<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF ARCH CAPITAL GROUP LTD AND ITS SUBSIDIARY AT MARCH
31, 2000 AND THE RELATED STATEMENT OF INCOME, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-START>                             JAN-01-2000
<PERIOD-END>                               MAR-31-2000
<DEBT-HELD-FOR-SALE>                           206,302
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                     101,118
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 448,186
<CASH>                                          11,447
<RECOVER-REINSURE>                              77,590
<DEFERRED-ACQUISITION>                          22,285
<TOTAL-ASSETS>                                 774,250
<POLICY-LOSSES>                                378,297
<UNEARNED-PREMIUMS>                            103,469
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           171
<OTHER-SE>                                     249,082
<TOTAL-LIABILITY-AND-EQUITY>                   774,250
<PREMIUMS>                                      58,162
<INVESTMENT-INCOME>                              5,290
<INVESTMENT-GAINS>                              29,300
<OTHER-INCOME>                                       0
<BENEFITS>                                      53,875
<UNDERWRITING-AMORTIZATION>                     16,753
<UNDERWRITING-OTHER>                             3,727
<INCOME-PRETAX>                                 18,397
<INCOME-TAX>                                    12,619
<INCOME-CONTINUING>                              5,808<F1>
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     5,808<F1>
<EPS-BASIC>                                       0.37<F1>
<EPS-DILUTED>                                     0.37<F1>
<RESERVE-OPEN>                                 308,628
<PROVISION-CURRENT>                             48,703
<PROVISION-PRIOR>                                5,172
<PAYMENTS-CURRENT>                               3,715
<PAYMENTS-PRIOR>                                41,753
<RESERVE-CLOSE>                                317,035<F2>
<CUMULATIVE-DEFICIENCY>                          5,172
<FN>
<F1>Includes equity in net income of investees of $30. Net income excludes Other
Comprehensive income (loss) which the Company adopted 1st Qtr 1998 in a one
financial statement approach. Comprehensive loss was $38,122 or $2.08 per share
Basic and Diluted.
<F2>Loss reserves net of reinsurance.
</FN>