Arch Insurance Group Names Mark C. Vonnahme EVP Surety to Succeed Brian Schmalz Who Will Retire Year-End 2007

NEW YORK--(BUSINESS WIRE)--Arch Insurance Group, a subsidiary of Arch Capital Group Ltd., announced today that Mark C. Vonnahme has joined its leadership team as the Executive Vice President responsible for its Surety business. “Mark is an experienced and proven Surety executive who will continue advancing our Surety capabilities to help clients protect their business operations,”said Mark D. Lyons- President and Chief Operating Officer of Arch Insurance Group. Mr. Vonnahme will report to Mr.Lyons.

“Mark is an experienced and proven Surety executive who will continue advancing our Surety capabilities to help clients protect their business operations”

Mr. Vonnahme succeeds Brian Schmalz who will retire at year-end. Mr. Schmalz, after thirty plus years of a distinguished career in the Surety business, joined Arch in 2003 and worked diligently over the past four years as he built Arch Surety into one of the top ten largest Surety operations. He served as Chairman of the Board of Directors of the Surety Association of America and has had a distinguished career in the insurance industry- leading business for Reliance Insurance Company and Kemper Insurance. “Brian Schmalz is an inspirational leader and has attracted many talented Surety professionals to Arch. I would like to thank him for his contributions to the firm and wish him well in his retirement,” said Ralph E. Jones, Chairman and Chief Executive Officer of Arch Insurance Group.

As Mr. Vonnahme assumes his role, he will leverage his extensive background—having served in a number of senior positions with CNA. He led CNA’s Surety business unit –first serving as Chief Operating Officer, then President & Chief Executive Officer, a position he held from 1996 until 2003.

A certified public accountant, Mr. Vonnahme has been a board member of various Surety organizations. He is a past Chairman of the Board of Directors of the Surety Association of America. He currently serves on the Board of the Directors of the Casualty Actuarial Society. Since 2003, Mr. Vonnahme has been a member of the faculty of the University of Illinois where he was the Fox Family Distinguished Clinical Professor as a faculty member of the Department of Finance, College of Business. He holds both a masters degree and a bachelor’s degree in finance from the University of Illinois at Urbana-Champaign.

Arch Insurance Group Inc. is a member of Arch Capital Group Ltd., a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. For more information, visit www.archinsurance.com.