Arch Insurance Group Introduces 3 New Side-A Primary Coverage Forms Offering Individual Board Member's Personal Asset Protection

NEW YORK--(BUSINESS WIRE)--April 13, 2004--Arch Insurance Group, a division of Arch Capital Group Ltd., today introduced three new Side-A policy forms offering Directors and Officers specialized insurance coverage from Arch. These new policy forms have separate limits of liability designed to protect an individual board member's personal assets if an organization's primary D&O coverage runs-out.

"Given the events in the corporate world over the last year, individual Directors and Officers have requested coverage that would protect their personal assets if the company was unable to indemnify them," said Thomas L. Gamble, executive vice president, Arch's Executive Assurance Group.

“Given the events in the corporate world over the last year, individual Directors and Officers have requested coverage that would protect their personal assets if the company was unable to indemnify them”

In January 2003, Arch announced the formation of a new $40 million facility for Side-A Directors and Officers liability insurance, offered in addition to Arch's existing $25 million capacity for standard D&O liability coverage.

"As the cost of litigation rises, it is more and more difficult for organizations to attract Directors and Officers unless there is a demonstrated level of protection afforded to them. By having these new forms in place Arch is now better positioned to help our customers address this issue," added Mr. Gamble.

The new forms available are the Arch Broad Form Independent Director Policy, Arch Standard Side-A Policy and Arch Broad Form Side-A Policy. Each offers coverage tailored to protect individual Directors and Officers should the corporation be unable to indemnify under existing state indemnification laws, or as a result of insolvency. They also provide additional protection for Directors and Officers when primary coverage and/or corporate indemnification is depleted or unable to respond.

Arch's Executive Assurance Group consists of three underwriting units that focus on the following industries: Commercial, Financial Institutions, and Emerging/Middle Market, which in turn, allows Arch to specialize in every industry segment within the D&O marketplace.

Coverage may not be available in all states.

Arch Insurance Group is a division of Arch Capital Group Ltd., a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. Arch Insurance Group's principal insurance subsidiaries - Arch Insurance Company, Arch Specialty Insurance Company and Arch Excess & Surplus Insurance Company - are rated A- (Excellent) by A.M. Best. For more information, visit www.archinsurance.com.

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 (collectively, the "Company") may include forward-looking statements which reflect the Company's current views with respect to future events and financial performance. Forward-looking statements involve the Company's current assessment of risks and uncertainties, which may cause actual events and results and prospects to differ materially from those expressed or implied in these statements. Certain information regarding such risks and uncertainties is set forth in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.