Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the ...
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Est. EPS $1.85 · Revenue $4.08B · 12 analysts
Est. EPS $2.47 · Revenue $3.89B · 11 analysts
Est. EPS $9.39 · Revenue $16.61B · 12 analysts
Est. EPS $2.54 · Revenue $4.48B · 4 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $19.9B | +14.3% | +2.5% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $4.4B | +2.0% | +1.0% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +37.2% | +0.5% | -2.3% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +25.0% | -2.6% | +4.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +22.1% | -10.7% | -1.6% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $6.1B | -7.5% | +10.8% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +30.7% | -19.0% | +8.1% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 11.3% | -14.0% | +58.1% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.21x | +90.2% | -1.1% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $67.1B | -5.4% | +4.6% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 11.62 vs 9.44 | +23.0% | 3.00 vs 1.85 | +62.0% |
| Revenue Surprise | $19.9B vs $17.7B | +12.7% | $4.5B vs $4.1B | +9.6% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 18, 2026 | Morin Francois | officer: CFO and Treasurer | Common Shares, $.0011 par value per share | A | 11,010 | $27.09 |
| Aug 18, 2026 | Morin Francois | officer: CFO and Treasurer | Common Shares, $.0011 par value per share | D | 11,010 | $99.32 |
| Aug 18, 2026 | Morin Francois | officer: CFO and Treasurer | Stock Option (Right to Buy) | D | 11,010 | $27.09 |
| Jun 11, 2026 | PASQUESI JOHN M | director, other: CHAIR | Common Shares, $.0011 par value per share | A | 1,006,700 | — |
| Jun 11, 2026 | PASQUESI JOHN M | director, other: CHAIR | Common Shares, $.0011 par value per share | D | 1,006,700 | — |
Operator: Good day, ladies and gentlemen. And welcome to the second quarter 2026 Arch Capital Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. Before the company gets started with its update, management wants to first remind everyone that certain statements in yesterday's press release and discussed on this call may constitute forward-looking statements under the federal securities laws. These statements are based upon management's current assessments and assumptions and are subject to a number of risks and uncertainties. Consequently, actual results may differ materially from those expressed or implied. For more information on the risks and other factors that may affect future performance, investors should review periodic reports that are filed by the company with the SEC from time to time. Including our annual report on Form 10-K for the 2025 fiscal year. Additionally, certain statements contained in the call that are not based on historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company intends the forward-looking statements in the call to be subject to the safe harbor created thereby. Management will also make reference to certain non-GAAP measures of financial performance. The reconciliations to GAAP for each non-GAAP financial measure can be found in the company's current report on Form 8-K furnished to the SEC yesterday, which contains the company's earnings press release and is available on the company's website at www.archgroup.com. And on the SEC's website at www.sec.gov. I would now like to introduce your hosts for today's conference, Mr. Nicolas Papadopoulo and Mr. François Morin. Sirs, you may begin. Nicolas Papadopoulo: Good morning, and welcome to Arch's second quarter earnings call. We reported strong earnings this quarter with solid underwriting performance from each of our three segments. After-tax operating income in the quarter was $893 million, or $2.56 of earnings per share. Slowing top line growth and strong earnings freed up capital for additional share repurchases in the quarter. Bringing the total for the first half of the year to $1.95 billion. Book value per share grew by 2.8% in the quarter, and has increased by 4.5% in the first half of the year. While the underwriting environment increasingly competitive, it is important to note that we are still in the early stages of this softening market. Overall, fundamentals are attractive with some line experiencing increased competition while others continue to see rate increases. Arch's diversified business model ensures that we can find opportunities to deploy capital that generate appropriate risk-adjusted returns. Our position as an industry leader in specialty insurance, reinsurance, and mortgage …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Nicolas Alain Emmanuel Papadopoulo | Chief Executive Officer & Director | USD 7,285,628 | Male | 1962 | Active |
Maamoun Rajeh | President | USD 4,826,231 | Male | 1970 | Active |
Francois Morin | Executive Vice President, Chief Financial Officer & Treasurer | USD 3,721,770 | Male | 1967 | Active |
Christine Lee Todd | Executive Vice President & Chief Investment Officer | USD 3,615,726 | Female | 1967 | Active |
Jay Rajendra | Chief Innovation & Strategy Officer | — | Male | 1981 | Active |
Christopher Andrew Hovey | Chief Operations Officer of Arch Capital Services LLC | — | Male | 1967 | Active |
Janice C. Englesbe B.Ec | Executive VP & Chief Risk Officer | — | Female | 1969 | Active |
Donald S. Watson | Executive Vice President of Financial Services | — | Male | — | Active |
Joy A. Huibonhoa | Executive Vice President & Deputy General Counsel | — | Female | — | Active |
Patrick Nails | Chief Claims Officer of Arch Insurance Group Inc | — | Male | — | Active |
Greg Hare | Chief Communications Officer | — | Male | — | Active |
ACGL's strong underwriting, investment income and capital generation support growth, while softer property pricing and catastrophe risks weigh.
Assenagon Asset Management S.A. increased its stake in shares of Arch Capital Group Ltd. (NASDAQ: ACGL) by 295.6% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 50,073 shares of the insurance provider's stock after purchasing an additional 37,416 shares during the period.
Berkshire Hathaway's Q2 operating earnings jump 16.3%, fueled by gains across BNSF, energy, manufacturing, service and retailing businesses.
The top five contributors for the quarter were MKS, Amphenol, Arista Networks, Bio-Techne, and Waters. The bottom five detractors for the quarter were Ross Stores, Arch Capital, Copart, Gartner, and Brown & Brown. We purchased shares in Verisk Analytics, the dominant provider of data and analytics to property and casualty insurers in the U.S.
Arch Capital Group Ltd. (ACGL) Q2 2026 Earnings Call Transcript
