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Compared to Estimates, Arch Capital (ACGL) Q1 Earnings: A Look at Key Metrics
ACGLArch Capital .(ACGL) ZACKS·2025-04-30 00:30

Core Insights - Arch Capital Group (ACGL) reported a revenue of 4.56billionforthequarterendedMarch2025,reflectingayearoveryearincreaseof21.34.56 billion for the quarter ended March 2025, reflecting a year-over-year increase of 21.3% [1] - The earnings per share (EPS) for the quarter was 1.54, down from 2.45inthesamequarterlastyear,butexceededtheconsensusestimateof2.45 in the same quarter last year, but exceeded the consensus estimate of 1.37 by 12.41% [1] Financial Performance Metrics - The total loss ratio was reported at 61.8%, better than the estimated 65% by analysts [4] - The combined ratio for the mortgage segment was 16.1%, significantly lower than the average estimate of 25.9% [4] - The loss ratio for the mortgage segment was 1.1%, compared to the estimated 8% [4] - The combined ratio for the reinsurance segment was 91.8%, slightly better than the estimated 93.9% [4] Revenue Breakdown - Net investment income was 378million,belowtheaverageestimateof378 million, below the average estimate of 415.07 million, but showed a year-over-year increase of 15.6% [4] - Net premiums earned totaled 4.19billion,exceedingtheestimateof4.19 billion, exceeding the estimate of 4.09 billion, with a year-over-year increase of 22.4% [4] - Net premiums earned in the insurance segment were 1.86billion,surpassingtheestimateof1.86 billion, surpassing the estimate of 1.80 billion, reflecting a 28.2% year-over-year change [4] - Net premiums earned in the reinsurance segment were 2.03billion,comparedtotheestimateof2.03 billion, compared to the estimate of 2.01 billion, indicating a 21.7% year-over-year increase [4] - Net premiums earned in the mortgage segment were 300million,slightlyabovetheestimateof300 million, slightly above the estimate of 290.01 million, but down 1.6% year-over-year [4] - Other underwriting income was reported at 53million,significantlyhigherthantheestimateof53 million, significantly higher than the estimate of 7.41 million, representing a year-over-year increase of 341.7% [4] - Equity in net income of investment funds was 53million,belowtheestimateof53 million, below the estimate of 111.56 million, showing a decline of 46.5% year-over-year [4] - Other income was reported at -2million,worsethantheestimateof2 million, worse than the estimate of 6.33 million, reflecting a year-over-year change of -114.3% [4] Stock Performance - Arch Capital's shares have returned -5.2% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]