Arch Capital Group Ltd.
- Open
- 101.77
- Day high
- 103.35
- Day low
- 100.81
- Prev close
- 100.04
- Volume
- 2.2M
- Mkt cap
- $35.4B
- P/E (TTM)
- 7.7
- EPS (TTM)
- $13.21
- P/B
- 1.5
- P/S
- 1.8
- Yield
- —
- Per share
- —
- ▲Insiders net buying $405K over the last 3 months (1 open-market buy, 2 sales)
- 🏛Institutions mixed (13F)
Arch Capital Group Ltd. (ACGL) is a Financial Services company listed on NASDAQ. The stock is up 15% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 2 sales (SEC Form 4).
Arch Capital Group Ltd. (ACGL) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ACGL earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $2.48 | $2.50 | +0.8% | $4.3B | -4.5% |
| Jul 29, 2025 | $2.30 | $2.58 | +12.2% | $5.2B | +20.0% |
| Oct 30, 2024 | $1.96 | $1.99 | +1.5% | $4.6B | +15.9% |
| Feb 14, 2024 | $1.94 | $2.49 | +28.4% | $3.9B | +21.5% |
| Jul 26, 2023 | $1.58 | $1.92 | +21.5% | $3.1B | +2.2% |
| Feb 13, 2023 | $1.34 | $2.14 | +59.7% | $3.0B | +21.8% |
| Oct 26, 2022 | $0.24 | $0.28 | +16.7% | $2.5B | +1.8% |
| Jul 27, 2022 | $1.09 | $1.34 | +22.9% | $2.2B | -8.3% |
| Feb 9, 2022 | $1.00 | $1.27 | +27.0% | $2.2B | +7.8% |
| Oct 27, 2021 | $0.36 | $0.74 | +105.6% | $2.0B | +43.3% |
| Jul 28, 2021 | $0.90 | $1.00 | +11.1% | $2.4B | +9.3% |
| Feb 9, 2021 | $0.50 | $0.56 | +12.0% | $2.2B | +4.9% |
ACGL insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 4, 2026 | Posner Brian Sdirector | Sell | 3,000 | $19.66 |
| May 12, 2026 | Posner Brian Sdirector | Sell | 2,000 | $17.14 |
| May 7, 2026 | KILCOYNE MOIRA A.director | Grant | 1,327 | — |
| May 7, 2026 | Ebong Francisdirector | Grant | 2,071 | — |
| May 7, 2026 | BUNCE JOHN L JRdirector | Grant | 2,071 | — |
| May 7, 2026 | Posner Brian Sdirector | Grant | 2,071 | — |
| May 7, 2026 | KILCOYNE MOIRA A.director | Grant | 2,071 | — |
| May 7, 2026 | PASQUESI JOHN Mdirector, other: Chair | Grant | 2,071 | — |
| May 7, 2026 | MOCZARSKI ALEXANDER Sdirector | Grant | 2,071 | — |
| May 7, 2026 | Triplett Neal Fdirector | Grant | 2,071 | — |
| May 7, 2026 | PASQUESI JOHN Mdirector, other: Chair | Grant | 1,327 | — |
| May 7, 2026 | PASQUESI JOHN Mdirector, other: Chair | Grant | 1,858 | — |
| May 7, 2026 | BUNCE JOHN L JRdirector | Grant | 1,327 | — |
| May 7, 2026 | Goodman Lauriedirector | Grant | 2,071 | — |
| May 7, 2026 | MALLESCH EILEEN Adirector | Grant | 2,071 | — |
Source: ACGL SEC Form 4 filings, latest Jun 4, 2026. For informational purposes only — not investment advice.
See the full ACGL insider & 13F page →Arch Capital Group Ltd. company profile
Overview
Arch Capital Group Ltd. (NASDAQ:ACGL) is a Bermuda-based diversified insurance and reinsurance company founded in 1995. The company has grown from its initial public offering to become a major player in the global insurance market, operating through three primary business segments: Insurance, Reinsurance, and Mortgage Insurance. Arch Capital has established itself as a disciplined underwriter with a focus on specialty lines and catastrophe coverage, maintaining operations worldwide while being headquartered in Pembroke, Bermuda.
Business
Arch Capital Group operates in the insurance industry, which involves transferring financial risk from individuals and businesses to insurance companies in exchange for premium payments. The company provides three main types of coverage: Insurance Segment (approximately 40% of net premiums written): This division writes primary insurance policies directly for businesses and individuals. Primary insurance means Arch is the first layer of coverage that pays claims. The segment offers casualty insurance (covering liability for accidents and injuries), property insurance (protecting against damage to buildings and equipment), professional liability coverage (protecting professionals against lawsuits), directors and officers insurance (covering corporate executives), workers' compensation, and specialty lines like marine and aviation insurance. These products are sold through independent insurance brokers who work with businesses to arrange coverage. Reinsurance Segment (approximately 45% of net premiums written): Reinsurance is "insurance for insurance companies" - Arch provides coverage to other insurance companies to help them manage their risk exposure. When a primary insurer writes too much coverage in one area or faces potential large losses, they purchase reinsurance to transfer some of that risk. Arch's reinsurance covers catastrophic events like hurricanes and earthquakes, casualty risks, and specialty areas like marine, aviation, and political risk. This business is typically sold through reinsurance brokers and involves large, sophisticated transactions. Mortgage Insurance Segment (approximately 15% of net premiums written): This division provides mortgage insurance, which protects mortgage lenders when homebuyers make down payments of less than 20%. If a homeowner defaults on their mortgage, the mortgage insurance pays the lender for their losses. This business has been particularly profitable due to strong housing market conditions and low default rates.
Revenue model
Arch Capital makes money primarily through insurance premiums and investment income. The company collects premiums upfront from policyholders but pays claims over time, creating a "float" of money that can be invested. The core business model involves three revenue streams: Underwriting Income: This comes from collecting more in premiums than the company pays out in claims and expenses. Success depends on accurate risk assessment, appropriate pricing, and disciplined underwriting. The company targets combined ratios (claims plus expenses divided by premiums) below 100%, with recent performance showing combined ratios in the high 80s to low 90s range. Investment Income: Arch invests the premiums collected (the "float") in bonds, stocks, and other securities, generating nearly $1.5 billion annually in investment income. Rising interest rates have been beneficial, allowing higher returns on new investments. Fee Income: The company earns fees for managing capital and providing risk management services. Factors that increase profitability include hard market conditions (when insurance prices rise due to industry losses or reduced competition), higher interest rates (improving investment returns), favorable loss experience, and disciplined underwriting. Margin pressures come from soft market conditions, increased competition, large catastrophe losses, social inflation (increasing jury awards and legal costs), and low interest rates. The company's performance is also affected by natural disasters, regulatory changes, and economic cycles that impact claim frequency and severity.
Competitive moat
Arch Capital's competitive moat is moderately strong but not impenetrable. The company benefits from several protective factors: specialized underwriting expertise in complex risks like catastrophe reinsurance and specialty insurance lines, strong capital base and financial ratings that allow it to compete for large transactions, established relationships with brokers and clients built over decades, and regulatory licenses in multiple jurisdictions that create barriers to entry. The company's Bermuda domicile provides tax advantages and regulatory flexibility compared to U.S.-based competitors. Arch's track record of disciplined underwriting and cycle management has built credibility with brokers and clients, making it a preferred partner during hard market conditions. However, the insurance industry is inherently cyclical and competitive. The moat faces pressure from new capital entering attractive markets, including alternative capital sources like catastrophe bonds and insurance-linked securities. Managing general agencies (MGAs) have increased competition by providing additional capacity and distribution channels. The company also faces potential disruption from technology-enabled competitors and changing risk patterns due to climate change and social inflation. While Arch has demonstrated skill in navigating insurance cycles, the fundamental commodity-like nature of much insurance coverage limits pricing power during soft market periods.
Risks & safety
Arch Capital demonstrates a strong margin of safety with robust financial metrics: • Solvency and Liquidity: Strong capital position with $21+ billion in shareholders' equity, minimal debt-to-equity ratio of 0.13, and nearly $1 billion in cash and short-term investments. The company generates substantial operating cash flows exceeding $6 billion annually. • Valuation Metrics: Trading at attractive multiples with P/E ratio around 8-16x depending on the quarter, price-to-book ratio of approximately 1.7x, and EV/EBITDA in the 7-15x range. These metrics suggest reasonable valuation relative to earning power. • Operational Metrics: Consistent underwriting profitability with combined ratios typically below 95%, strong return on equity averaging 15-20% in recent years, and diversified revenue streams reducing concentration risk. • Other Considerations: Regulated insurance business with required capital reserves, experienced management team with proven cycle management skills, and conservative investment portfolio focused on high-quality fixed income securities.
Recent development
Over the past few years, Arch Capital has pursued several strategic initiatives to strengthen its market position and diversify its offerings. The company completed significant acquisitions including RMIC in Q2 2024 and the pending acquisition of Allianz's U.S. MidCorp and Entertainment insurance businesses, which expand its specialty insurance capabilities and distribution reach. The company has been actively managing through insurance market cycles, aggressively deploying capital during hard market conditions while maintaining underwriting discipline. In property catastrophe reinsurance, Arch has selectively grown its book when pricing was attractive but has also shown restraint, pausing growth in certain quarters when risk-adjusted returns were insufficient. Arch has enhanced its technology and data analytics capabilities to improve underwriting and risk selection. The company has also expanded its international presence, particularly in London market specialty lines, and has grown its casualty insurance and reinsurance offerings as it anticipates a multi-year hardening cycle in casualty markets. Capital management has been a key focus, with the company returning significant capital to shareholders through share buybacks totaling $2 billion since 2018 and special dividends, including a $5 per share special dividend in December 2024. The company maintains flexibility to deploy capital opportunistically while returning excess capital when attractive investment opportunities are limited.
ACGL company profile · for informational purposes only — not investment advice.
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