The Property and Casualty (P&C) insurance space is set to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth. The Zacks-defined Property & Casualty Insurance Industry is currently in the top 24% of the Zacks Industry Rank. In the past year, the industry has provided 19.7% returns, while its year-to-date return is 19.5%. Since it is ranked in the top half ...

Arch Capital Group (ACGL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Arch Capital Group (ACGL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Arch Capital Group is a member of our Finance group, which includes 860 different companies ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-16209 ARCH CAPITAL GROUP LTD. (Exact name of registrant as specified in its charter) Bermuda 98-0374481 (State or other jurisdiction of incorporation or organization) (I.R.S ...

Financial Data and Key Metrics Changes - The company reported after-tax operating income of $2.57 per share, up 34% from Q2 2023, with an annualized operating return on average common equity of 20.5% [15] - Book value per share increased to $52.75 as of June 30, reflecting a 6.9% rise for the quarter and a 12.4% increase year-to-date [15] - Underwriting income reached a record $762 million with a combined ratio of 78.7%, and 76.7% on an underlying ex-cat accident year basis [15][16] Business Line Data and Key Metrics Changes - The Property and Casualty segments generated $475 million of underwriting income and over $5 billion in gross premium [7] - The Reinsurance segment produced $366 million of underwriting income despite increased catastrophic events [7][10] - The Insurance segment contributed $109 million of underwriting income with a net written premium growth of 7% compared to the same quarter last year [9] - The Mortgage segment generated $287 million of underwriting income, with new insurance written in the U.S. increasing by 12% year-over-year [10] Market Data and Key Metrics Changes - The P&C environment remains strong, with opportunities for attractive returns despite normalizing competition [5][6] - The company noted heightened overall storm risk this year, leading to a cautious approach in growing property cat writings [8] - The international insurance unit is benefiting from its position as a lead underwriter at Lloyd's, providing attractive growth opportunities in specialty lines [9] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and capital allocation as key differentiators, focusing on deploying capital into underwriting units first [6][10] - The strategic acquisition of Allianz's U.S. MidCorp and Entertainment businesses is expected to enhance the company's presence in the U.S. primary middle market [7][19] - The company aims to maintain a balance across its portfolio while being cautious about aggressive growth that could erode underwriting margins [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating solid returns due to favorable market conditions and disciplined pricing [15] - The company anticipates that the casualty market will take time to stabilize, with a potential for more rate increases in the future [24][40] - Management highlighted the importance of maintaining a strong balance sheet and being well-positioned to take advantage of future opportunities [19] Other Important Information - The company successfully closed the acquisition of RMIC in the second quarter, which is expected to enhance its mortgage insurance capabilities [11] - The investment portfolio increased to $37.8 billion, generating $364 million of net investment income in the quarter [11] - The effective tax rate on pretax operating income was 9.5% for the second quarter, with an expected range of 9% to 11% for the full year [19] Q&A Session Summary Question: On the insurance side, how do you see the casualty market evolving? - Management noted that the casualty market has a long tail and it may take several quarters to stabilize, with early signs of inflation impacting recent years [24][25] Question: Can you provide more color on the mortgage releases and potential future levels? - Management indicated that they are more positive about the housing market, which may lead to lower levels of reserve releases going forward [30] Question: What factors contributed to the favorable development in reserves? - Management explained that their book of business is less exposed to commercial auto and traditional casualty lines, which have been under pressure [32][34] Question: How do you view your capital levels and potential for buybacks or dividends? - Management stated that they are on track to close the Allianz acquisition, which will draw on capital, but they remain committed to returning capital if no further opportunities arise [36][37] Question: What is the outlook for the casualty reserve reviews? - Management confirmed that they conduct quarterly reviews and are adjusting their expectations based on current trends and external actuary advice [50][62]

For the quarter ended June 2024, Arch Capital Group (ACGL) reported revenue of $3.94 billion, up 22.7% over the same period last year. EPS came in at $2.57, compared to $1.92 in the year-ago quarter.The reported revenue represents a surprise of +0.66% over the Zacks Consensus Estimate of $3.91 billion. With the consensus EPS estimate being $2.17, the EPS surprise was +18.43%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Arch Capital Group (ACGL) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.43%. A quarter ago, it was expected that this property and casualty insurer would post earnings of $2.06 per share when it actually produced earnings of $2.45, delivering a surprise of 18.93%.Over the last fo ...

EXHIBIT 99.2 Arch Capital Group Ltd. Waterloo House, Ground Floor 100 Pitts Bay Road Pembroke HM 08 Bermuda Financial Supplement June 30, 2024 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 ...

Per the latest Earnings Preview, the Finance sector’s second-quarter 2024 earnings are expected to improve 14.7%. Revenues are estimated to rise 7.2%. Results of Insurance, one of the Finance sector industries, are likely to reflect better pricing and exposure growth, accelerated digitalization and an improved interest rate. However, cat losses are likely to have weighed on profitability.With the help of the Zacks Stock Screener, we have identified four insurers, namely, Arch Capital Group Ltd. (ACGL) , The ...

In the latest trading session, Arch Capital Group (ACGL) closed at $96.40, marking a +0.18% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.32%. Elsewhere, the Dow lost 1.25%, while the tech-heavy Nasdaq lost 3.64%.Coming into today, shares of the property and casualty insurer had lost 5.8% in the past month. In that same time, the Finance sector lost 1.37%, while the S&P 500 gained 1.79%.Analysts and investors alike will be keeping a close eye on the performance of Arch Capital ...