| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 87 | 7.5x | 17.8x | Top tier | |
Growth | 45 | -2.0% | 7.1% | Around median | |
Quality | 93 | — | — | Top tier | |
Safety | 35 | — | — | Bottom tier | |
Capital Return | 73 | 5.20% | 2.12% | Top tier | |
Momentum | 62 | 7.9% | 2.9% | Around median | |
Sentiment | 84 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arch Capital Group Ltd. operates through three interconnected segments: specialty insurance, reinsurance, and mortgage insurance. The company generates income from underwriting premiums and investing available funds, allocating capital among lines based on risk-adjusted returns; in Q2 FY2026, investments contributed $417 million in net investment income, while equity-method investments added another $196 million to net income.
In Q2 FY2026, revenue according to EDGAR filings was approximately $4.7 billion, net income was $1.1 billion, and earnings per share were $3. After-tax operating income was $893 million, or $2.56 per share, while the company recorded an accident-year combined ratio excluding catastrophes of 82.5%, up 160 basis points year over year; the data did not include a comparable gross profit margin.
The underwriting profit mix in Q2 FY2026 consisted of $27 million from insurance, $410 million from reinsurance, and $220 million from mortgage insurance. Insurance was affected by catastrophic losses related to the Iran conflict, while reinsurance benefited from relatively limited catastrophe losses, and mortgage insurance maintained stable performance, with the delinquency rate in the U.S. mortgage insurance portfolio remaining at 2.1%. On a trailing-twelve-month basis ending in 2026, the data shows revenue of $19.2 billion, net income of $4.7 billion, and earnings per share of approximately $13.45.
The average analyst price target is $114.17, compared with a target range of $104 to $126 and a consensus rating of “Buy.” The average target and the highest target are above the upper end of the 52-week range of $107.09, while the lowest target is within the 52-week range of $82.45–$107.09, reflecting differing assessments of the impact of strong earnings versus slowing premiums and softer property pricing. The data does not permit the calculation of a reliable price-to-earnings multiple, so the valuation assessment here is based on the analyst target range and the 52-week range rather than an unavailable multiple.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Arch's revenue according to EDGAR filings was approximately $4.7 billion, net income was $1.1 billion, and earnings per share were $3 in Q2 FY2026. On an after-tax operating basis, the company generated $893 million, or $2.56 per share. The insurance, reinsurance, and mortgage insurance segments contributed underwriting income of $27 million, $410 million, and $220 million, respectively. Combined net investment income and equity-method investment income also totaled $613 million before tax.
Net premiums written in insurance declined 5.1% year over year during Q2 FY2026 due to the non-renewal of certain program business and reduced underwriting of excess and surplus property and specialty business. In reinsurance, net premiums written declined 10.4% as pricing fell, some clients retained more risk, and retrocession purchases increased. Management estimated that property catastrophe renewal pricing in mid-FY2026 declined by percentages in the mid-teens. In contrast, North American casualty lines continued to grow, and specialty casualty reinsurance opportunities remained selectively attractive.
Arch repurchased 12.4 million shares for $1.2 billion in Q2 FY2026. Total repurchases during the first half of FY2026 reached $1.95 billion, equivalent to approximately 94% of net income for the period. Management said that slower premium growth and strong earnings freed up additional capital for repurchases, but it did not specify a fixed target for future purchases. The debt and preferred shares-to-capital ratio was 18.1% at the end of Q2 FY2026.
Automated analysis for informational purposes only — not investment advice.
The company recorded current-year catastrophe losses of $201 million after reinsurance and reinstatement premiums in Q2 FY2026. The losses came from the Iran conflict and severe convective storms in the United States, with most catastrophe losses in the insurance segment related to physical damage to assets in the Iran region. On July 1, 2026, the estimated net probable maximum loss from a single event in a peak zone with a once-in-250-year return period was approximately $1.8 billion. This was equivalent to 8% of tangible shareholders' equity, while management maintained its estimate for the group's annual catastrophe load within a range of 6%–8%.
The mortgage insurance segment generated underwriting income of $220 million in Q2 FY2026. The delinquency rate in the U.S. mortgage insurance portfolio remained stable at 2.1%, with reserve development continuing to be favorable but at a slower pace than in previous quarters. Earned premiums were stable compared with the previous quarter, as growth in Australia offset most of the decline in U.S. business. A relatively large new Australian client also began adding business in Q1 FY2026, and management expects its contribution to increase during the remainder of FY2026.
The analyst consensus rates ACGL shares as a “Buy,” with an average price target of $114.17. Targets range from $104 to $126, revealing a notable difference in assessments of the company's value. The average target and the highest target exceed the top of the 52-week range of $107.09, while the lowest target remains within the range of $82.45–$107.09. This gap reflects a balance between underwriting and investment earnings and share repurchases on one hand, and pricing pressure, declining premiums, and catastrophe risk on the other.
