Arch Capital mortgage unit the biggest source of losses 

Arch Capital faces $205 and $225m losses in the second quarter following the US riots and Covid fallout.

Covid claims losses are pinned at between $170m and $180m, and $35m to $45m for the Covid exposure. 

There are also some claims for general catastrophe losses in the second quarter. 

Covid has triggered claims on Arch’s private mortgage insurance book, with delinquency rates increasing.

Arch Capital paid $3.4bn for United Guaranty, a private mortgage insurer in 2016. 

United Guaranty was sold by AIG following financial crisis.

AIG’s needed a government bailout after losses on complex financial products that insured sub-prime mortgage losses. 

Arch has been on the acquisition trail, snapping up a top Lloyd’s player to strengthen its market presence last year. 

Arch’s UK arm is also make a stronger play for regional brokers, after a key appointment in December last year.