Arch Capital Group
Market Cap
US$19.0b
Last Updated
2020/02/24 00:29 UTC
Data Sources
Company Financials +
Executive Summary
Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.4% per year for the next 3 years
Snowflake Analysis
Solid track record and fair value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.2%
ACGL
-1.5%
US Insurance
-1.1%
US Market
1 Year Return
46.1%
ACGL
16.1%
US Insurance
17.8%
US Market
Return vs Industry: ACGL exceeded the US Insurance industry which returned 16.3% over the past year.
Return vs Market: ACGL exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| ACGL | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | -1.5% | -1.1% |
| 30 Day | 4.7% | 2.9% | 1.5% |
| 90 Day | 12.0% | 4.3% | 6.6% |
| 1 Year | 46.1%46.1% | 18.9%16.1% | 20.2%17.8% |
| 3 Year | 50.2%50.2% | 34.4%24.1% | 47.5%38.1% |
| 5 Year | 137.0%137.0% | 71.3%50.7% | 71.2%52.4% |
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
4 days ago | Simply Wall St
This Insider Has Just Sold Shares In Arch Capital Group Ltd. (NASDAQ:ACGL)3 weeks ago | Simply Wall St
Shareholders Are Thrilled That The Arch Capital Group (NASDAQ:ACGL) Share Price Increased 121%1 month ago | Simply Wall St
A Closer Look At Arch Capital Group Ltd.'s (NASDAQ:ACGL) Impressive ROEValuation
Is Arch Capital Group undervalued compared to its fair value and its price relative to the market?
13.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACGL ($47.12) is trading below our estimate of fair value ($54.2)
Significantly Below Fair Value: ACGL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ACGL is good value based on its PE Ratio (11.9x) compared to the Insurance industry average (13.4x).
PE vs Market: ACGL is good value based on its PE Ratio (11.9x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ACGL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ACGL is overvalued based on its PB Ratio (1.8x) compared to the US Insurance industry average (1.1x).
Next Steps
Future Growth
How is Arch Capital Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACGL's earnings are forecast to decline over the next 3 years (-5.4% per year).
Earnings vs Market: ACGL's earnings are forecast to decline over the next 3 years (-5.4% per year).
High Growth Earnings: ACGL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ACGL's revenue is expected to decline over the next 3 years (-0.4% per year).
High Growth Revenue: ACGL's revenue is forecast to decline over the next 3 years (-0.4% 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 (9.9%).
Next Steps
Past Performance
How has Arch Capital Group performed over the past 5 years?
13.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACGL has high quality earnings.
Growing Profit Margin: ACGL's current net profit margins (23%) are higher than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: ACGL's earnings have grown by 13.7% per year over the past 5 years.
Accelerating Growth: ACGL's earnings growth over the past year (123.5%) exceeds its 5-year average (13.7% per year).
Earnings vs Industry: ACGL earnings growth over the past year (123.5%) exceeded the Insurance industry 32.1%.
Return on Equity
High ROE: ACGL's Return on Equity (13.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Arch Capital Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: ACGL has a low level of unsold assets or inventory.
Debt Coverage by Assets: ACGL's debt is covered by short term assets (assets are 4.4x debt).
Financial Institutions Analysis
Asset Level: ACGL's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if ACGL has a sufficient allowance for bad loans.
Low Risk Liabilities: ACGL reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if ACGL has an acceptable proportion of non-loan assets held.
Low Risk Deposits: ACGL has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if ACGL has an appropriate level of bad loans.
Next Steps
Dividend
What is Arch Capital Group's 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 payouts.
High Dividend: Unable to evaluate ACGL's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Marc Grandisson (51yo)
1.9yrs
Tenure
US$12,884,187
Compensation
Mr. Marc Grandisson has been Chief Executive Officer and President of Arch Capital Group Ltd since March 3, 2018 and has been its Director since March 2018. Mr. Grandisson served as the Chairman and Chief ...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD12.88M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Marc's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.9yrs | US$12.88m | 0.44% $84.6m | |
| Executive VP | 1.8yrs | US$3.90m | 0.028% $5.4m | |
| Senior Advisor & Director | 10.3yrs | US$882.32k | 0.11% $21.8m | |
| Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations | 0yrs | US$4.08m | 0.17% $31.6m | |
| Chairman & CEO of Arch Worldwide Reinsurance Group | 5.6yrs | US$3.79m | 0.075% $14.3m | |
| Senior VP & Chief Investment Officer | 14.6yrs | US$1.95m | 0.16% $31.1m | |
| Group Chief Information Officer | 0.08yrs | no data | no data | |
| Chief Human Resources Officer of Real Estate & Administrative Services | 0yrs | no data | no data | |
| Executive Vice President at Financial Services of Arch Capital Services Inc. | 0yrs | no data | no data | |
| Senior VP & General Counsel of Arch Insurance Group Inc | 0yrs | no data | no data |
2.1yrs
Average Tenure
56yo
Average Age
Experienced Management: ACGL's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.9yrs | US$12.88m | 0.44% $84.6m | |
| Senior Advisor & Director | 10.3yrs | US$882.32k | 0.11% $21.8m | |
| Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations | 0yrs | US$4.08m | 0.17% $31.6m | |
| Chairman & CEO of Arch Worldwide Reinsurance Group | 5.6yrs | US$3.79m | 0.075% $14.3m | |
| Independent Director | 18.3yrs | US$273.01k | 0.51% $98.0m | |
| Independent Director | 9.3yrs | US$265.51k | 0.015% $2.9m | |
| Independent Director | 9.3yrs | US$349.51k | 0.023% $4.3m | |
| Chairman of the Board & Lead Independent Director | 0.4yrs | US$329.01k | 0.89% $170.2m | |
| Independent Director | 5.6yrs | US$317.83k | 0.0046% $885.2k | |
| Chairman of Arch Insurance Canada | 5yrs | no data | no data |
5.6yrs
Average Tenure
59.5yo
Average Age
Experienced Board: ACGL's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ACGL insiders have only sold shares 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$19.036b
- Shares outstanding: 404.00m
- 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 00:29 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.