
Arch Capital (ACGL) Stock Forecast & Price Target
Arch Capital (ACGL) Analyst Ratings
Bulls say
Arch Capital Group Ltd has demonstrated robust growth in its Insurance segment, with net written premiums (NWP) increasing by 34.9% year-over-year to reach $1,954 million, significantly exceeding market expectations. Overall net written premiums for the company grew by 17.1% year-over-year, reaching $3,819 million, supported by strong performance in both the Insurance and Reinsurance segments, despite a modest 2.0% growth in Reinsurance NWP to $1,588 million. Additionally, new insurance written surged by 26.3% year-over-year to $11.8 billion, indicating sustained demand and a favorable market environment, with underlying fundamentals suggesting continued improvement in core accident year margins and reserving practices.
Bears say
Arch Capital Group Ltd has experienced a sequential decline in insurance in force, falling by 1.9%, compounded by a decrease in persistency rates to 82.1%. The company has revised its earnings per share estimates downward for 2025 and 2026 due to anticipated higher catastrophe losses and rising expense ratios, projecting EPS of $7.55 and $9.40, respectively, which reflects a decrease from previous estimates. Additionally, the deterioration in the PMIERs sufficient ratio to 186% from 205%, along with margin pressures from weaker core underwriting performance, further underscores a negative outlook for the company’s stock.
This aggregate rating is based on analysts' research of Arch Capital and is not a guaranteed prediction by Public.com or investment advice.
Arch Capital (ACGL) Analyst Forecast & Price Prediction
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