Arch Capital Group Ltd. Announces New Canadian Operations – Arch Insurance Canada Ltd.

  Arch Capital Group Ltd. Announces New Canadian Operations – Arch Insurance
  Canada Ltd.

Business Wire

HAMILTON, Bermuda -- January 7, 2013

Arch Capital Group Ltd. (Nasdaq: ACGL) today announces the completion of the
domestication of its Canadian insurance and reinsurance operations under a new
legal entity named Arch Insurance Canada Ltd. (Arch Canada).

Arch Canada, domiciled in Toronto, Ontario has been operating in Canada as a
Canadian branch of Arch Insurance Company (a U.S. affiliate) since 2005.
Effective January 1, 2013, Arch Canada commenced writing business in Canada
through a new Canadian operating subsidiary. The business written by Arch
Canada will be similar to that written by the former Canadian branch since
2005, with the addition of title insurance.

Arch Canada is licensed in all Canadian provinces and territories, with its
headquarters located in Toronto and branch offices in Montreal and Vancouver.
Arch Title, a division of Arch Canada, has its offices in Calgary. The
Canadian operations of Arch have experienced disciplined growth in premium and
product offerings within Canada over the last four years as Arch built up its
Canadian-based staff and operations. David McElroy, Chairman and Chief
Executive Officer of Arch Worldwide Insurance Group, commented: “The current
change in structure marks a commitment to the Canadian insurance marketplace
and positions the new entity with a solid foundation for further growth and
product expansion.”

Arch Canada has received a financial strength rating from Standard & Poor’s
Rating Services of ‘A+’ with an Outlook of Stable. Arch Insurance Canada Ltd.
is licensed pursuant to Section 22 of the Insurance Companies Act of Canada.

Arch Capital Group Ltd., a Bermuda-based company with approximately $5.75
billion in capital at September 30, 2012, provides insurance and reinsurance
on a worldwide basis through its wholly-owned subsidiaries.

Cautionary Note Regarding Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward−looking statements. This release or any other written or oral
statements made by or on behalf of Arch Capital Group Ltd. and its
subsidiaries may include forward−looking statements, which reflect our current
views with respect to future events and financial performance. All statements
other than statements of historical fact included in or incorporated by
reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of
forward−looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe" or "continue" or their negative or
variations or similar terminology. Forward−looking statements involve our
current assessment of risks and uncertainties. Actual events and results may
differ materially from those expressed or implied in these statements. A
non-exclusive list of the important factors that could cause actual results to
differ materially from those in such forward-looking statements includes the
following: adverse  general economic and market conditions;  increased
competition;  pricing and policy term trends;  fluctuations in the actions of
rating agencies and our  ability to maintain and improve our ratings;
investment performance;  the loss of key personnel;  the adequacy of our loss
reserves,  severity and/or frequency of losses, greater than expected loss
ratios and adverse development on claim and/or claim expense liabilities; 
greater frequency or severity of unpredictable natural and man-made
catastrophic events;the impact of acts of terrorism and acts of war; changes
in regulations and/or tax laws in the United States or elsewhere;  our ability
to successfully integrate, establish and maintain operating procedures as well
as integrate the businesses we have acquired or may acquire into the existing
operations;  changes in accounting principles or policies;  material
differences between actual and expected assessments for guaranty funds and
mandatory pooling arrangements;  availability and cost to us of reinsurance to
manage our gross and net exposures;  the failure of others to meet their
obligations to us; and  other factors identified in our filings with the U.S.
Securities and Exchange Commission.

The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with other cautionary statements
that are included herein or elsewhere. All subsequent written and oral
forward−looking statements attributable to us or persons acting on our behalf
are expressly qualified in their entirety by these cautionary statements. We
undertake no obligation to publicly update or revise any forward−looking
statement, whether as a result of new information, future events or otherwise.

Contact:

Arch Capital Group Ltd.
Mark D. Lyons, 441-278-9250
Arch Insurance Canada Ltd.
Jeff Setterington, 416-309-8163