Arch Capital $950M Public Offering Senior Notes

December 3, 2016

Bermuda-based Arch Capital Group announced the pricing of an offering of $500,000,000 aggregate principal amount of 4.011% senior notes due 2026 and $450,000,000 aggregate principal amount of 5.031% senior notes due 2046 of its wholly owned subsidiary Arch Capital Finance LLC.

The Notes will be unconditionally guaranteed by Arch Capital Group Ltd. The issuer intends to use the net proceeds of this offering to fund a portion of the cash consideration for the acquisition of United Guaranty Corporation and AIG United Guaranty Insurance [Asia] Limited from their current owner, American International Group, Inc., to pay related costs and expenses and for anticipated growth in our mortgage and other select businesses. The closing of this offering is not contingent on the closing of the UGC Acquisition. The offering is expected to close on December 8, 2016, subject to customary closing conditions.

The offering is being led by Credit Suisse Securities [USA] LLC, Barclays Capital Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and BMO Capital Markets Corp., as joint book-running managers.

Arch Capital Group Ltd., a Bermuda-based company with approximately $8.24 billion in capital at September 30, 2016, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

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