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ACGLN

Arch Capital Group Ltd.

ACGLN

Arch Capital Group Ltd. • NASDAQ
$17.11 ▼ -0.41% (-0.07)
Market Cap $6.36 B
52w High $19.84
52w Low $16.44
Dividend Yield 1.14%
P/E 3.65
Volume 36.87K
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 Capital has grown meaningfully over the last five years, with revenue and profits moving up steadily and margins broadly improving. The jump in earnings since the early 2020s shows that its underwriting discipline and pricing power have translated into stronger profitability, helped by a better rate environment and solid investment income. Results are still somewhat volatile year to year, as is typical for an insurer exposed to large losses and cycle swings, but the overall earnings trend is clearly upward and well above where it was earlier in the period.

Balance Sheet

Balance Sheet The balance sheet looks robust and steadily stronger. Total assets and shareholders’ equity have both climbed, while debt has stayed broadly flat, which means reliance on borrowing has actually decreased over time. Cash on hand is modest but normal for an insurer that mainly holds its capital in investment portfolios. Overall, Arch appears conservatively financed, with growing capital cushions that support its underwriting activities and provide resilience against shocks.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has grown consistently, and free cash flow closely tracks it, since the business requires only minimal capital spending. That combination—rising cash inflows and very low investment needs—gives Arch good flexibility to absorb losses, invest in growth initiatives, or return capital when appropriate. There are no obvious signs of cash strain in recent years.

Competitive Edge

Competitive Edge Arch operates from a position of quiet strength rather than scale dominance. Its edge comes from disciplined underwriting, focus on specialty and complex risks, and a balanced mix of insurance, reinsurance, and mortgage insurance. This specialization, backed by strong analytics, helps it avoid underpriced business and maintain attractive underwriting results over time. At the same time, it competes against very large global insurers and reinsurers, faces intense price competition in softer markets, and remains exposed to catastrophe, mortgage, and regulatory cycles, so maintaining this edge requires constant vigilance.

Innovation and R&D

Innovation and R&D While Arch does not run classic lab-style R&D, it invests heavily in technology and analytics aimed squarely at better risk selection and pricing. Its AI- and data-driven underwriting tools, proprietary mortgage insurance platforms like RateStar, and partnerships with technology vendors and insurtechs all strengthen its ability to price granular risk and automate routine work. The company is also using analytics to enter new areas such as consumer product and home warranty and to develop products for emerging risks. The main uncertainties here are execution risk—integrating new systems and partners—and whether competitors can replicate similar tools over time.

Summary

Arch Capital appears to combine strong financial progress with a clear, disciplined strategy. Earnings and cash flow are on an upward trajectory, supported by a sturdier balance sheet and conservative leverage. Its competitive moat is rooted in specialty underwriting, data and analytics, and diversification across insurance, reinsurance, and mortgage insurance, rather than in brute size. The key things to watch going forward are how well it navigates insurance and mortgage cycles, handles large loss events, and continues to deepen its technology advantage without eroding its underwriting discipline.