Arch Capital: Chile Losses of $35 to $55 Million

March 23, 2010

Bermuda based Arch Capital Group Ltd announced that it expects pre-tax earnings for the 2010 first quarter to be negatively impacted by the effects of the Chilean earthquake in the range of $35 million to $50 million, net of reinsurance, retrocessions and reinstatement premiums.

This preliminary net loss estimate for the Chilean earthquake is based on projected industry insured losses of $6 billion to $8 billion.

In addition, the Company announced that it expects pre-tax earnings for the 2010 first quarter to be negatively impacted by the combined effects of European Windstorm Xynthia and the Australian hailstorms and floods in an aggregate amount of less than $15 million, net of reinsurance, retrocessions and reinstatement premiums.

The Company’s actual losses from these events may vary materially from the estimates due to the inherent uncertainties in making such determinations resulting from several factors.

Arch Capital Group Ltd., a Bermuda-based company with approximately $4.7 billion in capital at December 31, 2009, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date exceed a billion:

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