Arch Capital Group Ltd. (ACGL) 10-Year Financial Performance & Capital Metrics

ACGL • • Insurance & Managed Care

Financial ServicesDiversified InsuranceSpecialty & ReinsuranceBermuda-Based Specialty Insurers

AboutArch 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.Show more

Revenue $16.93B +27.4%
Combined Ratio 73.57% -4.0%
Net Income $4.31B -2.9%
Return on Equity 22.01% -22.5%
Medical Cost Ratio 64.93% +0.9%
Operating Margin 26.43% +13.1%
Net Margin 25.47% -23.8%
ROA 6.64% -20.1%
Equity / Assets 29.36% -5.8%
Book Value per Share 54.53 +12.5%
Tangible BV/Share 50.99 +9.6%
Debt/Equity 0.13 -11.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Profitable underwriting: 73.6% combined ratio
✓Excellent 3Y average ROE of 20.5%
✓Strong 5Y profit CAGR of 21.4%
✓Healthy dividend yield of 5.4%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y15.37%

5Y20.08%

3Y23.79%

TTM17.55%

Profit (Net Income) CAGR

10Y17.85%

5Y21.38%

3Y25.97%

TTM-28.28%

EPS CAGR

10Y18.73%

5Y23.66%

3Y28.86%

TTM-28.26%

ROCE

10Y Avg3.93%

5Y Avg4.68%

3Y Avg5.22%

Latest6.89%

Peer Comparison

Bermuda-Based Specialty Insurers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
FIHLFidelis Insurance Holdings Limited	1.92B	18.60	18.98	-32.59%	-0.58%	-0.6%	32.02%	0.18
ACGLArch Capital Group Ltd.	32.98B	90.94	8.13	27.35%	21.5%	17.27%	20.08%	0.13

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	3.98B	4.45B	5.37B	5.47B	6.78B	8.29B	8.92B	9.66B	13.29B	16.93B
Revenue Growth %	-0.02%	0.12%	0.21%	0.02%	0.24%	0.22%	0.08%	0.08%	0.38%	0.27%
Medical Costs & Claims+	2.71B	2.85B	3.74B	3.7B	3.97B	5.69B	5.89B	6.77B	8.56B	10.99B
Medical Cost Ratio %	-	-	-	-	-	-	-	-	-	-
Gross Profit+	1.26B	1.6B	1.63B	1.78B	2.81B	2.6B	3.04B	2.89B	4.74B	5.94B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	-0.14%	0.27%	0.02%	0.09%	0.58%	-0.07%	0.17%	-0.05%	0.64%	0.25%
Operating Expenses+	721.83M	791.43M	1.01B	982.96M	1.08B	1.18B	1.3B	1.52B	1.63B	1.46B
OpEx / Revenue %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization	22.93M	19.34M	125.78M	105.67M	82.1M	69.03M	82M	106M	95M	235M
Combined Ratio %	-	-	-	-	-	-	-	-	-	-
Operating Income+	541.74M	807.08M	614.99M	796.13M	1.72B	1.41B	1.74B	1.37B	3.11B	4.47B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.34%	0.49%	-0.24%	0.29%	1.16%	-0.18%	0.23%	-0.21%	1.26%	0.44%
EBITDA+	564.66M	826.42M	740.77M	901.8M	1.81B	1.48B	1.82B	1.48B	3.2B	4.71B
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense	45.87M	66.25M	117.43M	120.48M	120.87M	143.46M	139M	131M	133M	141M
Non-Operating Income	-71.33M	-114.73M	-259.72M	-166.13M	-244.54M	-290.15M	-505M	-246M	-411M	-141M
Pretax Income+	567.19M	855.55M	757.28M	841.77M	1.85B	1.58B	2.37B	1.56B	3.57B	4.67B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	40.61M	31.37M	127.57M	113.95M	155.81M	111.84M	128M	80M	-873M	362M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	537.74M	692.74M	619.28M	757.97M	1.64B	1.41B	2.16B	1.48B	4.44B	4.31B
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.36%	0.29%	-0.11%	0.22%	1.16%	-0.14%	0.53%	-0.32%	2.01%	-0.03%
EPS (Diluted)+	1.36	1.78	1.36	1.84	3.87	3.32	5.23	3.80	11.62	11.19
EPS Growth %	-0.32%	0.31%	-0.24%	0.35%	1.1%	-0.14%	0.58%	-0.27%	2.06%	-0.04%
EPS (Basic)	1.41	1.83	1.40	1.87	3.97	3.38	5.34	3.90	11.94	11.47
Diluted Shares Outstanding	378.12M	374.15M	417.79M	412.91M	411.61M	410.26M	400.35M	377.61M	378.8M	381.8M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	23.18B	29.37B	32.05B	32.22B	37.89B	43.28B	45.1B	47.99B	58.91B	70.91B
Asset Growth %	0.05%	0.27%	0.09%	0.01%	0.18%	0.14%	0.04%	0.06%	0.23%	0.2%
Total Investment Assets+	15.5B	19.02B	21.57B	21.51B	24.04B	28.68B	47.29B	28.27B	14.57B	46.97B
Long-Term Investments	15.45B	18.96B	21.36B	21.47B	23.26B	25.76B	25.75B	27.21B	7.46B	38.71B
Short-Term Investments	11.67B	14.56B	15.84B	15.99B	18.23B	21.2B	21.54B	5.64B	7.11B	8.26B
Total Current Assets+	1.14B	1.45B	2.08B	22.94B	0	0	32.74B	0	14.84B	6.61B
Cash & Equivalents	553.33M	842.94M	606.2M	646.56M	726.23M	906.45M	858.67M	855M	917M	979M
Receivables	0	0	0	0	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	0	0	-28.43B	-31.89B	0	-20.22B	0	-21.11B
Goodwill & Intangibles+	97.53M	781.55M	652.61M	634.92M	738.08M	692.86M	944.98M	804M	731M	1.35B
Goodwill	15.54M	204.02M	198.24M	249.62M	326.55M	314.63M	344.87M	342M	345M	571M
Intangible Assets	82M	577.53M	454.38M	385.3M	411.53M	378.23M	600.12M	462M	386M	780M
PP&E (Net)	0	0	0	22.28B	0	0	26.76B	0	125M	0
Other Assets	-15.45B	-18.96B	-21.36B	-22.11B	-24B	-26.45B	-26.7B	-28.02B	55.6B	-38.71B
Total Liabilities	16.03B	20.06B	21.81B	21.78B	25.57B	29.29B	31.55B	35.07B	40.55B	50.09B
Total Debt+	1.32B	2.49B	2.55B	2.19B	2.36B	3.02B	2.72B	2.73B	2.73B	2.73B
Net Debt	768.41M	1.65B	1.94B	1.54B	1.63B	2.11B	1.87B	1.87B	1.81B	1.75B
Long-Term Debt	1.32B	2.49B	2.55B	2.19B	1.87B	2.86B	2.72B	2.73B	2.73B	2.73B
Short-Term Debt	0	0	0	0	484.29M	155.69M	0	0	0	0
Total Current Liabilities+	2.24B	2.77B	3.12B	2.93B	0	0	3.42B	0	0	0
Accounts Payable	1.71B	2.02B	2.3B	2.47B	2.79B	2.68B	3.42B	3.26B	3.82B	4.3B
Deferred Revenue	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	-1.71B	-2.02B	-2.3B	-2.47B	-3.27B	-2.83B	-3.42B	-3.26B	-3.82B	-4.3B
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Liabilities	14.71B	17.57B	19.26B	19.59B	-1.87B	-2.86B	0	-2.73B	37.83B	47.36B
Total Equity+	7.15B	9.31B	10.25B	10.44B	12.32B	13.99B	13.56B	12.92B	18.36B	20.82B
Equity Growth %	0%	0.3%	0.1%	0.02%	0.18%	0.14%	-0.03%	-0.05%	0.42%	0.13%
Shareholders Equity	6.2B	8.25B	9.2B	9.44B	11.5B	13.11B	13.55B	12.91B	18.35B	20.82B
Minority Interest	944.01M	1.06B	1.05B	997.85M	818.18M	881.55M	9.23M	11M	2M	0
Retained Earnings	7.37B	8B	8.56B	9.43B	11.02B	12.36B	14.46B	15.89B	20.3B	22.69B
Common Stock	577K	582K	611K	634K	638K	643K	648K	1M	1M	1M
Accumulated OCI	-16.5M	-114.54M	118.04M	-178.72M	212.09M	488.89M	-64.6M	-1.65B	-676M	-720M
Return on Equity (ROE)	0.08%	0.08%	0.06%	0.07%	0.14%	0.11%	0.16%	0.11%	0.28%	0.22%
Return on Assets (ROA)	0.02%	0.03%	0.02%	0.02%	0.05%	0.03%	0.05%	0.03%	0.08%	0.07%
Equity / Assets	-	-	-	-	-	-	-	-	-	-
Debt / Equity	0.18x	0.27x	0.25x	0.21x	0.19x	0.22x	0.20x	0.21x	0.15x	0.13x
Book Value per Share	18.91	24.89	24.52	25.28	29.92	34.09	33.86	34.22	48.46	54.53
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	997.91M	1.4B	1.11B	1.56B	2.05B	2.89B	3.43B	3.82B	5.75B	6.67B
Operating CF Growth %	-0.04%	0.4%	-0.2%	0.4%	0.31%	0.41%	0.19%	0.11%	0.51%	0.16%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	526.58M	824.18M	629.71M	727.82M	1.69B	1.47B	2.24B	1.48B	4.44B	4.31B
Depreciation & Amortization	22.93M	19.34M	125.78M	105.67M	82.1M	69.03M	82.95M	106.2M	95M	235M
Stock-Based Compensation	56.1M	56.58M	67.8M	55.78M	66.42M	71.26M	88M	88M	93M	133M
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	173.93M	-142.42M	-246.92M	427.07M	-391.98M	-892.58M	-891.42M	804.73M	-33M	-673M
Working Capital Changes	218.37M	619.75M	518.51M	242.98M	598.62M	2.17B	1.91B	1.33B	1.15B	2.67B
Cash from Investing+	-913.88M	-2.72B	-1.36B	-554.02M	-1.81B	-3.04B	-2.14B	-3.1B	-5.47B	-4.46B
Capital Expenditures	-15.74M	-15.3M	-22.84M	-29.81M	-37.84M	-39.87M	-41.39M	-51.67M	-52M	-51M
Acquisitions	40.82M	-1.99B	-27.71M	0	0	0	-1.1B	1.55B	0	852M
Purchase of Investments	-31.72B	-37.71B	-40.61B	-35.86B	-32.3B	-44.2B	-38.53B	-18.98B	-21.39B	-36.47B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	-43.66M	-201.15M	123.01M	202.62M	-410.68M	19.01M	-523.86M	-1.43B	-23M	-30M
Cash from Financing+	-4.66M	1.64B	-3.4M	-988.81M	-80.66M	521.28M	-1.23B	-706M	-69M	-1.93B
Dividends Paid	-21.94M	-28.07M	-46.04M	-41.65M	-41.61M	-41.61M	-47M	-40M	-40M	-1.91B
Share Repurchases	-365.38M	-77.67M	-251.05M	-382.93M	-2.87M	-83.47M	-1.23B	-586M	-2M	-24M
Stock Issued	4.86M	0	0	0	6.2M	1.88M	6M	6M	0	7M
Debt Issuance (Net)	1000K	1000K	1000K	-1000K	1000K	1000K	0	0	0	0
Other Financing	-48.7M	141.39M	-82.42M	-206.1M	-193.28M	-15.31M	52.73M	-85.26M	-27M	-2M
Net Change in Cash+	67.62M	289.62M	-236.74M	-2.64M	179.06M	386.85M	24.23M	-41M	225M	262M
Exchange Rate Effect	-1000K	-1000K	1000K	-1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K
Cash at Beginning	485.7M	553.33M	842.94M	727.28M	724.64M	903.7M	1.29B	1.31B	1.27B	1.5B
Cash at End	553.33M	842.94M	606.2M	724.64M	903.7M	1.29B	1.31B	1.27B	1.5B	1.76B
Free Cash Flow+	982.17M	1.38B	1.09B	1.53B	2.01B	2.85B	3.39B	3.76B	5.7B	6.62B
FCF Growth %	-0.03%	0.41%	-0.21%	0.4%	0.31%	0.42%	0.19%	0.11%	0.51%	0.16%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF per Share	2.6	3.69	2.61	3.7	4.88	6.94	8.46	9.97	15.04	17.34

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	86.38%	81.87%	88.55%	85.46%	74.59%	82.95%	80.54%	85.79%	76.63%	73.57%
Medical Cost Ratio	68.23%	64.09%	69.71%	67.5%	58.6%	68.68%	65.98%	70.08%	64.37%	64.93%
Return on Equity (ROE)	7.54%	8.42%	6.33%	7.33%	14.38%	10.69%	15.66%	11.15%	28.41%	22.01%
Return on Assets (ROA)	2.38%	2.64%	2.02%	2.36%	4.67%	3.46%	4.88%	3.17%	8.31%	6.64%
Equity / Assets	30.84%	31.7%	31.97%	32.4%	32.51%	32.32%	30.06%	26.92%	31.16%	29.36%
Book Value / Share	18.91	24.89	24.52	25.28	29.92	34.09	33.86	34.22	48.46	54.53
Debt / Equity	0.18x	0.27x	0.25x	0.21x	0.19x	0.22x	0.20x	0.21x	0.15x	0.13x
Revenue Growth	-1.86%	11.93%	20.61%	1.96%	23.88%	22.27%	7.62%	8.21%	37.66%	27.35%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Reinsurance	1.08B	1.06B	1.14B	1.26B	1.47B	2.16B	2.84B	3.96B	5.84B	7.24B
Reinsurance Growth	-	-1.94%	8.18%	10.38%	16.27%	47.45%	31.37%	39.39%	47.40%	24.09%
Insurance	2.04B	2.07B	2.11B	2.21B	2.4B	2.87B	3.63B	4.56B	5.45B	6.63B
Insurance Growth	-	1.42%	1.89%	4.38%	8.68%	19.79%	26.30%	25.72%	19.45%	21.69%
Mortgage	214.11M	286.72M	1.06B	1.19B	1.37B	1.4B	1.28B	1.16B	1.16B	1.23B
Mortgage Growth	-	33.91%	268.72%	12.21%	15.18%	2.31%	-8.19%	-9.67%	-0.12%	6.30%
Corporate and Other	397.85M	467.97M	531.73M	578.86M	556.69M	560.35M	331.97M	-	-	-
Corporate and Other Growth	-	17.62%	13.62%	8.86%	-3.83%	0.66%	-40.76%	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Reinsurance	-	-	-	-	-	-	-	3.96B	5.84B	-
Reinsurance Growth	-	-	-	-	-	-	-	-	47.40%	-
Insurance	-	-	-	-	-	-	-	4.56B	5.45B	-
Insurance Growth	-	-	-	-	-	-	-	-	19.45%	-
Mortgage	-	-	-	-	-	-	-	1.16B	1.16B	-
Mortgage Growth	-	-	-	-	-	-	-	-	-0.12%	-

Frequently Asked Questions

Valuation & Price

Arch Capital Group Ltd. (ACGL) has a price-to-earnings (P/E) ratio of 8.1x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Arch Capital Group Ltd. (ACGL) grew revenue by 27.4% over the past year. This is strong growth.

Yes, Arch Capital Group Ltd. (ACGL) is profitable, generating $4.10B in net income for fiscal year 2024 (25.5% net margin).

Dividend & Returns

Yes, Arch Capital Group Ltd. (ACGL) pays a dividend with a yield of 5.37%. This makes it attractive for income-focused investors.

Arch Capital Group Ltd. (ACGL) has a return on equity (ROE) of 22.0%. This is excellent, indicating efficient use of shareholder capital.

Industry Metrics

Arch Capital Group Ltd. (ACGL) has a combined ratio of 73.6%. A ratio below 100% indicates underwriting profitability.

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