Annual report 2025A · The company itself

“Changes in underwriting standards, loan terms or credit evaluation methodologies (including those driven by the GSEs, regulators or market competition) could result in a higher‑ risk mortgage insurance portfolio and increase the frequency and severity of claims, which could have a material adverse effect on our business, results of operation and financial condition.”

Annual report 2025A · The company itself

“Thus, higher than anticipated claims generally cannot be offset by premium increases on policies in force or mitigated by our non-renewal or cancellation of insurance coverage.”

Annual report 2025A · The company itself

“The frequency and severity of claims we incur is uncertain and will depend largely on general economic factors outside of our control, including, among others, changes in unemployment and home prices affordability.”

Annual report 2025A · The company itself

“Inflated home prices followed by a decline in home values could significantly decrease a borrower’s equity in their home, which would limit their ability to sell the property without incurring a loss and could increase the frequency and severity of claims.”

Annual report 2025A · The company itself

“Other factors affecting the volume of low down payment mortgage originations include, among others: restrictions on mortgage credit due to stringent underwriting standards and liquidity issues affecting lenders; changes in affordability due to increased mortgage interest rates and home prices, and other economic conditions in the U.S., Australian and regional economies; population trends, including the rate of household formation and immigration; supply constraints and increased building costs; and U.S. and Australian government housing policy, including policies encouraging loans to first time home buyers.”

Annual report 2025A · The company itself

“Arch MI U.S.’s minimum required assets under the PMIERs will be determined, in part, by the particular risk profiles of the loans it insures. If, absent other changes, Arch MI U.S.’s mix of business changes to include more loans with higher loan-to-value ratios or lower credit scores, it will have a higher minimum required asset amount under the PMIERs and, accordingly, be required to hold more capital in order to maintain GSE eligibility.”

Annual report 2025A · The company itself

“•Maintain our position as a leading provider of U.S. mortgage insurance business. We have been a leading provider of mortgage insurance products and services to national and regional banks and mortgage originators for most of the last decade, and this position has helped us generate significant business opportunities for Arch. •Diversify revenues by capitalizing on international opportunities.”

Annual report 2025A · The company itself

“Mortgage Operations Our mortgage operations include mortgage insurance and reinsurance in the U.S. and internationally, as well as participation in GSE credit risk-sharing transactions. Our mortgage group includes direct mortgage insurance in the U.S. primarily through Arch Mortgage Insurance Company (“AMIC”), United Guaranty Residential Insurance Company (“UGRIC”), and Arch Mortgage Guaranty Company (“AMG” and together with AMIC and UGRIC, “Arch MI U.S.”); mortgage reinsurance primarily through Arch Re Bermuda on both a proportional and non-proportional basis globally; mortgage insurance and reinsurance in the EEA and U.K. primarily through Arch Insurance (EU), and in Australia through Arch Indemnity; and participation in various GSE credit risk-sharing products primarily through Arch Re Bermuda.”

Annual report 2025A · The company itself

“Under their monoline insurance licenses, each of Arch’s eligible mortgage insurers may only offer private mortgage insurance covering first lien, one-to-four family residential mortgages. Nearly all of our mortgage insurance written provides first loss protection on loans originated by mortgage lenders and sold to the GSEs. Each GSE’s Congressional charter generally prohibits it from purchasing a mortgage where the principal balance of the mortgage is in excess of 80% of the value of the property securing the mortgage unless the excess portion of the mortgage is protected against default by lender recourse, participation or by a qualified insurer. As a result, such “high loan-to-value mortgages” purchased by Fannie Mae or Freddie Mac generally are insured with private mortgage insurance.”

Annual report 2025A · The company itself

“Mortgage insurance protects the insured lender, investor or GSE against loss in the event of a borrower’s default. If a borrower defaults on mortgage payments, private mortgage insurance reduces, and may eliminate, losses to the insured. Private mortgage insurance may also facilitate the sale of mortgage loans in the secondary mortgage market because of the credit enhancement it provides.”

Annual report 2025A · The company itself

“•Mortgage insurance and reinsurance in Europe and other countries where we identify profitable underwriting opportunities. Since 2011, Arch Insurance (EU) has offered mortgage insurance to European mortgage lenders in order to reduce lenders’ credit risk and regulatory capital requirements associated with the insured mortgages. In certain European countries, lenders purchase mortgage insurance to facilitate regulatory compliance with respect to high loan-to-value residential lending.”

Annual report 2025A · The company itself

“In addition to providing traditional mortgage insurance and reinsurance, we offer various credit risk-sharing products to government agencies and mortgage lenders. The GSEs have reduced their exposure to mortgage risk by shifting a portion of it to the private sector, creating opportunities for insurers to assume additional mortgage risk. Arch Re Bermuda and its affiliates have regularly participated in both Fannie Mae and Freddie Mac single family and multifamily risk sharing programs since their inception over 10 years ago.”

Annual report 2025A · The company itself

“Risks Relating to Our Mortgage Operations The ultimate performance of our mortgage insurance portfolios remains uncertain.”

Annual report 2025A · The company itself

“Strategy. The mortgage insurance market operates on a distinct underwriting cycle, with demand driven mainly by the housing market and general economic conditions. As a result, the creation of the mortgage group provides us with a more diverse revenue stream. Our mortgage group’s strategy is to capitalize on its financial capacity, mortgage insurance technology platform, operational flexibility and experienced management to offer mortgage insurance, reinsurance and other risk-sharing products in the U.S., Europe, the U.K. and Australia.”

Annual report 2025A · The company itself

“For our U.S. and Australian mortgage insurance businesses, in addition to utilizing reinsurance, we have developed proprietary risk models that simulate the maximum loss resulting from severe economic events impacting the housing market. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Catastrophic Events and Severe Economic Events.””

Annual report 2025A · The company itself

“The insurance and reinsurance industry is highly cyclical, and we may at times experience periods characterized by excess underwriting capacity and unfavorable premium rates. Historically, insurers and reinsurers have experienced significant fluctuations in operating results due to competition, frequency of occurrence or severity of catastrophic events, levels of capacity, general economic conditions, inflation, changes in equity, debt and other investment markets, changes in legislation, case law and prevailing concepts of liability and other factors. Demand for reinsurance is influenced significantly by the underwriting results of primary insurers and prevailing general economic conditions.”

Annual report 2025A · The company itself

“While our business has not been directly impacted by the existing and proposed Trump administration tariffs on imported goods, there may be a ripple effect on how these impact certain industries where we provide insurance or reinsurance. It is too early to determine the long-term effect, if any, of the Trump administration tariff policy, but sustained escalation of tariffs and trade disputes may result in a global economic slowdown which impacts us and our clients.”

Annual report 2025A · The company itself

“Adverse developments in the financial markets, resulting from inflation, global recessionary pressures, geopolitical conflict, liquidity conditions among other factors, can increase uncertainty and heighten volatility in the credit and equity markets.”

Annual report 2025A · The company itself

“Disruption to the financial markets and weak economic conditions resulting from situations such as supply/demand imbalances, inflation and political unrest may adversely and materially impact our investments, financial condition and results of operation.”

Annual report 2025A · The company itself

“Deteriorating economic conditions, potentially due to prolonged recessionary conditions increasing levels of unemployment and inflation, could adversely affect the performance of our mortgage insurance portfolio and could adversely affect our results of operations and financial condition.”

Annual report 2025A · The company itself

“Other factors affecting the volume of low down payment mortgage originations include, among others: restrictions on mortgage credit due to stringent underwriting standards and liquidity issues affecting lenders; changes in affordability due to increased mortgage interest rates and home prices, and other economic conditions in the U.S., Australian and regional economies; population trends, including the rate of household formation and immigration; supply constraints and increased building costs; and U.S. and Australian government housing policy, including policies encouraging loans to first time home buyers.”

Annual report 2025A · The company itself

“The following tables set forth our insurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % North America Property and short-tail specialty $ 1,329 17.0 $ 1,220 17.7 Other liability - occurrence 1,302 16.7 1,002 14.6 Other liability - claims made 793 10.2 858 12.5 Commercial multi-peril 781 10.0 461 6.7 Commercial automobile 602 7.7 485 7.1 Workers compensation 576 7.4 555 8.1 Other 341 4.4 288 4.2 Total North America 5,724 73.4 4,869 70.8 International Property and short-tail specialty $ 1,102 14.1 $ 1,082 15.7 Casualty and other 972 12.5 923 13.4 Total International 2,074 26.6 2,005 29.2 Total $ 7,798 100.0 $ 6,874 100.0 Net premiums written by the insurance segment were 13.4% higher in 2025 than in 2024.”

Annual report 2025A · The company itself

“Exposure to mortgage risk is monitored globally and managed through underwriting guidelines, pricing, reinsurance, utilization of proprietary risk models, concentration limits and limits on net probable loss resulting from a severe economic downturn in the housing market. Exposure to climate risk has also been incorporated into the risk management framework of our mortgage group to monitor and manage our exposure to potential (i) losses related to the direct physical impact of extreme weather conditions or events in certain transactions; and/or (ii) adverse economic or housing market conditions caused by the physical impact of extreme weather conditions or events on a region or the financial impact of transitioning to a zero or low carbon economy on a region.”

Annual report 2025A · The company itself

“•Our customers and policyholders may also be impacted by regulatory, technological, market or other risks relating to climate change in ways which we cannot predict with certainty and adversely impact our results of operations. •We are subject to changes in governmental, investor and societal responses to climate change and sustainability-related issues, which may result in scrutiny of our business, litigation or adverse impacts to our share price and our results of operations. •We could face unanticipated losses from increased geopolitical tensions, hostilities, war, terrorism, cyber attacks and general political instability, and these or other unanticipated losses could have a material adverse effect on our financial condition and results of operations. •Underwriting risks and reserving for losses are based on probabilities and related modeling, which are subject to inherent uncertainties.”

Annual report 2025A · The company itself

“Claims for natural catastrophic events could cause large losses and substantial volatility in our results of operations and could have a material adverse effect on our financial position and results of operations. We have large aggregate exposures to natural catastrophic events. Natural catastrophes can be caused by various events, including hurricanes, floods, wildfires, tsunamis, windstorms, earthquakes, hailstorms, tornadoes, severe winter weather, fires, droughts and other natural disasters.”

Annual report 2025A · The company itself

“Changes in security asset prices may impact the value of our fixed income, real estate and commercial mortgage investments, resulting in realized or unrealized losses on our invested assets. These risks are not limited to, but can include: (i) changes in supply/demand characteristics for fossil fuels (e.g., coal, oil, natural gas); (ii) advances in low-carbon technology and renewable energy development; and (iii) effects of extreme weather events on the physical and operational exposure of industries and issuers, and the transition that these companies make towards addressing climate risk in their own businesses.”

Annual report 2025A · The company itself

“In addition, factors such as global climate change limit the value of historical experience and therefore further limit the effectiveness of our loss limitation methods.”

Annual report 2025A · The company itself

“The 2025 loss ratio included 8.5 points for current year catastrophic event activity, primarily related to the California wildfires, compared to 11.8 points in 2024, primarily related to Hurricanes Milton, Helene and a series of other global events.”

Annual report 2025A · The company itself

“For catastrophe-exposed insurance business, our insurance group seeks to limit the amount of exposure to catastrophic losses it assumes through a combination of managing aggregate limits, underwriting guidelines and reinsurance.”

Annual report 2025A · The company itself

“Our reinsurance group currently purchases a combination of per event excess of loss, per risk excess of loss, proportional retrocessional agreements and other structures that are available in the market. Such arrangements reduce the effect of individual or aggregate losses on, and in certain cases may also increase the underwriting capacity of, our reinsurance group.”

Annual report 2025A · The company itself

“Climate Change Considerations We are taking steps to mitigate the effects of climate change in our underwriting segments. We seek to identify business opportunities associated with environmentally friendly trends and support responsible environmental behaviors. We have adopted a thermal coal policy in our global insurance operations and provide environmentally sustainable insurance solutions in certain product lines.”

Annual report 2025A · The company itself

“For example, in our mortgage business, the failure of general wages to keep pace with economic inflation, or increases in unemployment due to prolonged recessionary conditions, could prevent borrowers from being able to afford their mortgage payments and thereby increase the frequency of claims beyond our modeled results. Global recessionary conditions, including inflation, the slow recovery of certain sectors from the pandemic, predicted slow growth rates across key markets and other factors, will impact the insurance and reinsurance industry.”

Annual report 2025A · The company itself

“Intense competition within the private mortgage insurance industry and the potential for new entrants could result in lower premiums and/or negatively impact our level of NIW.”

Annual report 2025A · The company itself

“Increases to mortgage interest rates have materially increased financing costs, and as a result have decreased the number of qualified borrowers and the volume of low down payment mortgage originations.”

Annual report 2025A · The company itself

“Other factors affecting the volume of low down payment mortgage originations include, among others: restrictions on mortgage credit due to stringent underwriting standards and liquidity issues affecting lenders; changes in affordability due to increased mortgage interest rates and home prices, and other economic conditions in the U.S., Australian and regional economies; population trends, including the rate of household formation and immigration; supply constraints and increased building costs; and U.S. and Australian government housing policy, including policies encouraging loans to first time home buyers.”

Annual report 2025A · The company itself

“If any GSE reform, including privatization, is pursued, whether through legislation or administrative action, it could impact the current role of private mortgage insurance as credit enhancement, including its reduction or elimination.”

Annual report 2025A · The company itself

“The following tables set forth our insurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % North America Property and short-tail specialty $ 1,329 17.0 $ 1,220 17.7 Other liability - occurrence 1,302 16.7 1,002 14.6 Other liability - claims made 793 10.2 858 12.5 Commercial multi-peril 781 10.0 461 6.7 Commercial automobile 602 7.7 485 7.1 Workers compensation 576 7.4 555 8.1 Other 341 4.4 288 4.2 Total North America 5,724 73.4 4,869 70.8 International Property and short-tail specialty $ 1,102 14.1 $ 1,082 15.7 Casualty and other 972 12.5 923 13.4 Total International 2,074 26.6 2,005 29.2 Total $ 7,798 100.0 $ 6,874 100.0 Net premiums written by the insurance segment were 13.4% higher in 2025 than in 2024.”

Annual report 2025A · The company itself

“Since the Russian invasion of Ukraine in 2022, the U.K. government has instituted a new sanctions regime targeting Russia. The sanctions imposed include prohibitions on providing financial services (including insurance and reinsurance) to persons connected with Russia in relation to certain restricted goods and services, and the freezing of assets owned or controlled by designated persons.”

Annual report 2025A · The company itself

“Since 2022, the EU has imposed significant sanctions on the Russian Federation in response to its invasion of Ukraine. These sanctions are similar to those imposed by the U.K. and U.S. Given the evolving situation, we are closely monitoring developments and the sanctions imposed, to ensure our European entities remain in compliance with any sanctions measures imposed.”

Annual report 2025A · The company itself

“Certain U.S. policies and actions have created geopolitical risks which are not possible to manage or predict, some of which may result in uncertainty in the global markets. Recent U.S. policies and actions, such as actions relating to Venezuela and Greenland, may jeopardize certain global alliances and create geopolitical uncertainty. While the long-term impact of these policies is currently unknown, these policies and other geopolitical tensions have resulted in, or could result in, volatile global capital markets, sanctions, trade restrictions and harm countries’ relationships.”

Annual report 2025A · The company itself

“Adverse developments in the financial markets, resulting from inflation, global recessionary pressures, geopolitical conflict, liquidity conditions among other factors, can increase uncertainty and heighten volatility in the credit and equity markets.”

Annual report 2025A · The company itself

“Disruption to the financial markets and weak economic conditions resulting from situations such as supply/demand imbalances, inflation and political unrest may adversely and materially impact our investments, financial condition and results of operation.”

Annual report 2025A · The company itself

“Our reinsurance group currently purchases a combination of per event excess of loss, per risk excess of loss, proportional retrocessional agreements and other structures that are available in the market. Such arrangements reduce the effect of individual or aggregate losses on, and in certain cases may also increase the underwriting capacity of, our reinsurance group.”

Annual report 2025A · The company itself

“In 2023, the NAIC adopted a model bulletin entitled “Use of Artificial Intelligence Systems by Insurers” that sets forth state insurance regulators’ expectations on how insurers should govern the use of advanced analytical and computational technologies used to make or support decisions impacting consumers. Such expectations include implementation of a written program for the responsible use of AI systems that make or support decisions related to regulated insurance practices, which program should be designed to mitigate certain risks.”

Annual report 2025A · The company itself

“NYDFS expects insurers doing business in New York to observe and comply with its 2024 Insurance Circular Letter No.7 regarding the use of AI systems which adopts a risk-based approach to evaluating insurers’ use of AI systems and external consumer data and information sources used for underwriting and pricing of insurance products.”

Annual report 2025A · The company itself

“AI systems should be assessed to ensure that they do not produce disproportionate adverse effects in underwriting or pricing for similarly situated individuals and tested regularly to ensure that they do not produce unfair or unlawful outcomes.”

Annual report 2025A · The company itself

“California adopted regulations under the CCPA related to automated decision-making technologies (“ADMT”) on September 23, 2025. These regulations impose new rules governing consumer notice, access, and opt-out rights with respect to ADMT and require different risk assessments and disclosures related to processing activities involving ADMT in various consumer contexts, including profiling.”

Annual report 2025A · The company itself

“In August 2025, EIOPA issued an Opinion on Artificial Intelligence Governance and Risk management. The opinion provides guidance on the interpretation of insurance-focused legislation in the context of AI systems which may not have existed when the legislation entered into force. It sets out expectations, which are risk-based and proportionate in approach, relating to insurers’ governance and risk-management systems in the context of AI and seeks to ensure consistency among national supervisory authorities in their approach to supervision of AI.”

Annual report 2025A · The company itself

“Our information technology systems and our pace of adoption of new technologies, including AI, may not be adequate to meet the demands of our customers or impact negatively our ability to compete with our peers.”

Annual report 2025A · The company itself

“While we believe AI presents significant opportunities to support our strategic goals, we may not be successful in implementing AI technologies. It is possible that any AI we use does not perform as anticipated, suffers from “hallucinations” or that its outputs may not be as expected or may result in unlawful discrimination, which may put us at a competitive disadvantage, result in reputational damage and regulatory fines and actions.”

Annual report 2025A · The company itself

“•Artificial Intelligence. We employ AI technology and analytics to drive data-driven decisions, streamline processes or help serve our customers and partners. The use of AI technology is vetted through our AI governance framework.”

Annual report 2025A · The company itself

“The increased use of automated processes by insurers, including algorithms, artificial intelligence (generative and predictive) (“AI”) and predictive models that make use of large datasets and data analytics, has led to additional regulatory attention to insurer practices including in relation to risk selection, pricing and claims, as well as governance and oversight of AI and predictive models.”

Annual report 2025A · The company itself

“The U.K. government has a long-term ambition to “green” the financial system and align it with the U.K.’s 2050 “Net Zero” target (i.e.,100% greenhouse gas emissions reduction) under the Climate Change Act 2008. As part of those efforts, in 2022, the U.K. passed mandatory climate related financial disclosure requirements under the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022. The regulations apply to large companies (including some of our U.K. entities) for financial years starting on or after April 2022.”

Annual report 2025A · The company itself

“In December 2025, the PRA published supervisory statement SS5/25 “Enhancing banks’ and insurers’ approaches to managing climate-related risks”, which builds on and updates the expectations in SS3/19. SS5/25 took effect on December 3, 2025. The PRA expects firms to complete an internal review of their current position against the updated expectations in order to identify any gaps and develop an appropriate plan to remedy such gaps within six months of commencement (i.e. by June 3, 2026).”

Annual report 2025A · The company itself

“In 2021, the CBI issued its expectations in respect of climate and broader sustainability issues for all regulated firms in Ireland (including (re)insurers). The CBI's expectations focus on five key areas: governance, risk management, scenario analysis (including, but not limited to, stress testing for the purposes of the ORSA), disclosures and strategy and business model risk.”

Annual report 2025A · The company itself

“In September 2024 and December 2025, the CBI published key findings from thematic reviews of (re)insurers’ climate change risk materiality assessments. The CBI has reiterated that climate change risk remains a key strategic priority and will continue to be a feature of regular supervisory engagement with (re)insurers.”

Annual report 2025A · The company itself

“Governments, regulators, legislators and influential non-governmental organizations (“NGOs”) continue to develop laws, regulations and other requirements related to climate change. Regulatory and shareholder scrutiny of potential “greenwashing” also continues.”

Annual report 2025A · The company itself

“Climate Change Considerations We are taking steps to mitigate the effects of climate change in our underwriting segments. We seek to identify business opportunities associated with environmentally friendly trends and support responsible environmental behaviors. We have adopted a thermal coal policy in our global insurance operations and provide environmentally sustainable insurance solutions in certain product lines.”

Annual report 2025A · The company itself

“As of February 19, 2026, we had approximately 8,000 employees globally, compared to around 7,200 last year, which directly speaks to our ability to sustain our strong and unique culture as we grow, which is a key enabler to top talent retention. We have approximately 4,300 employees in North America (U.S., Canada and Bermuda), 1,700 employees in Europe and the U.K. and 2,000 employees in the Philippines, India, Australia and the rest of the world.”

Annual report 2025A · The company itself

“We offer competitive compensation and comprehensive benefits packages, including an employee share purchase plan, parental leave, contributions to retirement savings plans and programs to support employee mental and physical well-being.”

Annual report 2025A · The company itself

“Our ability to execute our business strategy successfully, continue to grow and innovate and offer our employees a dynamic and supportive workplace depends on the recruitment, retention and promotion of talented, agile, and resilient employees at all levels of our organization. The success of our business depends on attracting and retaining a capable and talented workforce.”

Annual report 2025A · The company itself

“Our reinsurance group believes that maintaining tight control over its staffing level and operating primarily as a broker market reinsurer permits it to maintain low operating costs relative to its capital and premiums.”

Annual report 2025A · The company itself

“An important aspect of our culture is sustaining a highly engaged and talented workforce. We strive to leverage the best contributions and ideas of our employees across our Company.”

Annual report 2025A · The company itself

“The following tables set forth our insurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % North America Property and short-tail specialty $ 1,329 17.0 $ 1,220 17.7 Other liability - occurrence 1,302 16.7 1,002 14.6 Other liability - claims made 793 10.2 858 12.5 Commercial multi-peril 781 10.0 461 6.7 Commercial automobile 602 7.7 485 7.1 Workers compensation 576 7.4 555 8.1 Other 341 4.4 288 4.2 Total North America 5,724 73.4 4,869 70.8 International Property and short-tail specialty $ 1,102 14.1 $ 1,082 15.7 Casualty and other 972 12.5 923 13.4 Total International 2,074 26.6 2,005 29.2 Total $ 7,798 100.0 $ 6,874 100.0 Net premiums written by the insurance segment were 13.4% higher in 2025 than in 2024.”

Annual report 2025A · The company itself

“Secretary of the Treasury in negotiating “covered agreements” between the U.S. and foreign governments that address insurance prudential measures, and administers the Terrorism Risk Insurance Program (“TRIP”). The TRIP will expire on December 31, 2027 unless reauthorized by Congress.”

Annual report 2025A · The company itself

“For catastrophe-exposed insurance business, our insurance group seeks to limit the amount of exposure to catastrophic losses it assumes through a combination of managing aggregate limits, underwriting guidelines and reinsurance.”

Annual report 2025A · The company itself

“We seek to limit our loss exposure by writing a number of our reinsurance contracts on an excess of loss basis, adhering to maximum limitations on reinsurance written in defined geographical zones, limiting program size for each client and prudent underwriting of each program written.”

Annual report 2025A · The company itself

“The following tables set forth our reinsurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % Specialty $ 2,543 33.4 $ 2,849 36.8 Property excluding property catastrophe 2,043 26.8 2,264 29.2 Casualty 1,507 19.8 1,222 15.8 Property catastrophe 1,073 14.1 958 12.4 Marine and aviation 301 4.0 300 3.9 Other 151 2.0 153 2.0 Total $ 7,618 100.0 $ 7,746 100.0 Net premiums written by the reinsurance segment were 1.7% lower in 2025 than in 2024.”

Annual report 2025A · The company itself

“The following tables set forth our reinsurance segment’s net premiums earned by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % Specialty $ 2,906 35.8 $ 2,619 36.2 Property excluding property catastrophe 2,252 27.7 2,148 29.7 Casualty 1,432 17.6 1,088 15.0 Property catastrophe 1,065 13.1 959 13.2 Net premiums earned in 2025 were 12.2% higher than in 2024, reflecting changes in net premiums written over the previous five quarters, including the mix and type of business written.”

Annual report 2025A · The company itself

“Other Operations In 2014, we and third party investors sponsored the formation of Somers. Somers is wholly owned by Greysbridge, which is currently 30% owned by Arch Capital, with the remaining balance of Greysbridge common shares held by third party investors. See note 16, “Transactions with Related Parties,” to our consolidated financial statements in Item 8 for further details.”

Annual report 2025A · The company itself

“In 2017, we and Kelso sponsored the formation of Premia. Premia’s strategy is to reinsure or acquire companies or reserve portfolios in the non-life property and casualty insurance and reinsurance run-off market. Arch Re Bermuda and certain Arch co-investors invested $100 million and acquired approximately 25% of Premia as well as warrants to purchase additional common equity.”

Annual report 2025A · The company itself

“In 2021, the Company completed the share purchase agreement with Natixis to purchase 29.5% of the common equity of Coface. This is a long-term, strategic investment in Coface, and fits with Arch’s efforts to develop uncorrelated sources of underwriting income. Our companies share a focus on specialty underwriting where knowledge and expertise create value for our clients, and trade credit contributes to Arch’s specialty-driven business model.”

Annual report 2025A · The company itself

“We have acquired other companies and selected blocks of business and also expanded our business lines and geographies and/or entered into joint ventures or partnerships as part of our strategy.”

Annual report 2025A · The company itself

“With the acquisition of Arch Indemnity in Australia in 2021, and continued growth insuring and reinsuring European banks, we believe diversifying revenues on a global basis is a key operating principle. Our mortgage group focuses on the following areas: •Direct mortgage insurance in the United States.”

Annual report 2025A · The company itself

“•Mortgage insurance and reinsurance in Europe and other countries where we identify profitable underwriting opportunities. Since 2011, Arch Insurance (EU) has offered mortgage insurance to European mortgage lenders in order to reduce lenders’ credit risk and regulatory capital requirements associated with the insured mortgages. In certain European countries, lenders purchase mortgage insurance to facilitate regulatory compliance with respect to high loan-to-value residential lending.”

Annual report 2025A · The company itself

“Increasingly, Arch Insurance (EU) and Arch Re Bermuda are providing protection to European banks on significant risk transfer (“SRT”) transactions.”

Annual report 2025A · The company itself

“In the U.S., we employ a sales force to directly sell mortgage insurance products and services to our customers, which include mortgage originators such as mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions and community banks.”

Annual report 2025A · The company itself

“The reinsurance segment consists of our reinsurance underwriting units which offer specialty product lines on a worldwide basis, as described in note 4, “Segment Information,” to our consolidated financial statements in Item 8.”

Annual report 2025A · The company itself

“With the acquisition of Arch Indemnity in Australia in 2021, and continued growth insuring and reinsuring European banks, we believe diversifying revenues on a global basis is a key operating principle. Our mortgage group focuses on the following areas: •Direct mortgage insurance in the United States.”

Annual report 2025A · The company itself

“Our reinsurance group believes that maintaining tight control over its staffing level and operating primarily as a broker market reinsurer permits it to maintain low operating costs relative to its capital and premiums.”

Annual report 2025A · The company itself

“The following tables set forth our insurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % North America Property and short-tail specialty $ 1,329 17.0 $ 1,220 17.7 Other liability - occurrence 1,302 16.7 1,002 14.6 Other liability - claims made 793 10.2 858 12.5 Commercial multi-peril 781 10.0 461 6.7 Commercial automobile 602 7.7 485 7.1 Workers compensation 576 7.4 555 8.1 Other 341 4.4 288 4.2 Total North America 5,724 73.4 4,869 70.8 International Property and short-tail specialty $ 1,102 14.1 $ 1,082 15.7 Casualty and other 972 12.5 923 13.4 Total International 2,074 26.6 2,005 29.2 Total $ 7,798 100.0 $ 6,874 100.0 Net premiums written by the insurance segment were 13.4% higher in 2025 than in 2024.”

Annual report 2025A · The company itself

“Mortgage Operations Our mortgage operations include mortgage insurance and reinsurance in the U.S. and internationally, as well as participation in GSE credit risk-sharing transactions. Our mortgage group includes direct mortgage insurance in the U.S. primarily through Arch Mortgage Insurance Company (“AMIC”), United Guaranty Residential Insurance Company (“UGRIC”), and Arch Mortgage Guaranty Company (“AMG” and together with AMIC and UGRIC, “Arch MI U.S.”); mortgage reinsurance primarily through Arch Re Bermuda on both a proportional and non-proportional basis globally; mortgage insurance and reinsurance in the EEA and U.K. primarily through Arch Insurance (EU), and in Australia through Arch Indemnity; and participation in various GSE credit risk-sharing products primarily through Arch Re Bermuda.”

Annual report 2025A · The company itself

“Marketing. Our reinsurance group generally markets its reinsurance products through brokers, except our property and casualty facultative reinsurance groups, which deal directly with ceding companies along with brokers.”

Annual report 2025A · The company itself

“The following tables set forth our insurance segment’s net premiums written by major line of business: Year Ended December 31, 2025 2024 Amount % Amount % North America Property and short-tail specialty $ 1,329 17.0 $ 1,220 17.7 Other liability - occurrence 1,302 16.7 1,002 14.6 Other liability - claims made 793 10.2 858 12.5 Commercial multi-peril 781 10.0 461 6.7 Commercial automobile 602 7.7 485 7.1 Workers compensation 576 7.4 555 8.1 Other 341 4.4 288 4.2 Total North America 5,724 73.4 4,869 70.8 International Property and short-tail specialty $ 1,102 14.1 $ 1,082 15.7 Casualty and other 972 12.5 923 13.4 Total International 2,074 26.6 2,005 29.2 Total $ 7,798 100.0 $ 6,874 100.0 Net premiums written by the insurance segment were 13.4% higher in 2025 than in 2024.”

Annual report 2025A · The company itself

“The NAIC adopted an Insurance Data Security Model Law in 2017 that requires insurers, insurance producers and other entities required to be licensed under state insurance laws to comply with certain requirements under state insurance laws, such as developing and maintaining a written information security program, conducting risk assessments overseeing the data security practices of third party service providers and meeting expanded breach notification requirements.”

Annual report 2025A · The company itself

“The California Consumer Privacy Act of 2018 (“CCPA”), as amended by the California Privacy Rights Act (“CPRA”) that took effect in 2023, grants California consumers certain rights to, among other things, access, correct and delete data about them subject to certain exceptions, as well as a private right of action related to cybersecurity breaches with statutory penalties.”

Annual report 2025A · The company itself

“In September 2025, the CPPA finalized rules which impose requirements for annual cybersecurity audits and privacy risk assessments.”

Annual report 2025A · The company itself

“The NYDFS also issued guidance regarding cybersecurity risks arising from AI requiring us to continuously assess these risks and implement appropriate cybersecurity measures to mitigate these threats.”

Annual report 2025A · The company itself

“The EU GDPR came into effect on May 25, 2018. The EU GDPR governs the collection, use, disclosure, transfer or other processing of personal data. Its scope extends to certain entities not established in the EEA if they offer goods or services to, or monitor the behavior of, EEA data subjects. The EU GDPR contains a number of requirements regarding the processing of personal data about individuals, including mandatory security breach reporting, new and strengthened individual rights, evidenced data controller accountability for compliance with the GDPR principles (including fairness and transparency), maintenance of data processing activity records and the implementation of “privacy by design,” including through the completion of mandatory Data Protection Impact Assessments in connection with higher risk data processing activities.”

Annual report 2025A · The company itself

“In addition, the EU GDPR increases scrutiny of transfers of personal data to jurisdictions which the European Commission does not recognize as having “adequate” data protection laws. In particular in 2020, the Court of Justice of the EU (Court of Justice) in Schrems II invalidated the European Union-United States (EU-U.S.) Privacy Shield on the grounds that the EU-U.S. Privacy Shield failed to offer adequate protections to EU personal information transferred to the U.S.”

Annual report 2025A · The company itself

“On July 10, 2023, the European Commission adopted an adequacy decision relating to the transfer of personal data from the EU to the U.S. which takes place under the DPF. The DPF is the successor to the EU-U.S. Privacy Shield and allows companies that are subject to the GDPR to transfer personal data to U.S. entities that participate in the DPF without the need for alternative data protection transfer mechanisms (such as SCCs or binding corporate rules).”

Annual report 2025A · The company itself

“The EU GDPR imposes substantial fines for breaches and violations (up to the greater of €20 million or 4% of global turnover).”

Annual report 2025A · The company itself

“The SEC maintains cybersecurity disclosure rules (“SEC Cybersecurity Rules”) mandating cybersecurity incident and risk management disclosure for public companies such as Arch. The SEC Cybersecurity Rules became effective in 2023 and mandate that public companies report a cybersecurity incident on a Form 8-K within four days after they determine that the incident is material.”

Annual report 2025A · The company itself

“The Digital Operational Resilience Act (“DORA”) entered into force in January 2023. The core aim of DORA is to prevent and mitigate cyber threats and sets uniform requirements for the security of network and information systems of financial sector entities (including (re)insurers) as well as critical third parties which provide ICT (information and communication technology)-related services, such as cloud platforms or data analytics services. Certain of our in-scope Irish entities are required to comply with the obligations set out under DORA since January 17, 2025.”

Annual report 2025A · The company itself

“Inflation. The EU has adopted a range of measures to combat unprecedented levels of inflation, with EIOPA issuing a supervisory statement outlining its expectations of (re)insurers on inflation-related issues in 2022. We are monitoring ongoing developments and considering the impact of EU and EIOPA guidance on inflation on its business.”

Annual report 2025A · The company itself

“Adverse developments in the financial markets, resulting from inflation, global recessionary pressures, geopolitical conflict, liquidity conditions among other factors, can increase uncertainty and heighten volatility in the credit and equity markets.”

Annual report 2025A · The company itself

“Disruption to the financial markets and weak economic conditions resulting from situations such as supply/demand imbalances, inflation and political unrest may adversely and materially impact our investments, financial condition and results of operation.”

Annual report 2025A · The company itself

“Elevated levels of inflation could drive higher U.S. and global interest rates, negatively impacting asset prices, particularly in fixed income and undermine financial flexibility of operating businesses.”

Annual report 2025A · The company itself

“Deteriorating economic conditions, potentially due to prolonged recessionary conditions increasing levels of unemployment and inflation, could adversely affect the performance of our mortgage insurance portfolio and could adversely affect our results of operations and financial condition.”

Annual report 2025A · The company itself

“Borrowers default for a variety of reasons, including a reduction of income, unemployment, divorce, illness, inability to manage credit, rising interest rate levels and declining home prices.”

Annual report 2025A · The company itself

“Elevated levels of inflation could drive higher U.S. and global interest rates, negatively impacting asset prices, particularly in fixed income and undermine financial flexibility of operating businesses.”

Annual report 2025A · The company itself

“Monthly interest rate changes in Australia or the increasing cost of homeowners insurance in the U.S. could make a borrower’s monthly housing-related payment obligations increase and could increase the frequency of claims.”

Annual report 2025A · The company itself

“Increases to mortgage interest rates have materially increased financing costs, and as a result have decreased the number of qualified borrowers and the volume of low down payment mortgage originations.”

Annual report 2025A · The company itself

“A significant portion of cash and invested assets held by Arch consists of fixed maturities (70.8% as of December 31, 2025).”

Annual report 2025A · The company itself

“Borrowers default for a variety of reasons, including a reduction of income, unemployment, divorce, illness, inability to manage credit, rising interest rate levels and declining home prices.”

Annual report 2025A · The company itself

“For example, in our mortgage business, the failure of general wages to keep pace with economic inflation, or increases in unemployment due to prolonged recessionary conditions, could prevent borrowers from being able to afford their mortgage payments and thereby increase the frequency of claims beyond our modeled results. Global recessionary conditions, including inflation, the slow recovery of certain sectors from the pandemic, predicted slow growth rates across key markets and other factors, will impact the insurance and reinsurance industry.”

Annual report 2025A · The company itself

“The frequency and severity of claims we incur is uncertain and will depend largely on general economic factors outside of our control, including, among others, changes in unemployment and home prices affordability.”

Annual report 2025A · The company itself

“Deteriorating economic conditions, potentially due to prolonged recessionary conditions increasing levels of unemployment and inflation, could adversely affect the performance of our mortgage insurance portfolio and could adversely affect our results of operations and financial condition.”

Annual report 2025A · The company itself

“Some of our assumed reinsurance agreements include provisions that a ratings downgrade or other specified triggering event with respect to our reinsurance operations, such as a reduction in surplus by specified amounts during specified periods, provide our ceding company clients certain rights, including, the right to terminate the subject reinsurance agreement and/or to require us to post additional collateral.”

Annual report 2025A · The company itself

“These developments may result in realized and unrealized losses on our investment portfolio that could have a material adverse effect on our results of operations, financial position and our businesses, and may also limit our access to capital required to operate our business.”

Annual report 2025A · The company itself

“Arch Capital is a holding company and is dependent on dividends and other distributions from its operating subsidiaries.”

Annual report 2025A · The company itself

“Like all companies, our information technology systems and the systems of third parties that we do business with are vulnerable to data breaches, interruptions or failures due to events that may be beyond our control, including, but not limited to, natural disasters, power outages, theft, terrorist attacks, computer viruses, hackers, employee or vendor error or misconduct, malicious actors, errors in usage or deepfake or social engineering or schemes, phishing attacks, other external hazards and general technology failures.”

Annual report 2025A · The company itself

“We could be materially impacted by a cyber attack, data breach, ransomware, phishing, social engineering or other cybersecurity incident resulting in loss of business data, personal data and other confidential or secret information, a disruption in our business operations, regulatory or other legal action, and fines.”

Annual report 2025A · The company itself

“Since 2022, the EU has imposed significant sanctions on the Russian Federation in response to its invasion of Ukraine. These sanctions are similar to those imposed by the U.K. and U.S. Given the evolving situation, we are closely monitoring developments and the sanctions imposed, to ensure our European entities remain in compliance with any sanctions measures imposed.”

Annual report 2025A · The company itself

“As a part of this regime, the FCA introduced, among other things, a general ‘anti-greenwashing’ rule to clarify that sustainability-related claims must be clear, fair and not misleading. The general ‘anti-greenwashing’ rule came into force in May 2024 and the FCA also published new guidance (FG24/3) on the expectations for FCA-authorized firms subject to the general ‘anti-greenwashing rule’ which took effect at the same time.”

Annual report 2025A · The company itself

“Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) came into force on April 6, 2025, enabling the U.K.’s competition regulator, the Competition and Markets Authority (“CMA”) to pursue enforcement for consumer law breaches such as greenwashing, and to directly impose fines of up to 10% of a business’s global turnover.”

Annual report 2025A · The company itself

“In addition, Lloyd’s has mandated that managing agents create a sustainability framework and strategy. Lloyd’s has also imposed sustainability focused outcomes by way of the Principles with a particular focus on culture, investment and underwriting profitability.”

Annual report 2025A · The company itself

“We are subject to CSRD and other EU and U.K. climate‑related disclosure regulations, which require more extensive reporting than current U.S. rules.”

Annual report 2025A · The company itself

“We are subject to changes in governmental, investor and societal responses to climate change and sustainability-related issues, which may result in scrutiny of our business, litigation or adverse impacts to our share price and our results of operations. Shareholders, investors and regulators have historically focused on climate and sustainability matters, leading to evolving and sometimes conflicting expectations and standards.”

Annual report 2025A · The company itself

“In December 2025, the FCA published PS25/23 “Tackling non-financial misconduct in financial services” finalizing FCA Handbook guidance on how non-financial misconduct (“NFM”) is assessed under the Code of Conduct (“COCON”) and the Fit and Proper test (“FIT”). The FCA confirms that serious work-related misconduct (e.g. bullying/harassment/violence) can give rise to conduct rule breaches, inform fitness and propriety decisions, and affect regulatory references.”

Annual report 2025A · The company itself

“The Central Bank (Individual Accountability Framework) Act 2023 (the “IAF Act”) was signed into law in March 2023 and took effect in full on July 1, 2025. The IAF Act implements substantive changes to the fitness and probity regime maintained by the CBI in Ireland and imposes certain additional obligations and liability for senior executives in Irish regulated financial service entities, including (re)insurance companies.”

Annual report 2025A · The company itself

“In 2022, the European Commission adopted a proposal for the Corporate Sustainability Due Diligence Directive (“CSDDD”). The CSDDD entered into force in July 2024 and its obligations will come into effect on a phased basis depending on an in-scope entity’s turnover threshold, employee count and jurisdiction of incorporation. The main focus of the CSDDD is for in-scope entities to conduct due diligence on human rights and environmental impacts within such in-scope entities, their subsidiaries and across its value chain.”

Annual report 2025A · The company itself

“At the state level, in 2025, several hundred bills related to AI were introduced across all 50 states in the U.S.”

Annual report 2025A · The company itself

“Additionally, the regulatory landscape surrounding traditional AI and generative AI is evolving, and the expanded use of these technologies may become subject to regulatory scrutiny under new or existing laws. Moreover, the intellectual property and ownership rights associated with both forms of artificial intelligence have not been fully addressed by courts in the U.S. or in other jurisdictions that we operate in.”

Annual report 2025A · The company itself

“We rely on information technology systems to securely process, transmit, store and protect the confidential and electronic information, financial data and proprietary models that are critical to our business.”

Annual report 2025A · The company itself

“We rely on certain third party technology service providers and other service providers, notably major cloud providers, Software-as-a-Service (or “SaaS”) solutions, and on-premise software, including proprietary and open source solutions. We also outsource certain business processes to third parties and may continue do so in the future.”

Annual report 2025A · The company itself

“The FHFA as conservator of the GSEs continues to evaluate loan level price adjustments (“LLPAs”) and guarantees fees assessed by the GSEs when purchasing loans. Future pricing changes, which may include increasing LLPAs and guarantee fees, limiting the purchase of certain categories of loans, or restricting loan limits could cause a decline in the volume of low down payment home mortgage purchases by the GSEs and could negatively impact U.S. new insurance written and mortgage insurance revenues.”

Annual report 2025A · The company itself

“Under HGS, Housing Australia, the Australian Government’s independent national housing agency, provides a free guarantee to the lender of up to 15% of the value of the property for first home buyers, negating the requirement to pay for mortgage insurance. Since inception through 2025, the HGS was substantially expanded, negatively impacting the amount of mortgage insurance we write in Australia, and we cannot predict whether this will continue in the future.”

Annual report 2025A · The company itself

“Our information technology systems and our pace of adoption of new technologies, including AI, may not be adequate to meet the demands of our customers or impact negatively our ability to compete with our peers.”

Annual report 2025A · The company itself

“While our business has not been directly impacted by the existing and proposed Trump administration tariffs on imported goods, there may be a ripple effect on how these impact certain industries where we provide insurance or reinsurance. It is too early to determine the long-term effect, if any, of the Trump administration tariff policy, but sustained escalation of tariffs and trade disputes may result in a global economic slowdown which impacts us and our clients.”

Annual report 2025A · The company itself

“In addition, a lack of pricing transparency, decreased market liquidity, the strengthening or weakening of foreign currencies against the U.S. Dollar, individually or in tandem, could have a material adverse effect on our results through realized losses, impairments and changes in unrealized positions in our investment portfolio.”

Annual report 2025A · The company itself