Arch Capital Group Ltd. (ACGL) Stock

Arch Capital Group Ltd. (ACGL) is a Financials stock trading at $98.23 (as of 2026-09-02), with a market capitalization of $34.32B and a trailing P/E of 7.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability and workers' compensation exposures; marine and aviation; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was incorporated in 1995 and is based in Pembroke, Bermuda.

Understand Arch Capital Group Ltd.: how it makes money

Arch Capital writes and reinsures casualty, property, and specialty insurance policies, earning premiums plus investment income on retained underwriting float. The model splits roughly evenly between direct insurance and reinsurance, with a small but highly profitable mortgage insurance book rounding out the mix.

A below-90% combined ratio on underwriting is the profit engine; investment income earned on the float between premium receipt and claim payment provides the second leg of earnings.

Revenue by segment (latest quarter)
Insurance$1.9B
Reinsurance$2.3B
Mortgage$0.3B

Business quality (Mixed): ROE of 20% and a combined ratio ex-cats near 79% confirm disciplined underwriting, but a 10% YoY revenue decline and acknowledgment of limited growth upside keep the overall grade at Mixed.

Valuation: At 8× earnings, ACGL trades 42% below the Insurance average (13×). Note: the low multiple may reflect one-time earnings items.

Bull case

  • Casualty pricing still above trend: Management flags casualty pricing as remaining above trend, giving underwriters room to grow volume while protecting underwriting margins in a softening rate environment.
  • Mortgage book high-margin and low-loss: Mortgage insurance posted strong earnings with excellent credit quality; its combined ratio excluding prior-year development sits at 42.2%, far below the 100% breakeven line.
  • Valuation well below sector: At 7.5x earnings versus a 13.1x insurance-industry average, the stock trades 42% below peers, pricing in substantial skepticism about the earnings trajectory that could prove excessive if the rate cycle normalizes.

Bear case

  • Property cat rates reversing: Management warns property catastrophe renewals carry double-digit rate declines, directly compressing the underwriting margins that made the line attractive during the prior hard market.
  • $250M premium hit from non-renewals: Program non-renewals are expected to shave roughly $250 million from 2026 net premium revenue, a meaningful volume loss in a quarter where total revenue already fell 10% year over year.
  • Growth ceiling acknowledged by management: Management explicitly sees limited scope for outsized growth across all three segments, capping the multiple-expansion case even if margins hold steady.
Valuation — source: SEC EDGAR (first-party)
Price$98.23
Market Cap$34.32B
P/E Ratio7.3
Price / Book1.43
Price / Sales1.78
FCF Yield17.9%
DCF Value (model)$290.62
DCF Upside vs Price195.9%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$19.93B
Net Margin22.1%
Revenue Growth (YoY)-10.5%
EPS Growth (YoY)-7.6%
FCF Growth (YoY)17.6%
Valuation vs Sector & Industry
Stock P/E7.3
Sector P/E (Financials)14.9
Industry P/E (Insurance)12.1
vs Sector-51.0%
vs Industry-39.8%
Company
SectorFinancials
IndustryInsurance
CEONicolas Alain Emmanuel Papadopoulo
Employees7,200
CountryBM
IPO Date1997-03-31

Arch Capital Group Ltd. earnings call transcripts

  • ACGL Q2 FY26 earnings call transcript (reported 2026-07-28) · analysis
  • ACGL Q1 FY26 earnings call transcript (reported 2026-04-28) · analysis
  • ACGL Q3 FY25 earnings call transcript (reported 2025-10-27) · analysis

All ACGL earnings calls

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ACGL earnings history · ACGL institutional & insider holders · ACGL KPIs & operating metrics · ACGL financials · ACGL investor presentations & press releases · ACGL SEC filings · ACGL peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.