Core Insights - Arch Capital Group (ACGL) reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.37 per share, but down from $2.45 per share a year ago, representing an earnings surprise of 12.41% [1] - The company posted revenues of $4.56 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.99%, compared to $3.76 billion in the same quarter last year [2] - Arch Capital has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.36 on revenues of $4.66 billion, while for the current fiscal year, the estimate is $7.85 on revenues of $18.96 billion [7] - The estimate revisions trend for Arch Capital is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which Arch Capital belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Premiums and Income - Gross premiums written increased by 8.9% to $6,463 million compared to $5,933 million in the same period last year[12] - Net premiums earned rose by 22.4% to $4,188 million from $3,422 million year-over-year[12] - Net income available to Arch common shareholders fell by 49.2% to $564 million, compared to $1,110 million in the same quarter last year[12] - After-tax operating income available to Arch common shareholders decreased by 37.1% to $587 million from $933 million year-over-year[12] - Net premiums earned for the mortgage segment reached $300 million in Q1 2025, compared to $305 million in Q1 2024, showing a slight decrease of 1.6%[35] - Net premiums written decreased to $266 million in Q1 2025, down 4.0% from $277 million in Q4 2024[53] - Net premiums earned were $300 million for Q1 2025, compared to $305 million in Q1 2024, reflecting a decrease of 1.6%[53] Underwriting Performance - Underwriting income decreased by 43.3% to $417 million, down from $736 million in the previous year[12] - The combined ratio worsened to 90.1%, an increase of 11.3 percentage points from 78.8% in the prior year[12] - The combined ratio for the insurance segment was 100.1% in Q1 2025, indicating a deterioration from 94.1% in Q1 2024[35] - The loss ratio for the insurance segment was 66.0% in Q1 2025, compared to 58.9% in Q1 2024, reflecting an increase of 7.1 percentage points[35] - The combined ratio for Q1 2025 was 90.1%, up from 85.0% in Q4 2024, reflecting increased costs associated with claims[74] - The loss ratio for Q1 2025 was 61.8%, compared to 57.5% in Q4 2024, indicating a deterioration in underwriting performance[74] Investment Performance - Pre-tax net investment income increased by 15.6% to $378 million, up from $327 million in the previous year[12] - Total return on investments improved by 122 basis points to 2.02% compared to 0.80% in the same period last year[12] - The annualized net income return on average common equity dropped to 11.1%, down from 24.6% in the previous year[12] - Total investable assets increased to $43,054 million in Q1 2025, up from $35,944 million in Q1 2024, representing a growth of 19.7%[35] - The company reported net investment income of $378 million in Q1 2025, compared to $327 million in Q1 2024, showing an increase of 15.6%[35] - The total return on investments for the three months ended March 31, 2025, was 2.02%, recovering from a negative return of (1.05)% in the previous quarter[84] Cash Flow and Assets - Net cash provided by operating activities decreased by 6.8% to $1,458 million from $1,564 million year-over-year[12] - Total assets increased to $75,176 million as of March 31, 2025, up from $70,906 million at December 31, 2024, representing an increase of 3.6%[20] - Cash and restricted cash at the end of the period was $1,985 million, an increase from $1,760 million at the end of the previous quarter[25] - Shareholders' equity reached $21,545 million, up from $20,820 million, indicating a growth of 3.5%[23] - The company reported a net cash provided by operating activities of $1,458 million for the first quarter of 2025[25] Shareholder Actions - The company repurchased shares worth $196 million during the first quarter of 2025[25] - The average price per share repurchased was $88.89 during the same period[117] - The remaining share repurchase authorization is $800.4 million as of March 31, 2025[117] - Cumulative shares repurchased since the program's inception total 436 million shares[117] Debt and Equity - Total debt as of March 31, 2025, is $2,728 million, consistent with the previous quarter[115] - Common shareholders' equity increased to $20,715 million as of March 31, 2025, compared to $19,990 million in the previous quarter[115] - Total capital available to Arch as of March 31, 2025, is $24,273 million, compared to $23,548 million in the previous quarter[115] - Debt and preferred equity to total capital available to Arch is 14.7% as of March 31, 2025, down from 15.1% in the previous quarter[115] Risk and Compliance - The PMIER sufficiency ratio is reported at 186% as of March 31, 2025, indicating strong compliance with GSE requirements[63] - The risk-to-capital ratio for Arch MI U.S. is 7.8:1 as of March 31, 2025, unchanged from the previous quarter[62] - The percentage of RIF by credit quality shows that 62.6% is from borrowers with a FICO score of 740 and above[61] Miscellaneous - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[46] - The effective tax rate on pre-tax operating income available to Arch was 11.7% in Q1 2025, an increase from 8.5% in Q1 2024[113] - The company emphasizes the importance of after-tax operating income as a non-GAAP financial measure to evaluate performance, excluding net realized gains or losses[100]

Analysts on Wall Street project that Arch Capital Group (ACGL) will announce quarterly earnings of $1.37 per share in its forthcoming report, representing a decline of 44.1% year over year. Revenues are projected to reach $4.55 billion, increasing 20.8% from the same quarter last year. Analysts forecast 'Revenues- Net premiums earned' to reach $4.09 billion. The estimate indicates a change of +19.6% from the prior-year quarter. The consensus EPS estimate for the quarter has undergone a downward revision of ...

Arch Capital Group Ltd. (ACGL) is expected to register an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on April 29, after the closing bell.The Zacks Consensus Estimate for BRO’s first-quarter revenues is pegged at $4.55 billion, indicating 20.7% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $1.37 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved down 6.2% in the past 30 da ...

Company Overview - Arch Capital Group (ACGL) closed at $92.51, reflecting a -0.47% change from the previous day, underperforming the S&P 500's gain of 1.67% [1] - The stock has decreased by 1.72% over the past month, contributing to the Finance sector's decline of 4.45% and the S&P 500's loss of 6.57% [1] Upcoming Earnings - The earnings report for Arch Capital Group is anticipated on April 29, 2025, with projected earnings of $1.37 per share, indicating a year-over-year decline of 44.08% [2] - Revenue is expected to reach $4.55 billion, representing a 20.79% increase from the same quarter last year [2] Annual Estimates - For the annual period, earnings are estimated at $7.85 per share and revenue at $18.96 billion, reflecting changes of -15.41% and +14.07% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates suggest optimism regarding Arch Capital Group's business and profitability, as positive revisions typically correlate with favorable stock price performance [3][4] Zacks Rank and Performance - Arch Capital Group currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 1.22% in the past month [5] - The Zacks Rank system has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] Valuation Metrics - Arch Capital Group has a Forward P/E ratio of 11.84, which is a premium compared to the industry's average Forward P/E of 11.74 [6] - The company has a PEG ratio of 3.7, while the average PEG ratio for the Insurance - Property and Casualty industry is 2.11 [7] Industry Context - The Insurance - Property and Casualty industry is part of the Finance sector and holds a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

The market expects Arch Capital Group (ACGL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rel ...

Group 1 - The article introduces Patrick Maguire, CFA, as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas for publication [1] - The article emphasizes the opportunity for contributors to earn money and gain access to exclusive SA Premium content [1] Group 2 - The analyst has disclosed a long position in ACGL shares, indicating a personal investment interest [2] - The analyst also holds long positions in BRK.A and PRU within the insurance industry, suggesting a focus on these companies [2]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Arch Capital Group (ACGL) .Arch Capital currently has an average brokerage ...

Company Performance - Arch Capital Group (ACGL) ended the latest trading session at $94.58, reflecting a +0.61% change from the previous close, outperforming the S&P 500's daily gain of 0.16% [1] - The stock has gained 4.98% over the past month, surpassing the Finance sector's loss of 0.19% and the S&P 500's loss of 3.59% [1] Upcoming Earnings - The upcoming earnings report for Arch Capital Group is scheduled for April 29, 2025, with an expected EPS of $1.59, indicating a 35.1% decline compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $4.56 billion, representing a 21.05% increase from the year-ago period [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $8.16 per share and revenue of $18.94 billion, reflecting changes of -12.07% and +13.93% respectively from the previous year [3] Analyst Projections - Recent shifts in analyst projections for Arch Capital Group should be monitored, as they reflect evolving short-term business trends and can indicate analysts' favorable outlook on the company's health and profitability [4] Stock Performance and Valuation - Adjustments in earnings estimates are directly associated with imminent stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] - Arch Capital Group currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 1.86% in the past month [6] Valuation Metrics - The company has a Forward P/E ratio of 11.52, which is lower than the industry average Forward P/E of 11.93 [7] - Arch Capital Group's PEG ratio stands at 4.03, compared to the average PEG ratio of 1.67 for the Insurance - Property and Casualty industry [8] Industry Context - The Insurance - Property and Casualty industry is part of the Finance sector and currently holds a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [9]

Core Viewpoint - Arch Capital Group (ACGL) has been gaining attention as one of the most searched stocks, with its performance influenced by various fundamental factors [1][2]. Earnings Estimates - For the current quarter, Arch Capital is expected to report earnings of $1.59 per share, reflecting a year-over-year decline of -35.1%, with the Zacks Consensus Estimate decreasing by -11.3% over the last 30 days [5]. - The consensus earnings estimate for the current fiscal year stands at $8.16, indicating a year-over-year change of -12.1%, with a recent adjustment of -4.4% [5]. - For the next fiscal year, the consensus earnings estimate is $9.71, showing a year-over-year increase of +19%, with a slight change of -0.6% over the past month [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $4.56 billion, representing a year-over-year increase of +21.1% [9]. - For the current fiscal year, the revenue estimates are $18.94 billion and $20.62 billion, indicating changes of +13.9% and +8.9%, respectively [9]. Last Reported Results - In the last reported quarter, Arch Capital achieved revenues of $4.55 billion, a year-over-year increase of +23.8%, and an EPS of $2.26, down from $2.49 a year ago [11]. - The reported revenues exceeded the Zacks Consensus Estimate of $4.28 billion by +6.14%, while the EPS surprise was +22.16% [11]. - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [11]. Valuation - Arch Capital is graded B in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [15]. - The evaluation of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's fair value [13][14].