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ACGL

Arch Capital Group Ltd.

ACGL

Arch Capital Group Ltd. • NASDAQ
$93.92 ▼ -0.51% (-0.48)
Market Cap $34.92 B
52w High $100.93
52w Low $82.45
Dividend Yield 5.00%
P/E 8.8
Volume 777.28K
Outstanding Shares 371.82M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.977B ▲ $488M ▲ $1.35B ▲ 27.125% ▲ $3.63 ▲ $1.589B ▲
Q2-2025 $4.973B ▲ $435M ▼ $1.237B ▲ 24.874% ▲ $3.3 ▲ $1.497B ▲
Q1-2025 $4.592B ▲ $563M ▲ $574M ▼ 12.5% ▼ $1.51 ▼ $762M ▼
Q4-2024 $4.51B ▲ $459M ▲ $935M ▼ 20.732% ▼ $2.48 ▼ $1.073B ▼
Q3-2024 $4.48B $346M $988M 22.054% $2.62 $1.173B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $11.166B ▲ $79.185B ▲ $55.466B ▼ $23.719B ▲
Q2-2025 $10.313B ▲ $78.788B ▲ $55.747B ▲ $23.041B ▲
Q1-2025 $1.187B ▼ $75.176B ▲ $53.631B ▲ $21.545B ▲
Q4-2024 $9.238B ▼ $70.906B ▼ $50.086B ▼ $20.82B ▼
Q3-2024 $10.305B $73.656B $51.382B $22.274B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $1.35B ▲ $2.186B ▲ $-1.383B ▼ $-743M ▼ $-745M ▼ $2.174B ▲
Q2-2025 $1.237B ▲ $1.124B ▼ $-1.228B ▼ $-128M ▲ $-177M ▼ $1.112B ▼
Q1-2025 $574M ▼ $1.458B ▼ $-1.008B ▼ $-241M ▲ $225M ▲ $1.449B ▼
Q4-2024 $935M ▼ $1.573B ▼ $420M ▲ $-1.89B ▼ $48M ▼ $1.56B ▼
Q3-2024 $988M $2.018B $-1.963B $-7M $85M $2.006B

Five-Year Company Overview

Income Statement

Income Statement Arch’s income statement shows a business that has grown meaningfully while becoming more profitable. Revenue has climbed steadily over the past five years, with especially strong expansion in the last three, suggesting both volume growth and pricing power. Profitability has improved even faster than revenue, which points to better underwriting discipline and operating efficiency. One point to note: net income in 2023 was unusually strong relative to underlying operating profit, hinting at one-off gains or particularly favorable conditions that year. In 2024, profit remains very high, though slightly below that 2023 peak, which may reflect a normalization from those exceptional factors rather than a deterioration in the business. Overall, the trend is of a well-run insurer that has turned growth into robust and improving earnings per share over time.

Balance Sheet

Balance Sheet Arch’s balance sheet looks solid and conservative for an insurance company. Total assets have grown steadily, indicating expansion of the franchise and a larger invested asset base. Shareholders’ equity has increased significantly, especially in the last few years, suggesting that profits are being retained and that capital strength has improved. Debt levels have been stable and modest relative to the size of the business and its equity base, implying limited reliance on borrowing. Cash on hand is a small portion of total assets, which is typical for insurers that hold most of their funds in investment portfolios rather than as idle cash. Overall, the balance sheet suggests financial resilience and capacity to support further growth and absorb insurance volatility.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has risen consistently over the five-year period, broadly tracking the growth in earnings. Because Arch has relatively light capital spending needs, most of this cash flow turns into free cash flow, giving the company flexibility for investments, bolt-on deals, and capital returns, depending on its strategic choices. The stability and upward trend of free cash flow point to a business model that converts reported profits into actual cash at a high rate. For an insurer, this is a reassuring sign that underwriting and investment activities are not only profitable on paper but also cash-productive over time.

Competitive Edge

Competitive Edge Arch occupies a strong competitive position as a specialty-focused, globally diversified insurer and reinsurer. Its key edge is underwriting quality: management has a long record of selecting risks carefully and pricing them well, which has historically produced loss and expense ratios better than many peers. This discipline often shows up most clearly in difficult market conditions, when weaker competitors struggle. The business mix across insurance, reinsurance, and mortgage insurance gives Arch multiple growth levers and reduces dependence on any single line or geography. Its focus on complex, specialty risks and customized solutions—rather than heavily commoditized products—also supports pricing power and client stickiness. Use of third-party capital, such as insurance-linked securities, further enhances flexibility in managing large or volatile risks.

Innovation and R&D

Innovation and R&D While Arch does not report “R&D” in the traditional sense, it is clearly investing in innovation, particularly in data, analytics, and digital platforms. The RateStar mortgage insurance platform is a good example of sophisticated, real-time pricing driven by advanced analytics. Integrations with lending and workflow systems show a push to become an easy-to-use, digital-first partner for clients. Internally, the company is embedding artificial intelligence and machine learning into underwriting, document handling, and operations to sharpen risk selection and lower costs. The Digital Halo data center initiative and AI tools for family offices highlight a willingness to operate at the intersection of insurance and broader digital infrastructure. On the product side, Arch is expanding into areas like supplemental health for gig workers and the U.S. middle market, supported by targeted acquisitions. Together, these efforts suggest a culture that treats technology and product innovation as core strategic tools, not side projects.

Summary

Arch Capital Group presents as a disciplined, growing specialty insurer with a strong financial foundation and a clear strategic identity. Income and cash flows are trending strongly upward, with profitability improving faster than revenue—though 2023 likely included some unusually favorable elements. The balance sheet is robust, with rising equity, measured use of debt, and an asset base that has expanded alongside the business. Competitively, Arch benefits from underwriting excellence, diversification across insurance, reinsurance, and mortgage lines, and a focus on complex risks where expertise matters. Its ongoing investments in analytics, automation, and digital platforms, alongside selective acquisitions and new product launches, position it to adapt to changing risk landscapes and client needs. Key things to watch include: how well earnings hold up as conditions normalize from the very strong recent years; the impact of catastrophe events and mortgage cycles; and execution on technology initiatives and acquisitions. Overall, the data depicts a well-managed, innovation-minded insurer with notable strengths in risk selection and capital discipline.

NEWS

October 30, 2025 · 1:30 AM UTC

Arch Global Services India Opens New Office in Trivandrum to Drive Innovation

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October 28, 2025 · 1:30 AM UTC

Arch Global Services India Opens Technology Hub in Hyderabad to Accelerate Innovation

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October 27, 2025 · 4:05 PM UTC

Arch Capital Group Ltd. Reports 2025 Third Quarter Results

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September 23, 2025 · 8:46 AM UTC

Arch Capital Group Ltd. to Report 2025 Third Quarter Results on October 27

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