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Arch Capital Group

Nasdaq:ACGL
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACGL
Nasdaq
$14B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. The last earnings update was 13 days ago. More info.


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ACGL Share Price and Events
7 Day Returns
1.4%
NasdaqGS:ACGL
0.7%
US Insurance
-0.7%
US Market
1 Year Returns
27.3%
NasdaqGS:ACGL
7.1%
US Insurance
3%
US Market
ACGL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arch Capital Group (ACGL) 1.4% 3.8% 5.3% 27.3% 43.3% 78.2%
US Insurance 0.7% 1.6% 6% 7.1% 32.7% 45.5%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • ACGL outperformed the Insurance industry which returned 7.1% over the past year.
  • ACGL outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
ACGL
Industry
5yr Volatility vs Market

ACGL Value

 Is Arch Capital Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arch Capital Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arch Capital Group.

NasdaqGS:ACGL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $26.88 * 11.6%
$3.12
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. $26.88
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ACGL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.734 (1 + (1- 21%) (20.57%))
0.902
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.902 * 5.96%)
8.11%

Discounted Cash Flow Calculation for NasdaqGS:ACGL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Arch Capital Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:ACGL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.6% – 8.11%) * $26.88)
$0.94
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.94 / (8.11% - 2.73%)
$17.56
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $26.88 + $17.56
$44.44
NasdaqGS:ACGL Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.44
Current discount Discount to share price of $33.78
= -1 x ($33.78 - $44.44) / $44.44
24%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arch Capital Group is available for.
Intrinsic value
24%
Share price is $33.78 vs Future cash flow value of $44.44
Current Discount Checks
For Arch Capital Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arch Capital Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arch Capital Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arch Capital Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arch Capital Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ACGL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.52
NasdaqGS:ACGL Share Price ** NasdaqGS (2019-05-17) in USD $33.78
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 16.69x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arch Capital Group.

NasdaqGS:ACGL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ACGL Share Price ÷ EPS (both in USD)

= 33.78 ÷ 2.52

13.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Capital Group is good value based on earnings compared to the US Insurance industry average.
  • Arch Capital Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arch Capital Group's expected growth come at a high price?
Raw Data
NasdaqGS:ACGL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
3.1%per year
United States of America Insurance Industry PEG Ratio Median Figure of 67 Publicly-Listed Insurance Companies 1.6x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:ACGL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.4x ÷ 3.1%

4.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Capital Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arch Capital Group's assets?
Raw Data
NasdaqGS:ACGL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $23.21
NasdaqGS:ACGL Share Price * NasdaqGS (2019-05-17) in USD $33.78
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:ACGL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ACGL Share Price ÷ Book Value per Share (both in USD)

= 33.78 ÷ 23.21

1.46x

* Primary Listing of Arch Capital Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Capital Group is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess Arch Capital Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Arch Capital Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ACGL Future Performance

 How is Arch Capital Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arch Capital Group expected to grow at an attractive rate?
  • Arch Capital Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arch Capital Group's earnings growth is positive but not above the United States of America market average.
  • Arch Capital Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ACGL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ACGL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 3.1%
NasdaqGS:ACGL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -2.7%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ACGL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ACGL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,305
2020-12-31 5,286 1,193 3
2019-12-31 5,043 1,269 3
NasdaqGS:ACGL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,889 1,395 1,014
2018-12-31 5,451 1,559 714
2018-09-30 5,520 1,173 791
2018-06-30 5,595 1,076 521
2018-03-31 5,592 1,311 462
2017-12-31 5,627 1,095 567
2017-09-30 5,194 1,420 425
2017-06-30 4,912 1,389 726
2017-03-31 4,696 1,258 757
2016-12-31 4,464 1,377 665
2016-09-30 4,377 1,227 655
2016-06-30 4,112 1,154 483

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arch Capital Group's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
  • Arch Capital Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ACGL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Arch Capital Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACGL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.09 3.09 3.09 1.00
2020-12-31 2.88 3.00 2.70 4.00
2019-12-31 3.18 3.20 3.15 3.00
NasdaqGS:ACGL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.52
2018-12-31 1.76
2018-09-30 1.95
2018-06-30 1.28
2018-03-31 1.14
2017-12-31 1.40
2017-09-30 1.08
2017-06-30 1.89
2017-03-31 2.03
2016-12-31 1.83
2016-09-30 1.81
2016-06-30 1.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arch Capital Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arch Capital Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arch Capital Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ACGL Past Performance

  How has Arch Capital Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arch Capital Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arch Capital Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Arch Capital Group's 1-year earnings growth exceeds its 5-year average (119.6% vs -0.5%)
  • Arch Capital Group's earnings growth has exceeded the US Insurance industry average in the past year (119.6% vs 6.6%).
Earnings and Revenue History
Arch Capital Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arch Capital Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACGL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,889.46 1,014.47 74.98
2018-12-31 5,450.57 713.62 72.69
2018-09-30 5,519.66 791.06 56.42
2018-06-30 5,595.43 521.29 57.28
2018-03-31 5,592.15 461.87 86.03
2017-12-31 5,627.38 566.50 83.75
2017-09-30 5,194.49 425.36 59.99
2017-06-30 4,912.44 725.51 57.22
2017-03-31 4,696.06 757.26 52.22
2016-12-31 4,463.56 664.67 81.75
2016-09-30 4,377.33 655.37 50.17
2016-06-30 4,112.42 482.53 49.57
2016-03-31 3,940.92 387.26 45.89
2015-12-31 3,936.59 515.80 49.75
2015-09-30 4,049.04 672.39 47.17
2015-06-30 4,108.98 821.03 45.93
2015-03-31 4,120.14 913.25 32.40
2014-12-31 3,988.87 812.42 49.94
2014-09-30 3,897.50 758.74 54.05
2014-06-30 3,766.12 644.89 53.40
2014-03-31 3,587.10 613.82 73.32
2013-12-31 3,526.16 687.79 49.24
2013-09-30 3,523.19 545.52 47.95
2013-06-30 3,566.84 620.35 49.84
2013-03-31 3,557.51 650.90 46.44
2012-12-31 3,482.38 557.71 42.30
2012-09-30 3,309.95 682.85 40.36
2012-06-30 3,170.14 660.97 35.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arch Capital Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arch Capital Group used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • Arch Capital Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arch Capital Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arch Capital Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ACGL Health

 How is Arch Capital Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arch Capital Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arch Capital Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arch Capital Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arch Capital Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arch Capital Group Company Filings, last reported 1 month ago.

NasdaqGS:ACGL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 11,159.06 2,795.08 1,621.45
2018-12-31 10,437.68 2,463.34 1,924.61
2018-09-30 10,438.10 2,595.01 1,861.67
2018-06-30 10,231.01 2,542.45 1,840.49
2018-03-31 10,210.50 2,855.37 1,855.38
2017-12-31 10,245.94 3,025.62 2,372.67
2017-09-30 9,977.87 3,102.21 2,857.94
2017-06-30 9,982.08 3,046.87 2,182.06
2017-03-31 9,679.67 3,005.72 2,088.88
2016-12-31 9,311.13 3,251.46 1,828.62
2016-09-30 8,392.59 1,655.58 2,151.35
2016-06-30 7,697.88 1,527.54 1,714.92
2016-03-31 7,373.78 1,843.70 1,466.60
2015-12-31 7,110.56 1,715.58 1,427.15
2015-09-30 7,142.07 1,423.18 1,511.81
2015-06-30 7,137.39 1,275.19 1,568.50
2015-03-31 7,297.90 1,163.22 1,451.83
2014-12-31 7,118.65 941.67 1,534.53
2014-09-30 7,082.49 1,010.74 1,618.10
2014-06-30 7,241.07 989.30 2,135.01
2014-03-31 6,904.86 1,003.33 3,053.89
2013-12-31 5,647.50 1,008.00 1,912.42
2013-09-30 5,443.29 449.85 1,429.52
2013-06-30 5,234.32 449.14 1,466.15
2013-03-31 5,335.53 493.38 1,300.18
2012-12-31 5,168.88 452.36 1,093.16
2012-09-30 5,348.79 620.93 1,267.60
2012-06-30 5,020.32 712.20 1,443.30
  • Arch Capital Group's level of debt (25%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.5% vs 25% today).
  • Debt is well covered by operating cash flow (49.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).
X
Financial health checks
We assess Arch Capital Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arch Capital Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ACGL Dividends

 What is Arch Capital Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arch Capital Group dividends. Estimated to be 0% next year.
If you bought $2,000 of Arch Capital Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Arch Capital Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arch Capital Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ACGL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ACGL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 3.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Arch Capital Group has not reported any payouts.
  • Unable to verify if Arch Capital Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arch Capital Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arch Capital Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Arch Capital Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Arch Capital Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arch Capital Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arch Capital Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ACGL Management

 What is the CEO of Arch Capital Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marc Grandisson
COMPENSATION $12,884,187
AGE 50
TENURE AS CEO 1.2 years
CEO Bio

Mr. Marc Grandisson has been Chief Executive Officer and President of Arch Capital Group Ltd since March 3, 2018 and has been its Director since March 2018. Mr. Grandisson served as the Chairman and Chief Executive Officer of Arch Worldwide Reinsurance Group of Arch Reinsurance Europe Underwriting Designated Activity Company from November 2005. He served as Chief Operating Officer of Arch Capital Group Ltd until March 2018. He served as the Chief Executive Officer of Arch Re Bermuda, a subsidiary of Arch Capital Group Ltd. from February 2005 to November 2005 and also served as its President from April 2004 to November 2005, Chief Operating Officer from April 2004 to February 2005. He served as the Chief Underwriting Officer, Chief Actuary and Senior Vice President at Arch Re (Bermuda) from October 2001 to April 2004. Mr. Grandisson served as the President of Arch Reinsurance Ltd. from April 2004 to November 2005 and also served as its Chief Executive Officer from February 2005 to November 2005. He served as the Chief Operating Officer of Arch Reinsurance Ltd. from April 2004 to February 2005 and as Senior Vice President, Chief Underwriting Officer and Chief Actuary of Arch Reinsurance Ltd. from October 2001. From March 1999 to October 2001, he served as Vice President and Actuary of the Reinsurance Division of Berkshire Hathaway. From July 1996 to February 1999, he served as Vice President-Director of F&G Re Inc. From July 1994 to July 1996, he served as an Actuary for F&G Re. He served as an Actuarial Assistant of Tillinghast-Towers Perrin. He serves as the Chairman of Gulf Reinsurance Ltd. He served as the Chairman of Arch Worldwide Reinsurance and Mortgage Groups from November 2005 to January 1, 2016 and also served as its Director until January 1, 2016. He served as a Director at Watford Holdings Ltd. Until March 07, 2018. He is a Fellow of the Casualty Actuarial Society. He holds an M.B.A. degree from the Wharton School of the University of Pennsylvania.

CEO Compensation
  • Marc's compensation has increased by more than 20% in the past year.
  • Marc's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arch Capital Group management team in years:

1.4
Average Tenure
55
Average Age
  • The average tenure for the Arch Capital Group management team is less than 2 years, this suggests a new team.
Management Team

Marc Grandisson

TITLE
President
COMPENSATION
$13M
AGE
50
TENURE
1.2 yrs

François Morin

TITLE
Executive VP
COMPENSATION
$4M
AGE
50
TENURE
1 yrs

John Vollaro

TITLE
Senior Advisor & Director
COMPENSATION
$882K
AGE
73

Nicolas Alain Papadopoulo

TITLE
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
COMPENSATION
$4M
AGE
55
TENURE
1.6 yrs

Maamoun Rajeh

TITLE
Chairman & CEO of Arch Worldwide Reinsurance Group
COMPENSATION
$4M
AGE
47
TENURE
4.8 yrs

William Hutchings

TITLE
Senior VP & Chief Investment Officer
COMPENSATION
$2M
AGE
62
TENURE
13.8 yrs

Carl Sullo

TITLE
Chief Human Resources Officer of Real Estate & Administrative Services
AGE
69

Donald Watson

TITLE
Executive Vice President at Financial Services of Arch Capital Services Inc.

Pat Nails

TITLE
Senior VP & General Counsel of Arch Insurance Group Inc

Janice Englesbe

TITLE
Senior VP & Chief Risk Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Arch Capital Group board of directors in years:

9
Average Tenure
59
Average Age
  • The tenure for the Arch Capital Group board of directors is about average.
Board of Directors

Dinos Iordanou

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$2M
AGE
68
TENURE
9.5 yrs

Marc Grandisson

TITLE
President
COMPENSATION
$13M
AGE
50
TENURE
1.2 yrs

John Pasquesi

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
$329K
AGE
58
TENURE
17.5 yrs

John Vollaro

TITLE
Senior Advisor & Director
COMPENSATION
$882K
AGE
73
TENURE
9.5 yrs

Nicolas Alain Papadopoulo

TITLE
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
COMPENSATION
$4M
AGE
55

Maamoun Rajeh

TITLE
Chairman & CEO of Arch Worldwide Reinsurance Group
COMPENSATION
$4M
AGE
47
TENURE
4.8 yrs

Gerry Wolfe

TITLE
Chairman of Arch Insurance Canada
AGE
69
TENURE
4.3 yrs

Dennis Brand

TITLE
Chairman of Worldwide Services
AGE
67

John Bunce

TITLE
Director
COMPENSATION
$273K
AGE
59
TENURE
17.5 yrs

Eric Doppstadt

TITLE
Director
COMPENSATION
$266K
AGE
59
TENURE
8.5 yrs
Who owns this company?
Recent Insider Trading
  • Arch Capital Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Maamoun Rajeh Individual 17. May 19 17. May 19 -17,712 $33.71 $-597,017
17. May 19 Sell Louis Petrillo Individual 15. May 19 15. May 19 -6,643 $34.00 $-225,873
15. May 19 Sell Marc Grandisson Individual 14. May 19 14. May 19 -75,000 $33.92 $-2,543,993
14. May 19 Sell Maamoun Rajeh Individual 10. May 19 10. May 19 -15,000 $33.73 $-505,920
06. May 19 Sell John Vollaro Individual 03. May 19 03. May 19 -11,500 $34.15 $-392,750
15. Mar 19 Sell William Hutchings Individual 14. Mar 19 14. Mar 19 -37,500 $32.55 $-1,220,771
12. Mar 19 Sell William Hutchings Individual 11. Mar 19 11. Mar 19 -2,500 $32.40 $-80,997
28. Feb 19 Sell Yiorgos Lillikas Individual 26. Feb 19 26. Feb 19 -2,000 $32.30 $-64,603
29. Nov 18 Buy Brian Posner Individual 28. Nov 18 28. Nov 18 500 $28.24 $14,119
21. Nov 18 Sell Yiorgos Lillikas Individual 19. Nov 18 19. Nov 18 -7,000 $28.06 $-196,415
19. Nov 18 Sell Andrew Rippert Individual 15. Nov 18 15. Nov 18 -3,593 $27.83 $-100,002
02. Nov 18 Sell Yiorgos Lillikas Individual 31. Oct 18 31. Oct 18 -2,000 $28.49 $-56,985
17. Sep 18 Sell Louis Petrillo Individual 14. Sep 18 14. Sep 18 -9,573 $30.43 $-291,293
14. Sep 18 Sell William Hutchings Individual 12. Sep 18 12. Sep 18 -15,000 $30.00 $-450,000
12. Sep 18 Sell John Vollaro Individual 10. Sep 18 10. Sep 18 -10,500 $30.06 $-315,644
19. Jun 18 Sell Andrew Rippert Individual 15. Jun 18 15. Jun 18 -18,510 $26.96 $-499,019
13. Jun 18 Sell François Morin Individual 11. Jun 18 11. Jun 18 -5,814 $27.70 $-161,072
X
Management checks
We assess Arch Capital Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arch Capital Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ACGL News

Simply Wall St News

Do Arch Capital Group's (NASDAQ:ACGL) Earnings Warrant Your Attention?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Arch Capital Group (NASDAQ:ACGL). … In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. … I note that, last year, Arch Capital Group's revenue from operations was lower than its revenue, so that could distort my analysis of its margins.

Simply Wall St -

How Much Are Arch Capital Group Ltd. (NASDAQ:ACGL) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Arch Capital Group Ltd. … The Last 12 Months Of Insider Transactions At Arch Capital Group. … All up, insiders sold more shares in Arch Capital Group than they bought, over the last year

Simply Wall St -

Is Arch Capital Group Ltd.'s (NASDAQ:ACGL) Growth Strong Enough To Justify Its March Share Price?

(NASDAQ:ACGL) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $31.96 is based on unrealistic expectations. … What can we expect from Arch Capital Group in the future. … One reason why investors are attracted to ACGL is the high growth potential in the near future

Simply Wall St -

Does Arch Capital Group Ltd.'s (NASDAQ:ACGL) 26% Earnings Growth Reflect The Long-Term Trend?

After reading Arch Capital Group Ltd.'s (NASDAQ:ACGL) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I also compare against an industry benchmark to check whether Arch Capital Group's performance has been impacted by industry movements. … View our latest analysis for Arch Capital Group?

Simply Wall St -

Can You Imagine How Arch Capital Group's Shareholders Feel About The 73% Share Price Increase?

(NASDAQ:ACGL) shareholders have enjoyed a 73% share price rise over the last half decade, well in excess of the market return of around 58%. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … Over half a decade, Arch Capital Group managed to grow its earnings per share at 0.2% a year.

Simply Wall St -

Have Insiders Been Selling Arch Capital Group Ltd. (NASDAQ:ACGL) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Arch Capital Group Ltd. … Arch Capital Group Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Arch Capital Group shares, than buying.

Simply Wall St -

Taking A Look At Arch Capital Group Ltd.'s (NASDAQ:ACGL) ROE

Our data shows Arch Capital Group has a return on equity of 8.4% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.084 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Brief Commentary On Arch Capital Group Ltd's (NASDAQ:ACGL) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Don't Sell Arch Capital Group Ltd (NASDAQ:ACGL) Before You Read This

To keep it practical, we'll show how Arch Capital Group Ltd's (NASDAQ:ACGL) P/E ratio could help you assess the value on offer. … Arch Capital Group has a price to earnings ratio of 20.84, based on the last twelve months. … How Do You Calculate Arch Capital Group's P/E Ratio

Simply Wall St -

Interested In Arch Capital Group Ltd (NASDAQ:ACGL)? Here's How It Performed Recently

When Arch Capital Group Ltd's (NASDAQ:ACGL) announced its latest earnings (30 June 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Arch Capital Group's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for Arch Capital Group?

Simply Wall St -

ACGL Company Info

Description

Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance 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; employers’ liability insurance coverages; 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 commercial property risks; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers, and directly to ceding companies. 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 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.

Details
Name: Arch Capital Group Ltd.
ACGL
Exchange: NasdaqGS
Founded: 1995
$13,585,779,810
402,184,127
Website: http://www.archcapgroup.com
Address: Arch Capital Group Ltd.
Waterloo House,
Ground Floor,
Pembroke,
HM 08,
Bermuda
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ACGL Common Shares Nasdaq Global Select US USD 14. Sep 1995
DB RSK Common Shares Deutsche Boerse AG DE EUR 14. Sep 1995
NYSE ARH PRACL PFD SER A New York Stock Exchange US USD 18. Apr 2006
NYSE ARH PRBCL PFD SER B New York Stock Exchange US USD 26. May 2006
NasdaqGS ACGL.P DSHS 1/1000 E Nasdaq Global Select US USD 23. Sep 2016
NasdaqGS ACGL.O 5.45% PFD SER F Nasdaq Global Select US USD 15. Aug 2017
Number of employees
Current staff
Staff numbers
3,642
Arch Capital Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:45
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.