Arch Capital (ACGL) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Arch Capital Group reported revenue of $4.38 billion for the quarter ended September 2024, reflecting a year-over-year increase of 24.6% and surpassing the Zacks Consensus Estimate by 8.12% [1] - The company's EPS for the quarter was $1.99, down from $2.31 in the same quarter last year, but above the consensus estimate of $1.94 by 2.58% [1] Financial Performance Metrics - Combined Ratio - Total: 86.6%, better than the average estimate of 87.1% [3] - Loss Ratio - Total: 60.5%, higher than the estimated 58.6% [3] - Expense Ratio - Other Operating Expense Ratio: 8.9%, lower than the average estimate of 9.8% [3] - Combined Ratio - Insurance Segment: 93.1%, compared to the average estimate of 96.4% [3] - Net premiums earned: $3.97 billion, exceeding the estimate of $3.66 billion, with a year-over-year increase of 22.2% [3] - Net investment income: $399 million, surpassing the estimate of $372.52 million, with a year-over-year change of 48.3% [3] - Equity in net income (loss) of investment funds: $171 million, significantly higher than the estimate of $56.80 million, representing a year-over-year change of 189.8% [3] - Other underwriting income: $5 million, above the average estimate of $3.73 million [3] - Net premiums earned - Insurance Segment: $1.77 billion, exceeding the estimate of $1.54 billion, with a year-over-year increase of 25% [3] - Net premiums earned - Reinsurance Segment: $1.89 billion, slightly above the estimate of $1.84 billion, with a year-over-year change of 22.6% [3] - Net premiums earned - Mortgage Segment: $313 million, exceeding the estimate of $279.90 million, with a year-over-year increase of 6.8% [3] - Other income: $8 million, above the estimate of $4.67 million, but reflecting a year-over-year change of -300% [3] Stock Performance - Arch Capital's shares have returned -7.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]