Arch Capital .(US:ACGL) ZACKS·2025-10-22 14:16Core Viewpoint - Arch Capital Group (ACGL) is expected to report quarterly earnings of $2.14 per share, reflecting a year-over-year increase of 7.5%, with anticipated revenues of $4.8 billion, marking a 9.7% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.9% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenues- Net premiums earned- Mortgage Segment' will reach $295.81 million, a decrease of 5.5% from the previous year [5]. - 'Revenues- Other underwriting income (loss)' is estimated at $34.56 million, showing a significant increase of 591.2% year-over-year [5]. - 'Revenues- Net investment income' is projected to be $413.08 million, reflecting a 3.5% increase compared to the prior year [5]. - The 'Revenues- Net premiums earned- Reinsurance Segment' is estimated at $2.08 billion, indicating a year-over-year increase of 9.8% [6]. Loss and Expense Ratios - The consensus for 'Loss Ratio - Total' is expected to be 58.5%, down from 60.5% in the same quarter last year [6]. - 'Underwriting Expense Ratio - Mortgage Segment' is projected to be 16.9%, up from 15.2% reported in the previous year [7]. - The 'Combined Ratio - Total' is expected to be 86.4%, slightly better than the 86.6% from the previous year [8]. - The 'Loss Ratio - Insurance Segment' is forecasted at 60.6%, down from 61.6% year-over-year [8]. Stock Performance - Over the past month, shares of Arch Capital have returned -0.9%, contrasting with the Zacks S&P 500 composite's +1.1% change [9]. - Currently, ACGL holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9].