Arch Capital Group (NASDAQ:ACGL) Announces Quarterly Earnings Results

Key Points

• Q1 results: Arch reported EPS of $2.50, beating the $2.48 consensus, while revenue of $4.52B slightly missed estimates and declined 3.7% year‑over‑year.
• Underwriting and investment strength — including a ~81.7% combined ratio and roughly $200M of favorable reserve development — supported profitability, and management repurchased about $783M in the quarter while reiterating a $1.5–$2.0B buyback plan.
• Shares fell roughly 4.9% to $92.31 after the print; analysts are mixed (9 Buy, 8 Hold, 1 Sell) with a consensus price target of $108.93.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) announced its earnings results on Tuesday. The insurance provider reported $2.50 earnings per share for the quarter, topping the consensus estimate of $2.48 by $0.02, FiscalAI reports. The company had revenue of $4.52 billion during the quarter, compared to analyst estimates of $4.56 billion. Arch Capital Group had a net margin of 22.07% and a return on equity of 16.73%. Arch Capital Group's revenue was down 3.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.54 earnings per share.

Arch Capital Group Stock Down 4.9%

Shares of NASDAQ ACGL traded down $4.76 during midday trading on Wednesday, hitting $92.31. The company's stock had a trading volume of 1,063,080 shares, compared to its average volume of 1,992,693. The business's fifty day simple moving average is $96.56 and its two-hundred day simple moving average is $94.21. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.53 and a quick ratio of 0.53. Arch Capital Group has a 1 year low of $82.44 and a 1 year high of $103.39. The firm has a market capitalization of $32.89 billion, a price-to-earnings ratio of 7.95, a price-to-earnings-growth ratio of 4.80 and a beta of 0.41.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ACGL. UBS Group reaffirmed a "buy" rating and set a $114.00 target price (up from $113.00) on shares of Arch Capital Group in a research note on Tuesday, February 17th. Royal Bank Of Canada increased their target price on shares of Arch Capital Group from $108.00 to $115.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 11th. Wells Fargo & Company increased their target price on shares of Arch Capital Group from $106.00 to $109.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 11th. Keefe, Bruyette & Woods raised their price objective on shares of Arch Capital Group from $104.00 to $105.00 and gave the company a "market perform" rating in a research note on Tuesday, April 7th. Finally, Morgan Stanley set a $125.00 price objective on shares of Arch Capital Group in a research note on Friday, January 16th. Nine investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Arch Capital Group has an average rating of "Hold" and a consensus price target of $108.93.

More Arch Capital Group News

Here are the key news stories impacting Arch Capital Group this week:

• Positive Sentiment: Q1 earnings beat expectations and underwriting/investment strength—ACGL reported EPS above consensus (reported around $2.50 vs. ~$2.48 consensus) with underwriting income and investment income helping offset weaker premiums. Arch Capital Q1 Earnings Beat Estimates, Premiums Fall Y/Y
• Positive Sentiment: Underwriting discipline and reserve releases boosted profitability—Q1 combined ratio ~81.7% and ~$200M of favorable reserve development demonstrate conservative reserving and strong underwriting margins. Arch Capital: Shrewd Capital Allocation And Underwriting Deliver In Q1
• Positive Sentiment: Aggressive share repurchases—management repurchased ~$783M in the quarter and reiterated a $1.5–$2.0B buyback plan for the year, which should be EPS-accretive and support the stock. Arch Capital: Shrewd Capital Allocation And Underwriting Deliver In Q1
• Neutral Sentiment: Company press release highlights ~ $1.0B net income (GAAP) and related slide deck — useful for modeling but didn’t materially change forward guidance. Arch Capital Group Ltd. Reports 2026 First Quarter Results
• Neutral Sentiment: New working-capital/ABL platform launched under the Arch brand — diversification into lending could add fee income over time but is not an immediate earnings driver. Arch Capital Management Launches to Provide Flexible Working Capital, Factoring, and ABL Facilities
• Negative Sentiment: Premiums and revenues fell year-over-year and total revenue slightly missed consensus ($4.52B vs. $4.56B), signaling growth pressure in the pricing environment. Arch Capital Q1 Press Release / Slide Deck
• Negative Sentiment: Near-term analyst caution—Morgan Stanley issued a Hold, reflecting some street reservations on growth and valuation after the print. Arch Capital Group (ACGL) Receives a Hold from Morgan Stanley

Insider Buying and Selling at Arch Capital Group

In other news, insider David Gansberg sold 5,907 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $96.37, for a total value of $569,257.59. Following the completion of the transaction, the insider owned 336,559 shares of the company's stock, valued at approximately $32,434,190.83. This trade represents a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Nicolas Papadopoulo sold 21,930 shares of Arch Capital Group stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $96.31, for a total transaction of $2,112,078.30. Following the completion of the transaction, the chief executive officer owned 871,594 shares of the company's stock, valued at $83,943,218.14. This represents a 2.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 78,267 shares of company stock worth $7,291,637. 3.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ACGL. Geneos Wealth Management Inc. lifted its stake in Arch Capital Group by 157.9% in the first quarter. Geneos Wealth Management Inc. now owns 673 shares of the insurance provider's stock worth $65,000 after acquiring an additional 412 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Arch Capital Group in the second quarter worth approximately $253,000. CW Advisors LLC lifted its stake in Arch Capital Group by 6.5% in the second quarter. CW Advisors LLC now owns 3,098 shares of the insurance provider's stock worth $282,000 after acquiring an additional 189 shares during the last quarter. Jump Financial LLC purchased a new position in Arch Capital Group in the second quarter worth approximately $667,000. Finally, Cerity Partners LLC lifted its stake in Arch Capital Group by 11.6% in the second quarter. Cerity Partners LLC now owns 47,486 shares of the insurance provider's stock worth $4,324,000 after acquiring an additional 4,933 shares during the last quarter. Hedge funds and other institutional investors own 89.07% of the company's stock.

About Arch Capital Group

Arch Capital Group Ltd. NASDAQ: ACGL is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch's product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.

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