Exhibit 99.1
CONTACTS:   Robert Clements and Peter Appel
            Arch Capital Group Ltd.
            (203) 862-4300

                             ARCH CAPITAL GROUP LTD.
                         TO ACQUIRE ALTUS HOLDINGS, LTD.

   GREENWICH, CONNECTICUT, MARCH 23, 2001 - Arch Capital Group Ltd. [NASDAQ:
ACGL] announced today that it has entered into a definitive agreement to acquire
all of the capital stock of one of its current investee companies, Altus
Holdings, Ltd. Altus, a privately held company, provides insurance and
alternative risk transfer services through rent-a-captive and other facilities.
The Altus group includes First American Insurance Company, an admitted insurer
with licenses in 49 states and an A.M. Best rating of A-. Altus' management team
is led by David May, formerly a Managing Director at J&H Marsh & McLennan, Inc.
where he was responsible for risk management services, including the management
of captive insurance companies.

   Under the agreement, the Company will acquire the remaining ownership
interests in Altus for a purchase price of approximately $36 million. The
transaction is contingent on obtaining applicable regulatory approvals,
expiration of the applicable waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act, and other customary closing conditions.

   Upon closing of the acquisition, Arch Capital will be able to assist
producers, managers and distributors of insurance premium seeking to participate
in the underwriting results of their business or requiring a licensed carrier.
The Company will also be able to provide services to businesses that are seeking
to insure a portion of their corporate risk exposures with a captive insurance
company. In addition, the Company, together with its merchant bank, Hales &
Company, and Distribution Partners, the private equity fund Hales manages, can
provide financial advisory services and capital to insurance entities seeking a
buyer, an acquisition candidate or financing.




   Peter Appel, President and CEO of the Company, said, "Altus fits well within
our strategy of building a diversified financial services company that generates
both fee-based income and underwriting profit. We believe that our acquisitions
of Altus and Hales will enable us to offer a full range of services within and
to the insurance sector, while First American, Altus' fully licensed, A- rated
carrier, will provide us with a vehicle to participate in attractive
underwriting opportunities when such opportunities arise."

   David May, CEO of Altus, commented, "Arch Capital was one of our founding
investors and we are very pleased to become an integral part of their business.
Being part of the Arch group will allow us to expand the range of services we
can offer to our clients. Additionally, Arch Capital's management and financial
resources will help position us to capitalize on improving market conditions."

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 the Company may include forward-looking
statements which reflect the Company's current views with respect to future
events and financial performance. All statements other than statements of
historical fact included in this release are forward-looking statements.
Forward-looking statements involve the Company's current assessment of risks and
uncertainties, including statements regarding the completion of the proposed
acquisition, expected benefits and anticipated future financial results. Actual
events and results may differ materially from those expressed or implied in
these statements. In addition to risks and uncertainties related to the
Company's business described in filings by the Company with the Securities
Exchange Commission, the transactions described in this release are subject to
various risks and uncertainties including, but not limited to, the risks that
the conditions to closing will not be satisfied as well as risks relating to the
successful integration of Altus' business. The foregoing review of important
factors should not be construed as exhaustive and should be read in conjunction
with other cautionary statements that are included herein or elsewhere. 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.

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