11 June 2024 Reinsurance

Arch Capital targets cyber for strong margin despite pricing dip

Re/insurance group Arch Capital has zeroed in on cyber insurance as a “good opportunity” to generate returns even though prices have passed the peak of the cycle, a top executive revealed.

“We are still very much thinking that cyber is a good opportunity for us,” CFO François Morin told analysts and investors gathered at an equity brokerage conference.

Cyber demonstrates the “nuance” of cycle management as “different lines of business kind of, you know, peak at different times”. Morin’s read on the overall market clock says one hour to midnight, but cyber is past its peak and still offering better opportunity than any number of other lines earlier in their cycle.  

“Cyber pricing has come down a little bit,” Morin acknowledged for analysts. “It's not growing as much as it was a certain few years back, but we still like the returns that it produces.”

Unsurprisingly, it’s not a blanket margin story and Arch remains “selective on who we underwrite and where we participate”.

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