Transactions With Related Parties |
6 Months Ended |
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Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Transactions with related parties | Premia Reinsurance Ltd. is a multi-line Bermuda reinsurance company (and its affiliates together with Premia Holdings Ltd., “Premia”). The Company has entered into certain reinsurance transactions with Premia. During the six months ended June 30, 2026 and 2025, the Company did not enter into any new reinsurance transactions with Premia. At June 30, 2026, the Company recorded a funds held asset from Premia of $28 million, compared to $124 million at December 31, 2025. Somers Group Holdings Ltd. and its wholly owned subsidiaries (collectively, “Somers”) are wholly owned by Greysbridge. For the six months ended June 30, 2026, the Company’s net premiums written was reduced by $308 million as a result of certain reinsurance transactions with Somers, compared to a reduction of $419 million for the six months ended June 30, 2025. In addition, Somers paid certain acquisition costs and administrative fees to the Company. At June 30, 2026, the Company recorded a reinsurance recoverable on unpaid and paid losses from Somers of $2.0 billion and a reinsurance balance payable to Somers of $580 million, compared to $2.0 billion and $550 million, respectively, at December 31, 2025. Pursuant to the terms of the Greysbridge shareholder agreement, as amended, following the expiration of a specified period, Arch Capital has a call right (but not the obligation) and certain third party investors have put rights (but not the obligation) to purchase or sell, as applicable, a specified amount of each such investor’s initial common shares on an annual basis at Greysbridge’s year-end book value per share. Obligations under put/call option notices are recognized on the Company’s balance sheet in both other assets and other liabilities. At June 30, 2026, the Company’s balance sheet included $163 million in both other assets and other liabilities for such put notices. Transactions related to the put shares are expected to close in the 2026 calendar year, subject to any regulatory approval.
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