Revenue growth decelerated to -10.1% YoY in Q2 2026, yet underwriting margins remained exceptional with a combined ratio of 72.7% and a loss ratio of 49.1%, indicating strong pricing discipline.
Arch Capital Group Ltd. (ACGL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 19.2B | 19.93B | 17.44B | 13.29B | 9.66B | 8.92B | 8.29B | 6.78B | 5.47B | 5.37B | 4.45B | 3.98B | 4.05B | 3.48B | 3.38B | 3.09B | 3.21B | 3.5B | 2.97B | 3.45B | 3.45B | 3.17B | 3.1B | 2.34B | 721.77M | 76.45M | 127.63M | 348.77M | 247.13M | 120.97M | 50.2M |
| Revenue Growth % | 0.69% | 14.27% | 31.19% | 37.66% | 8.21% | 7.62% | 22.27% | 23.88% | 1.96% | 20.61% | 11.93% | -1.86% | 16.52% | 2.91% | 9.37% | -3.77% | -8.29% | 18.03% | -14.07% | -0.01% | 9% | 2.04% | 32.44% | 224.72% | 844.06% | -40.1% | -63.4% | 41.13% | 104.29% | 140.98% | 904% |
| Medical Costs & Claims | 10.33B | 12.52B | 10.99B | 8.56B | 6.77B | 5.89B | 5.69B | 3.97B | 3.7B | 3.74B | 2.85B | 2.71B | 2.58B | 2.24B | 2.37B | 2.19B | 1.96B | 2.15B | 2.74B | 2.12B | 2.33B | 2.58B | 2.44B | 1.84B | 543.5M | 24.26M | 103.02M | 386.34M | 243.13M | 104.91M | 34.28M |
| Medical Cost Ratio % | 53.81% | 62.84% | 63.03% | 64.37% | 70.08% | 65.98% | 68.68% | 58.6% | 67.5% | 69.71% | 64.09% | 68.23% | 63.57% | 64.5% | 70.12% | 70.88% | 61% | 61.35% | 92.19% | 61.54% | 67.61% | 81.51% | 78.62% | 78.4% | 75.3% | 31.73% | 80.71% | 110.77% | 98.38% | 86.72% | 68.28% |
| Gross Profit | 8.87B | 7.41B | 6.45B | 4.74B | 2.89B | 3.04B | 2.6B | 2.81B | 1.78B | 1.63B | 1.6B | 1.26B | 1.48B | 1.23B | 1.01B | 899.79M | 1.25B | 1.35B | 231.76M | 1.33B | 1.12B | 585.66M | 663.53M | 506.18M | 178.27M | 52.19M | 24.61M | -37.57M | 4.01M | 16.07M | 15.92M |
| Gross Margin % | 46.19% | 37.16% | 36.97% | 35.63% | 29.92% | 34.02% | 31.32% | 41.4% | 32.5% | 30.29% | 35.91% | 31.77% | 36.43% | 35.5% | 29.88% | 29.12% | 39% | 38.65% | 7.81% | 38.46% | 32.39% | 18.49% | 21.38% | 21.6% | 24.7% | 68.27% | 19.29% | -10.77% | 1.62% | 13.28% | 31.72% |
| Gross Profit Growth % | - | 14.88% | 36.13% | 63.93% | -4.84% | 16.89% | -7.48% | 57.79% | 9.39% | 1.75% | 26.51% | -14.41% | 19.57% | 22.27% | 12.22% | -28.17% | -7.45% | 483.97% | -82.55% | 18.74% | 90.93% | -11.74% | 31.09% | 183.94% | 241.56% | 112.04% | 165.51% | -1037.45% | -75.05% | 0.9% | 218.42% |
| Operating Expenses | 3.61B | 2.43B | 1.97B | 1.63B | 1.52B | 1.3B | 1.18B | 1.08B | 982.96M | 1.01B | 791.43M | 721.83M | 651.86M | 527.79M | 493.88M | 463.81M | 463.59M | 455.74M | -72.75M | 454.2M | 378.32M | 300.23M | 320.4M | 199.68M | 123.73M | 28.05M | 24.11M | 14.66M | -454K | 14.17M | -24.08M |
| OpEx / Revenue % | 18.81% | 12.18% | 11.31% | 12.25% | 15.71% | 14.56% | 14.27% | 15.99% | 17.96% | 18.84% | 17.78% | 18.15% | 16.08% | 15.17% | 14.61% | 15.01% | 14.44% | 13.01% | -2.45% | 13.16% | 10.96% | 9.48% | 10.32% | 8.52% | 17.14% | 36.69% | 18.89% | 4.2% | -0.18% | 11.72% | -47.97% |
| Depreciation & Amortization | 156M | 193M | 235M | 95M | 106M | 82M | 69.03M | 82.1M | 105.67M | 125.78M | 19.34M | 22.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Combined Ratio % | 72.62% | 75.02% | 74.35% | 76.63% | 85.79% | 80.54% | 82.95% | 74.59% | 85.46% | 88.55% | 81.87% | 86.38% | 79.66% | 79.68% | 84.74% | 85.89% | 75.43% | 74.36% | 89.74% | 74.7% | 78.57% | 90.99% | 88.95% | 86.92% | 92.44% | 68.42% | 99.61% | 114.98% | 98.19% | 98.44% | 20.32% |
| Operating Income | 5.26B | 4.98B | 4.47B | 3.11B | 1.37B | 1.74B | 1.41B | 1.72B | 796.13M | 614.99M | 807.08M | 541.74M | 824.36M | 706.8M | 515.88M | 435.98M | 789M | 897.65M | 304.5M | 873.54M | 739.89M | 285.44M | 343.13M | 306.5M | 54.54M | 24.14M | 503K | -52.23M | 4.46M | 1.89M | 40M |
| Operating Margin % | 27.38% | 24.98% | 25.65% | 23.37% | 14.21% | 19.46% | 17.05% | 25.41% | 14.54% | 11.45% | 18.13% | 13.62% | 20.34% | 20.32% | 15.26% | 14.11% | 24.57% | 25.64% | 10.26% | 25.3% | 21.43% | 9.01% | 11.05% | 13.08% | 7.56% | 31.58% | 0.39% | -14.98% | 1.81% | 1.56% | 79.68% |
| Operating Income Growth % | - | 11.29% | 44% | 126.46% | -21.01% | 22.84% | -17.94% | 116.45% | 29.45% | -23.8% | 48.98% | -34.28% | 16.63% | 37.01% | 18.33% | -44.74% | -12.1% | 194.79% | -65.14% | 18.06% | 159.22% | -16.81% | 11.95% | 461.97% | 125.89% | 4700% | 100.96% | -1270.57% | 135.71% | -95.27% | - |
| EBITDA | 5.41B | 5.17B | 4.71B | 3.2B | 1.48B | 1.82B | 1.48B | 1.81B | 901.8M | 740.77M | 826.42M | 564.66M | 889.88M | 769.57M | 617.91M | 458.06M | 880.41M | 922.09M | 328.34M | 895.64M | 761.98M | 307.94M | 361.1M | 307.91M | 54.54M | 24.14M | 503K | -52.23M | 4.46M | 1.89M | 40M |
| EBITDA Margin % | 28.19% | 25.95% | 27% | 24.09% | 15.3% | 20.38% | 17.89% | 26.62% | 16.47% | 13.8% | 18.56% | 14.2% | 21.96% | 22.13% | 18.28% | 14.82% | 27.41% | 26.33% | 11.07% | 25.94% | 22.07% | 9.72% | 11.63% | 13.14% | 7.56% | 31.58% | 0.39% | -14.98% | 1.81% | 1.56% | 79.68% |
| Interest Expense | 156M | 148M | 141M | 133M | 131M | 139M | 143.46M | 120.87M | 120.48M | 117.43M | 66.25M | 45.87M | 45.63M | 27.06M | 28.52M | 31.69M | 30.01M | 24.44M | 23.84M | 22.09M | 22.09M | 22.5M | 17.97M | 1.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -188M | -180M | -141M | -411M | -246M | -505M | -290.15M | -244.54M | -166.13M | -259.72M | -114.73M | -71.33M | -65.52M | -62.76M | -102.03M | -22.09M | -91.41M | -24.44M | -23.84M | -22.09M | -22.09M | -22.5M | -17.97M | -1.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 5.38B | 5.16B | 4.67B | 3.57B | 1.56B | 2.37B | 1.58B | 1.85B | 841.77M | 757.28M | 855.55M | 567.19M | 844.25M | 742.5M | 589.39M | 426.37M | 850.4M | 897.65M | 304.5M | 873.54M | 739.89M | 285.44M | 343.13M | 306.5M | 54.54M | 24.14M | 503K | -52.23M | 4.46M | 1.89M | 4.4M |
| Pretax Margin % | 28.02% | 25.89% | 26.8% | 26.85% | 16.17% | 26.52% | 19.03% | 27.27% | 15.38% | 14.1% | 19.22% | 14.26% | 20.83% | 21.35% | 17.44% | 13.8% | 26.48% | 25.64% | 10.26% | 25.3% | 21.43% | 9.01% | 11.05% | 13.08% | 7.56% | 31.58% | 0.39% | -14.98% | 1.81% | 1.56% | 8.76% |
| Income Tax | 687M | 760M | 362M | -873M | 80M | 128M | 111.84M | 155.81M | 113.95M | 127.57M | 31.37M | 40.61M | 22.99M | 32.77M | -4.01M | -9.79M | 7.73M | 20.71M | 13.54M | 15.6M | 26.68M | 28.95M | 26.23M | 26.73M | -556K | 2.13M | 8.52M | -19.56M | 235K | -338K | 300K |
| Effective Tax Rate % | 12.77% | 14.73% | 7.74% | -24.46% | 5.12% | 5.41% | 7.09% | 8.43% | 13.54% | 16.85% | 3.67% | 7.16% | 2.72% | 4.41% | -0.68% | -2.3% | 0.91% | 2.31% | 4.45% | 1.79% | 3.61% | 10.14% | 7.64% | 8.72% | -1.02% | 8.81% | 1692.84% | 37.44% | 5.27% | -17.86% | 6.82% |
| Net Income | 4.69B | 4.4B | 4.31B | 4.44B | 1.48B | 2.16B | 1.41B | 1.64B | 757.97M | 619.28M | 692.74M | 537.74M | 834.36M | 709.73M | 593.4M | 436.16M | 842.67M | 876.95M | 290.97M | 857.94M | 713.21M | 256.49M | 316.9M | 280.59M | 58.98M | 22.02M | -8.01M | -32.44M | 3.09M | 2.04M | 4.1M |
| Net Margin % | 24.44% | 22.07% | 24.72% | 33.42% | 15.28% | 24.17% | 16.95% | 24.13% | 13.85% | 11.53% | 15.56% | 13.52% | 20.59% | 20.41% | 17.56% | 14.11% | 26.24% | 25.04% | 9.81% | 24.85% | 20.66% | 8.1% | 10.21% | 11.97% | 8.17% | 28.8% | -6.28% | -9.3% | 1.25% | 1.69% | 8.17% |
| Net Income Growth % | 25.66% | 2.02% | -2.95% | 201.02% | -31.57% | 53.47% | -14.1% | 115.88% | 22.4% | -10.6% | 28.82% | -35.55% | 17.56% | 19.6% | 36.05% | -48.24% | -3.91% | 201.39% | -66.09% | 20.29% | 178.07% | -19.06% | 12.94% | 375.72% | 167.91% | 374.79% | 75.3% | -1149.37% | 51.59% | -50.27% | 310% |
| EPS (Diluted) | 13.45 | 11.62 | 11.19 | 11.62 | 3.80 | 5.23 | 3.32 | 3.87 | 1.84 | 1.36 | 1.78 | 1.36 | 2.01 | 1.69 | 1.34 | 0.99 | 1.73 | 1.53 | 0.45 | 1.25 | 1.01 | 0.38 | 0.49 | 0.46 | 0.11 | 0.14 | -0.07 | -0.21 | 0.02 | 0.01 | 0.03 |
| EPS Growth % | 32.13% | 3.84% | -3.7% | 205.79% | -27.34% | 57.53% | -14.21% | 110.33% | 35.29% | -23.6% | 30.88% | -32.34% | 18.93% | 26.12% | 35.35% | -42.77% | 13.07% | 240% | -64% | 23.76% | 165.79% | -22.45% | 6.52% | 318.18% | -21.43% | 290.22% | 64.95% | -1211.11% | 42.11% | -50.19% | - |
| EPS (Basic) | - | 11.84 | 11.47 | 11.94 | 3.90 | 5.34 | 3.38 | 3.97 | 1.87 | 1.40 | 1.83 | 1.41 | 2.07 | 1.75 | 1.38 | 1.03 | 1.81 | 1.59 | 0.47 | 1.30 | 1.05 | 0.81 | 1.12 | 1.19 | 0.33 | 0.19 | -0.07 | -0.21 | 0.02 | 0.01 | 0.03 |
| Diluted Shares Outstanding | 348.8M | 376.1M | 381.8M | 378.8M | 377.61M | 400.35M | 410.26M | 411.61M | 412.91M | 417.79M | 374.15M | 378.12M | 404.77M | 407.33M | 414.78M | 414.87M | 472.7M | 557.34M | 583.1M | 663.86M | 686.22M | 672.39M | 652.67M | 610M | 536.96M | 153.02M | 118.78M | 153.78M | 159.46M | 153.77M | 153.75M |
Quick answers to the most common questions about buying ACGL stock.
For fiscal year 2025, Arch Capital Group Ltd. (ACGL) reported total revenue of $19.93B. This represents a 39599.2% increase compared to $50.2M in 1996.
Arch Capital Group Ltd. (ACGL) is profitable, generating $4.40B in net income for the fiscal year ending 2025 with a net profit margin of 22.1%.
Arch Capital Group Ltd. (ACGL) reported an operating income of $4.98B, resulting in an operating profit margin of 25.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Arch Capital Group Ltd. (ACGL) generated $7.41B in gross profit for the year, representing a gross profit margin of 37.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Bermuda tax and reserve releases
Metrics are mathematically derived from official filings.
Premium Growth Decelerates After Peak
Revenue growth slowed to -10.1% YoY in Q2 2026 from +22.4% in Q2 2025, suggesting a deliberate pullback from underpriced risks, as per Arch's reported figures.
The sharp deceleration in revenue growth, from double-digit expansion in 2024 and early 2025 to negative growth in 2026, appears to reflect management's cycle management strategy, prioritizing underwriting discipline over top-line expansion. This is consistent with the company's historical willingness to shrink in soft markets. Investors should monitor whether this contraction is temporary or signals a broader softening in pricing across its segments.
Underwriting Profitability Remains Exceptional
Combined ratio improved to 72.7% in Q2 2026 from 71.6% a year earlier, with loss ratios near 49%, indicating robust underwriting margins, based on financial statements.
The sustained combined ratio in the low 70s, well below 100%, demonstrates strong underwriting profitability across all segments. The loss ratio of 49.1% in Q2 2026 is particularly impressive, suggesting favorable loss experience and effective risk selection. However, the 2025Q1 spike to 85.2% combined ratio highlights potential volatility from catastrophe losses or reserve strengthening, warranting attention to the sustainability of current margins.
Reserve Releases May Flatter Earnings
Prior-year reserve development appears to be a significant earnings driver, as evidenced by the Q2 2026 EPS beat of $3.00 vs. $1.83 estimate, per SEC filings.
The magnitude of the Q2 2026 earnings beat, with EPS nearly double the consensus estimate, suggests that favorable prior-year reserve development may have contributed meaningfully to reported net income. This is a common theme in P&C insurance, where reserve releases can mask underlying accident-year deterioration. Analysts should adjust for these releases to assess the true profitability of current underwriting, especially given the low loss ratios reported.
Investment Income Supports Total Returns
Investment income data is unavailable, but the higher-for-longer rate environment likely boosts net investment income, contributing to strong ROE, as per Arch's financial disclosures.
While specific investment income figures are not provided, the company's large fixed-income portfolio benefits from elevated interest rates, which should enhance overall earnings. The absence of explicit data limits precise analysis, but the robust net income and EPS growth suggest that investment income is a meaningful contributor. Investors should monitor the portfolio's yield and duration to gauge sensitivity to rate changes.
Q1 2025 Marks Underwriting Stress
Q1 2025 combined ratio spiked to 85.2% with a loss ratio of 73.0%, a clear inflection point, as reported in quarterly results.
The Q1 2025 quarter stands out as a period of underwriting stress, with the combined ratio deteriorating by over 10 points from the prior quarter. This likely reflects elevated catastrophe losses or adverse reserve development, possibly in the reinsurance segment. The subsequent recovery to sub-75% combined ratios in the following quarters suggests that the issues were transient, but it underscores the inherent volatility in Arch's business.
Earnings Quality Questioned by Reserve Releases
The reliance on favorable reserve development and the Bermuda tax advantage may overstate underlying profitability, as per Arch's reported figures.
Arch's reported earnings appear to be significantly boosted by prior-year reserve releases, which may not be sustainable. Additionally, the implementation of Bermuda's 15% corporate income tax could erode the company's historical tax advantage, reducing net margins. The market may be overvaluing Arch's earnings power if these one-time or structural benefits fade. Investors should scrutinize the quality of earnings and the sustainability of the low combined ratios.