Issuer:

Arch Capital Group Ltd.

Security:

Depositary Shares (the “Depositary Shares”), each representing a 1/1,000th interest in a share of the Issuer’s 5.25% Non-Cumulative Preferred Shares, Series E (“Preferred Shares”)

Security Type:

SEC Registered

Anticipated Preferred Shares Ratings (Moody’s / S&P / Fitch ):*

Baa2 (Negative Watch)/BBB (Negative Outlook) /BBB+ (Negative Watch)

Size:

$450,000,000 (18,000,000 Depositary Shares)

Over-Allotment Amount:

Up to $67,500,000 (2,700,000 Depositary Shares)

Trade Date:

September 22, 2016

Settlement Date:

September 29, 2016 (T+5)

Maturity:

Perpetual

Liquidation Preference:

$25,000 per Preferred Share (equivalent to $25 per Depositary Share)

Dividend Payment Dates:

Holders of Preferred Shares will be entitled to receive dividend payments only when, as and if declared by the Issuer’s board of directors or a duly authorized committee of the board. Any such dividends will be payable from, and including, the date of original issue on a non-cumulative basis, quarterly in arrears on the last day of March, June, September and December of each year. If any date on which dividends would otherwise be payable is not a business day, then the dividend payment date will be the next succeeding business day with the same force and effect as if made on the original payment date, and no additional dividends shall accrue on the amount so payable from such date to such next succeeding business day.  If declared, the first dividend payment date will be January 3, 2017.  Distributions will be made in respect of the Depositary Shares if and to the extent dividends are paid on the related Preferred Shares.

Dividend Rate:

5.25% per annum, only when, as and if declared

Optional Redemption:

Except in specified circumstances relating to certain tax, regulatory or corporate events described in the preliminary prospectus supplement, the Preferred Shares are not redeemable prior to September 29, 2021. On and after that date, the Preferred Shares will be redeemable at the Issuer’s option, in whole or in part, at a redemption price of $25,000 per Preferred Share (equivalent to $25 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends to, but excluding, the date of redemption.

Public Offering Price:

$25.00 per Depositary Share; $450,000,000 total

Underwriting Discounts:

$0.7875 per Depositary Share for retail orders: $12,267,675 total; and $0.50 per Depositary Share for institutional orders: $1,211,000 total

Net Proceeds to the Issuer, before expenses:

$436,521,325

Expected Listing:

The Depositary Shares have been approved for listing on NASDAQ under the symbol “ACGLP.”  Trading in the Depositary Shares is expected to commence within 30 days after the initial delivery.

CUSIP / ISIN of Depositary Shares:

03939A206/ US03939A2069

Joint Book-Running Managers:

Credit Suisse Securities (USA) LLC

Merrill Lynch, Pierce, Fenner & Smith
                     Incorporated

Wells Fargo Securities, LLC

J.P. Morgan Securities LLC

RBC Capital Markets, LLC

Co-Managers:

Barclays Capital Inc.

BMO Capital Markets Corp.

BNY Mellon Capital Markets, LLC

Lloyds Securities Inc.

U.S. Bancorp Investments, Inc.