Arch Capital Group

Arch boasts very strong financial health. Its shareholders’ equity ($20–21B) far exceeds debt, with debt around 12% of capital and combined debt+preferred under 16%). Credit ratings (S&P A/A- Fitch) are solid. Arch holds $41B in investments (67% fixed income) and ~$23.5B capital).

It generates ample cash flow; operating cash flow was $6.7B in 2024 vs. $5.75B in 2023). Reinsurance contracts and global diversification further bolster stability. Reserves and liquidity are managed conservatively to meet regulatory and rating agency requirements.

In short, Arch is well-capitalized to absorb losses, pay claims and continue operations through a severe downturn. The risk of insolvency is very low, supporting a high Financial Strength score.