Here's What Key Metrics Tell Us About Arch Capital (ACGL) Q4 Earnings

Core Insights - Arch Capital Group (ACGL) reported a revenue of $4.55 billion for the quarter ended December 2024, reflecting a year-over-year increase of 23.8% and a surprise of +6.14% over the Zacks Consensus Estimate of $4.28 billion [1] - The earnings per share (EPS) for the quarter was $2.26, down from $2.49 in the same quarter last year, with an EPS surprise of +22.16% compared to the consensus estimate of $1.85 [1] Financial Performance Metrics - Loss Ratio: 57.5%, better than the estimated 58.7% [4] - Combined Ratio: 85%, outperforming the average estimate of 87.3% [4] - Expense Ratio - Other Operating Expense: 9.9%, compared to the estimated 10.1% [4] - Expense Ratio - Total Acquisition Expense: 17.6%, better than the average estimate of 18.6% [4] Revenue Breakdown - Net Investment Income: $405 million, slightly below the average estimate of $415.62 million, but a year-over-year increase of +29.4% [4] - Net Premiums Earned: $4.14 billion, exceeding the estimated $3.87 billion, with a year-over-year change of +23.9% [4] - Insurance Segment Net Premiums Earned: $1.93 billion, surpassing the estimate of $1.66 billion, reflecting a +33.4% year-over-year change [4] - Reinsurance Segment Net Premiums Earned: $1.90 billion, slightly below the estimate of $1.92 billion, with a +17.5% year-over-year change [4] - Mortgage Segment Net Premiums Earned: $306 million, exceeding the estimate of $280.41 million, representing an +11.3% year-over-year change [4] - Other Underwriting Income: $6 million, above the estimate of $4.39 million, but a -40% change year-over-year [4] - Equity in Net Income of Investment Funds: $143 million, significantly above the estimate of $60.02 million, with a +40.2% year-over-year change [4] - Other Income: $12 million, exceeding the estimate of $4.67 million, but a -29.4% change year-over-year [4] Stock Performance - Arch Capital's shares have returned +3.7% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]