Arch Insurance Group Names Charles B. Schmalz Executive Vice President, Surety

NEW YORK--(BUSINESS WIRE)--June 15, 2006--Arch Insurance Group, a subsidiary of Arch Capital Group Ltd., announced that Charles "Brian" Schmalz has been promoted to the position of Executive Vice President. Mr. Schmalz is responsible for Arch Insurance Group's Surety Operation.

"Brian has built Arch's Surety Division into one of the top ten writers in the U.S. over the past several years and has developed a very successful contract bond business with 68 employees dedicated to this segment. This promotion is a well-deserved recognition for what Brian has accomplished, said Ralph Jones, Chairman and CEO, Arch Insurance Group.

Mr. Schmalz joined Arch Insurance Group in March 2003 as Senior Vice President, Surety. Before joining Arch Insurance Group, he was the President of Kemper Surety a part of the Kemper Insurance Company. Prior to that Mr. Schmalz was President and CEO of Reliance Surety. Mr. Schmalz is member of the Surety Association of America and served as Chairman of this organization from 1999-2000 and Vice Chairman from 1998-1999. He holds a BA degree in Political Science from the State University of New York, New Paltz, New York.

Arch Insurance Group Inc. 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 and "A-" (Strong) from Standard and Poor's. 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.