Arch Capital Group Ltd. [NASDAQ: ACGL] today announced the closing of its offering of 7,475,000 common shares at $25.50 per common share, including the exercise in full of the underwriters' over-allotment option. The offering resulted in net proceeds to Arch Capital Group of approximately $179 million. The offering was led by Credit Suisse First Boston and Merrill Lynch & Co. as joint lead managers and bookrunners, and Goldman, Sachs & Co. and Salomon Smith Barney were co-managers.

The net proceeds of the offering will be used by the company principally to support future growth of its insurance and reinsurance operations.

The common shares were offered under Arch Capital Group's shelf registration statement which was filed with the Securities and Exchange Commission on February 12, 2002 and declared effective on March 18, 2002.

Arch Capital Group Ltd., a Bermuda-based company with approximately $1.2 billion in equity capital, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.