Arch Capital Group Ltd

Arch Capital Group Ltd

ACGL

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Market Cap$31.86B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Arch Capital Group LtdArch Capital Group Ltd6.9-20%3.70.4

Earnings Call Q1 2026

April 29, 2026 - AI Summary

Strong quarterly earnings + capital return - Reported after-tax operating income: $901m / $2.50 per share; annualized net income ROACE ~17.8% (per Nicholas). Book value per share grew 1.7%. - Repurchased $783m of common stock in the quarter (8.3m shares) and authorized buyback increased by $3b (Board). - Core investment income: $408m net investment income (and ~$1.13 EPS equivalent); cash flow from operations positive at $1.2b.
Underwriting is solid but the market is more competitive; growth prioritized over volume - Insurance segment underwriting income: $66m; flat gross/top-line, with net premiums written down ~1.4% YoY. - Management emphasized profitability over volume: chose not to renew certain program business from the MCE transaction that didn’t meet risk/profitability requirements. - Expected headwind from nonrenewals: approx. $250m reduction in net premium return throughout 2026 (explicitly reiterated on the call). - Insurance performance: ex-cat accident year combined ratio improved to 56.7%; acquisition expense ratio higher due to MCE-related effects rolling off + transition costs.
Reinsurance performance excellent despite shrinking property exposure - Reinsurance underwriting income: $441m (vs. $167m 1Q25, which was hit by California wildfires). - Net premiums written down ~6% YoY (gross -2.3%), mainly due to short-term property categories (e.g., property catastrophe, marine, other property) and lower reinstatement premiums. - Still, discipline paid off: ex-cat accident year combined ratio ~78.1% and 76% combined ratio for the quarter (noted as 4th straight sub-80% quarter). - Ongoing cycle management: reducing share below minimum return thresholds; continues to write new business with risk-adjusted return targets.

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$105.00

Target Price by Analysts

14.1% upsideArch Capital Group Target Price DetailsTarget Price
$96.99

Current Fair Value

5.4% upside

Undervalued by 5.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$31.86 Billion
Enterprise Value$41.43 Billion
Dividend Yield$5.00 (-)
Earnings per Share$11.84
Beta0.31
Outstanding Shares359,695,000

Return

Return on Equity20.14%ROE
Return on Assets7.11%
Return on Invested Capital4.42%

Valuation & Multiples

P/E Ratio6.9P/E Ratio
PEG8.38PEG
Price to Sales3.68Price to Sales
Price to Book Ratio1.37Price to Book Ratio
Enterprise Value to Revenue4.44
Enterprise Value to EBIT15.41
Enterprise Value to Net Income8
Total Debt to Enterprise0.25
Debt to Equity0.43Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 5, 2026
EPS Estimate
$2.49
Average shareholder expectation
Revenue Estimate
-
Average shareholder expectation

Next Earnings Call

Expected Date
July 28, 2026
EPS Estimate
$2.41
Average shareholder expectation
Revenue Estimate
$4.38 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.1434▲ 51.84%
Total Calls79,500▼ 77.24%
Total Puts90,900▼ 58.36%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %86.11%▼ 2.02%
Total Invested$30.45B▼ 2.35%
Investors Holding920▼ 11.00%

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.