Preferred Share Dividends. On September 6, 2012, the Board of Directors (the "Board") of ACGL declared dividends with respect to the outstanding 13,000,000 shares of its 6.75% Non-Cumulative Preferred Shares, Series C, $0.01 per share (the "Series C Shares"), with a liquidation preference of $25.00 per share, as outlined below. All such dividends will be payable out of lawfully available funds for the payment of dividends under Bermuda law on September 30, 2012 to holders of record of the Series C Shares, as of September 15, 2012, unless determined otherwise by the Board or the Executive Committee of the Board on or prior to the applicable effective date.

           Effective Date
Series     for Declaration   Dividend Period    Dividend Amount     Rate Per Share
Series C           9/30/12   6/30/12-9/29/12   $       5,484,375   $       0.421875