Arch Capital Group
Market Cap
US$10.9b
Last Updated
2020/07/09 23:53 UTC
Data Sources
Company Financials +
Executive Summary
Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with reasonable growth potential.
Similar Companies
Share Price & News
How has Arch Capital Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACGL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.7%
ACGL
-1.7%
US Insurance
1.3%
US Market
1 Year Return
-29.5%
ACGL
-23.1%
US Insurance
6.1%
US Market
Return vs Industry: ACGL underperformed the US Insurance industry which returned -21.3% over the past year.
Return vs Market: ACGL underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| ACGL | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.7% | -1.7% | 1.3% |
| 30 Day | -21.3% | -11.1% | -0.3% |
| 90 Day | -12.8% | -2.6% | 16.6% |
| 1 Year | -29.5%-29.5% | -21.0%-23.1% | 8.4%6.1% |
| 3 Year | -15.8%-15.8% | -3.8%-11.7% | 35.8%26.9% |
| 5 Year | 16.9%16.9% | 22.0%6.7% | 62.7%44.7% |
Price Volatility Vs. Market
How volatile is Arch Capital Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
A Rising Share Price Has Us Looking Closely At Arch Capital Group Ltd.'s (NASDAQ:ACGL) P/E Ratio1 month ago | Simply Wall St
Arch Capital Group Ltd.'s (NASDAQ:ACGL) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Arch Capital Group Ltd. (NASDAQ:ACGL)Valuation
Is Arch Capital Group undervalued compared to its fair value and its price relative to the market?
8.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ACGL ($27.04) is trading above our estimate of fair value ($22.53)
Significantly Below Fair Value: ACGL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ACGL is good value based on its PE Ratio (8.4x) compared to the Insurance industry average (13.2x).
PE vs Market: ACGL is good value based on its PE Ratio (8.4x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: ACGL is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: ACGL is overvalued based on its PB Ratio (1x) compared to the US Insurance industry average (0.9x).
Next Steps
Future Growth
How is Arch Capital Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
31.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACGL's forecast earnings growth (31.5% per year) is above the savings rate (2.2%).
Earnings vs Market: ACGL's earnings (31.5% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ACGL's revenue (14.6% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ACGL's revenue (14.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACGL's Return on Equity is forecast to be low in 3 years time (9.3%).
Next Steps
Past Performance
How has Arch Capital Group performed over the past 5 years?
17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACGL has high quality earnings.
Growing Profit Margin: ACGL's current net profit margins (19.1%) are higher than last year (17.3%).
Past Earnings Growth Analysis
Earnings Trend: ACGL's earnings have grown by 17% per year over the past 5 years.
Accelerating Growth: ACGL's earnings growth over the past year (26.9%) exceeds its 5-year average (17% per year).
Earnings vs Industry: ACGL earnings growth over the past year (26.9%) exceeded the Insurance industry -1.9%.
Return on Equity
High ROE: ACGL's Return on Equity (9.3%) is considered low.
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Financial Health
How is Arch Capital Group's financial position?
Financial Position Analysis
Short Term Liabilities: ACGL's short term assets ($12.8B) exceed its short term liabilities ($5.9B).
Long Term Liabilities: ACGL's short term assets ($12.8B) do not cover its long term liabilities ($20.6B).
Debt to Equity History and Analysis
Debt Level: ACGL's debt to equity ratio (21.4%) is considered satisfactory.
Reducing Debt: ACGL's debt to equity ratio has increased from 16% to 21.4% over the past 5 years.
Debt Coverage: ACGL's debt is well covered by operating cash flow (94.9%).
Interest Coverage: ACGL's interest payments on its debt are well covered by EBIT (10.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Arch Capital Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ACGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ACGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ACGL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ACGL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ACGL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Marc Grandisson (52yo)
2.33yrs
Tenure
US$9,360,029
Compensation
Mr. Marc Grandisson has been Chief Executive Officer and President of Arch Capital Group Ltd since March 3, 2018 and had been its Director since March 2018. Mr. Grandisson served as the Chairman and Chief ...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD9.36M) is about average for companies of similar size in the US market ($USD11.49M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 2.33yrs | US$9.36m | 0.47% $51.4m | |
| Executive VP | 2.17yrs | US$3.79m | 0.030% $3.2m | |
| Senior Advisor & Director | 10.67yrs | US$829.65k | 0.11% $12.5m | |
| CEO of Arch Worldwide & Chief Underwriting Officer of Property & Casualty Operations | 6yrs | US$4.26m | 0.17% $18.4m | |
| Chief Executive Officer of Reinsurance Group | 6yrs | US$4.71m | 0.076% $8.3m | |
| Chief Executive Officer of the Global Mortgage Group | 1.33yrs | US$3.38m | 0.030% $3.3m | |
| Executive VP | no data | US$384.47k | no data | |
| Chief Operations Officer | 0.50yr | no data | no data | |
| Senior VP & Chief Investment Officer | 15yrs | US$1.95m | 0.11% $11.5m | |
| Executive Vice President at Financial Services of Arch Capital Services Inc. | no data | no data | no data |
2.3yrs
Average Tenure
53yo
Average Age
Experienced Management: ACGL's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Senior Advisor & Director | 10.67yrs | US$829.65k | 0.11% $12.5m | |
| Independent Director | 18.67yrs | US$299.55k | 0.52% $56.5m | |
| Independent Director | 6yrs | US$399.45k | 0.012% $1.3m | |
| Independent Director | 9.67yrs | US$267.05k | 0.017% $1.8m | |
| Independent Director | 9.67yrs | US$349.55k | 0.026% $2.8m | |
| Independent Chairman of the Board | 0.83yr | US$329.05k | 0.90% $98.1m | |
| Independent Director | 6yrs | US$322.45k | 0.0059% $645.5k | |
| Independent Director | 2.17yrs | US$318.55k | 0.0062% $675.0k | |
| Chairman of Arch Insurance Canada | 5.42yrs | no data | no data | |
| Director | 0.50yr | no data | 0.0029% $319.5k |
6.0yrs
Average Tenure
61.5yo
Average Age
Experienced Board: ACGL's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ACGL insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Arch Capital Group Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arch Capital Group Ltd.
- Ticker: ACGL
- Exchange: NasdaqGS
- Founded: 1995
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$10.940b
- Shares outstanding: 404.60m
- Website: https://www.archcapgroup.com
Number of Employees
Location
- Arch Capital Group Ltd.
- Waterloo House
- Ground Floor
- Pembroke
- HM 08
- Bermuda
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ACGL | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Sep 1995 |
| RSK | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1995 |
| ARH PRACL | NYSE (New York Stock Exchange) | PFD SER A | US | USD | Apr 2006 | |
| ARH PRBCL | NYSE (New York Stock Exchange) | PFD SER B | US | USD | May 2006 | |
| ACGL.P | NasdaqGS (Nasdaq Global Select) | DSHS 1/1000 E | US | USD | Sep 2016 | |
| ACGL.O | NasdaqGS (Nasdaq Global Select) | 5.45% PFD SER F | US | USD | Aug 2017 |
Biography
Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company’s Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors’ and officers’ liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers’ compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides reinsurance for third party liability and workers’ compensation exposures; marine and aviation reinsurance; surety, accident and health, workers’ compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company’s Mortgage segment offers private mortgage insurance covering one-to-four family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance; and credit risk-sharing products. This segment sells its products through direct basis and through brokers to mortgage originators. The company was founded in 1995 and is based in Pembroke, Bermuda.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/09 23:53 |
| End of Day Share Price | 2020/07/09 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.