ACGL

It has been about a month since the last earnings report for Arch Capital Group (ACGL). Shares have lost about 3.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Arch Capital due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Arch Capital Group Ltd. before we dive into how investors and analysts have reacted as of late. ACGL Q2 Earnings Beat on Reserve Gains, Investment IncomeArch Capital Group reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year.Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income. Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%. Catastrophe losses totaled $201 million, while favorable prior-year reserve development was $165 million. Insurance gross premiums written declined 2.9% year over year to $2.60 billion. The figure was lower than our estimate of $2.7 billion. Net premiums written fell 5.1% to $1.93 billion. The figure was lower than our estimate of $1.95 billion. Underwriting income plunged 79.1% to $27 million. The figure was lower than our estimate of $70.2 million. The combined ratio worsened by 510 basis points to 98.5%. The combined ratio excluding catastrophe activity and prior-year development was 91.6%, up 100 basis points. Reinsurance gross premiums written inched up 0.2% to $3.20 billion. The figure was lower than our estimate of $3.06 billion. Net premiums written dropped 10.4% to $1.84 billion, partly due to non-renewals, reduced participations and targeted increases in retrocessions. The figure was lower than our estimate of $2 billion.Underwriting income decreased 9.1% to $410 million. The figure was higher than our estimate of $384.2 million. However, the combined ratio improved 100 basis points to 77.5%. The underlying combined ratio increased 270 basis points to 79.9%. Mortgage gross premiums written rose 0.3% year over year to $324 million, while net premiums written increased 7.5% to $272 million. Growth in international business offset lower U.S. monthly premium volume. The figure for gross premiums written was higher than our estimate of $314.9 million, while that for net premiums written was higher than our estimate of $247.6 million.Underwriting income declined 7.6% to $220 million. The figure was lower than our estimate of $226.7 million. The combined ratio deteriorated 760 basis points to 22.8%. Excluding prior year development, the combined ratio was 39.8% compared with 39.3% a year earlier. Pre-tax net investment income increased 3% year over year to $417 million, supported by growth in average invested assets and strong operating cash flows. The figure was higher than our estimate of $420.9 million. Equity in net income from investments accounted for under the equity method rose to $196 million from $162 million.Arch Capital ended the quarter with $1.11 billion in cash and $4.29 billion in senior notes. Book value per share rose 2.8% sequentially to $68.04. Net cash provided by operating activities increased 17.6% year over year to $1.32 billion. Net income available to common shareholders was $1.05 billion, or $3 per share, compared with $1.23 billion, or $3.23 per share, in the year-ago quarter. Annualized net income return on average common equity was 18%, which contracted 490 basis points year over year, while annualized operating return was 15.3%, which contracted 290 basis points year over year.The company completed a $2 billion senior notes offering in June and used part of the proceeds for debt refinancing and tender offers. Interest expense increased to $44 million from $38 million. Arch Capital also repurchased $1.2 billion of shares during the quarter, contributing to an 8.2% year-over-year decline in diluted weighted-average shares. In the past month, investors have witnessed a upward trend in estimates revision. Currently, Arch Capital has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Arch Capital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Arch Capital belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Kinsale Capital Group, Inc. (KNSL), has gained 2.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Kinsale Capital Group reported revenues of $548.52 million in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $5.54 for the same period compares with $4.78 a year ago. For the current quarter, Kinsale Capital Group is expected to post earnings of $4.87 per share, indicating a change of -6.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days. Kinsale Capital Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Arch Capital Group (ACGL) reported second quarter 2026 results on July 28, highlighting revenue of US$4.67b and net income of US$1.06b, along with detailed six-month figures that give investors fresh fundamentals to evaluate. See our latest analysis for Arch Capital Group. Arch Capital Group’s recent earnings release comes after a steady build in momentum, with the share price delivering a 7.15% 90 day share price return and a 14.24% 1 year total shareholder return. The latest 1 day and 7 day share price moves show some cooling after that rise. If recent results have you reviewing your portfolio, this can be a good moment to look at other insurance related ideas via a broader financials and risk focused screen such as 18 top founder-led companies After Arch Capital Group’s recent share price cooling, the current US$100.53 level sits between a sizeable modelled intrinsic discount and a tighter analyst target range. So where does fair value really line up for this stock? With Arch Capital Group last closing at $100.53 against a narrative fair value of $109.84, the current setup frames a modest valuation gap that hinges on how its earnings path and capital deployment play out from here. Read the complete narrative. Want to see what is really driving that $109.84 fair value for Arch Capital Group? The story hinges on a mix of softer revenue assumptions, resilient margins, and a future earnings multiple that needs to shift from where it sits today. Curious which of those levers does the heavy lifting in this model. Result: Fair Value of $109.84 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Arch Capital Group narrative still depends on how it weathers catastrophe exposure such as wildfire related losses and any further slowdown in specialty premiums or mortgage activity. Find out about the key risks to this Arch Capital Group narrative. With both concerns and optimism in the Arch Capital Group story, this is a good moment to act and weigh the evidence for yourself using the 3 key rewards and 1 important warning sign Do not stop with Arch Capital Group alone. Broaden your watchlist now, or you may miss other stocks that better fit your goals and risk comfort. Target resilient balance sheets and steady fundamentals by reviewing companies in the solid balance sheet and fundamentals stocks screener (45 results). Hunt for potential value opportunities by scanning stocks flagged in the 55 high quality undervalued stocks. Spot earlier stage opportunities with higher potential risk and reward profiles through the 21 elite penny stocks with strong financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACGL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. After-tax Operating Income: $893 million, or $2.56 per share. Share Repurchases: $1.95 billion in the first half of the year. Book Value Per Share Growth: Increased by 2.8% in the quarter and 4.5% in the first half of the year. Insurance Segment Underwriting Income: $27 million with a combined ratio, ex-cat, of 91.6%. Reinsurance Segment Underwriting Income: $410 million with a combined ratio, ex-cat, of 79.9%. Mortgage Segment Underwriting Income: $220 million. Net Investment Income: $417 million, or $1.20 per share. Equity Method Investments Income: $196 million, or $0.56 per share. Net Premiums Written (Insurance): Declined 5.1% year over year. Net Premiums Written (Reinsurance): Down 10.4% from the same quarter last year. Cash Flow from Operations: $1.3 billion for the quarter. Effective Tax Rate: 15.1% on pre-tax operating income. Warning! GuruFocus has detected 3 Warning Sign with FER. Is ACGL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Arch Capital Group Ltd (NASDAQ:ACGL) reported strong earnings with an after-tax operating income of $893 million, or $2.56 per share. The company executed significant share repurchases, totaling $1.95 billion in the first half of the year, enhancing shareholder value. Book value per share increased by 2.8% in the quarter and 4.5% in the first half of the year. The Reinsurance segment delivered excellent results with $410 million of underwriting income, aided by relatively light catastrophe losses. The Mortgage segment continued to provide strong, stable results, delivering $220 million of underwriting income, supported by a resilient economy and high-quality risk in-force. The Insurance segment was negatively affected by catastrophe losses related to the Iran conflict, impacting underwriting income. Net premiums written in the Reinsurance segment were down 10% from the same quarter last year due to increased competition and clients retaining more risk. The underwriting environment is becoming increasingly competitive, particularly in property and short tail lines. The company's net-to-gross ratio was impacted by increased cession to traditional reinsurance and third-party capital. Current year catastrophe losses amounted to $201 million, net of reinsurance and reinstatement premiums, due to the Iran conflict and severe convective storms in the US. Q: Can you provide insights into the sustainability of the Insurance segment's underlying loss ratio and any changes in loss pick assumptions? A: The international short tail book is performing well, though potential volatility exists. In North America, the non-renewal of certain programs has helped lower the loss ratio. We are comfortable with current levels and have not made systematic changes to loss pick assumptions. (Francois Morin, CFO) Q: How are you approaching share buybacks given the current capital position and market conditions? A: We do not have specific targets for buybacks but found the stock price attractive in Q2, leading to increased buybacks. We have the capacity to continue buybacks, though wind season considerations are in mind. (Francois Morin, CFO) Q: What is your stance on retention in the Insurance segment, and how does it compare to reinsurance? A: Retention decisions are market-driven. In reinsurance, we've ceded more due to lower rates and increased capacity. In insurance, we adjust based on market conditions and client needs. (Nicolas Papadopoulo, CEO) Q: Can you elaborate on the competitive market environment and its impact on property and casualty rates? A: The market remains favorable, though property rates face headwinds with reductions. We are optimistic about casualty, where competition exists but discipline remains. (Nicolas Papadopoulo, CEO) Q: How do you view the potential for share repurchases exceeding 100% of operating earnings? A: We are confident in our ability to generate strong earnings and could return all earnings to shareholders if growth is limited. However, we remain open to other opportunities like M&A. (Francois Morin, CFO) Q: What are your thoughts on the current property catastrophe rate environment and adequacy? A: Mid-year renewals saw rate reductions in the mid-teens, but we believe rates are still above pre-Hurricane Ian levels. Rate adequacy varies by region. (Nicolas Papadopoulo, CEO) Q: How are you managing risks and opportunities in the Middle East given recent losses? A: We have deployed capacity selectively in the region, ensuring we avoid concentration and continue to support clients with adjusted pricing. (Nicolas Papadopoulo, CEO) Q: Can you discuss the impact of the Iran conflict on your Insurance segment and future catastrophe load expectations? A: The majority of insurance cat losses stem from Iran, with case reserves set up for actual claims. Our group cat load remains at 6% to 8% annually. (Francois Morin, CFO) Q: How do you view the potential for M&A in the current market environment? A: M&A is considered for strategic growth rather than as an alternative to organic growth or capital returns. Current market prices are high, and timing is crucial for successful M&A. (Nicolas Papadopoulo, CEO) Q: What is your approach to managing casualty loss trends amid social inflation? A: While there is some pushback, we have not yet seen significant changes in loss trends due to tort reform or defense strategies. (Nicolas Papadopoulo, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Arch Capital Group Ltd. ACGL reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year.Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income. Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%. Catastrophe losses totaled $201 million, while favorable prior-year reserve development was $165 million. Insurance gross premiums written declined 2.9% year over year to $2.60 billion. The figure was lower than our estimate of $2.7 billion. Net premiums written fell 5.1% to $1.93 billion. The figure was lower than our estimate of $1.95 billion. Underwriting income plunged 79.1% to $27 million. The figure was lower than our estimate of $70.2 million. The combined ratio worsened by 510 basis points to 98.5%. The combined ratio excluding catastrophe activity and prior-year development was 91.6%, up 100 basis points. Reinsurance gross premiums written inched up 0.2% to $3.20 billion. The figure was lower than our estimate of $3.06 billion. Net premiums written dropped 10.4% to $1.84 billion, partly due to non-renewals, reduced participations and targeted increases in retrocessions. The figure was lower than our estimate of $2 billion.Underwriting income decreased 9.1% to $410 million. The figure was higher than our estimate of $384.2 million. However, the combined ratio improved 100 basis points to 77.5%. The underlying combined ratio increased 270 basis points to 79.9%. Mortgage gross premiums written rose 0.3% year over year to $324 million, while net premiums written increased 7.5% to $272 million. Growth in international business offset lower U.S. monthly premium volume. The figure for gross premiums written was higher than our estimate of $314.9 million, while that for net premiums written was higher than our estimate of $247.6 million.Underwriting income declined 7.6% to $220 million. The figure was lower than our estimate of $226.7 million. The combined ratio deteriorated 760 basis points to 22.8%. Excluding prior year development, the combined ratio was 39.8% compared with 39.3% a year earlier. Pre-tax net investment income increased 3% year over year to $417 million, supported by growth in average invested assets and strong operating cash flows. The figure was higher than our estimate of $420.9 million. Equity in net income from investments accounted for under the equity method rose to $196 million from $162 million.Arch Capital ended the quarter with $1.11 billion in cash and $4.29 billion in senior notes. Book value per share rose 2.8% sequentially to $68.04. Net cash provided by operating activities increased 17.6% year over year to $1.32 billion. Net income available to common shareholders was $1.05 billion, or $3 per share, compared with $1.23 billion, or $3.23 per share, in the year-ago quarter. Annualized net income return on average common equity was 18%, which contracted 490 basis points year over year, while annualized operating return was 15.3%, which contracted 290 basis points year over year.The company completed a $2 billion senior notes offering in June and used part of the proceeds for debt refinancing and tender offers. Interest expense increased to $44 million from $38 million. Arch Capital also repurchased $1.2 billion of shares during the quarter, contributing to an 8.2% year-over-year decline in diluted weighted-average shares. Arch Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%.Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Total benefits and expenses increased 12.8% year over year to $2.7 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes the current environment as the early stages of a softening market, driven by an influx of capacity in property and short-tail lines. Insurance segment performance was impacted by catastrophe losses from the Iran conflict, though underlying results remain strong with a 91.6% current accident year ex-cat combined ratio. Reinsurance net premiums declined 10% as the firm intentionally reduced property exposure and increased cessions to third-party capital to manage net risk in a competitive pricing environment. The Mortgage segment continues to provide stable, high-quality earnings supported by a resilient economy and a flat U.S. delinquency rate of 2.1%. Strategic non-renewal of certain program business and reduced writing in excess and surplus (E&S) property lines contributed to the decline in insurance premiums. Casualty lines in North America, including construction and national accounts, continue to see attractive rate increases and disciplined competition. The firm's 'cycle management' playbook prioritizes capital preservation and underwriting quality over market share during periods of elevated competition. Management expects growth to be harder to achieve in the near term, positioning share repurchases as a primary tool for enhancing shareholder returns. Operating expense ratios in the Insurance segment are expected to revert to historical levels in the second half of 2026 following the transition of middle market business to internal systems. The firm anticipates continued pricing pressure in property catastrophe lines but remains optimistic about casualty reinsurance opportunities with selective ceding partners. Capital allocation will prioritize share buybacks over special dividends as long as the stock trades at what management considers attractive price-to-book multiples. Catastrophe load guidance remains unchanged at 6-8% on an annual basis for the group, despite recent geopolitical losses. Arch repurchased $1.2 billion of shares in Q2; total repurchases through the first half of the year represented approximately 94% of net income. The company raised $2 billion in senior notes to redeem maturing debt and replace instruments that no longer meet updated regulatory capital requirements. Favorable prior year development of $165 million was recognized across all three segments, primarily driven by short-tail lines and mortgage cure activity. The Iran conflict losses are characterized as tangible claims on refineries and infrastructure rather than hypothetical IBNR, with an industry loss estimate of approximately $3 billion. Management expressed comfort with current loss ratio levels, noting that the exit from certain programs has helped improve the mix. International results are currently benefiting from a short-tail heavy book, though management acknowledged potential volatility inherent in those lines. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Arch remains interested in casualty reinsurance but is being highly selective regarding ceding commissions and terms, noting that 'too much capacity is chasing too little business.' The focus is on partnering with specific specialty casualty underwriters rather than broad market participation. Management explicitly stated they do not allow higher investment yields to justify lower rates; underwriters are required to target an underwriting profit using a risk-free rate credit. M&A is viewed as a 'build versus buy' strategic tool for scale rather than a means to gain market share. Management cautioned that current market prices for acquisitions are expensive and that balance sheets often weaken as competition increases, making timing 'tricky.' Mid-year renewals saw rate reductions in the mid-teens, but management believes the market still trades above 2022 levels. The firm uses a granular '50-zone' monitoring system to shift capital from 'red' (inadequate) to 'green' (adequate) return zones.

Interested in Arch Capital Group Ltd.? Here are five stocks we like better. Arch Capital reported strong Q2 results, with $893 million in after-tax operating income, or $2.56 per share, as all three operating segments delivered solid underlying underwriting performance. The company accelerated capital returns, repurchasing $1.2 billion of stock during the quarter and $1.95 billion in the first half. Management said additional buybacks remain possible, while book value per share rose 2.8% quarterly. Management sees an increasingly competitive, softer market, especially in property and short-tail lines. Reinsurance property-catastrophe rates fell in the mid-teens at midyear renewals, but mortgage insurance remained a steady contributor and selective casualty and specialty opportunities persisted. Adobe Leads 3 Big Buyback Programs Worth Up to 25% of Market Cap Arch Capital Group (NASDAQ:ACGL) reported second-quarter after-tax operating income of $893 million, or $2.56 per share, as all three operating segments produced what management described as strong underlying underwriting results. The insurer and reinsurer also accelerated capital returns, repurchasing $1.2 billion of stock during the quarter. Chief Executive Officer Nicolas Papadopoulo said the company is entering the early stages of a softer and more competitive insurance market, particularly in property and other short-tail lines. Still, he said Arch’s diversified operations across specialty insurance, reinsurance and mortgage insurance provide opportunities to deploy capital where returns remain attractive. → This Tiny AI Supplier Could Be More Important Than the Chipmakers A Quiet Outperformer With a Catastrophe Caveat “A more competitive environment doesn't mean a lack of opportunity,” Papadopoulo said. “It simply requires greater discipline in where and how capital is deployed.” Arch repurchased 12.4 million shares for $1.2 billion during the second quarter, bringing first-half repurchases to $1.95 billion. Executive Vice President and Chief Financial Officer François Morin said the company repurchased approximately 94% of its net income during the first six months of the year. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Looking to Insure Your Portfolio? Start With These 3 Stocks Morin said buybacks remained an accretive use of excess capital at current share prices after the company evaluated organic and new-business investment opportunities. He said Arch has capacity for further repurchases, though management does not maintain a specific repurchase target and will consider catastrophe exposure during wind season. Book value per share increased 2.8% during the quarter and 4.5% in the first half, according to Papadopoulo. Arch’s debt plus preferred-to-capital leverage ratio was 18.1% at quarter-end. → Innovative ETF Strategies That Are Paying Off This Summer The company also raised $2 billion through 10-year and 30-year senior notes in May. The proceeds will be used in part to redeem $500 million of notes maturing later this year and to purchase $418 million of 2043 and 2046 senior notes through a tender offer. Management expects interest expense of approximately $60 million to $63 million in each of the next two quarters as a result of the debt issuance. Net investment income totaled $417 million, or $1.20 per share, supported by a $49.5 billion asset base with an average credit quality of A. Investments accounted for under the equity method contributed an additional $196 million, or $0.56 per share, to net income. Combined net investment income and equity-method fund income was $613 million before tax, or $1.76 per share. Arch’s overall current accident-year combined ratio excluding catastrophe losses was 82.5%, up 160 basis points from a year earlier. The company recorded $165 million of favorable prior-year development before tax, equal to 4.1 points on the overall combined ratio. Favorable development occurred across all three segments, primarily in short-tail property and casualty lines and mortgage insurance, where strong cure activity contributed. Current-year catastrophe losses totaled $201 million net of reinsurance and reinstatement premiums. Management attributed the losses to the Iran conflict and severe U.S. convective storms. Papadopoulo said Arch is a significant writer of political violence, terrorism and marine war coverage in the London market, and that the conflict has also created selective opportunities to provide additional capacity for clients with regional assets. Management said the industry estimate for Middle East war-related losses remained around $3 billion. Morin said Arch’s exposure is evaluated property by property and that additional losses could emerge if further insured assets are damaged. The insurance segment generated $27 million of underwriting income, with a current accident-year combined ratio excluding catastrophes of 91.6%. Net premiums written declined 5.1% from the prior year, partly because of the non-renewal of certain program business and reduced excess and surplus property writings. Morin said the insurance segment’s ex-catastrophe accident-year loss ratio improved 90 basis points to 56.4%, helped by international operations and the effect of program business non-renewals. He said there were no systematic changes to loss picks during the quarter beyond routine rate-over-trend adjustments. Arch continued to see premium growth in North American casualty-oriented businesses, including excess and surplus casualty, construction and national accounts. The company also cited positive trends in specialty London market lines such as war and terrorism. Middle-market commercial business and casualty-oriented lines continued to experience rate increases, while directors and officers pricing was gradually improving and cyber rate declines had moderated. In reinsurance, underwriting income was $410 million, helped by relatively light catastrophe activity. The segment’s current accident-year ex-catastrophe combined ratio was 79.9%, up 270 basis points from the prior year due to business mix changes and lower property pricing. Reinsurance net premiums written fell 10.4% year over year as clients retained more risk, property rates declined and Arch increased purchases of traditional reinsurance and third-party capital. Papadopoulo said casualty reinsurance remains attractive in select specialty lines and with select ceding companies, though abundant capacity has made terms and conditions more challenging. At midyear renewals, Papadopoulo said property-catastrophe rate reductions were in the mid-teens. He said pricing remains above pre-Hurricane Ian levels overall, although adequacy varies by region and zone. Arch’s peak-zone natural catastrophe probable maximum loss for a single 1-in-250-year event was $1.8 billion as of July 1, equal to 8% of tangible shareholders’ equity. Arch’s mortgage segment generated $220 million in underwriting income. The U.S. mortgage insurance portfolio delinquency rate was unchanged at 2.1%, while favorable reserve development continued at a slower pace than in earlier quarters. Management said mortgage insurance profitability continues to benefit from the quality of the in-force portfolio and favorable credit characteristics, despite affordability and housing-supply constraints that have limited mortgage originations. Net premiums earned were flat sequentially, as lower U.S. mortgage insurance premiums were largely offset by higher earned premiums in Australia. Papadopoulo said a new Australian client and reduced quota-share reinsurance contributed to growth in new insurance written during the quarter. He described the mortgage market as stable, noting that competitors have generally reacted quickly to pricing changes in order to protect market share. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Arch Capital Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

PEMBROKE, Bermuda, July 28, 2026--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; "Arch," "our" or "the Company") announces its 2026 second quarter results. The results included: Net income available to Arch common shareholders of $1.0 billion, or $3.00 per share, representing an 18.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.2 billion, or $3.23 per share, for the 2025 second quarter. After-tax operating income available to Arch common shareholders(1) of $893 million, or $2.56 per share, representing a 15.3% annualized operating return on average common equity(1), compared to $979 million, or $2.58 per share, for the 2025 second quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $201 million. Favorable development in prior year loss reserves, net of related adjustments, of $165 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.5%, compared to 80.9% for the 2025 second quarter. Share repurchases of $1.2 billion. Book value per common share of $68.04 at June 30, 2026, a 2.8% increase from March 31, 2026. "We delivered a strong quarter, driven by solid underwriting performance across our three segments, reflecting the continued strength of our diversified platform and disciplined execution across the enterprise," said Arch CEO Nicolas Papadopoulo. "Our leadership positions in Specialty Insurance, including our Mortgage and Reinsurance operations, provide us with a meaningful competitive advantage. Clients not only come to us for capacity, but also for our underwriting expertise, claims capabilities, creative solutions and valuable perspectives that help them better manage risk." All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results: The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details): Segment Information The following section provides analysis on the Company’s 2026 second quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated June 30, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details). Insurance Segment Gross premiums written by the insurance segment in the 2026 second quarter were 2.9% lower than in the 2025 second quarter, while net premiums written were 5.1% lower than in the 2025 second quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have decreased by 1.8% compared to the same quarter one year ago. Net premiums earned in the 2026 second quarter were 4.5% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters. The 2026 second quarter loss ratio reflected 7.6 points of current year catastrophic activity, compared to 2.9 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 1.4 points in the 2026 second quarter, compared to 0.4 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business. The underwriting expense ratio was 35.5% in the 2026 second quarter, compared to 33.6% in the 2025 second quarter. The 2026 second quarter ratio reflected transitional expenses associated with the MCE Acquisition, and a lower level of net premiums earned compared to the 2025 second quarter. In the 2025 second quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 0.6 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. Reinsurance Segment Gross premiums written by the reinsurance segment in the 2026 second quarter were 0.2% higher than in the 2025 second quarter, while net premiums written were 10.4% lower than in the 2025 second quarter. Reductions in net premiums written this quarter were due, in part, to non-renewals, share reductions as well as targeted increased retrocessions. Net premiums earned in the 2026 second quarter were 12.8% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters. The 2026 second quarter loss ratio reflected 3.0 points of current year catastrophic activity, compared to 5.5 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 5.3 points in the 2026 second quarter, compared to 3.9 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business. The underwriting expense ratio was 22.9% in the 2026 second quarter, compared to 24.4% in the 2025 second quarter, with the decrease primarily reflecting the impact of higher profit commissions on retrocessions. Mortgage Segment Gross premiums written by the mortgage segment in the 2026 second quarter were 0.3% higher than in the 2025 second quarter, with growth in international business offset by a reduction in U.S. monthly premium volume. Net premiums written were 7.5% higher than in the 2025 second quarter, reflecting the termination of certain Bellemeade and quota share agreements on U.S. primary business. Net premiums earned were relatively flat, increasing 1.4%. Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 15.7 points, compared to 22.8 points in the 2025 second quarter. Such amounts were primarily related to better than expected cure rates. The 2026 second quarter loss ratio, excluding net favorable development, was relatively flat compared to the 2025 second quarter. The underwriting expense ratio was 16.3% in the 2026 second quarter, consistent with the 16.4% ratio reported in the 2025 second quarter. Corporate The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares. Investment returns were as follows: Net investment income for the 2026 second quarter, compared to the 2025 second quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $17 million for the 2026 second quarter, compared to net realized gains of $229 million in the 2025 second quarter. Corporate expenses for the 2026 second quarter were $12 million, compared to $29 million for the 2025 second quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 second quarter primarily reflected the benefit of Bermuda qualified refundable tax credits. Amortization of intangible assets was $30 million for the 2026 second quarter, compared to $48 million for the 2025 second quarter. On June 9, 2026, the Company completed a public offering of $2.0 billion of senior notes, consisting of $600 million of 5.250% senior notes due in 2036 and $1.4 billion of 5.950% senior notes due in 2056. The Company expects to use the net proceeds from this offering to repay its 4.011% senior notes due in 2026, fund purchases from the cash tender offers described below, and for general corporate purposes. On June 16, 2026, the Company completed the cash tender offers for certain outstanding senior notes, with Arch Capital Group (U.S.) Inc. repurchasing $218.7 million of its 5.144% senior notes due in 2043, and Arch Capital Finance LLC repurchasing $199.1 million of its 5.031% senior notes due in 2046. This resulted in a total pre-tax realized gain of $16 million for the 2026 second quarter. Interest expense for the 2026 second quarter was $44 million, compared to $38 million for the 2025 second quarter, with the increase resulting from the Company’s capital raising activity. On a pre-tax basis, net foreign exchange gains were $10 million for the 2026 second quarter, compared to net foreign exchange losses of $88 million for the 2025 second quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income. The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 13.4% for the 2026 second quarter, compared to 14.7% for the 2025 second quarter. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 15.1% for the 2026 second quarter, compared to 15.2% for the 2025 second quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction. Income from operating affiliates for the 2026 second quarter was $46 million, or $0.13 per share, compared to $40 million, or $0.11 per share, for the 2025 second quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA. Conference Call The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on July 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year. Please refer to the Company’s Financial Supplement dated June 30, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company. Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $28.3 billion in capital at June 30, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries. Comments on Non-GAAP Financial Measures Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance. This presentation includes the use of "after-tax operating income or loss available to Arch common shareholders," which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release. The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization. The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments. Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance. The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons. The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages. Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment. In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. The ‘Other operating expense ratio’ includes ‘Other underwriting income.’ Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented. The following tables summarize the Company’s results by segment for the 2026 second quarter and 2025 second quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders: Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 ("PSLRA") provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" and similar statements of a future or forward-looking nature or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the "SEC"), and include: the Company’s ability to successfully implement its business strategy during "soft" as well as "hard" markets; acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds; the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations; the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein; general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates; competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors; developments in the world’s financial and capital markets and the Company’s access to such markets; the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business; the loss and addition of key personnel; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting; greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries; the adequacy of the Company’s loss reserves; severity and/or frequency of losses; greater frequency or severity of unpredictable natural and man-made catastrophic events; claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations; availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance; the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company; the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company; the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments; changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; the effect of climate change on the Company’s business; the effect of contagious diseases or a pandemic on the Company’s business; acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans; the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies; changes in accounting principles or policies or in the Company’s application of such accounting principles or policies; changes in the political environment of certain countries in which the Company operate or underwrite business; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development ("OECD") Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and the other matters set forth under Item 1A "Risk Factors", Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Source: Arch Capital Group Ltd.arch-corporate View source version on businesswire.com: https://www.businesswire.com/news/home/20260728969066/en/ Contacts Arch Capital Group Ltd. François Morin: (441) 278-9250Investor Relations Donald Watson: (914) 872-3616; [email protected]

Arch Capital Group (ACGL) came out with quarterly earnings of $2.56 per share, beating the Zacks Consensus Estimate of $2.49 per share. This compares to earnings of $2.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.81%. A quarter ago, it was expected that this property and casualty insurer would post earnings of $2.45 per share when it actually produced earnings of $2.5, delivering a surprise of +2.04%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Arch Capital, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $4.43 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.19%. This compares to year-ago revenues of $4.76 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Arch Capital shares have added about 8.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While Arch Capital has performed in line with the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Arch Capital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $4.54 billion in revenues for the coming quarter and $9.34 on $18.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CNA Financial (CNA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This insurance holding company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -15.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CNA Financial's revenues are expected to be $3.35 billion, down 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Arch Capital Group (ACGL) reported $4.43 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 6.9%. EPS of $2.56 for the same period compares to $2.58 a year ago. The reported revenue represents a surprise of -3.19% over the Zacks Consensus Estimate of $4.58 billion. With the consensus EPS estimate being $2.49, the EPS surprise was +2.81%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Underwriting Ratios - Loss Ratio - Total: 55.1% versus the four-analyst average estimate of 55.3%. Underwriting Ratios - Underwriting Expense Ratio - Mortgage: 16.3% compared to the 17.2% average estimate based on four analysts. Underwriting Ratios - Other Operating Expense Ratio - Total: 10.4% versus the four-analyst average estimate of 10.3%. Underwriting Ratios - Combined Ratio - Total: 83.5% versus the four-analyst average estimate of 84.2%. Revenues- Other income (loss): $30 million versus the four-analyst average estimate of $10 million. The reported number represents a year-over-year change of +66.7%. Revenues- Net investment income: $417 million compared to the $423.21 million average estimate based on four analysts. The reported number represents a change of +3% year over year. Revenues- Net premiums earned- Reinsurance: $1.82 billion versus $1.93 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -11.6% change. Revenues- Net premiums earned- Insurance: $1.88 billion versus $1.93 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change. Revenues- Net premiums earned: $3.99 billion versus the four-analyst average estimate of $4.15 billion. The reported number represents a year-over-year change of -8.1%. Revenues- Other underwriting income: $57 million compared to the $32.69 million average estimate based on four analysts. The reported number represents a change of -8.1% year over year. Revenues- Net premiums earned- Mortgage: $285 million compared to the $278.99 million average estimate based on four analysts. The reported number represents a change of +1.4% year over year. Revenues- Equity in net income of investments accounted for using the equity method: $196 million versus the three-analyst average estimate of $145.99 million. The reported number represents a year-over-year change of +21%. View all Key Company Metrics for Arch Capital here>>> Shares of Arch Capital have returned +5.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research