Arch Capital Group
Market Cap
US$16.5b
Last Updated
2019/11/11 23:46 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.
Snowflake
Fundamentals
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
-0.4%
ACGL
1.5%
US Insurance
0.3%
US Market
1 Year Return
45.6%
ACGL
14.0%
US Insurance
12.5%
US Market
Return vs Industry: ACGL exceeded the US Insurance industry which returned 14% over the past year.
Return vs Market: ACGL exceeded the US Market which returned 12.5% over the past year.
Shareholder returns
| ACGL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | 1.5% | 0.3% |
| 30 Day | -1.7% | 1.4% | 4.1% |
| 90 Day | 3.4% | 1.3% | 5.6% |
| 1 Year | 45.6%45.6% | 16.8%14.0% | 15.0%12.5% |
| 3 Year | 50.4%50.4% | 37.8%27.1% | 49.1%39.4% |
| 5 Year | 115.0%115.0% | 66.5%46.6% | 62.8%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
6 days ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Arch Capital Group (NASDAQ:ACGL) Passed With Ease3 weeks ago | Simply Wall St
Can Arch Capital Group Ltd. (NASDAQ:ACGL) Maintain Its Strong Returns?1 month ago | Simply Wall St
If You Had Bought Arch Capital Group (NASDAQ:ACGL) Stock Five Years Ago, You Could Pocket A 127% Gain TodayValuation
Is Arch Capital Group undervalued compared to its fair value and its price relative to the market?
17.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACGL ($40.79) is trading below our estimate of fair value ($49.29)
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 (11.7x) compared to the Insurance industry average (16.8x).
PE vs Market: ACGL is good value based on its PE Ratio (11.7x) compared to the US market (18.3x).
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 (1.6x) compared to the US Insurance industry average (1.2x).
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?
-5.9%
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 (-5.9% per year).
Earnings vs Market: ACGL's earnings are forecast to decline over the next 3 years (-5.9% per year).
High Growth Earnings: ACGL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ACGL's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: ACGL's revenue (2.4% 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 (11%).
Next Steps
Past Performance
How has Arch Capital Group performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACGL has high quality earnings.
Growing Profit Margin: ACGL's current net profit margins (21.5%) are higher than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: ACGL's earnings have grown by 8% per year over the past 5 years.
Accelerating Growth: ACGL's earnings growth over the past year (77.6%) exceeds its 5-year average (8% per year).
Earnings vs Industry: ACGL earnings growth over the past year (77.6%) exceeded the Insurance industry -11.3%.
Return on Equity
High ROE: ACGL's Return on Equity (11.9%) 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 3.7x 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
Current dividend yield vs market & industry
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
What is the CEO of Arch Capital Group's salary, the management and board of directors tenure and is there insider trading?
1.9yrs
Average management tenure
CEO
Marc Grandisson (51yo)
1.7yrs
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 ($USD11.12M).
Compensation vs Earnings: Marc's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.9yrs
Average Tenure
56yo
Average Age
Experienced Management: ACGL's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Age and Tenure
7.2yrs
Average Tenure
59.5yo
Average Age
Experienced Board: ACGL's board of directors are considered experienced (7.2 years average tenure).
Insider Trading
Insider Buying: ACGL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Senior Advisor & Director |
| Shares | 100 |
| Max Price | US$42.00 |
| Entity | Individual |
| Role | Unit Chairman Chairman & CEO of Arch Worldwide Reinsurance Group |
| Shares | 20,000 |
| Max Price | US$39.08 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 78,300 |
| Max Price | US$40.05 |
| Entity | Individual |
| Role | Member of the Board of Directors Senior Advisor & Director |
| Shares | 10,000 |
| Max Price | US$40.01 |
| Entity | Individual |
| Role | Chief Investment Officer Senior VP & Chief Investment Officer |
| Shares | 25,000 |
| Max Price | US$39.47 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP |
| Shares | 8,000 |
| Max Price | US$39.42 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board & Lead Independent Director |
| Shares | 299,741 |
| Max Price | US$34.04 |
| Entity | Individual |
| Role | Unit Chairman Chairman & CEO of Arch Worldwide Reinsurance Group |
| Shares | 17,712 |
| Max Price | US$33.71 |
| Entity | Individual |
| Shares | 6,643 |
| Max Price | US$34.00 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 75,000 |
| Max Price | US$33.92 |
| Entity | Individual |
| Role | Unit Chairman Chairman & CEO of Arch Worldwide Reinsurance Group |
| Shares | 15,000 |
| Max Price | US$33.73 |
| Entity | Individual |
| Role | Member of the Board of Directors Senior Advisor & Director |
| Shares | 11,500 |
| Max Price | US$34.15 |
| Entity | Individual |
| Role | Chief Investment Officer Senior VP & Chief Investment Officer |
| Shares | 37,500 |
| Max Price | US$32.55 |
| Entity | Individual |
| Role | Chief Investment Officer Senior VP & Chief Investment Officer |
| Shares | 2,500 |
| Max Price | US$32.40 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$32.30 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 500 |
| Max Price | US$28.24 |
| Entity | Individual |
| Shares | 7,000 |
| Max Price | US$28.06 |
| Entity | Individual |
| Shares | 3,593 |
| Max Price | US$27.83 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
John Vollaro (74yo)
Senior Advisor & Director
- Tenure: 10yrs
- Compensation: US$882.32k
Carl Sullo (70yo)
Chief Human Resources Officer of Real Estate & Administrative Services
- Tenure: 0yrs
William Hutchings (63yo)
Senior VP & Chief Investment Officer
- Tenure: 14.3yrs
- Compensation: US$1.95m
Marc Grandisson (51yo)
President
- Tenure: 1.7yrs
- Compensation: US$12.88m
Nicolas Alain Papadopoulo (56yo)
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
- Tenure: 0yrs
- Compensation: US$4.08m
Maamoun Rajeh (48yo)
Chairman & CEO of Arch Worldwide Reinsurance Group
- Tenure: 5.3yrs
- Compensation: US$3.79m
Pat Nails
Senior VP & General Counsel of Arch Insurance Group Inc
- Tenure: 0yrs
Donald Watson
Executive Vice President at Financial Services of Arch Capital Services Inc.
- Tenure: 0yrs
Janice Englesbe
Senior VP & Chief Risk Officer
- Tenure: 0.8yrs
François Morin (51yo)
Executive VP
- Tenure: 1.5yrs
- Compensation: US$3.90m
Board Members
John Bunce (60yo)
Independent Director
- Tenure: 18yrs
- Compensation: US$273.01k
Eric Doppstadt (60yo)
Independent Director
- Tenure: 9yrs
- Compensation: US$265.51k
Brian Posner (58yo)
Independent Director
- Tenure: 9yrs
- Compensation: US$349.51k
John Pasquesi (59yo)
Chairman of the Board & Lead Independent Director
- Tenure: 0.2yrs
- Compensation: US$329.01k
John Vollaro (74yo)
Senior Advisor & Director
- Tenure: 10yrs
- Compensation: US$882.32k
Marc Grandisson (51yo)
President
- Tenure: 1.7yrs
- Compensation: US$12.88m
Nicolas Alain Papadopoulo (56yo)
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
- Tenure: 0yrs
- Compensation: US$4.08m
Dennis Brand (68yo)
Chairman of Worldwide Services
- Tenure: 0yrs
Maamoun Rajeh (48yo)
Chairman & CEO of Arch Worldwide Reinsurance Group
- Tenure: 5.3yrs
- Compensation: US$3.79m
Gerry Wolfe (70yo)
Chairman of Arch Insurance Canada
- Tenure: 4.8yrs
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$16.466b
- Shares outstanding: 403.69m
- 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 ca ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/11 23:46 |
| End of Day Share Price | 2019/11/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.