Arch Capital Group Ltd. (ACGL) AI Stock Analysis

Arch Capital Group Ltd. is a global provider of insurance, reinsurance, and mortgage insurance solutions. The company operates across three primary segments: Insurance, Reinsurance, and Mortgage. Its Insurance unit delivers specialty coverages including property, casualty, marine, aviation, professional indemnity, cyber insurance, and workers' compensation through independent brokers. The Reinsurance segment offers risk management coverage for casualty, property, marine, aviation, catastrophe exposures, trade credit, and political risk across global broker channels. The Mortgage segment provides direct mortgage insurance and mortgage reinsurance to financial institutions and lenders to manage mortgage portfolio risk.

Arch Capital Group grew annual revenue from $8.92B in FY2021 to $19.93B in FY2025, achieving a 5-year revenue CAGR of 19.2%. Annual net income expanded from $2.16B in FY2021 to $4.40B in FY2025, while gross margin improved from 34.0% to 37.2%. In FY2025, operating margin was 25.0% and net margin reached 22.1%, yielding EPS of $9.87. Over the trailing twelve months, revenue was $19.23B with a net margin of 24.4% and EPS of $12.78. However, for the latest quarter ended June 30, 2026, quarterly revenue fell 10.5% year-over-year and quarterly earnings declined 7.1%.

As of June 30, 2026, Arch Capital Group held $10.07B in cash and short-term investments against total debt of $4.29B, resulting in net cash of $5.78B. Shareholders' equity was $24.03B and total assets were $85.18B. The company reported a current ratio of 0.67 and a debt-to-equity ratio of 0.18. In FY2025, operating cash flow reached $6.17B and free cash flow was $6.13B. Cash deployment in FY2025 included $44.0M in capital expenditures, $47.0M in dividends paid, and $1.89B in share buybacks.

Arch Capital Group trades at a trailing P/E of 7.9x and a forward P/E of 9.6x, compared to the median of its S&P 500 Financial Services peers of 14.2x trailing and 12.6x forward. The company's price-to-sales multiple is 1.8x, below the peer median of 3.1x. Its price-to-book ratio is 1.4x and enterprise value stands at $37.05B. Over the past year, the stock returned 17.4%, outpacing the S&P 500 return of 16.8%. Over a 5-year period, the stock returned 150.8% versus 83.0% for the S&P 500.

Wall Street analysts hold 7 Strong Buy, 2 Buy, 10 Hold, 0 Sell, and 1 Strong Sell ratings on ACGL. The mean price target is $110.13, representing an 8.8% upside from the last close of $101.27. For the fiscal year ending December 31, 2026, analysts estimate EPS of $9.76 and revenue of $15.78B. Arch Capital has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is October 27, 2026.

This page is an AI-written research summary of Arch Capital Group Ltd. (ACGL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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