Track market-moving stories before they get noisy

Key Takeaways ACGL's Q2 premiums are likely to reflect underwriting discipline despite softer property reinsurance pricing. Higher investment income and share buybacks are expected to support second-quarter earnings.Elevated catastrophe losses and higher expenses may pressure underwriting profitability.
Arch Capital Group Ltd. (ACGL - Free Report) is expected to register a decrease in both top and bottom lines when it reports second-quarter 2026 results on July 28, after the closing bell.

The Zacks Consensus Estimate for ACGL’s second-quarter revenues is pegged at $4.59 billion, indicating a 3.5% decline from the year-ago quarter’s reported figure.

The consensus estimate for earnings is pegged at $2.46 per share. The Zacks Consensus Estimate for ACGL’s second-quarter earnings has moved north 1 cent in the last seven days. The estimate suggests a year-over-year decrease of 4.6%.

What the Zacks Model Unveils for ACGLOur proven model does not predict an earnings beat for Arch Capital this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:

Earnings ESP: Arch Capital has an Earnings ESP of -1.56% at present. This is because the Most Accurate Estimate of $2.43 per share is pegged lower than the Zacks Consensus Estimate of $2.46. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Arch Capital currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape ACGL’s Q2 ResultsRate increases, new business opportunities, growth in existing accounts, strong underwriting performance, portfolio optimization and continued contributions from the Allianz MidCorp acquisition are expected to have supported net premiums earned. However, softer property catastrophe reinsurance pricing and lower premiums resulting from the non-renewal of underperforming business are likely to have limited premium growth.  The Zacks Consensus Estimate for net premiums earned is pegged at $4.14 billion. We expect net premiums earned to have decreased 3.6% to $4.18 billion.

The Mortgage segment is expected to have faced pressure from lower gross premiums written and Bellemeade Re tender offer expenses, although strong credit performance, low delinquencies and growth in non-GSE transactions are likely to have provided support.

Net investment income is likely to have benefited from a larger invested asset base, driven by solid operating cash flows and elevated reinvestment yields. We expect the metric to be $420.9 million. The Zacks Consensus Estimate is pegged at $423.2 million.

Expenses are expected to have increased in the to-be-reported quarter due to higher losses and loss adjustment expenses, acquisition costs, other operating expenses, amortization of intangible assets, corporate expenses and interest expenses. We expect total expenses to decrease 4.2% to $3.6 billion.

Prudent pricing in casualty and specialty lines, disciplined underwriting and favorable prior-year reserve development are expected to have supported underwriting profitability and the combined ratio. However, elevated catastrophe losses from severe weather events are likely to have partially offset these benefits. The Zacks Consensus Estimate for the combined ratio is pegged at 84, and our estimate is pinned at 84.8.

Share buybacks are likely to have added upside to the bottom line.

Stocks to ConsiderHere are three other P&C insurance stocks that you may want to consider, as our model shows that have the right combination of elements to post an earnings beat:

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +8.84% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77 per share, indicating a year-over-year decrease of 7.6%.

CINF’s earnings beat estimates in each of the last four reported quarters.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +23.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92 per share, indicating a year-over-year decrease of 17.1%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Axis Capital Holding Limited (AXS - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year decrease of 1.8%.

AXS’s earnings beat estimates in each of the last four reported quarters.

Posted by Defense World Staff on Jul 22nd, 2026

Dimensional Fund Advisors LP grew its stake in Arch Capital Group Ltd. (NASDAQ:ACGL – Free Report) by 2.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,173,885 shares of the insurance provider’s stock after purchasing an additional 117,929 shares during the quarter. Dimensional Fund Advisors LP owned approximately 1.17% of Arch Capital Group worth $400,643,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Elyxium Wealth LLC purchased a new position in Arch Capital Group in the 4th quarter valued at about $27,000. WealthCollab LLC boosted its holdings in Arch Capital Group by 410.3% in the 3rd quarter. WealthCollab LLC now owns 296 shares of the insurance provider’s stock worth $27,000 after buying an additional 238 shares during the last quarter. JPL Wealth Management LLC purchased a new stake in Arch Capital Group during the 3rd quarter worth approximately $28,000. Aventura Private Wealth LLC acquired a new position in shares of Arch Capital Group during the fourth quarter valued at approximately $30,000. Finally, TD Waterhouse Canada Inc. raised its holdings in shares of Arch Capital Group by 72.7% during the fourth quarter. TD Waterhouse Canada Inc. now owns 323 shares of the insurance provider’s stock valued at $31,000 after acquiring an additional 136 shares during the last quarter. Hedge funds and other institutional investors own 89.07% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have recently issued reports on ACGL. Barclays lifted their price target on Arch Capital Group from $104.00 to $106.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 8th. Mizuho increased their price objective on Arch Capital Group from $101.00 to $104.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. Cantor Fitzgerald restated a “neutral” rating and issued a $102.00 price objective (up from $100.00) on shares of Arch Capital Group in a report on Thursday, July 9th. Atlantic Securities set a $126.00 target price on shares of Arch Capital Group in a research note on Wednesday, July 15th. Finally, Weiss Ratings lowered shares of Arch Capital Group from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 18th. Eight equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $109.82.

View Our Latest Research Report on ACGL

Arch Capital Group Price Performance NASDAQ:ACGL opened at $100.55 on Wednesday. Arch Capital Group Ltd. has a one year low of $82.44 and a one year high of $105.09. The stock has a market cap of $35.13 billion, a PE ratio of 7.72, a P/E/G ratio of 5.07 and a beta of 0.31. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.55 and a current ratio of 0.55. The stock has a 50 day moving average price of $95.38 and a 200 day moving average price of $95.70.

Arch Capital Group (NASDAQ:ACGL – Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The insurance provider reported $2.50 earnings per share for the quarter. Arch Capital Group had a return on equity of 17.61% and a net margin of 24.64%.The company had revenue of $4.52 billion for the quarter. Equities research analysts expect that Arch Capital Group Ltd. will post 9.35 EPS for the current fiscal year.

Insider Activity In other news, Director Daniel Joseph Houston acquired 5,300 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was purchased at an average cost of $94.08 per share, for a total transaction of $498,624.00. Following the completion of the transaction, the director owned 9,915 shares in the company, valued at approximately $932,803.20. This trade represents a 114.84% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Brian S. Posner sold 3,000 shares of Arch Capital Group stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $19.66, for a total transaction of $58,980.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 3.30% of the company’s stock.

About Arch Capital Group (Free Report)

Arch Capital Group Ltd. (NASDAQ: ACGL) is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch’s product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.

Featured Articles Five stocks we like better than Arch Capital Group Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding ACGL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arch Capital Group Ltd. (NASDAQ:ACGL – Free Report).

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The market expects Arch Capital Group (ACGL - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. 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 earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis property and casualty insurer is expected to post quarterly earnings of $2.45 per share in its upcoming report, which represents a year-over-year change of -5%.

Revenues are expected to be $4.59 billion, down 3.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.34% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Arch Capital?For Arch Capital, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.52%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Arch Capital will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Arch Capital would post earnings of $2.45 per share when it actually produced earnings of $2.50, delivering a surprise of +2.04%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Arch Capital doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Insurance - Property and Casualty industry, Cincinnati Financial (CINF - Free Report) , is soon expected to post earnings of $1.82 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -7.6%. Revenues for the quarter are expected to be $3.01 billion, up 8.4% from the year-ago quarter.

The consensus EPS estimate for Cincinnati Financial has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +7.22%.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Cincinnati Financial will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of Vantage Risk Ltd. (Bermuda) and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company (both domiciled in Wilmington, DE), which do business as Vantage Group, remain unchanged following an announced leadership change.

Marc Grandisson, former CEO of Arch Capital Group Ltd. [NASDAQ: ACGL], has been appointed executive chairman of Vantage Group Holdings Ltd. (Vantage). Additionally, David Gansberg, former president of Arch Capital Group Ltd., has been appointed CEO of Vantage. Grandisson’s appointment is effective immediately; however, Gansberg’s appointment will not take effect until June 2027. Until then, Grandisson will work with Vantage’s founding CEO, Greg Hendrick, through the transition.

The appointments offer additional experienced industry leadership to the Vantage Group. While the transition represents a notable governance change following Howard Hughes Holdings Inc.’s [NYSE: HHH] acquisition of Vantage, the group’s balance sheet strength, operating performance, business profile, and enterprise risk management assessments remain unchanged. Additionally, the outlooks of these ratings remain positive.

AM Best will continue to monitor the leadership transition through the remainder of Hendrick’s tenure and Gansberg’s transition into the new role, and potentially take rating action should any developments impact Vantage’s creditworthiness.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

HomeStock IdeasLong IdeasFinancials 

SummaryArch Capital retains a Conditional Quality Buy rating, contingent on maintaining profitability and book value growth amid declining reinsurance pricing.Q1 2026 results confirm robust underwriting and a 15.4% operating ROE, but headline strength reflects favorable reserve releases from prior periods.ACGL’s strong balance sheet and capital flexibility allow disciplined risk selection, enabling avoidance of poorly priced contracts without liquidity pressure.Buy thesis hinges on ACGL preserving margins and ROE as earned reinsurance premiums decline; Hold becomes justified if profitability erodes alongside volume. Panuwat Dangsungnoen/iStock via Getty Images

Introduction Arch Capital Group Ltd. (ACGL) is still one of the highest-quality names in the insurance market. The problem is that the environment that produced those returns is already changing. The reinsurance market is offering

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Arch Capital Group (ACGL - Free Report) ended the recent trading session at $103.06, demonstrating a +1.98% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.

The property and casualty insurer's stock has climbed by 10.26% in the past month, exceeding the Finance sector's gain of 5.64% and the S&P 500's gain of 4.28%.

Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. The company plans to announce its earnings on July 28, 2026. The company's earnings per share (EPS) are projected to be $2.45, reflecting a 5.04% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.59 billion, reflecting a 3.51% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.34 per share and a revenue of $18.24 billion, indicating changes of -5.08% and -2.91%, respectively, from the former year.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. As of now, Arch Capital Group holds a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 10.82. This signifies a discount in comparison to the average Forward P/E of 11.91 for its industry.

We can additionally observe that ACGL currently boasts a PEG ratio of 5.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty industry had an average PEG ratio of 3.04 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Arch Capital Group (ACGL - Free Report) . This company, which is in the Zacks Insurance - Property and Casualty industry, shows potential for another earnings beat.

This property and casualty insurer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.86%.

For the last reported quarter, Arch Capital came out with earnings of $2.5 per share versus the Zacks Consensus Estimate of $2.45 per share, representing a surprise of 2.04%. For the previous quarter, the company was expected to post earnings of $2.49 per share and it actually produced earnings of $2.98 per share, delivering a surprise of 19.68%.

Price and EPS Surprise

For Arch Capital, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Arch Capital currently has an Earnings ESP of +9.02%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 28, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Arch Capital Group?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Arch Capital Group (ACGL - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $2.68 a share, just 28 days from its upcoming earnings release on July 28, 2026.

Arch Capital Group's Earnings ESP sits at +8.94%, which, as explained above, is calculated by taking the percentage difference between the $2.68 Most Accurate Estimate and the Zacks Consensus Estimate of $2.46. ACGL is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ACGL is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Bank of America (BAC - Free Report) as well.

Slated to report earnings on July 14, 2026, Bank of America holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.13 a share 14 days from its next quarterly update.

For Bank of America, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.11 is +1.80%.

ACGL and BAC's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

In the latest close session, Arch Capital Group (ACGL - Free Report) was up +1.21% at $94.84. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.

Shares of the property and casualty insurer witnessed a loss of 1.74% over the previous month, trailing the performance of the Finance sector with its gain of 2.81%, and the S&P 500's loss of 1.34%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is expected to report EPS of $2.46, down 4.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.6 billion, down 3.39% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $9.3 per share and a revenue of $18.2 billion, demonstrating changes of -5.49% and -3.12%, respectively, from the preceding year.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Arch Capital Group currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 10.07. This represents a discount compared to its industry average Forward P/E of 11.4.

Meanwhile, ACGL's PEG ratio is currently 4.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Insurance - Property and Casualty industry stood at 2.39 at the close of the market yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Arch Capital Group (ACGL - Free Report) closed at $93.71 in the latest trading session, marking a +1.81% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.44%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.

The property and casualty insurer's shares have seen a decrease of 4.42% over the last month, not keeping up with the Finance sector's gain of 3.16% and the S&P 500's gain of 0.08%.

Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. In that report, analysts expect Arch Capital Group to post earnings of $2.46 per share. This would mark a year-over-year decline of 4.65%. Our most recent consensus estimate is calling for quarterly revenue of $4.6 billion, down 3.39% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $9.3 per share and a revenue of $18.2 billion, demonstrating changes of -5.49% and -3.12%, respectively, from the preceding year.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 9.89. This expresses a discount compared to the average Forward P/E of 11.17 of its industry.

Investors should also note that ACGL has a PEG ratio of 4.6 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.36 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

In the latest trading session, Arch Capital Group (ACGL - Free Report) closed at $92.58, marking a +1.18% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.57%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 1.15%.

Prior to today's trading, shares of the property and casualty insurer had lost 4.56% lagged the Finance sector's gain of 4.57% and the S&P 500's gain of 2.14%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company's upcoming EPS is projected at $2.46, signifying a 4.65% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.6 billion, indicating a 3.39% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.3 per share and a revenue of $18.2 billion, indicating changes of -5.49% and -3.12%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 9.84. This signifies a discount in comparison to the average Forward P/E of 10.9 for its industry.

Also, we should mention that ACGL has a PEG ratio of 4.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty was holding an average PEG ratio of 2.35 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”), a leading provider of insurance, reinsurance and mortgage insurance globally, today announced the promotions of Jerome Halgan to CEO of Arch Global Reinsurance Group and Michael Schmeiser to CEO of Arch Global Mortgage Group. Both will continue to report to Arch President Maamoun Rajeh.

“Jerome and Michael are experienced leaders who are deeply grounded in Arch’s underwriting culture and corporate values, and they have consistently outperformed through market cycles,” Rajeh said. “Through disciplined capital deployment and strong relationships, both have contributed meaningfully to the strength of our global platform. Their leadership will help us continue to activate Arch’s deep bench of talent, execute with consistency and position us to deliver long-term value for clients and shareholders.”

Halgan joined Arch in 2009. He has served as President and Chief Underwriting Officer of Arch Reinsurance Group since 2024, and as CEO of Arch Re Bermuda since 2018. Schmeiser joined Arch in 2017 and has served as President and CEO of Arch U.S. Mortgage since 2019.

“I am honored for this opportunity to continue building Arch’s global reinsurance platform side-by-side with some of the brightest minds in the industry,” Halgan said. “Our approach remains consistent: applying disciplined underwriting, managing the cycle carefully and deepening our relationships with brokers and cedants. That foundation allows us to deliver the insights and solutions our clients need and to grow the business over the long term.”

“I’m proud to step into this role leading the world’s foremost provider of mortgage credit risk solutions,” Schmeiser said. “Our diverse businesses are supported by analytical rigor, strong relationships and a depth of experience unmatched in the industry. I look forward to applying my knowledge of our U.S. operations to our other Global Mortgage businesses and collaborating more closely with our teams around the world.”

These appointments follow the recent expansion of Maamoun Rajeh’s role as President of Arch. Arch Insurance North America CEO Matt Shulman and Arch Insurance International CEO Hugh Sturgess will continue to report to Rajeh.

About Arch Capital Group Ltd.

Arch Capital Group Ltd. (Nasdaq: ACGL) is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 Index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including the effect of contagious diseases on our business; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters; ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses the Company has acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and the other matters set forth under ITEM 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of our 2025 10-K, as well as the other factors set forth in our other documents on file with the SEC, and management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward-looking statements attributable to us or persons acting on the Company’s behalf are expressly qualified in their entirety by these cautionary statements. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Source: Arch Capital Group Ltd.
arch-corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20260617719148/en/

Arch Capital Group Ltd. Announces Early Results of Cash Tender Offers to Purchase up to an Increased Capped Amount of Certain of Its Subsidiaries' Debt Securities Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) today announced the early results for the previously announced cash tender offers (the “Tender Offers”) by its wholly-owned subsidiaries, (x) Arch Capital Group (U.S.) Inc. (the “2043 Notes Offeror”) of its outstanding 5.144% Senior Notes due 2043 (the “2043 Notes”) and (y) Arch Capital Finance LLC (the “2046 Notes Offeror” and, together with the 2043 Notes Offeror, the “Offerors”) of its outstanding 5.031% Senior Notes due 2046 (the “2046 Notes” and together with the 2043 Notes, collectively, the “Notes” and each a “Series” of Notes), for an increased aggregate principal amount of up to $417,851,000 (the “Maximum Amount”), in the order of priority shown in the table below. Capitalized terms used in this press release and not defined herein have the meanings given to them in the Offer to Purchase, dated June 2, 2026 (the “Offer to Purchase”).

Except as described in this press release, all other terms and conditions of the Tender Offers remain unchanged and are described in the Offer to Purchase.

The table below sets forth, among other things, the aggregate principal amount of the Notes validly tendered and not validly withdrawn as of 5:00 p.m., New York City time, on June 15, 2026 (such date and time, the “Early Tender Deadline”) according to the information provided by Global Bondholder Services Corporation as the Tender Agent and Information Agent.

Title of Security

CUSIP / ISIN(1)

Original Issuer

Aggregate Principal Amount Outstanding

Acceptance Priority Level(2)

Reference U.S. Treasury Security

Bloomberg Reference Page(3)

Early Tender Premium(4)

Fixed Spread (bps)(5)

Principal Amount Tendered at Early Tender Deadline(6)

5.144% Senior Notes due 2043

03938JAA7 / US03938JAA79

Arch Capital Group (U.S.) Inc.

$500,000,000

1

5.00% U.S. Treasury due May 15 2046

FIT1

$50

+55 bps

$218,712,000

5.031% Senior Notes due 2046

03939CAB9 / US03939CAB90

Arch Capital Finance LLC

$450,000,000

2

5.00% U.S. Treasury due May 15 2046

FIT1

$50

+55 bps

$199,139,000

________________

(1)

No representation is made as to the correctness or accuracy of the CUSIP/ISIN numbers listed in this press release, the Offer to Purchase or printed on the Notes. They are provided solely for convenience.

(2)

The Maximum Amount of Notes that may be purchased in the Tender Offers is the aggregate amount of Notes that will not result in the Aggregate Purchase Price for Notes validly tendered and accepted for purchase pursuant to the Tender Offers exceeding the Maximum Amount. The Offerors reserve the right, in their sole discretion, subject to applicable law, to further increase or decrease the Maximum Amount, but there can be no assurance that the Offerors will do so. Notes accepted for purchase on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth herein (with “1” being the highest Acceptance Priority Level and “2” being the lowest Acceptance Priority Level). The Offerors will only accept for purchase Notes up to an aggregate principal amount that will not result in the Aggregate Purchase Price to exceed the Maximum Amount.

(3)

The Bloomberg Reference Page is provided for convenience only. To the extent any Bloomberg Reference Page changes prior to the Price Determination Date (as defined below), the Dealer Managers (as defined herein) will quote the applicable Reference Treasury Security from the updated Bloomberg Reference Page.

(4)

Per $1,000 principal amount of Notes validly tendered prior to or at the Early Tender Deadline and expected to be accepted for purchase.

(5)

Includes the Early Tender Premium of $50 per $1,000 principal amount of Notes for each Series (the “Early Tender Premium”) as set forth in the Offer to Purchase, which will be paid in addition to the Total Tender Offer Consideration or Late Tender Offer Consideration, as applicable.

(6)

As reported by Global Bondholder Services Corporation, the Tender and Information Agent for the Tender Offers.

The Tender Offers are subject to the satisfaction of certain conditions as set forth in the Offer to Purchase; as of the date hereof, the Financing Condition described in the Offer to Purchase has been satisfied. Subject to applicable law, the Offerors may waive any and all of these conditions or extend, terminate or withdraw the Tender Offers with respect to one or more Series of Notes or further increase or decrease the Maximum Amount, including on or after the Price Determination Date (as defined below). The Tender Offers are not conditioned upon any minimum amount of Notes being tendered.

Withdrawal rights for the Notes expired on the Early Tender Deadline. The Company expects to make payment on June 18, 2026 (the “Early Settlement Date”) for Notes that were validly tendered prior to or at the Early Tender Deadline and that are accepted for purchase.

The Company has amended the Maximum Amount to accept up to $417,851,000 aggregate principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline. The consideration for each $1,000 in principal amount of Notes tendered and not withdrawn before the Early Tender Deadline and accepted for payment pursuant to the Tender Offers will be determined in the manner described in the Offer to Purchase. The consideration will be determined by reference to a fixed spread specified for each Series of Notes over the yield based on the bid-side price of the applicable Reference U.S. Treasury Security specified in the table above, as fully described in the Offer to Purchase. The consideration will be calculated by the Dealer Managers for the Tender Offers at 10:00 a.m., New York City time, on June 16, 2026 (such date and time, as the same may be extended, the “Price Determination Date”). The Early Tender Premium for each Series of Notes is $50 per $1,000 principal amount of Notes.

Only holders of Notes who validly tendered and did not validly withdraw their Notes prior to or at the Early Tender Deadline are eligible to receive the consideration for Notes accepted for purchase. Holders will also receive accrued and unpaid interest on Notes validly tendered and accepted for purchase from the last interest payment date up to, but not including, the Early Settlement Date.

Promptly after the Price Determination Date, the Company will issue a news release specifying, among other things, (i) the aggregate principal amount of the Notes validly tendered and not validly withdrawn as of the Early Tender Deadline and expected to be accepted for purchase in the Tender Offers, (ii) the proration factor, if applicable, for the Notes and (iii) the consideration for the Notes expected to be accepted for purchase.

From time to time, the Offerors, the Company or any of their respective affiliates may purchase additional Notes in the open market, in privately negotiated transactions, through tender offers or otherwise, or may redeem Notes pursuant to the terms of the applicable indenture governing a Series of Notes. Any future purchases or redemptions may be on the same terms or on terms that are more or less favorable to Holders of Notes than the terms of the Tender Offers. Any future purchases by the Offerors, the Company or any of their respective affiliates will depend on various factors existing at that time. There can be no assurance as to which, if any, of these alternatives (or combinations thereof) the Offerors, the Company or any of their respective affiliates may choose to pursue in the future. The effect of any of these actions may directly or indirectly affect the price of any Notes that remain outstanding after the consummation or termination of the Tender Offer.

Notwithstanding any other provision of the Tender Offers, the Offerors will not be obligated to accept for purchase, and pay for, validly tendered Notes of any Series pursuant to the Tender Offers if the conditions set forth in the Offer to Purchase have not been satisfied, or waived by the Offeror, with respect to such Series of Notes.

Wells Fargo Securities, LLC and BofA Securities, Inc. are serving as Dealer Managers for the Tender Offers. Global Bondholder Services Corporation is the Tender and Information Agent. Persons with questions regarding the Tender Offers should contact Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or at (704) 410-4820 (collect) or BofA Securities, Inc. at (888) 292-0070 (toll-free) or at (980) 388-0539 (collect). Questions regarding the tendering of Notes and requests for copies of the Offer to Purchase and related materials should be directed to Global Bondholder Services Corporation at 212-430-3774 (banks and brokers) or 855-654-2015 (toll-free), in writing at 65 Broadway – Suite 404, New York, New York 10066 or by email at [email protected].

This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The Tender Offers are made only by the Offer to Purchase and the information in this press release is qualified by reference to the Offer to Purchase. There is no separate letter of transmittal in connection with the Offer to Purchase. None of the Offerors, Company, their respective board of directors or managers, the Dealer Managers, the Tender and Information Agent or the trustees with respect to any Notes is making any recommendation as to whether holders should tender any Notes in response to the Tender Offers, and none of the Offerors, the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes, and, if so, the principal amount of Notes to tender.

About Arch Capital Group Ltd.

Arch Capital Group Ltd. (Nasdaq: ACGL) is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 Index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward−looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward−looking statements.

Forward−looking statements can generally be identified by the use of forward−looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward−looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including the effect of contagious diseases on our business; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters; ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses the Company has acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and the other matters set forth under ITEM 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of our 2025 10-K, as well as the other factors set forth in our other documents on file with the SEC, and management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on the Company’s behalf are expressly qualified in their entirety by these cautionary statements. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.

Source: Arch Capital Group Ltd.
arch-corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20260615597872/en/

Key Takeaways ACGL net premiums earned may rise 2.3% on rate increases, new business growth and stronger underwriting. Underwriting profitability may improve with better pricing, exposure growth & favorable catastrophe backdrop. Mortgage segment weakness and higher expenses may weigh, while share buybacks could support the bottom line. Arch Capital Group Ltd. (ACGL - Free Report) is expected to register an improvement in both top and bottom lines when it reports first-quarter 2026 results on April 28, after the closing bell.

The Zacks Consensus Estimate for ACGL’s first-quarter revenues is pegged at $4.67 billion, indicating 2.4% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.45 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved south 1.2% in the past 30 days. The estimate suggests a year-over-year rise of 59.1%.

What the Zacks Model Unveils for ACGLOur proven model predicts an earnings beat for Arch Capital this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP: Arch Capital has an Earnings ESP of +0.63% at present. This is because the Most Accurate Estimate of $2.46 is pegged higher than the Zacks Consensus Estimate of $2.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Arch Capital currently carries a Zacks Rank #3.

Factors Likely to Shape Q1 Results of ACGLRate increases, new business opportunities and growth in existing accounts, product innovation, market expansion and strong underwriting performance, combined with strategic investments, are likely to have favored net premiums earned.

The Zacks Consensus Estimate for net premiums earned is pegged at $4.2 billion. We expect net premiums earned to increase 2.3% to $4.3 billion.

The Mortgage segment is likely to have declined due to the lower gross premiums written and expenses related to tender offers of certain Bellemeade Re mortgage insurance-linked notes.

Net investment income is likely to have benefited from solid net cash flow from operating activities, which is expected to have increased the invested asset base. We expect net investment income to be $378.2 million. The Zacks Consensus Estimate for investment income is pegged at $418 million.

The top line is likely to have gained from improved earned premiums and higher net investment income.

Expenses are expected to have increased in the to-be-reported quarter due to higher losses and loss adjustment expenses, acquisition costs, other operating expenses, amortization of intangible assets, corporate expenses and interest expenses. We expect total expenses to be $3.7 billion.

Prudent underwriting, combined with better pricing and increased exposure, is likely to have improved underwriting profitability. A not-so-active catastrophe environment is expected to have added to the upside, leading to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 83, and our estimate is pinned at 83.2.

Share buybacks are likely to have added upside to the bottom line.

Other Stocks to ConsiderHere are three other P&C insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.

AXS’ earnings beat estimates in each of the last four quarters.

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $11.07, indicating a year-over-year increase of 842.95%.

RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Several large-cap stocks across tech and financials recently announced massive buyback authorizations.

The world’s largest name in creative software has seen its stock price tank. Its new $25 billion buyback plan suggests it sees significant value in shares. Meanwhile, large but under-covered financial stocks are poised to continue reducing their share counts, providing a tailwind for per-share metrics.

Get Adobe alerts:

Adobe Buyback Capacity Soars to 24% of Its Market CapitalizationThe market has battered shares of software giant Adobe NASDAQ: ADBE over the past year. Overall, the stock is down more than 40% from its 52-week high and is down more than 30% in 2026. Artificial intelligence (AI) disruption fears have been the primary driver of the stock’s decline, with the market questioning the company’s future growth. Specifically, investors see tools like “Claude Design” as competitive threats to Adobe.

Adobe Today

$218.24 -15.14 (-6.49%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$218.09▼

$416.39P/E Ratio12.71

Price Target$297.69

Still, Adobe’s growth is holding up right now, with the company posting revenue increases of between 10% and 12% over the past several quarters. This is generally in line with growth seen in 2023 and 2024.

With shares down significantly, Adobe just announced a massive $25 billion share buyback program. The company notes this program is a “direct expression of confidence” in its cash flow generation and underscores its long-term optimism ahead. This program is equal to a whopping 24% of Adobe’s market capitalization, which has now fallen to around $103 billion.

In relation to company value, buyback programs of this size are rare, especially for huge names like Adobe.

With this, the company is making a statement, likely seeing the drawdown in its share price as overdone. Still, it's unlikely the market will move to reflect Adobe’s view quickly. The firm will need to prove the resilience of its business over time to change this.

Synchrony’s Huge Buyback Authorization Can Lower Share Count Even FurtherOn the other hand, Synchrony Financial NYSE: SYF has performed admirably. The stock has delivered a total return of about 20% since the start of 2025, essentially in line with the S&P 500 Index. The company has become a significant player in the branded credit card space. This involves working with brands to develop their own credit cards, which provide rewards to consumers.

Synchrony Financial Today

SYF

Synchrony Financial

$72.46 +2.90 (+4.16%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$59.46▼

$88.77Dividend Yield1.66%

P/E Ratio7.49

Price Target$86.05

Notably, Synchrony’s purchase volume hit $43 billion in Q1 2026, a first-quarter record for the company. The credit quality of consumers who use Synchrony’s cards is also improving. Net charge-offs, or the percentage of the company’s loans that it will not recover, fell by nearly 100 basis points to 5.42%. This is the fourth quarter in a row of net charge-off improvement, showing that consumers continue to pay off a greater percentage of their loans.

Synchrony has also returned capital to shareholders at a prolific pace. Overall, the firm has spent $25.2 billion on buybacks and dividends since 2016. This has allowed the firm to lower its outstanding share count by nearly 60%. The company is strongly indicating that this trend will continue, recently announcing a $6.5 billion buyback program. This is equal to just under 25% of its approximately $26 billion market capitalization.

Arch Capital: Unique Insurance Provider Boosts Authorization to $3.1 BillionLast up is Arch Capital NASDAQ: ACGL. Shares have delivered a modest return near 5% since the start of 2025 and are essentially flat in 2026. The firm provides specialty insurance, reinsurance, and mortgage insurance. Specialty insurance focuses on providing coverage outside of common areas, such as life, home, or cars. Examples may include medical malpractice insurance or customized insurance for unique situations.

Arch Capital Group Today

ACGL

Arch Capital Group

$91.13 -0.18 (-0.20%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$82.44▼

$103.39P/E Ratio7.00

Price Target$106.81

Because fewer insurance companies compete in these markets, Arch can potentially generate higher margins by offering coverage. Their value proposition rests on being able to underwrite these unique risks well, capturing demand in less-competitive areas of the market.

The firm put up some impressive metrics in its latest quarter, with after-tax operating income rising by 26% to $1.1 billion. Its full-year 2025 after-tax operating income of $3.7 billion was a record high.

The company also spent $1.9 billion on buybacks in 2025, a significant figure compared to its market capitalization near $34 billion. Now, the company has added more firepower to its buyback chest, increasing its authorization to $3.1 billion. This is equal to around 9% of the company’s market capitalization. Although not as massive as that of Adobe and Synchrony, this program is still very large compared to most authorizations. It gives the firm substantial ability to continue lowering its outstanding share count, which has fallen approximately 5% over the past year.

Adobe: Analysts Remain Optimistic, But Targets Are Moving in the Wrong DirectionAmong this group, Adobe is the most interesting name going forward and may be one of the more intriguing stocks in the market. The company has long been a dominant force in creative design software. If the firm can prove that AI disruption fears are overblown, there could be significant value in Adobe stock.

Wall Street analysts have a generally positive outlook. The MarketBeat consensus price target near $340 implies more than 40% upside in shares. However, targets fell meaningfully after the company’s last earnings report. Updated targets average approximately $322.

Should You Invest $1,000 in Adobe Right Now?Before you consider Adobe, you'll want to hear this.

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PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:

Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter. After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million. Favorable development in prior year loss reserves, net of related adjustments, of $200 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter. Share repurchases of $783 million. Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025. “We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”

All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:

(U.S. Dollars in millions)

Three Months Ended March 31,

2026

2025

% Change

Gross premiums written

$

6,425

$

6,463

(0.6)

Net premiums written

4,348

4,515

(3.7)

Net premiums earned

3,986

4,188

(4.8)

Underwriting income (1)

728

417

74.6

Underwriting Ratios

% Point Change

Loss ratio

52.4%

61.8%

(9.4)

Underwriting expense ratio (2)

29.3%

28.3%

1.0

Combined ratio

81.7%

90.1%

(8.4)

Combined ratio excluding catastrophic activity and prior year development (1)

82.3%

81.0%

1.3

The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Net income available to Arch common shareholders

$

1,037

$

564

Net realized (gains) losses (1)

87

(3)

Equity in net (income) of investments accounted for using the equity method

(160)

(53)

Net foreign exchange (gains) losses

(21)

27

Transaction costs and other

18

10

Income tax expense (benefit) (2)

(60)

42

After-tax operating income available to Arch common shareholders

$

901

$

587

Diluted per common share results:

Net income available to Arch common shareholders

$

2.88

$

1.48

Net realized (gains) losses (1)

0.24

(0.01)

Equity in net (income) of investments accounted for using the equity method

(0.44)

(0.14)

Net foreign exchange (gains) losses

(0.06)

0.07

Transaction costs and other

0.05

0.03

Income tax expense (benefit) (2)

(0.17)

0.11

After-tax operating income available to Arch common shareholders

$

2.50

$

1.54

Weighted average common shares and common share equivalents outstanding — diluted

359.7

381.9

Beginning common shareholders’ equity

$

23,376

$

19,990

Ending common shareholders’ equity

23,358

20,715

Average common shareholders’ equity

$

23,367

$

20,353

Annualized net income return on average common equity

17.8%

11.1%

Annualized operating return on average common equity

15.4%

11.5%

Segment Information

The following section provides analysis on the Company’s 2026 first quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated March 31, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).

Insurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

2,697

$

2,645

2.0

Net premiums written

1,906

1,933

(1.4)

Net premiums earned

1,871

1,860

0.6

Other underwriting income

11

3

266.7

Underwriting income

$

66

$

(2)

3,400.0

Underwriting Ratios

% Point Change

Loss ratio

60.2%

66.0%

(5.8)

Underwriting expense ratio

36.3%

34.1%

2.2

Combined ratio

96.5%

100.1%

(3.6)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

4.2%

9.5%

(5.3)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(0.7)%

(0.9)%

0.2

Underwriting expense ratio impact

0.3%

0.4%

(0.1)

Total impact

(0.4)%

(0.5)%

0.1

Combined ratio excluding catastrophic activity and prior year development

92.7%

91.1%

1.6

Gross premiums written by the insurance segment in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, while net premiums written were 1.4% lower than in the 2025 first quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 1.1% compared to the same quarter one year ago. Net premiums earned in the 2026 first quarter were 0.6% higher than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 first quarter, compared to 0.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 36.3% in the 2026 first quarter, compared to 34.1% in the 2025 first quarter. In the 2025 first quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 1.9 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. The 2026 first quarter also included higher compensation costs compared to the 2025 first quarter and transitional expenses associated with the MCE Acquisition.

Reinsurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

3,414

$

3,494

(2.3)

Net premiums written

2,176

2,316

(6.0)

Net premiums earned

1,831

2,028

(9.7)

Other underwriting income

37

39

(5.1)

Underwriting income

$

441

$

167

164.1

Underwriting Ratios

% Point Change

Loss ratio

51.7%

66.9%

(15.2)

Underwriting expense ratio

24.2%

24.9%

(0.7)

Combined ratio

75.9%

91.8%

(15.9)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

5.2%

18.3%

(13.1)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(8.3)%

(5.9)%

(2.4)

Underwriting expense ratio impact

0.9%

1.4%

(0.5)

Total impact

(7.4)%

(4.5)%

(2.9)

Combined ratio excluding catastrophic activity and prior year development

78.1%

78.0%

0.1

Gross premiums written by the reinsurance segment in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, while net premiums written were 6.0% lower than in the 2025 first quarter. The lower level of net premiums written this quarter was primarily due to a reduction in property catastrophe business written at January 1, amplified by a lower level of reinstatement premiums relative to the 2025 first quarter, which included reinstatement premiums related to the California wildfires. Net premiums earned in the 2026 first quarter were 9.7% lower than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 8.3 points in the 2026 first quarter, compared to 5.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 24.2% in the 2026 first quarter, compared to 24.9% in the 2025 first quarter. The 2025 first quarter amount included a lower level of contingent commissions on ceded business, primarily due to the impact of the California wildfires.

Mortgage Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

316

$

326

(3.1)

Net premiums written

266

266

—

Net premiums earned

284

300

(5.3)

Other underwriting income

11

11

—

Underwriting income

$

221

$

252

(12.3)

Underwriting Ratios

% Point Change

Loss ratio

5.3%

1.1%

4.2

Underwriting expense ratio

17.0%

15.0%

2.0

Combined ratio

22.3%

16.1%

6.2

Prior year development:

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(19.2)%

(20.4)%

1.2

Underwriting expense ratio impact

(0.7)%

(1.4)%

0.7

Total impact

(19.9)%

(21.8)%

1.9

Combined ratio excluding prior year development

42.2%

37.9%

4.3

Gross premiums written by the mortgage segment in the 2026 first quarter were 3.1% lower than in the 2025 first quarter, driven by lower U.S. monthly premium business. Net premiums written were flat compared to the 2025 first quarter, reflecting lower cessions on U.S. primary business.

Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.2 points, compared to 20.4 points in the 2025 first quarter. Such amounts were primarily related to better than expected cure rates. The 2026 first quarter loss ratio reflected a modestly higher level of delinquencies than in the 2025 first quarter.

The underwriting expense ratio was 17.0% in the 2026 first quarter, compared to 15.0% in the 2025 first quarter. The increase was primarily due to higher gross acquisition expenses and lower ceding and profit commissions on U.S. primary business. The 2026 first quarter ratio also reflected the impact of a lower level of net premiums earned.

Corporate

The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

Investment returns were as follows:

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

2025

Pre-tax net investment income

$

408

$

434

$

378

Per share

$

1.13

$

1.18

$

0.99

Equity in net income of investments accounted for using the equity method

$

160

$

155

$

53

Per share

$

0.44

$

0.42

$

0.14

Pre-tax investment income yield, at amortized cost (1)

3.99%

4.22%

4.16%

Total return on investments (2)

0.10%

1.36%

2.02%

Net investment income for the 2026 first quarter, compared to the 2025 first quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $87 million for the 2026 first quarter, compared to net realized gains of $3 million in the 2025 first quarter, and were primarily the result of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.

Corporate expenses for the 2026 first quarter were $31 million, compared to $50 million for the 2025 first quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 first quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.

Amortization of intangible assets was $30 million for the 2026 first quarter, compared to $49 million for the 2025 first quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition.

On a pre-tax basis, net foreign exchange gains were $21 million for the 2026 first quarter, compared to net foreign exchange losses of $27 million for the 2025 first quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.

The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 8.6% for the 2026 first quarter, compared to 17.4% for the 2025 first quarter. The decrease in the effective tax rate was primarily driven by tax law changes in Bermuda and the United Kingdom. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 14.8% for the 2026 first quarter, compared to 11.7% for the 2025 first quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.

Income from operating affiliates for the 2026 first quarter was $36 million, or $0.10 per share, compared to $17 million, or $0.04 per share, for the 2025 first quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.

Conference Call

The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on April 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.

Please refer to the Company’s Financial Supplement dated March 31, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.

Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Comments on Non-GAAP Financial Measures

Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance.

This presentation includes the use of “after-tax operating income or loss available to Arch common shareholders,” which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.

The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.

Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.

The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.

Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.

In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.

The following tables summarize the Company’s results by segment for the 2026 first quarter and 2025 first quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:

(U.S. Dollars in millions)

Three Months Ended

March 31, 2026

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,697

$

3,414

$

316

$

6,425

Premiums ceded (1)

(791)

(1,238)

(50)

(2,077)

Net premiums written

1,906

2,176

266

4,348

Change in unearned premiums

(35)

(345)

18

(362)

Net premiums earned

1,871

1,831

284

3,986

Other underwriting income (2)

11

37

11

59

Losses and loss adjustment expenses

(1,126)

(948)

(15)

(2,089)

Acquisition expenses

(375)

(347)

(8)

(730)

Other operating expenses

(315)

(132)

(51)

(498)

Underwriting income (loss)

$

66

$

441

$

221

728

Net investment income

408

Net realized gains (losses)

(87)

Equity in net income of investments accounted for using the equity method

160

Other income (loss)

(5)

Corporate benefit (expenses) (3)

(31)

Transaction costs and other (3)

(18)

Amortization of intangible assets

(30)

Interest expense

(37)

Net foreign exchange gains (losses)

21

Income (loss) before income taxes and income (loss) from operating affiliates

1,109

Income tax benefit (expense)

(98)

Income (loss) from operating affiliates

36

Net income (loss) available to Arch

1,047

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

1,037

Underwriting Ratios

Loss ratio

60.2%

51.7%

5.3%

52.4%

Acquisition expense ratio

20.0%

19.0%

2.9%

18.3%

Other operating expense ratio (4)

16.3%

5.2%

14.1%

11.0%

Combined ratio

96.5%

75.9%

22.3%

81.7%

Net premiums written to gross premiums written

70.7%

63.7%

84.2%

67.7%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(U.S. Dollars in millions)

Three Months Ended

March 31, 2025

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,645

$

3,494

$

326

$

6,463

Premiums ceded (1)

(712)

(1,178)

(60)

(1,948)

Net premiums written

1,933

2,316

266

4,515

Change in unearned premiums

(73)

(288)

34

(327)

Net premiums earned

1,860

2,028

300

4,188

Other underwriting income (2)

3

39

11

53

Losses and loss adjustment expenses

(1,228)

(1,356)

(3)

(2,587)

Acquisition expenses

(343)

(417)

(4)

(764)

Other operating expenses

(294)

(127)

(52)

(473)

Underwriting income (loss)

$

(2)

$

167

$

252

417

Net investment income

378

Net realized gains (losses)

3

Equity in net income of investments accounted for using the equity method

53

Other income (loss)

(2)

Corporate benefit (expenses) (3)

(50)

Transaction costs and other (3)

(10)

Amortization of intangible assets

(49)

Interest expense

(35)

Net foreign exchange gains (losses)

(27)

Income (loss) before income taxes and income (loss) from operating affiliates

678

Income tax benefit (expense)

(121)

Income (loss) from operating affiliates

17

Net income (loss) available to Arch

574

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

564

Underwriting Ratios

Loss ratio

66.0%

66.9%

1.1%

61.8%

Acquisition expense ratio

18.5%

20.6%

1.3%

18.3%

Other operating expense ratio (4)

15.6%

4.3%

13.7%

10.0%

Combined ratio

100.1%

91.8%

16.1%

90.1%

Net premiums written to gross premiums written

73.1%

66.3%

81.6%

69.9%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.

Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”), and include:

the Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets; acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds; the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations; the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein; general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates; competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors; developments in the world’s financial and capital markets and the Company’s access to such markets; the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business; the loss and addition of key personnel; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting; greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries; the adequacy of the Company’s loss reserves; severity and/or frequency of losses; greater frequency or severity of unpredictable natural and man-made catastrophic events; claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations; availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance; the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company; the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company; the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments; changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; the effect of climate change on the Company’s business; the effect of contagious diseases or a pandemic on the Company’s business; acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans; the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies; changes in accounting principles or policies or in the Company’s application of such accounting principles or policies; changes in the political environment of certain countries in which the Company operate or underwrite business; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Source: Arch Capital Group Ltd.
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More News From Arch Capital Group Ltd.

Arch Capital Group (ACGL - Free Report) reported $4.39 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 3.8%. EPS of $2.50 for the same period compares to $1.54 a year ago.

The reported revenue represents a surprise of -6.11% over the Zacks Consensus Estimate of $4.67 billion. With the consensus EPS estimate being $2.45, the EPS surprise was +2.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Combined Ratio - Total: 81.7% versus 83.1% estimated by four analysts on average.Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment: 14.1% versus the four-analyst average estimate of 16.2%.Loss Ratio - Total: 52.4% compared to the 54.5% average estimate based on four analysts.Expense Ratio - Total Acquisition Expense Ratio: 18.3% compared to the 18.4% average estimate based on four analysts.Revenues- Other income (loss): $-5 million compared to the $9 million average estimate based on four analysts. The reported number represents a change of +150% year over year.Revenues- Net investment income: $408 million versus the four-analyst average estimate of $417.66 million. The reported number represents a year-over-year change of +7.9%.Revenues- Net premiums earned- Reinsurance Segment: $1.83 billion compared to the $1.98 billion average estimate based on four analysts. The reported number represents a change of -9.7% year over year.Revenues- Net premiums earned- Insurance Segment: $1.87 billion compared to the $1.97 billion average estimate based on four analysts. The reported number represents a change of +0.6% year over year.Revenues- Net premiums earned: $3.99 billion versus the four-analyst average estimate of $4.24 billion. The reported number represents a year-over-year change of -4.8%.Revenues- Other underwriting income (loss): $59 million versus $39.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Revenues- Net premiums earned- Mortgage Segment: $284 million versus the four-analyst average estimate of $288.77 million. The reported number represents a year-over-year change of -5.3%.Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $160 million versus $92.39 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +201.9% change.View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have returned +0.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways ACGL's Q1 EPS of $2.50 beat estimates, rising 15.4% YoY on strong underwriting gains. Arch Capital Group's underwriting income surged 74.6% with the combined ratio improving to 81.7. ACGL's revenues fell 3.8% due to lower premiums, while net investment income increased 7.9%. Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.

ACGL’s quarterly results benefited from improved net investment income, stronger underwriting performance and lower catastrophe losses. These positives were partially offset by declining premium volumes and weakness in the mortgage segment.

Behind the HeadlinesOperating revenues of $4.4 billion decreased 3.8% year over year, primarily due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%.

Gross premiums written decreased 0.6% year over year to $6.4 billion.

Net premiums earned declined 4.8% year over year to $3.9 billion, mainly due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.

Pre-tax net investment income increased 7.9% year over year to $408 million, missing the Zacks Consensus Estimate of $417 million. The figure was higher than our estimate of $378.2 million.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, totaled $174 million.

Arch Capital Group’s underwriting income increased 74.6% year over year to $728 million. The combined ratio, representing the percentage of premiums paid out as claims and expenses, improved 440 basis points to 81.7 year over year, beating the Zacks Consensus Estimate of 83.1 and our model estimate of 83.2.

Q1 Segmental ResultsInsurance: Gross premiums written increased 2% year over year to $2.7 billion. Net premiums written declined 1.4% year over year to $1.9 billion, primarily due to the non-renewal of select MCE-related programs. Net premiums written also came in below our estimate of $2.1 billion.

Underwriting income was $66 million, rebounding from a year-ago loss of $2 million, though it fell short of our estimate of $155.4 million. The combined ratio improved 360 basis points year over year to 96.5, marginally above the Zacks Consensus Estimate of 94.4.

Reinsurance: Gross premiums written decreased 2.3% year over year to $3.4 billion. Net premiums written declined 6% year over year to $2.1 billion, primarily reflecting a reduction in property catastrophe business. The figure was on par with our estimate.

Underwriting income totaled $441 million, up 164% year over year. The combined ratio improved 1590 basis points year over year to 75.9, significantly better than the Zacks Consensus Estimate of 80.7.

Mortgage: Gross premiums written declined 3.1% year over year to $316 million, primarily due to lower U.S. monthly premium business. Net premiums written remained flat year over year to $266 million. Net premiums written exceeded our estimate of $254.7 million.

Underwriting income declined 12.3% year over year to $221 million. The combined ratio deteriorated 620 basis points year over year to 22.3, and it remained well below the Zacks Consensus Estimate of 22.8.

Financial UpdateArch Capital Group exited the first quarter with cash and cash equivalents of $914 million, down 8% from the 2025-end level.

Total debt was $2.7 billion as of March 31, 2026, and remained flat from the 2025-end level.

Book value per share was $66.19 as of March 31, 2026, reflecting an increase of 1.7% from the 2025-end level.

Annualized operating return on average commonequity expanded 240 basis points year over year to 15.4%.

Net cash provided by operating activities was $1.2 billion, down 18.5% year over year.

During the first quarter of 2026, ACGL repurchased common shares worth of $783 million.

Zacks RankACGL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other InsurersCincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly, from a loss of 24 cents to $2.10 per share year over year.

Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.7%.

The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.

Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.

Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.

Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.

Arch Capital Group Ltd. (ACGL) Q1 2026 Earnings Call Transcript

Jessica Inskip (@jessicainskip) walks us through today's Big 3 trades. She likes Arch Capital (ACGL) as a top tier stock in its sector, Comfort Systems (FIX) as they're becoming increasingly tied to AI infrastructure demand, and MSCI (MSCI) as it highlights record reoccurring subscriptions.

Investors in Arch Capital Group Ltd. (ACGL - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $70 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Arch Capital Group shares, but what is the fundamental picture for the company? Currently, Arch Capital Group is a Zacks Rank #3 (Hold) in the Insurance - Property and Casualty industry that ranks in the Top 34% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while four analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.46 per share to $2.44 in that period.

Given the way analysts feel about Arch Capital Group right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) today announced that its wholly-owned subsidiaries, Arch Capital Group (U.S.) Inc. (the “2043 Notes Offeror”) and Arch Capital Finance LLC (the “2046 Notes Offeror” and, together with the 2043 Notes Offeror, the “Offerors”), commenced cash tender offers (the “Tender Offers”) to purchase the outstanding debt securities listed in the table below (collectively, the “Notes” and each a “Series” of No.

PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) announced today the pricing of its offering of $600,000,000 aggregate principal amount of 5.250% senior notes due 2036 (the “2036 Notes”) and $1,400,000,000 aggregate principal amount of 5.950% senior notes due 2056 (the “2056 Notes” and, together with the 2036 Notes, the “Notes”). The Company intends to use the net proceeds of this offering (i) to redeem, repurchase, repay or otherwise retire t.