A Business at a Glance
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PART I As used in this report, references to “we,” “us,” “our,” “Arch” or the “Company” refer to the consolidated operations of Arch Capital Group Ltd. (“Arch Capital”) and its subsidiaries. All amounts are in millions, except per share amounts, unless otherwise noted. We refer you to Item 1A “Risk Factors” for a discussion of risk factors relating to our business. OUR COMPANY Arch Capital is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at December 31, 2025 and is part of the S&P 500 index. Arch provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries. While we are positioned to provide a full range of property, casualty and mortgage insurance and reinsurance lines, we focus on writing specialty lines of insurance and reinsurance. For 2025, we wrote $16.5 billion of net premiums and reported net income available to Arch common shareholders of $4.4 billion. Book value per share was $65.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 19.9B | 19.9B | 17.4B | 13.6B | 9.6B | 9.2B |
| Net Income | 4.4B | 4.4B | 4.3B | 4.4B | 1.4B | 2.1B |
| EPS | $11.60 | $11.60 | $11.19 | $11.62 | $3.80 | $5.23 |
| Free Cash Flow | 6.1B | 6.1B | 6.6B | 5.7B | 3.8B | 3.4B |
| ROIC | 16.9% | 17.3% | 18.1% | 20.9% | 9.8% | 15.5% |
| Gross Margin | 25.0% | 25.0% | 25.7% | 24.8% | 15.5% | 22.7% |
| Debt/Equity | 0.11 | 0.11 | 0.13 | 0.15 | 0.21 | 2.33 |
| Dividends/Share | $0.11 | $5.00 | $5.00 | $0.11 | $0.11 | $0.12 |
| Operating Income | 5.2B | 5.2B | 4.7B | 3.6B | 1.6B | - |
| Operating Margin | 25.9% | 25.9% | 26.8% | 26.2% | 16.3% | - |
| ROE | 18.0% | 19.4% | 20.5% | 24.0% | 10.9% | 15.5% |
| Shares Outstanding | 376M | 376M | 382M | 379M | 378M | 400M |
ARCH CAPITAL GROUP LTD. passes 5 of 9 quality checks, suggesting mixed fundamentals.
ARCH CAPITAL GROUP LTD. trades at 1.5x trailing earnings, compared to its 15-year median P/E of 1.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 1.0x vs a median of 1.2x. The company's 5-year average ROIC is 16.3% with a gross margin of 22.7%. Total shareholder yield (dividends + buybacks) is 29.9%. At current prices, the estimated annualized return to fair value is +16.3%.
ARCH CAPITAL GROUP LTD. (ACGLN) has a current P/E ratio of 1.5, compared to its historical median P/E of 1.5. The stock is currently considered Fair based on its historical valuation range.
ARCH CAPITAL GROUP LTD. (ACGLN) has a 5-year average return on invested capital (ROIC) of 16.3%. This indicates strong capital allocation and a potential competitive advantage.
ARCH CAPITAL GROUP LTD. (ACGLN) has a market capitalization of $6.4B. It is classified as a mid-cap stock.
Yes, ARCH CAPITAL GROUP LTD. (ACGLN) pays a dividend with a trailing twelve-month yield of 0.62%. The company also returns capital through share buybacks, with a buyback yield of 29.29%.
Based on historical P/E analysis, ARCH CAPITAL GROUP LTD. (ACGLN) appears fair. The current P/E of 1.5 is 4% below its historical median of 1.5. The estimated fair value CAGR (P/E method) is 20.4%.
ARCH CAPITAL GROUP LTD. (ACGLN) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
ARCH CAPITAL GROUP LTD. (ACGLN) reported annual revenue of $19.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
ARCH CAPITAL GROUP LTD. (ACGLN) has a net profit margin of 21.9%. This is a strong margin indicating high profitability.
ARCH CAPITAL GROUP LTD. (ACGLN) generated $6.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ARCH CAPITAL GROUP LTD. (ACGLN) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
ARCH CAPITAL GROUP LTD. (ACGLN) reported earnings per share (EPS) of $11.60 in its most recent fiscal year.
ARCH CAPITAL GROUP LTD. (ACGLN) has a return on equity (ROE) of 19.4%. This indicates the company generates strong returns for shareholders.
ARCH CAPITAL GROUP LTD. (ACGLN) has a 5-year average gross margin of 22.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for ARCH CAPITAL GROUP LTD. (ACGLN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ARCH CAPITAL GROUP LTD. (ACGLN) has a book value per share of $64.42, based on its most recent annual SEC filing.