Arch Capital Group Ltd. · ACGL · FY2025 Q1 · Calendar Q2 2025
Arch Capital: Solid Q1 Despite Wildfire Losses; Growth Remains Selective
The supplied analysis supports a balanced view: Arch Capital showed resilient underwriting and identified selective growth opportunities, but catastrophe exposure, slower reinsurance premium growth and competitive pressure make the durability of earnings growth dependent on disciplined risk selection and capital deployment.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Relative to the prior-quarter analysis, the current analysis highlights slower reinsurance premium growth, significant California wildfire losses and a 91.8 combined ratio, while continuing to emphasize casualty, U.S. middle-market and catastrophe-line opportunities. The capital-return program remains in focus.
Guidance delta
Maintained; management analysis emphasizes continued growth in casualty, U.S. middle-market and Florida wind coverage.
Key takeaways
- Management analysis describes solid Q1 results despite significant California wildfire losses, with a 91.8 combined ratio and 11.5% ROE.
- Reinsurance premium growth slowed to 2.2%, while insurance growth benefited from the MidCorp and Entertainment acquisition and casualty lines.
- Capital returns continued through share repurchases, alongside plans to deploy capacity selectively in catastrophe, casualty and middle-market opportunities.
Management priorities
- Expand casualty and U.S. middle-market insurance.
- Deploy additional capacity to Florida wind and other catastrophe lines.
- Use data analytics and disciplined underwriting to improve risk selection while maintaining capital returns.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 8, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Cantor Fitzgerald | Neutral | Neutral | Maintain | Oct 7, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Oct 6, 2026 |
| Mizuho | Neutral | Neutral | Maintain | Sep 16, 2026 |
| Keefe, Bruyette & Woods | Market Perform | Market Perform | Maintain | Aug 11, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Aug 11, 2026 |
| BMO Capital | Market Perform | Market Perform | Maintain | Aug 5, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | Jul 30, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | Jul 30, 2026 |
| Roth Capital | Buy | Buy | Maintain | Jul 29, 2026 |
| B of A Securities | Buy | Buy | Maintain | Jul 29, 2026 |
| UBS | Buy | Buy | Maintain | Jul 8, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Jul 7, 2026 |
| Citigroup | Buy | Buy | Maintain | Apr 30, 2026 |
| Goldman Sachs | Sell | Sell | Maintain | Jan 8, 2026 |
| Evercore ISI Group | In Line | In Line | Maintain | Jan 7, 2026 |
| Jefferies | Hold | Buy | Downgrade | Jun 10, 2025 |
| JMP Securities | Market Outperform | Market Outperform | Maintain | Apr 30, 2025 |
| TD Cowen | Buy | Buy | Maintain | Sep 20, 2024 |
| Roth MKM | Buy | Buy | Maintain | Aug 23, 2024 |
| Deutsche Bank | Buy | Buy | Maintain | Jul 1, 2024 |
| Wolfe Research | Outperform | Outperform | Maintain | Oct 12, 2021 |
| Credit Suisse | Neutral | Neutral | Maintain | Jan 11, 2021 |
| CFRA | Buy | Buy | Maintain | Feb 12, 2020 |
| MKM Partners | Buy | Buy | Maintain | Oct 30, 2019 |
| Buckingham Research | Neutral | Neutral | Maintain | Sep 12, 2019 |
| Buckingham | Neutral | Neutral | Maintain | Sep 12, 2019 |
| Bank of America | Underperform | Underperform | Maintain | Aug 1, 2018 |
| Keefe Bruyette & Woods | Outperform | Market Perform | Upgrade | Mar 22, 2018 |
| Nomura | Neutral | Neutral | Maintain | Nov 11, 2015 |
| Sterne Agee CRT | Neutral | Neutral | Maintain | Sep 21, 2015 |
| Macquarie | Neutral | Outperform | Downgrade | Apr 15, 2013 |
| Stifel Nicolaus | Hold | Buy | Downgrade | Dec 10, 2012 |
| Stifel | Hold | Buy | Downgrade | Dec 10, 2012 |
| Evercore Partners | Overweight | Overweight | Maintain | Feb 16, 2012 |
Named analyst price targets
Upside is calculated against the persisted previous close $94.33. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Cantor Fitzgerald | Analyst unavailable | $105 | $94.82 | +11.3% | Oct 7, 2026 |
| Mizuho Securities | Yaron Kinar | $100 | $97.04 | +6.0% | Sep 16, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $110 | $101.44 | +16.6% | Aug 3, 2026 |
| RBC Capital | Analyst unavailable | $120 | $99.93 | +27.2% | Jul 30, 2026 |
| Atlantic Equities | Analyst unavailable | $126 | $99.14 | +33.6% | Jul 15, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $102 | $102.01 | +8.1% | Jul 9, 2026 |
| Mizuho Securities | Analyst unavailable | $104 | $102.01 | +10.3% | Jul 9, 2026 |
| UBS | Brian Meredith | $120 | $102.35 | +27.2% | Jul 8, 2026 |
| Morgan Stanley | Analyst unavailable | $105 | $94.53 | +11.3% | May 1, 2026 |
| UBS | Brian Meredith | $114 | $99.85 | +20.9% | Feb 17, 2026 |
| Cantor Fitzgerald | Ryan Tunis | $100 | $100.03 | +6.0% | Feb 17, 2026 |
| Mizuho Securities | Yaron Kinar | $102 | $98.61 | +8.1% | Feb 12, 2026 |
| Morgan Stanley | Analyst unavailable | $125 | $90.94 | +32.5% | Jan 16, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $97 | $90.77 | +2.8% | Jan 14, 2026 |
| Barclays | Alex Scott | $104 | $95.16 | +10.3% | Jan 8, 2026 |
| Goldman Sachs | Robert Cox | $93 | $95.16 | -1.4% | Jan 7, 2026 |
| Evercore ISI | David Motemaden | $100 | $94.7 | +6.0% | Jan 7, 2026 |
| Mizuho Securities | Analyst unavailable | $95 | $95.72 | +0.7% | Dec 15, 2025 |
| Roth Capital | Analyst unavailable | $110 | $93.16 | +16.6% | Dec 2, 2025 |
| RBC Capital | Analyst unavailable | $108 | $91.94 | +14.5% | Nov 24, 2025 |
| Cantor Fitzgerald | Ryan Tunis | $98 | $85.45 | +3.9% | Oct 28, 2025 |
| Goldman Sachs | Analyst unavailable | $88 | $92.25 | -6.7% | Oct 14, 2025 |
| Barclays | Analyst unavailable | $99 | $94.1 | +5.0% | Oct 8, 2025 |
| Morgan Stanley | Bob Huang | $110 | $95.16 | +16.6% | May 19, 2025 |
| Wells Fargo | Elyse Greenspan | $108 | $89.67 | +14.5% | May 1, 2025 |
| Wells Fargo | Elyse Greenspan | $107 | $92.25 | +13.4% | Jan 14, 2025 |
| Capital One Financial | Michael Zaremski | $104 | $95.78 | +10.3% | Nov 6, 2024 |
| Citigroup | Michael Ward | $114 | $111.73 | +20.9% | Sep 10, 2024 |
| Barclays | Alex Scott | $120 | $113.32 | +27.2% | Sep 4, 2024 |
| Capital One Financial | Michael Zaremski | $98 | $97.68 | +3.9% | Aug 8, 2024 |
| CFRA | Catherine Seifert | $120 | $95.78 | +27.2% | Jul 31, 2024 |
| Evercore ISI | David Motemaden | $104 | $98.83 | +10.3% | Jul 31, 2024 |
| Wells Fargo | Elyse Greenspan | $110 | $93.54 | +16.6% | May 1, 2024 |
| CFRA | Catherine Seifert | $107 | $93.54 | +13.4% | Apr 30, 2024 |
| Deutsche Bank | Cave Montazeri | $110 | $90.59 | +16.6% | Apr 30, 2024 |
| JMP Securities | Matthew Carletti | $110 | $91.25 | +16.6% | Apr 30, 2024 |
| Wells Fargo | Analyst unavailable | $67 | $58.74 | -29.0% | Nov 29, 2022 |
| Morgan Stanley | Analyst unavailable | $56 | $57.62 | -40.6% | Nov 22, 2022 |
| Morgan Stanley | Analyst unavailable | $52 | $47.44 | -44.9% | Aug 19, 2022 |
| Barclays | Analyst unavailable | $52 | $42.7 | -44.9% | Jul 14, 2022 |
| Morgan Stanley | Analyst unavailable | $50 | $45.42 | -47.0% | May 23, 2022 |
| J.P. Morgan | Jimmy Bhullar | $44 | $39.95 | -53.4% | Jul 1, 2021 |
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Start freeCompany context
Snapshot as of publicationArch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; and casualty insurance.…
Historical context
All ACGL earningsFinancial Services peers this season
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| TD The Toronto-Dominion Bank | FY2026 Q3 · Calendar Q3 2026 | +13.8% | +1.4% | TD emphasizes growth investments alongside disciplined capital management |
| RY Royal Bank of Canada | FY2026 Q3 · Calendar Q3 2026 | +6.2% | -1.3% | RBC reports record Q3 earnings while investing for growth |
Latest beats and misses
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2025-04-15T00:03:42.498162+00:00
- Polygon adjusted daily market bars · 2026-10-08T09:50:42.092182+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-08T09:50:42.089093+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-08. For educational purposes only; not investment advice.