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.

Reported After market closeNASDAQFinancial Services $32.96B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $1.35
EPS surprise — Reported versus consensus
Reported revenue — Consensus $4.79B
Revenue surprise — Reported versus consensus

Market reaction

event-close to next-session close
Stock move -1.9% Event window
SPY move +0.0% Same window
Abnormal move -1.9% Stock minus SPY
Volume 1.6× Versus trailing sessions
Subsequent drift +3.9% Up to 20 sessions
ACGLSPY benchmark

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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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Earnings History

Estimate Beat Miss Match
ACGL EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $2.10 Q1 '24 actual $2.45, beat Q2 '24 estimate $2.21 Q2 '24 actual $2.57, beat Q3 '24 estimate $1.96 Q3 '24 actual $1.99, beat Q2 '25 estimate $2.30 Q2 '25 actual $2.58, beat Q3 '25 estimate $2.26 Q3 '25 actual $2.77, beat Q4 '25 estimate $2.59 Q4 '25 actual $2.98, beat Q1 '26 estimate $2.48 Q1 '26 actual $2.50, beat Q2 '26 estimate $2.47 Q2 '26 actual $2.56, beat Q3 '26 estimate $2.17 Q4 '26 estimate $2.47 Q1 '27 estimate $2.52
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Analyst Consensus ?

ConsensusHold34 ratings
Bullish1647.1%
Neutral1647.0%
Bearish25.9%

Analyst 52W Price Targets

$94.33Previous close
$44Low
$102.65Average
$126High

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.

FirmRatingPrior ratingActionDate
Cantor Fitzgerald Neutral NeutralMaintainOct 7, 2026
Morgan Stanley Overweight OverweightMaintainOct 6, 2026
Mizuho Neutral NeutralMaintainSep 16, 2026
Keefe, Bruyette & Woods Market Perform Market PerformMaintainAug 11, 2026
JP Morgan Neutral NeutralMaintainAug 11, 2026
BMO Capital Market Perform Market PerformMaintainAug 5, 2026
Wells Fargo Overweight OverweightMaintainJul 30, 2026
RBC Capital Outperform OutperformMaintainJul 30, 2026
Roth Capital Buy BuyMaintainJul 29, 2026
B of A Securities Buy BuyMaintainJul 29, 2026
UBS Buy BuyMaintainJul 8, 2026
Barclays Equal Weight Equal WeightMaintainJul 7, 2026
Citigroup Buy BuyMaintainApr 30, 2026
Goldman Sachs Sell SellMaintainJan 8, 2026
Evercore ISI Group In Line In LineMaintainJan 7, 2026
Jefferies Hold BuyDowngradeJun 10, 2025
JMP Securities Market Outperform Market OutperformMaintainApr 30, 2025
TD Cowen Buy BuyMaintainSep 20, 2024
Roth MKM Buy BuyMaintainAug 23, 2024
Deutsche Bank Buy BuyMaintainJul 1, 2024
Wolfe Research Outperform OutperformMaintainOct 12, 2021
Credit Suisse Neutral NeutralMaintainJan 11, 2021
CFRA Buy BuyMaintainFeb 12, 2020
MKM Partners Buy BuyMaintainOct 30, 2019
Buckingham Research Neutral NeutralMaintainSep 12, 2019
Buckingham Neutral NeutralMaintainSep 12, 2019
Bank of America Underperform UnderperformMaintainAug 1, 2018
Keefe Bruyette & Woods Outperform Market PerformUpgradeMar 22, 2018
Nomura Neutral NeutralMaintainNov 11, 2015
Sterne Agee CRT Neutral NeutralMaintainSep 21, 2015
Macquarie Neutral OutperformDowngradeApr 15, 2013
Stifel Nicolaus Hold BuyDowngradeDec 10, 2012
Stifel Hold BuyDowngradeDec 10, 2012
Evercore Partners Overweight OverweightMaintainFeb 16, 2012
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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.

FirmAnalyst52W targetPrice when postedUpsideDate
Cantor FitzgeraldAnalyst unavailable$105$94.82 +11.3%Oct 7, 2026
Mizuho SecuritiesYaron Kinar$100$97.04 +6.0%Sep 16, 2026
Cantor FitzgeraldAnalyst unavailable$110$101.44 +16.6%Aug 3, 2026
RBC CapitalAnalyst unavailable$120$99.93 +27.2%Jul 30, 2026
Atlantic EquitiesAnalyst unavailable$126$99.14 +33.6%Jul 15, 2026
Cantor FitzgeraldAnalyst unavailable$102$102.01 +8.1%Jul 9, 2026
Mizuho SecuritiesAnalyst unavailable$104$102.01 +10.3%Jul 9, 2026
UBSBrian Meredith$120$102.35 +27.2%Jul 8, 2026
Morgan StanleyAnalyst unavailable$105$94.53 +11.3%May 1, 2026
UBSBrian Meredith$114$99.85 +20.9%Feb 17, 2026
Cantor FitzgeraldRyan Tunis$100$100.03 +6.0%Feb 17, 2026
Mizuho SecuritiesYaron Kinar$102$98.61 +8.1%Feb 12, 2026
Morgan StanleyAnalyst unavailable$125$90.94 +32.5%Jan 16, 2026
Cantor FitzgeraldAnalyst unavailable$97$90.77 +2.8%Jan 14, 2026
BarclaysAlex Scott$104$95.16 +10.3%Jan 8, 2026
Goldman SachsRobert Cox$93$95.16 -1.4%Jan 7, 2026
Evercore ISIDavid Motemaden$100$94.7 +6.0%Jan 7, 2026
Mizuho SecuritiesAnalyst unavailable$95$95.72 +0.7%Dec 15, 2025
Roth CapitalAnalyst unavailable$110$93.16 +16.6%Dec 2, 2025
RBC CapitalAnalyst unavailable$108$91.94 +14.5%Nov 24, 2025
Cantor FitzgeraldRyan Tunis$98$85.45 +3.9%Oct 28, 2025
Goldman SachsAnalyst unavailable$88$92.25 -6.7%Oct 14, 2025
BarclaysAnalyst unavailable$99$94.1 +5.0%Oct 8, 2025
Morgan StanleyBob Huang$110$95.16 +16.6%May 19, 2025
Wells FargoElyse Greenspan$108$89.67 +14.5%May 1, 2025
Wells FargoElyse Greenspan$107$92.25 +13.4%Jan 14, 2025
Capital One FinancialMichael Zaremski$104$95.78 +10.3%Nov 6, 2024
CitigroupMichael Ward$114$111.73 +20.9%Sep 10, 2024
BarclaysAlex Scott$120$113.32 +27.2%Sep 4, 2024
Capital One FinancialMichael Zaremski$98$97.68 +3.9%Aug 8, 2024
CFRACatherine Seifert$120$95.78 +27.2%Jul 31, 2024
Evercore ISIDavid Motemaden$104$98.83 +10.3%Jul 31, 2024
Wells FargoElyse Greenspan$110$93.54 +16.6%May 1, 2024
CFRACatherine Seifert$107$93.54 +13.4%Apr 30, 2024
Deutsche BankCave Montazeri$110$90.59 +16.6%Apr 30, 2024
JMP SecuritiesMatthew Carletti$110$91.25 +16.6%Apr 30, 2024
Wells FargoAnalyst unavailable$67$58.74 -29.0%Nov 29, 2022
Morgan StanleyAnalyst unavailable$56$57.62 -40.6%Nov 22, 2022
Morgan StanleyAnalyst unavailable$52$47.44 -44.9%Aug 19, 2022
BarclaysAnalyst unavailable$52$42.7 -44.9%Jul 14, 2022
Morgan StanleyAnalyst unavailable$50$45.42 -47.0%May 23, 2022
J.P. MorganJimmy Bhullar$44$39.95 -53.4%Jul 1, 2021
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Company context

Snapshot as of publication

Arch 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

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-04-15T00:03:42.498162+00:00
  3. Polygon adjusted daily market bars · 2026-10-08T09:50:42.092182+00:00
  4. 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.