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Arch Capital Group Ltd.
NASDAQ: ACGL Financials Insurance 🔎 Screen
S&P 500
🏹 Trader: 🎯 Near 52W High 📊 High Volume | BRS 71 Forming View all →
$35.4B
Market Cap
8.3
P/E
1.72
PEG
17.9%
ROCE
19.5%
ROE
0.12
D/E
26.8%
OPM
-8.0%
% from 52W High
61
α RS
🔍 ACGL is showing a high-conviction setup because it matches 19 of 39 tracked screener presets, RS Rating is 61, and it's within 8% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 19/39 · RS Rating 61 · 8% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for ACGL including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; and casualty insurance. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 and is headquartered in Pembroke, Bermuda.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.985B
-8.1% YoY
Operating Income
$893M
-8.8% YoY
Combined Ratio
83.5%
+2.3pp YoY
Net Income
$1.047B
-14.7% YoY
What Went Right
  • All three segments produced underwriting income: insurance $27M, reinsurance $410M, mortgage $220M.
  • After-tax operating EPS of $2.56, with ex-CAT accident-year combined ratio of 82.5%.
  • Capital return was strong: $1.2B of buybacks in Q2, bringing H1 total to $1.95B.
  • Investment income contributed $417M ($1.20/share), plus $196M from equity-method investments.
What to Watch
  • Iran conflict drove insurance catastrophe losses, limiting insurance underwriting income to $27M despite a 91.6% ex-CAT accident-year ratio.
  • Net premiums written fell 6.9% overall; reinsurance NPW dropped 10.4% as clients retained more risk and rates softened.
  • Current-year catastrophe losses were $201M net; industry Middle East war loss estimate is around $3B.
  • Early-stage softening market: property CAT rates were down mid-teens at mid-year and competition remains elevated.
Management Guidance
  • No formal revenue or operating income guidance provided.
  • Interest expense expected to be $60M-$63M in each of the next two quarters.
  • Insurance segment operating expense ratio expected to revert to historical levels during H2 2026.
Investor Lens
The investment thesis is reinforced by this call: earnings were strong, all three segments were underwriting profitable, and management aggressively returned capital through $1.2B of buybacks. The main headwind is an early-stage soft market, particularly in property/short-tail lines and reinsurance, while Iran-related losses hit the insurance segment. A conservative 18.1% leverage ratio and $1.3B quarterly operating cash flow support continued capital returns. Favorable prior-year development of $165M and resilient mortgage performance provide additional cushion into a more competitive cycle.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2: $2.56 operating EPS, $1.2B buyback, diversified underwriting.
Revenue
Net premiums earned fell 8.1% YoY to $3.985B, while net premiums written declined 6.9% to $4.049B. Insurance NPW was down 5.1%, reinsurance NPW down 10.4%, and mortgage premiums were flat as USMI reductions were offset by Australian growth. Gross premiums written slipped 1.1% to $6.126B.
Profitability
Net income available to common shareholders was $1.047B, or $3.00 per diluted share, versus $1.227B and $3.23 a year ago. After-tax operating income was $893M, or $2.56 per share, down from $979M and $2.58. Underwriting income was $657M, with reinsurance contributing $410M and mortgage $220M.
Margins
Reported combined ratio was 83.5%, up 2.3pp YoY; ex-CAT accident-year combined ratio was 82.5%, up 1.6pp. Reinsurance ex-CAT accident-year combined ratio was 79.9%, up 270bps due to mix shift and lower property pricing. Favorable prior-year development added $165M pre-tax or 4.1 points to the combined ratio.
Balance Sheet
Ending common shareholders' equity was $23.2B, and book value per share rose 2.8% to $68.04 in the quarter. Debt plus preferred-to-capital leverage was conservative at 18.1%. Operating cash flow was $1.3B, invested assets reached $49.5B, and the company raised $2B in senior notes in May.
Key Risks
Management flagged continued softening in property and short-tail lines, with abundant capacity pressuring rates, especially in property CAT where mid-year reductions were mid-teens. The Iran conflict drove tangible CAT losses and could generate additional claims if the war persists. Casualty reinsurance remains competitive due to excess capacity, though the company is staying disciplined on terms and conditions.
Outlook
Management did not give formal numerical guidance but expects the competitive environment to persist and remains focused on disciplined capital deployment. Interest expense is guided to roughly $60-63M per quarter for the next two quarters, and the insurance segment's operating expense ratio should normalise in H2 2026.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Strong earnings driven by solid underwriting and investment results, with $893 million after-tax operating income and $1.2 billion in share repurchases. Competitive pressures are rising in property, but casualty and mortgage segments remain resilient.
Q1 2026 Q1 2026 2026-04-29
Strong Q1 results with $901M after-tax operating income and 1.7% book value growth, driven by disciplined underwriting and capital management. Competitive pressures persist, but margins remain sustainable and capital return to shareholders is prioritized.
Q4 2025 Q4 2025 2026-02-10
Q4 and full-year results set new records for operating income and book value growth, with strong underwriting and investment performance across all segments. Active capital return through share buybacks continues, while expense ratios benefit from Bermuda tax credits. Entering 2026, the company is well positioned despite rising competition and market headwinds.
Q3 2025 Q3 2025 2025-10-28
Record Q3 results with 37% year-over-year net income growth, strong underwriting across all segments, and robust capital returns via $732 million in share buybacks. Insurance and mortgage segments outperformed, while reinsurance faced premium headwinds from cedent retention.
Q2 2025 Q2 2025 2025-07-30
Second quarter results featured strong operating income, robust premium growth in key segments, and continued book value expansion. Underwriting discipline and capital management supported profitability, while the integration of recent acquisitions and favorable investment returns further strengthened performance.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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