Revenue growth has decelerated from a 36.0% peak in 2024Q3 to a 5.0% contraction in 2026Q1, though underwriting discipline persists with a 73.7% combined ratio.
| 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 | 19.7B | 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 % | 8.51% | 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 | 11.26B | 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 % | 57.17% | 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 | 8.44B | 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 % | 42.83% | 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 | 2.99B | 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 % | 15.18% | 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 | 174M | 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 % | 72.35% | 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 | 5.45B | 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 % | 27.65% | 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 | 5.62B | 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 % | 28.53% | 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 | 150M | 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 | -182M | -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 | 5.61B | 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 % | 28.47% | 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 | 737M | 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 % | 13.14% | 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 | 4.87B | 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 % | 24.73% | 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 % | 29.37% | 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) | 13.54 | 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 % | 33.54% | 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 | 359.7M | 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 |
Social inflation and litigation
As reported in financial statements, Arch Capital's revenue growth trajectory has shifted from a peak of 36.0% in 2024Q3 to a contraction of 5.0% in 2026Q1, suggesting that the company is navigating a transition from a period of aggressive expansion to a more disciplined underwriting environment.
The recent deceleration in top-line growth appears to reflect a strategic pivot away from underpriced risks as the hard market cycle matures. Investors should monitor whether this contraction is a temporary tactical retreat or a sign of broader market saturation in the company's core reinsurance and insurance segments.
Based on reported figures, Arch Capital maintained a combined ratio of 73.7% in 2026Q1, demonstrating that the firm continues to generate significant underwriting profit despite the volatility observed in the loss ratio, which fluctuated between 47.9% and 73.0% over the last ten quarters.
The ability to keep the combined ratio well below the 100% threshold suggests that the company's risk selection remains highly effective. This margin profile appears to be supported by the unique contribution of the mortgage insurance segment, which provides a structural buffer against the inherent volatility of property and casualty lines.
According to recent SEC filings, the 2025Q1 period marked a significant inflection point where the loss ratio spiked to 73.0%, coinciding with a sharp 49.3% decline in EPS, which highlights the company's sensitivity to sudden shifts in claims frequency and severity within its diversified portfolio.
This period warrants further investigation as it may indicate the impact of social inflation or unexpected catastrophe activity on long-tail casualty reserves. The subsequent recovery in profitability suggests that management's reactive adjustments to pricing and risk appetite were effective in stabilizing the bottom line.
While Arch Capital reports robust underwriting margins, the reliance on prior-year reserve development to smooth earnings, as noted in historical filings, suggests that investors should remain cautious regarding the potential for future adverse development in long-tail casualty lines currently impacted by rising social inflation.
The company's historical earnings stability may be partially masked by the timing of reserve releases, which could obscure the true underlying profitability of the current accident year. If litigation trends continue to accelerate, the current reserve levels may appear less conservative than they have historically been, potentially necessitating future strengthening.
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.