ARCH CAPITAL GROUP LTD. Earnings Per Share Disclosure
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 4,399 | $ | 4,312 | $ | 4,442 | |||||||||||
| Amounts attributable to noncontrolling interests | — | — | 1 | ||||||||||||||
| Net income available to Arch | 4,399 | 4,312 | 4,443 | ||||||||||||||
| Preferred dividends | (40) | (40) | (40) | ||||||||||||||
| Net income available to Arch common shareholders | $ | 4,359 | $ | 4,272 | $ | 4,403 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding | 368.4 | 372.5 | 368.7 | ||||||||||||||
| Effect of dilutive common share equivalents: | |||||||||||||||||
| Nonvested restricted shares | 1.6 | 2.1 | 2.5 | ||||||||||||||
| Stock options (1) | 5.9 | 7.2 | 7.6 | ||||||||||||||
| Weighted average common shares and common share equivalents outstanding – diluted | 375.9 | 381.8 | 378.8 | ||||||||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 11.83 | $ | 11.47 | $ | 11.94 | |||||||||||
| Diluted | $ | 11.60 | $ | 11.19 | $ | 11.62 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.