Logo

ACGLO

Arch Capital Group Ltd.

ACGLO

Arch Capital Group Ltd. • NASDAQ
$21.08 ▲ 0.00% (+0.00)
Market Cap $12.29 B
52w High $23.01
52w Low $19.99
Dividend Yield 1.36%
P/E 4.49
Volume 26.15K
Outstanding Shares 583.09M

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’s income statement shows a clear growth story. Revenue has climbed steadily over the past five years and is now roughly double where it was at the start of the period. Profitability has improved even faster, with operating and cash-based earnings expanding as the company scaled. Net income did spike sharply in the middle of the period and then eased slightly more recently, suggesting some normalization after an unusually strong year, but earnings are still far ahead of earlier levels. Overall, this points to a business that is growing, staying disciplined on underwriting, and converting growth into solid profits, with some natural year‑to‑year volatility typical of insurance and investment markets.

Balance Sheet

Balance Sheet The balance sheet looks stronger over time. Total assets have increased steadily, reflecting growth in the insurance and reinsurance franchise. Shareholders’ equity has risen meaningfully, indicating that profits are being retained and building the company’s capital base. Debt has stayed broadly flat to slightly lower, so leverage appears quite conservative relative to the growing equity cushion. Cash balances are stable rather than excessive, which is common for insurers that mainly hold investment portfolios instead of idle cash. In short, the company appears well-capitalized, with a solid buffer to absorb shocks and support future growth.

Cash Flow

Cash Flow Cash generation is a standout strength. Operating cash flow has grown consistently, broadly tracking the rise in earnings. Free cash flow is almost the same as operating cash flow because the business requires very little spending on physical assets. This pattern suggests that reported profits are well supported by cash and that the business model is capital‑light on the expense side, even though it carries large investment portfolios. Strong, recurring free cash flow gives Arch Capital flexibility in how it manages capital, withstands insurance cycles, and funds organic or inorganic growth.

Competitive Edge

Competitive Edge Arch Capital holds a solid competitive position in diversified insurance and reinsurance. Its key edge is strong underwriting discipline, reflected in loss and expense ratios that have often been better than the broader industry. The company is diversified across property and casualty, mortgage, and specialty lines, and operates on a global basis, which helps smooth out shocks in any one market. Management has also been willing to dial risk up or down as conditions change, for example by reducing catastrophe exposure when pricing is unattractive and adding risk when opportunities improve. Niche offerings in areas like renewable energy, emergency services, and specialty programs further differentiate the franchise. Main risks to this position include the usual insurance pressures: catastrophe losses, pricing cycles, competitive intensity, and regulatory changes.

Innovation and R&D

Innovation and R&D Arch Capital is actively using technology and innovation as a core part of its strategy rather than an add-on. The company is pushing a digital-first model, making more products available online and improving connectivity with brokers and customers. It is embedding data analytics, artificial intelligence, and machine learning into underwriting and risk selection, aiming to price risk more accurately and automate routine work. Beyond technology, Arch is innovating in product design: renewable energy surety solutions, specialized programs for emergency responders, travel and supplemental health offerings, and targeted moves into emerging markets. The innovation effort appears focused on both improving efficiency and opening new, defensible niches, though success will depend on ongoing execution and staying ahead of peers that are also investing heavily in similar tools.

Summary

Across the major financial statements, Arch Capital looks like a growing, well-capitalized insurer that converts that growth into strong earnings and cash. Revenue and profits have risen significantly over the past five years, with only modest recent normalization after an exceptionally strong year. The balance sheet has become more robust as equity has built up faster than debt, and cash generation is consistently strong and capital‑light. Competitively, the company benefits from disciplined underwriting, diversification, and a willingness to adjust risk exposure through the cycle. Its push into digital capabilities, data‑driven underwriting, and specialized products suggests a forward‑leaning strategy aimed at widening its moat. The main uncertainties revolve around the inherent volatility of insurance (especially catastrophe risk), investment market swings, and the need to keep executing on technology and new-market initiatives while competitors do the same.