Arch Capital Group Ltd
ACGL
Market Cap$34.9B
Close$
Earnings Call Q3 2024
October 31, 2024 - AI Summary
**Strong Financial Performance**: Arch Capital reported Q3 2024 after-tax operating income of $1.99 per share and an annualized return on equity of 14.8%. The company also achieved an 8.1% increase in book value per share, demonstrating overall strong performance despite $450 million in catastrophe losses, which were within expected limits.
**Underwriting Segments Success**: The insurance segment generated $1.8 billion in net premiums with $120 million in underwriting income, a 20% growth year-over-year driven by the MidCorp and entertainment business acquisition. The reinsurance segment also saw a net premium increase of over 24%, up to $1.9 billion, bolstered by strong broker relationships.
**Market Outlook and Rate Expectations**: The company remains optimistic about growth opportunities in the property insurance market, even after increased catastrophe activity, forecasting stability in pricing in property cat reinsurance. The casualty segment is expected to grow attractively with rising rates due to claim inflation.
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$96.99
4.6% upside
Current Fair Value
4.6% upsideUndervalued by 4.6% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $34.90 Billion |
|---|---|
| Enterprise Value | $36.60 Billion |
| Dividend Yield | $5 (5.39025442000862%) |
| Earnings per Share | $11.94 |
| Beta | 0.61 |
| Outstanding Shares | 373,200,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 6.06 |
|---|---|
| PEG | 16.54 |
| Price to Sales | 2.16 |
| Price to Book Ratio | 1.57 |
| Enterprise Value to Revenue | 2.24 |
| Enterprise Value to EBIT | 30.91 |
| Enterprise Value to Net Income | 6 |
| Total Debt to Enterprise | 0.07 |
| Debt to Equity | 0.12 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Arch Capital Group Ltd
4,500 employees
CEO: Marc Grandisson Arch Capital Group Ltd., a Bermuda-based company with approximately $15.2 billion in capital at Sept. 30, 2020, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.