Our Business
The services and insurance coverages we provide protect our clients, allow them to rebuild after major losses and help families build wealth through homeownership. Helping our clients manage uncertainty begins with assessing and addressing risks and collaborating to build resilience in a world facing heightened climate perils and evolving societal demands.
Enterprise Risk Management Strategy
Our Enterprise Risk Management (ERM) team formally identifies and integrates sustainability topics, including climate change and climate-related risks, into our Risk Register and extends that analysis to specific climate-related business risk evaluations in line with the Taskforce for Climate-related Financial Disclosures (TCFD) recommendations. With a focus on sustainability performance, we annually review these evaluations and validate the underlying data annually. See our TCFD Report (page 7).
- Risk management responsibilities are delegated across our organization through a “Three Lines of Defense” approach to risk governance. See the detailed table below.
- The Board and its committees oversee governance, operations and executive performance, with sustainability risks integrated across key risk categories. These risks are outlined in our policies and in assigning committee responsibilities. See our Definitive Proxy Statement on Form 14A, filed with the Securities and Exchange Commission on March 24, 2026, pages 14-17, for a detailed description of our Board and committees’ oversight responsibilities.
- Specific areas of research and focus in 2025 included U.S. wildfires; Hawaiian, Caribbean and Indian tropical cyclones; Canadian severe convective storms; and Italian natural catastrophes.
Evaluating Environmental Exposures: Our Approach
As a global insurer, we integrate environmental considerations into underwriting decisions for thermal coal-related business. This policy applies to our global insurance operations and covers existing and new thermal coal mines and coal-fired power plants. Underwriters must identify high-risk accounts, defined as insureds that derive 30% or more of revenue from thermal coal mining or power generation. Through our governance process, flagged accounts are escalated for review. Our UK insurance companies also apply sector-specific guidelines for Arctic energy exploration and production and oil sands mining and surface extraction. These policies define the scope and screening parameters for the assessment and escalation referral process for business accounts in these environmentally sensitive sectors.
Powering Progress: Next-Generation Energy Solutions
We are taking steps to address climate challenges and support our insureds through our specialty insurance products and solutions:
- Our surety bond practice supports energy innovation projects by providing more than $4 billion in guarantees in the global energy transition space since 2021, establishing Arch as a leading surety provider.
- Arch’s diverse specialty lines offer tailored insurance solutions across a wide spectrum of sustainable energy technologies, including wind and solar power generation (both offshore and onshore); battery energy storage systems; biofuels including sustainable aviation fuel; carbon capture and storage; next-generation nuclear, hydro, geothermal and direct air capture.
- Through specialized facilities, consortia and reinsurance partnerships, UK Energy Property and Liability lines units underwrite end-to-end sustainable energy projects, from construction to operations, while enabling innovation and infrastructure as a solution provider for next-generation energy systems.
Enabling Health, Safety and Optimal Outcomes
Arch offers health and safety support and best practice recommendations for our insureds. This support includes:
- Complimentary Safety and Compliance Resources: Arch provides insureds access to web-based platforms that offer training, templates, regulatory updates, a human resources portal and 24/7 human resources support.
- Strategic Risk Management Support: Arch’s risk management support includes access to specialized services such as crisis counseling, active shooter training, vehicle cameras and telematics, accident reporting tools and legal guidance for regulatory events.
- Driver Safety and Performance: These tools offer policy development, training, motor vehicle record monitoring assistance, multiple alliances for driver safety technology and analytics, including a tool that leverages the Department of Transportation Safety Measurement System data to enhance fleet safety and reduce risk.
- Workplace and Public Safety Consulting: Arch’s Casualty Risk Control platform helps insureds improve site safety, employee onboarding, injury management and public hazard mitigation.
Access to Finance and Social Equity Products
We are dedicated to ensuring a sustainable future for our insureds by offering a range of products and customer-oriented solutions that help build safer and stronger communities.
- Through our mortgage insurance (MI) products, we enable families to purchase homes and accumulate wealth. In 2025, more than 130,000 families in the U.S. were able to afford a home with Arch MI, of which approximately 29% were low-income buyers1, and 57% were first-time homebuyers.
- Arch provides micro-insurance that supports sustainable agriculture, helping smallholder farmers in developing countries with disaster coverage that enables access to credit and promotes rural resilience.
- We support affordable legal services. In California, Arch provides cost-effective Lawyers’ Professional Liability coverage to low-bono attorneys, a group that often serves clients from lower socio-economic backgrounds.
- Our subsidiary, McNeil & Company, Inc., insures first responders and offers extensive training through webinars and an e-learning platform with more than 2.5 million courses completed.
- Through sovereign credit underwriting, Arch backs infrastructure, healthcare and sustainability projects in emerging economies through partnerships with multilateral organizations. For example, in 2025, Arch participated in a blended public-private investment in a Latin American city to support long-term economic development and job creation.
- Arch participates in marine cargo insurance to support the transport of food, health and social aid globally.
1 Loans where the qualifying income was less than 80% of the area median income in their census tract; includes both purchase and refinance.
Three Lines of Defense
Risk management responsibilities are delegated across our organization through a “Three Lines of Defense” approach to risk governance. This risk management framework, reinforced by key controls and activities, is embedded within our operations and enables us to limit risk and evaluate opportunities. We view sustainability risks as enterprise-wide risks.
Three Lines of Defense
Download the chart above as a PDF.
