Premiums and Revenues - Gross premiums written increased by 11.9% to $4,756 million for the three months ended December 31, 2024, compared to $4,251 million in the same period of 2023[12]. - Net premiums written rose by 17.1% to $3,819 million for the three months ended December 31, 2024, up from $3,261 million in the prior year[12]. - Net premiums earned for Q4 2024 reached $4,143 million, up 23.9% from $3,344 million in Q4 2023[17]. - Total revenues for Q4 2024 were $4,548 million, an increase of 14.4% compared to $3,975 million in Q4 2023[17]. - Gross premiums written totaled $4,756 million, with the insurance segment contributing $2,484 million, reinsurance $1,941 million, and mortgage $331 million[34]. - Net premiums earned for the year ended December 31, 2024, reached $15,100 million, a significant increase from $12,440 million in 2023, reflecting a growth of 21.3%[75]. - Total net premiums written for the year ended December 31, 2024, reached $7,746 million, a 17.9% increase from $6,554 million in 2023[51]. Income and Profitability - Net income available to Arch common shareholders decreased by 60.2% to $925 million for the three months ended December 31, 2024, down from $2,324 million in the prior year[12]. - After-tax operating income available to Arch common shareholders was $866 million for the three months ended December 31, 2024, an 8.4% decrease from $945 million in the same period of 2023[12]. - Comprehensive income available to Arch decreased by 86.7% to $415 million for the three months ended December 31, 2024, compared to $3,111 million in the prior year[12]. - Net income attributable to Arch for Q4 2024 was $925 million, a decrease of 60.3% from $2,324 million in Q4 2023[17]. - The company reported a net income available to common shareholders of $4,403 million for the year ended December 31, 2023[42]. Ratios and Performance Metrics - The combined ratio increased to 85.0% for the three months ended December 31, 2024, compared to 78.9% in the same period of 2023[12]. - The annualized net income return on average common equity was 17.9% for the three months ended December 31, 2024, down from 58.2% in the same period of 2023[12]. - The total return on investments was -1.05% for the three months ended December 31, 2024, a decrease of 581 basis points compared to 4.76% in the prior year[12]. - The combined ratio for the insurance segment was 98.5%, while the reinsurance segment reported a combined ratio of 83.0%[34]. - The loss ratio for the insurance segment was 66.3%, while the reinsurance segment had a loss ratio of 58.9%[34]. - The combined ratio for Q4 2024 was 85.0%, a decrease from 86.6% in Q3 2024 and 78.9% in Q4 2023, indicating improved underwriting performance[75]. Investment Income and Assets - Net investment income grew by 29.4% to $405 million for the three months ended December 31, 2024, compared to $313 million in the same period of 2023[12]. - The company reported net realized losses of $161 million during the same period[34]. - Total investable assets amounted to $41,388 million, with total assets at $70,906 million and total liabilities at $50,086 million[34]. - The company reported gross investment income of $428 million for the three months ended December 31, 2024, compared to $332 million for the same period in 2023, reflecting a year-over-year increase of 28.9%[86]. - Total fixed maturities as of December 31, 2024, were $27,889 million, a decrease from $29,531 million on September 30, 2024[89]. Liabilities and Equity - The company reported total assets of $70,906 million as of December 31, 2024, up from $58,906 million a year earlier, representing a 20.4% increase[19]. - The company’s total liabilities were $50,086 million as of December 31, 2024, compared to $40,551 million a year earlier, marking a 23.5% increase[19]. - Common shareholders' equity decreased to $19.990 billion from $21.444 billion in September 2024[121]. - Total capital available to Arch is $23.548 billion, down from $25.001 billion in September 2024[121]. Mortgage Insurance Metrics - U.S. primary mortgage insurance net premiums written were $208 million for the three months ended December 31, 2024, representing 75.1% of total net premiums written[59]. - Insurance in force (IIF) for U.S. primary mortgage insurance was $290,435 million as of December 31, 2024, accounting for 58.0% of total IIF[59]. - The persistency rate for analysts is reported at 82.1% for December 31, 2024, down from 83.6% in the previous quarter[63]. - The risk-to-capital ratio for Arch MI U.S. is 7.8:1 as of December 31, 2024, indicating a slight increase in risk exposure compared to 7.3:1 in the previous quarter[63]. - The total Risk in Force (RIF) for U.S. mortgage insurance operations as of December 31, 2024, is $76,034 million, a slight decrease from $76,448 million on September 30, 2024[62]. Share Repurchase and Capital Management - Aggregate cost of shares repurchased in the quarter is $23.5 million, with 0.3 million shares repurchased at an average price of $89.65 per share[123]. - Remaining share repurchase authorization is $976.5 million[123]. - Cumulative shares repurchased since the program's inception total 433.8 million[123].

The Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry players like The Progressive Corporation (PGR) , Chubb Limited (CB) , The Travelers Companies (TRV) , The Allstate Corporation (ALL) and Arch Capital Group (ACGL) are poised to grow despite a rise in catastrophic activities. Given an active catastrophe environment, the policy renewal rate should accelerate. Also, the increasing adoption of technology and the e ...

Arch Capital Group Ltd. (ACGL) is slated to report fourth-quarter 2024 earnings on Feb. 10, after market close. The insurer delivered an earnings surprise in each of the trailing four quarters, the average beat being 17.07%.See the Zacks Earnings Calendar to stay ahead of market-making news.Factors to ConsiderIncreases in most lines of business due in part to new business opportunities and rate changes and growth in existing accounts in the Insurance and Reinsurance segments are likely to have favored net p ...

Wall Street analysts expect Arch Capital Group (ACGL) to post quarterly earnings of $1.85 per share in its upcoming report, which indicates a year-over-year decline of 25.7%. Revenues are expected to be $4.23 billion, up 15.2% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company ...

Arch Capital Group (ACGL) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Fe ...

Company Performance - Arch Capital Group (ACGL) ended the latest trading session at $95.51, reflecting a -0.61% change from the previous close, which is less than the S&P 500's daily gain of 1% [1] - Over the past month, shares of Arch Capital Group have increased by 7.99%, outperforming the Finance sector's loss of 0.44% and the S&P 500's loss of 2.14% [1] Upcoming Earnings - Arch Capital Group is scheduled to release its earnings on February 10, 2025, with projected earnings of $1.85 per share, indicating a year-over-year decline of 25.7% [2] - The consensus estimate for quarterly revenue is $4.22 billion, which represents a 14.86% increase from the same period last year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Arch Capital Group are important as they reflect changing business trends, with positive revisions indicating analyst optimism regarding the company's profitability [3] Valuation Metrics - Arch Capital Group currently has a Forward P/E ratio of 10.66, which is lower than the industry's average Forward P/E of 11.68 [6] - The company has a PEG ratio of 1.56, compared to the Insurance - Property and Casualty industry's average PEG ratio of 1.44 [6] Industry Context - The Insurance - Property and Casualty industry is part of the Finance sector and holds a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Arch Capital Group (ACGL) closed at $90.83, reflecting a +0.73% change from the previous session, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, shares of Arch Capital Group experienced a loss of 3.48%, which is better than the Finance sector's loss of 5.04% and worse than the S&P 500's loss of 2.2% [1] Earnings Report - The upcoming earnings report for Arch Capital Group is scheduled for February 10, 2025, with projected earnings per share (EPS) of $1.85, indicating a 25.7% decrease from the same quarter last year [2] - Revenue is expected to reach $4.22 billion, representing a 14.86% increase compared to the year-ago quarter [2] Analyst Estimates - Changes in analyst estimates for Arch Capital Group are crucial as they reflect short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - Arch Capital Group currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has increased by 0.16% in the past 30 days [5] Valuation Metrics - Arch Capital Group is trading at a Forward P/E ratio of 9.87, which is below the industry average Forward P/E of 11.21 [6] - The company has a PEG ratio of 1.41, compared to the industry average PEG ratio of 1.43 [6] Industry Overview - The Insurance - Property and Casualty industry, part of the Finance sector, holds a Zacks Industry Rank of 21, placing it in the top 9% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Overview - Arch Capital Group Ltd (NASDAQ: ACGL) demonstrates strong fundamentals in the insurance industry and has a notable history of growth [1] - The recent weakness in the company's share price presents an attractive valuation opportunity for long-term investors [1] Analyst Background - The analysis is provided by Labutes IR, a Fund Manager/Analyst with over 18 years of experience in the financial markets, specializing in the financial sector [2] - The analyst has a background in portfolio management and has worked on the buy side at various institutions [2]

Company Performance - Arch Capital Group (ACGL) ended the latest trading session at $88.99, reflecting a +0.32% adjustment from the previous close, outperforming the S&P 500's daily loss of 0.09% [1] - Over the past month, shares of Arch Capital Group have decreased by 7.31%, which is worse than the Finance sector's loss of 4.24% and the S&P 500's loss of 0.29% [1] Earnings Forecast - The upcoming earnings disclosure is expected to show an EPS of $2.03, representing an 18.47% decline from the same quarter last year [2] - Revenue is anticipated to be $4.23 billion, indicating a 15.25% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $8.99 per share and revenue of $16.16 billion, reflecting increases of +6.39% and +19.76% respectively from the previous year [3] Analyst Sentiment - Recent changes to analyst estimates for Arch Capital Group are crucial as they often indicate near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [3] Valuation Metrics - Arch Capital Group is currently trading at a Forward P/E ratio of 9.86, which is lower than the industry average of 13.13 [6] - The company has a PEG ratio of 1.41, compared to the industry average PEG ratio of 1.3 [6] Industry Ranking - The Insurance - Property and Casualty industry, which includes Arch Capital Group, has a Zacks Industry Rank of 22, placing it in the top 9% of over 250 industries [7] - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Arch Capital Group reported a mixed performance in its Q3 2024 earnings, with operating income beating estimates but showing a year-over-year decline, primarily due to higher catastrophic losses from Hurricane Helene and lower underwriting income across all segments [2][5]. Financial Performance - Operating income for Q3 2024 was $1.99 per share, exceeding the Zacks Consensus Estimate by 2.6%, but down 13.6% year over year [2]. - Gross premiums written increased by 20.2% year over year to $5.4 billion, while net premiums written rose 20.6% to $4 billion [3]. - Operating revenues reached $4.4 billion, a 24.6% increase year over year, surpassing the Zacks Consensus Estimate by 8.1% [5]. - Pre-tax net investment income surged 48.3% year over year to $399 million, exceeding estimates [4]. Underwriting Results - Underwriting income decreased by 25.4% year over year to $538 million, with a combined ratio deteriorating by 870 basis points to 86.6 [6]. - In the Insurance segment, gross premiums written rose 14.6% to $2.3 billion, while underwriting income fell 7% year over year [7]. - The Reinsurance segment saw gross premiums written improve by 29.2% to $2.8 billion, but underwriting income dropped 51.9% [8]. - The Mortgage segment experienced a 2.3% decline in gross premiums written to $339 million, with underwriting income decreasing by 4.6% [9][10]. Financial Position - As of September 30, 2024, Arch Capital had cash of $1.03 billion, an 11.8% increase from the end of 2023, and debt remained stable at $2.7 billion [11]. - The book value per share increased by 21.4% from the end of 2023 to $57 [11]. Market Sentiment and Estimates - There has been a downward trend in fresh estimates for Arch Capital, with the consensus estimate shifting down by 11.62% [12][13]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15]. Industry Comparison - Arch Capital operates within the Zacks Insurance - Property and Casualty industry, where competitor Travelers has seen an 8.4% gain over the past month, reporting revenues of $11.85 billion, a year-over-year increase of 10.7% [16]. - Travelers is expected to post earnings of $6.38 per share for the current quarter, reflecting a year-over-year change of -9% [17].