Core Viewpoint - Arch Capital Group Ltd. (ACGL) reported a first-quarter 2025 operating income of $1.54 per share, exceeding the Zacks Consensus Estimate by 12.4%, although it represented a 37.1% decline year over year. The results were supported by higher premiums in the Insurance and Reinsurance segments and improved net investment income, but were negatively impacted by poor underwriting income and increased catastrophic losses [1]. Premiums and Income - Gross premiums written increased by 8.9% year over year to $6.4 billion, while net premiums written rose by 10.5% year over year to $4.5 billion, driven by higher premiums in both Insurance and Reinsurance segments [2]. - Net investment income grew by 15.6% year over year to $378 million, although it fell short of the estimate of $436.2 million, influenced by a reduction in investable assets due to a $1.9 billion special cash dividend paid in December 2024 and higher investment expenses [3]. Revenue and Losses - Operating revenues reached $4.5 billion, marking a 21.2% increase year over year, but missed the Zacks Consensus Estimate by 0.9%. Pre-tax current accident year catastrophic losses amounted to $547 million, significantly higher than the previous year's loss of $58 million. Underwriting income declined by 43.3% year over year to $417 million [4]. - The combined ratio, indicating the percentage of premiums paid out as claims and expenses, worsened by 1,130 basis points to 90.1, compared to the estimate of 94.5 [5]. Segment Performance - In the Insurance segment, gross premiums written rose by 24.4% year over year to $2.6 billion, with net premiums written climbing 25.4% to $1.9 billion, driven by new business opportunities and rate changes, despite competitive market pressures [6]. - The Reinsurance segment saw gross premiums written increase by 0.8% year over year to $3.5 billion, while net premiums written rose by 2.2% to $2.3 billion, primarily due to rate increases and growth in existing accounts, although offset by reductions in specialty lines [7][8]. - The Mortgage segment experienced a decline, with gross premiums written dropping by 4.4% year over year to $326 million and net premiums written decreasing by 4% to $266 million, attributed to lower mortgage originations [9]. Financial Position - As of March 31, 2025, the company had cash of $1.2 billion, a 21.2% increase from the end of 2024. Debt remained flat at $2.7 billion. Book value per share was $55.15, up 3.8% from the end of 2024, while annualized operating return on average common equity contracted by 920 basis points year over year to 11.5% [11].

Arch Capital Group (ACGL) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Good day, ladies and gentlemen, and welcome to the First Quarter twenty twenty five Arch Capital Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. Before the company gets started with its update, management wants to first remind everyone that ...

Core Insights - Arch Capital Group (ACGL) reported a revenue of $4.56 billion for the quarter ended March 2025, reflecting a year-over-year increase of 21.3% [1] - The earnings per share (EPS) for the quarter was $1.54, down from $2.45 in the same quarter last year, but exceeded the consensus estimate of $1.37 by 12.41% [1] Financial Performance Metrics - The total loss ratio was reported at 61.8%, better than the estimated 65% by analysts [4] - The combined ratio for the mortgage segment was 16.1%, significantly lower than the average estimate of 25.9% [4] - The loss ratio for the mortgage segment was 1.1%, compared to the estimated 8% [4] - The combined ratio for the reinsurance segment was 91.8%, slightly better than the estimated 93.9% [4] Revenue Breakdown - Net investment income was $378 million, below the average estimate of $415.07 million, but showed a year-over-year increase of 15.6% [4] - Net premiums earned totaled $4.19 billion, exceeding the estimate of $4.09 billion, with a year-over-year increase of 22.4% [4] - Net premiums earned in the insurance segment were $1.86 billion, surpassing the estimate of $1.80 billion, reflecting a 28.2% year-over-year change [4] - Net premiums earned in the reinsurance segment were $2.03 billion, compared to the estimate of $2.01 billion, indicating a 21.7% year-over-year increase [4] - Net premiums earned in the mortgage segment were $300 million, slightly above the estimate of $290.01 million, but down 1.6% year-over-year [4] - Other underwriting income was reported at $53 million, significantly higher than the estimate of $7.41 million, representing a year-over-year increase of 341.7% [4] - Equity in net income of investment funds was $53 million, below the estimate of $111.56 million, showing a decline of 46.5% year-over-year [4] - Other income was reported at -$2 million, worse than the estimate of $6.33 million, reflecting a year-over-year change of -114.3% [4] Stock Performance - Arch Capital's shares have returned -5.2% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Arch Capital Group (ACGL) reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.37 per share, but down from $2.45 per share a year ago, representing an earnings surprise of 12.41% [1] - The company posted revenues of $4.56 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.99%, compared to $3.76 billion in the same quarter last year [2] - Arch Capital has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.36 on revenues of $4.66 billion, while for the current fiscal year, the estimate is $7.85 on revenues of $18.96 billion [7] - The estimate revisions trend for Arch Capital is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which Arch Capital belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Arch Capital Group Ltd. Waterloo House, Ground Floor 100 Pitts Bay Road Pembroke HM 08 Bermuda Financial Supplement March 31, 2025 The following financial supplement is provided to assist in your understanding of Arch Capital Group Ltd. ("Arch") and its subsidiaries (collectively, the "Company"). This report is for informational purposes only. It should be read in conjunction with documents filed by Arch with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K a ...

Arch Capital Group Ltd. (ACGL) is expected to register an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on April 29, after the closing bell.The Zacks Consensus Estimate for BRO’s first-quarter revenues is pegged at $4.55 billion, indicating 20.7% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $1.37 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved down 6.2% in the past 30 da ...

Company Overview - Arch Capital Group (ACGL) closed at $92.51, reflecting a -0.47% change from the previous day, underperforming the S&P 500's gain of 1.67% [1] - The stock has decreased by 1.72% over the past month, contributing to the Finance sector's decline of 4.45% and the S&P 500's loss of 6.57% [1] Upcoming Earnings - The earnings report for Arch Capital Group is anticipated on April 29, 2025, with projected earnings of $1.37 per share, indicating a year-over-year decline of 44.08% [2] - Revenue is expected to reach $4.55 billion, representing a 20.79% increase from the same quarter last year [2] Annual Estimates - For the annual period, earnings are estimated at $7.85 per share and revenue at $18.96 billion, reflecting changes of -15.41% and +14.07% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates suggest optimism regarding Arch Capital Group's business and profitability, as positive revisions typically correlate with favorable stock price performance [3][4] Zacks Rank and Performance - Arch Capital Group currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 1.22% in the past month [5] - The Zacks Rank system has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] Valuation Metrics - Arch Capital Group has a Forward P/E ratio of 11.84, which is a premium compared to the industry's average Forward P/E of 11.74 [6] - The company has a PEG ratio of 3.7, while the average PEG ratio for the Insurance - Property and Casualty industry is 2.11 [7] Industry Context - The Insurance - Property and Casualty industry is part of the Finance sector and holds a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

The market expects Arch Capital Group (ACGL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rel ...

Group 1 - The article introduces Patrick Maguire, CFA, as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas for publication [1] - The article emphasizes the opportunity for contributors to earn money and gain access to exclusive SA Premium content [1] Group 2 - The analyst has disclosed a long position in ACGL shares, indicating a personal investment interest [2] - The analyst also holds long positions in BRK.A and PRU within the insurance industry, suggesting a focus on these companies [2]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Arch Capital Group (ACGL) .Arch Capital currently has an average brokerage ...