Business Context and Reporting Period
This Form 8-K is a current report filed by Arch Capital Group Ltd. on October 31, 2011. The filing discloses a corporate action regarding the declaration of dividends on preferred shares by the Board of Directors.
Key Financial Metrics
The filing details specific dividend declarations for two series of non-cumulative preferred shares. No revenue, profit, cash flow, or debt metrics are provided in this specific report.
- Series A Shares: 8,000,000 shares outstanding; 8.00% annual rate; $25.00 liquidation preference.
- Series B Shares: 5,000,000 shares outstanding; 7.875% annual rate; $25.00 liquidation preference.
- Total Dividend Declared: $6,460,938 ($4,000,000 for Series A and $2,460,938 for Series B).
Material Changes and Dividend Details
The Board declared dividends covering two distinct periods, payable out of lawfully available funds under Bermuda law.
| Series | Dividend Period | Amount | Rate Per Share |
|---|---|---|---|
| Series A | 11/15/11 - 12/31/11 | $2,044,444 | $0.2556 |
| Series A | 1/1/12 - 2/14/12 | $1,955,556 | $0.2444 |
| Total Series A | Combined | $4,000,000 | $0.50 |
| Series B | 11/15/11 - 12/31/11 | $1,257,813 | $0.2516 |
| Series B | 1/1/12 - 2/14/12 | $1,203,125 | $0.2406 |
| Total Series B | Combined | $2,460,938 | $0.4922 |
Guidance, Outlook, and Payment Terms
Payment Schedule: Dividends are scheduled to be paid on February 15, 2012, unless the Board or Executive Committee determines otherwise.
Record Date: Holders of record as of February 1, 2012, will receive the payment.
Conditions: Payment is contingent upon the availability of lawfully available funds under Bermuda law. The filing does not provide forward-looking guidance on earnings, liquidity, or future capital allocation beyond this specific dividend declaration.
Investor Verification Checklist
- Verify the record date of February 1, 2012, to confirm eligibility for the upcoming dividend payment.
- Confirm the payment date of February 15, 2012, noting that the Board reserves the right to change this date.
- Review the company's most recent quarterly or annual report to assess the "lawfully available funds" status required for payment under Bermuda law.
- Note that these are non-cumulative preferred shares; if dividends are not paid, they do not accrue for future payment.