Arch Capital Group Ltd

Arch Capital Group Ltd

ACGL

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Market Cap$35.35B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Arch Capital Group LtdArch Capital Group Ltd7.8-20%2.50.5

Earnings Call Q2 2026

July 29, 2026 - AI Summary

Strong earnings + capital returned (good/surprising): - Q2 after-tax operating income: $893m ($2.56 EPS). - H1 after-tax operating income capital return: company repurchased $1.95bn total in the first half (via buybacks). - Q2 share repurchases: 12.4m shares for ~$1.2bn (management said stock price made the quarter especially attractive). - Book value per share: +2.8% in Q2, +4.5% in H1. - Debt financing: raised $2.0bn in May (10-year + 30-year), including redeploying proceeds to redeem $500m 10-year notes and buy back $418m of 2043/2046 notes; expected interest expense $60–$63m per quarter for the next two quarters. - Capital strength: Debt + preferred / capital = 18.1% (described as conservative).
Underlying profitability solid, but higher cat hit in Insurance (bad): - Overall underwriting: ex-cat accident year combined ratio 82.5%, +160 bps YoY; favorable prior-year development $165m pre-tax (~4.1 pts of combined). - Cat losses (net): $201m net of reinsurance & reinstatement premiums, driven mainly by Iran conflict plus U.S. severe convective storms. - Insurance segment: underwriting income $27m was pressured by Iran-related catastrophe losses, but ex-cat combined ratio 91.6% showed solid underlying performance. - Insurance trends: - Competition increasing, especially in property/short-tail; - Casualty lines in North America seeing rate increases and cyber rate declines moderating; - Nonrenewal of some program business and reduced E&S property writing weighed on premiums.
Reinsurance delivering strong ex-cat profitability despite mix/rate pressure (mixed): - Underwriting income: $410m in Q2. - Reinsurance ex-cat accident year combined: 79.9%, +270 bps YoY, explained by mix shift toward lines with different loss profile and lower property pricing. - Net premiums written: down ~10% YoY due to clients retaining more risk, competition lowering rates (esp. property), and higher cession/retrocession levels (increasing net-to-gross efficiency/capital management effects). - Management stance: still sees reinsurance—especially casualty specialty—as attractive but acknowledges capacity is abundant.

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$112.83

Target Price by Analysts

12.2% upsideArch Capital Group Target Price DetailsTarget Price
$96.99

Current Fair Value

3.5% downside

Overvalued by 3.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$35.35 Billion
Enterprise Value$46.35 Billion
Dividend Yield$5.00 (-)
Earnings per Share$11.84
Beta0.29
Outstanding Shares343,200,000

Return

Return on Equity19.53%ROE
Return on Assets6.56%
Return on Invested Capital5.47%

Valuation & Multiples

P/E Ratio7.76P/E Ratio
PEG-53.31PEG
Price to Sales2.51Price to Sales
Price to Book Ratio1.44Price to Book Ratio
Enterprise Value to Revenue3.36
Enterprise Value to EBIT11.84
Enterprise Value to Net Income9
Total Debt to Enterprise0.26
Debt to Equity0.5Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 28, 2026
EPS Estimate
$2.47
Average shareholder expectation
Revenue Estimate
$4.36 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 4, 2026
EPS Estimate
$2.44
Average shareholder expectation
Revenue Estimate
$4.46 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000▼ 114.34%
Total Calls-▼ 100.00%
Total Puts-▼ 100.00%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %5.35%▼ 80.76%
Total Invested$3.02B▼ 90.08%
Investors Holding327▼ 594.00%

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.

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical expertise for all tax legislation, directly influencing corporate tax structures, capital investment credits, and the overall tax burden on financial firms like Arch Capital.

Finance

This powerful committee controls taxation and trade policy, which directly impact Arch Capital's corporate profitability, capital allocation, global operations, and overall valuation as a financial institution.

Banking, Housing, and Urban Affairs

This committee directly regulates the financial system, including banking, capital markets, and housing. As a provider of mortgage insurance and a global financial firm, Arch Capital is directly impacted by its oversight.

Select Committee on Intelligence

Members receive classified briefings on global threats (e.g., terrorism, cyber warfare, geopolitical instability), which are highly material for a global insurer assessing, pricing, and managing risk across its portfolio.

Foreign Relations

As a global insurer, Arch Capital's worldwide operations and investment portfolio are directly exposed to geopolitical risks, sanctions, and sovereign credit risk influenced by U.S. foreign policy and treaties.