Arch Capital Group
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 Year Returns
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.
ACGL Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Arch Capital Group.
| 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.
| 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.
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Arch Capital Group's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Arch Capital Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Arch Capital Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Arch Capital Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Arch Capital Group Company Filings, last reported 1 month ago.
| 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).
Financial health checks
We assess Arch Capital Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Arch Capital Group has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
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
- 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.
| 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.
| 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.
Income/ dividend checks
We assess Arch Capital Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The average tenure for the Arch Capital Group management team is less than 2 years, this suggests a new team.
Management Team
Marc Grandisson
President
$13M
50
1.2 yrs
François Morin
Executive VP
$4M
50
1 yrs
John Vollaro
Senior Advisor & Director
$882K
73
Nicolas Alain Papadopoulo
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
$4M
55
1.6 yrs
Maamoun Rajeh
Chairman & CEO of Arch Worldwide Reinsurance Group
$4M
47
4.8 yrs
William Hutchings
Senior VP & Chief Investment Officer
$2M
62
13.8 yrs
Carl Sullo
Chief Human Resources Officer of Real Estate & Administrative Services
69
Donald Watson
Executive Vice President at Financial Services of Arch Capital Services Inc.
Pat Nails
Senior VP & General Counsel of Arch Insurance Group Inc
Janice Englesbe
Senior VP & Chief Risk Officer
0.3 yrs
Board of Directors Tenure
Average tenure and age of the Arch Capital Group board of directors in years:
- The tenure for the Arch Capital Group board of directors is about average.
Board of Directors
Dinos Iordanou
Non-Executive Chairman of the Board
$2M
68
9.5 yrs
Marc Grandisson
President
$13M
50
1.2 yrs
John Pasquesi
Vice Chairman & Lead Independent Director
$329K
58
17.5 yrs
John Vollaro
Senior Advisor & Director
$882K
73
9.5 yrs
Nicolas Alain Papadopoulo
Chairman & CEO of Arch Worldwide and Chief Underwriting Officer of Property & Casualty Operations
$4M
55
Maamoun Rajeh
Chairman & CEO of Arch Worldwide Reinsurance Group
$4M
47
4.8 yrs
Gerry Wolfe
Chairman of Arch Insurance Canada
69
4.3 yrs
Dennis Brand
Chairman of Worldwide Services
67
John Bunce
Director
$273K
59
17.5 yrs
Eric Doppstadt
Director
$266K
59
8.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess Arch Capital Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleHow 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 - – Full articleIs 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 - – Full articleDoes 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 - – Full articleCan 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 - – Full articleHave 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 - – Full articleTaking 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 - – Full articleBrief 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 - – Full articleDon'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 - – Full articleInterested 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 - – Full articleACGL 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
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.
