- Keefe Bruyette and Mizuho Lowers PT on Arch Capital Group (ACGL)
May 10, 2026
Arch Capital Group Ltd. (NASDAQ:ACGL) currently trades at a forward price to earnings ratio of 10.07, below the sector median of 10.55 and 26.05 of the S&P 500. The stock also ranks among our Most Undervalued High Quality Stocks to Buy Now.
Recently, on May 5, Keefe Bruyette lowered the firm’s price target on the stock from $105 to $102, while keeping a Market Perform rating on the shares. On the same day, Mizuho Securities also reiterated a Hold rating on the shares and lowered the price target from $102 to $101.
Analyst at Keefe Bruyette noted that the near-term upside for the company appears to be limited due to a number of factors, including sustained property catastrophe reinsurance pricing softness, slowing primary insurance premium growth, and declining mortgage segment profitability.
The company also released its fiscal Q1 2026 earnings recently, on April 28. Arch Capital Group Ltd. (NASDAQ:ACGL) posted Q1 2026 net premiums written of $4.35 billion, down 3.7% year-over-year. On the bright side, the GAAP EPS of $2.88 topped the consensus by $0.32.
Arch Capital Group Ltd. (NASDAQ:ACGL) is a Bermuda-based insurance and reinsurance company. It provides property, casualty, and mortgage insurance solutions worldwide. The firm operates through three main segments: Insurance, Reinsurance, and Mortgage, with a strong presence in the US, Europe, and Bermuda.
While we acknowledge the potential of ACGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years.
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- This $4 Million Warrior Met Coal Sale May Be More About Profit Taking Than Coal Prices
May 7, 2026
On May 6, 2026, High Ground Investment Management disclosed in a Securities and Exchange Commission filing that it sold 41,297 shares of Warrior Met Coal(NYSE:HCC), an estimated $3.72 million transaction based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission filing dated May 6, 2026, High Ground Investment Management reduced its position in Warrior Met Coal by 41,297 shares. The estimated transaction value was $3.72 million, calculated using the average unadjusted closing price for the quarter. The value of the stake at quarter end declined by $3.06 million, a shift that reflects both trading activity and stock price changes.
What else to know
Top holdings after the filing:
NASDAQ: ACGL: $172.19 million (32.0% of AUM) NYSE: AER: $166.20 million (30.9% of AUM) NYSE: ELV: $100.75 million (18.7% of AUM) NYSE: HUM: $88.58 million (16.4% of AUM) NYSE: HCC: $10.90 million (2% of AUM) As of May 5, 2026, Warrior Met Coal shares were priced at $86.60, up 83.9% over the past year, outperforming the S&P 500 by 55.39 percentage points.
Company overview
Metric Value Revenue (TTM) $1.31 billion Net income (TTM) $57.00 million Dividend yield 0.37% Price (as of market close May 5, 2026) $86.60
Company snapshot
Warrior Met Coal produces and exports non-thermal metallurgical coal, with natural gas sales as a byproduct The firm operates through underground mining, generating revenue primarily from coal sales to the global steel industry Its main customers are blast furnace steel producers located in Europe, South America, and Asia
Warrior Met Coal is a leading U.S.-based producer of high-quality metallurgical coal, supplying critical raw materials to the global steel industry. The company leverages underground mining operations in Alabama to serve a diversified international customer base. Its strategic focus on metallurgical coal positions it as a key supplier to steelmakers seeking reliable, high-grade input materials.
What this transaction means for investors
It’s interesting that Warrior’s underlying business is arguably in its strongest operational position in years. First-quarter revenue climbed 53% to $458.6 million, while adjusted EBITDA surged 263% to $143.4 million as the Blue Creek mine ramped production. The company also posted record quarterly sales volumes of 3.0 million short tons and cut cash cost of sales per ton by 14% to $96.17.
The bigger question for investors is coal pricing. Management acknowledged continued pressure from global oversupply and trade uncertainty, particularly tied to China, but Warrior still reaffirmed full-year guidance and now has its massive Blue Creek buildout largely behind it.
Ultimately, this sale looks like a classic case of trimming into strength after a massive run rather than a sign that Warrior Met Coal’s core story is breaking down. The stock has nearly doubled over the past year, and after that kind of outperformance, some managers are naturally going to lock in gains, especially in a cyclical commodity business where sentiment can swing fast.
Story Continues
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This $4 Million Warrior Met Coal Sale May Be More About Profit Taking Than Coal Prices was originally published by The Motley Fool
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- Radian Q1 Earnings & Revenues Top Estimates, Premiums Rise Y/Y
May 7, 2026
Radian Group Inc. RDN reported first-quarter 2026 adjusted operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 8.5%. The bottom line improved 28.3% year over year.
Operating revenues increased 55.2% year over year to $475 million, driven by higher premiums earned and net investment income. The top line surpassed the Zacks Consensus Estimate by 57.2%.
The better-than-expected quarterly results benefited from higher premiums earned, solid investment income, growth in new insurance written and higher mortgage insurance in force. However, elevated expenses and higher primary loan defaults remained headwinds.
Radian Group Inc. Price, Consensus and EPS Surprise
Radian Group Inc. price-consensus-eps-surprise-chart | Radian Group Inc. Quote
Q1 in Detail
Net premiums earned were $403 million, up 72.2% year over year. Net investment income rose 14.8% year over year to $70 million, supported by higher short-term investment balances and maturities, partially offset by securities.
MI's new insurance written increased 42% year over year to $13.5 billion.
Primary mortgage insurance in force rose 3% year over year to $282 billion, which beat the Zacks Consensus Estimate by 1.2%.
Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 81.3% as of March 31, 2025, down 110 basis points year over year.
Primary delinquent loans represented 2.51% of primary loans in default as of March 31, 2026, compared with 2.33% in the prior-year quarter.
Total expenses soared 204.5% year over year to $292.7 million. The expense ratio improved 120 basis points year over year to 20%, reflecting enhanced operating leverage.
RDN’s Financial Update
As of March 31, 2026, Radian reported cash of $55.4 million, surged 123.3% from the 2025-end level.
Total assets increased 31.2% to $10.7 billion from the 2025-end level.
Book value per share rose 10% year over year to $35.67. Shareholders’ equity increased 0.6% to $4.8 billion from the 2025-end level.
Adjusted net operating return on equity was 14.7%, up 130 basis points year over year.
As of March 31, 2026, Radian Guaranty’s available assets under PMIERs totaled $5.4 billion, resulting in excess available assets of $1.6 billion.
RDN’s Capital Deployment & Dividend Update
During the first quarter of 2026, the company repurchased 1.5 million shares of common stock for $50 million.
In the first quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $35 million.
Zacks Rank
RDN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Story Continues
Performance of Other Insurers
Arch Capital Group Ltd. ACGL reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.4 billion decreased 3.8% year over year, primarily due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Gross premiums written decreased 0.6% year over year to $6.4 billion.
American International Group, Inc. AIG reported first-quarter 2026 adjusted earnings per share of $2.11, which topped the Zacks Consensus Estimate of $1.90. The bottom line rose 80.3% year over year.
Adjusted operating revenues advanced 5.4% year over year to $6.97 billion. The top line beat the consensus mark by 1.2%. Net premiums written totaled $5.6 billion, reflecting 24% year-over-year growth, driven by 21% growth in Global Commercial and 11% growth in Global Personal.
MGIC Investment Corporation MTG reported first-quarter 2026 operating net income per share of 76 cents, which beat the Zacks Consensus Estimate by 4.1%. The bottom line also improved 1.3% year over year.
Total operating revenues declined 3% year over year to $297 million, attributable to lower net premiums earned and other revenues. The top line missed the Zacks Consensus Estimate by 1.4%. Net premiums earned declined 3.4% year over year to $235.4 million, surpassing our estimate of $234.3 million.
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- Here is What to Know Beyond Why Arch Capital Group Ltd. (ACGL) is a Trending Stock
May 7, 2026
Arch Capital Group (ACGL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this property and casualty insurer have returned -4% over the past month versus the Zacks S&P 500 composite's +11.4% change. The Zacks Insurance - Property and Casualty industry, to which Arch Capital belongs, has lost 1.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Arch Capital is expected to post earnings of $2.45 per share for the current quarter, representing a year-over-year change of -5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
The consensus earnings estimate of $9.3 for the current fiscal year indicates a year-over-year change of -5.5%. This estimate has changed -1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.05 indicates a change of +8.1% from what Arch Capital is expected to report a year ago. Over the past month, the estimate has changed -1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Arch Capital is rated Zacks Rank #3 (Hold).
Story Continues
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for ACGL
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Arch Capital, the consensus sales estimate of $4.63 billion for the current quarter points to a year-over-year change of -2.8%. The $18.37 billion and $18.8 billion estimates for the current and next fiscal years indicate changes of -2.2% and +2.4%, respectively.
Last Reported Results and Surprise History
Arch Capital reported revenues of $4.39 billion in the last reported quarter, representing a year-over-year change of -3.8%. EPS of $2.5 for the same period compares with $1.54 a year ago.
Compared to the Zacks Consensus Estimate of $4.67 billion, the reported revenues represent a surprise of -6.11%. The EPS surprise was +2.04%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Arch Capital is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Arch Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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- What Makes Arch Capital Group Ltd. (ACGL) a Resilient Stock?
May 7, 2026
Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Growth Fund”. A copy of the letter is available to download here. The Fund declined 12.06% in the quarter compared to the Fund’s benchmark, the Russell 2000 Growth Index’s -2.81% return. The Russell 3000 Index, which measures the performance of the broad U.S. equity market, declined 3.96% for the quarter. Concerns about AI's impact on the portfolio affected the Fund's performance this quarter. Initial declines in the software and information services sectors extended to various industries throughout the period. However, the Fund remains confident in its high-quality portfolio, which is poised to deliver attractive and steady earnings growth. There is minimal evidence suggesting that AI has negatively impacted the fundamentals of the companies the Fund has invested in. As of March 31, 2026, the portfolio consisted of 17 investments, with the top 10 holdings accounting for 96.4% of the Fund’s net assets. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Baron Growth Fund highlighted Arch Capital Group Ltd. (NASDAQ:ACGL) as a notable contributor. Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance company that provides insurance, reinsurance, and mortgage insurance products. On May 6, 2026, Arch Capital Group Ltd. (NASDAQ:ACGL) closed at $94.70 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was -4.19%, and its shares gained 0.15% over the past 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $33.09 billion.
Baron Growth Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q1 2026 investor letter:
"Specialty insurer Arch Capital Group Ltd. (NASDAQ:ACGL) contributed to performance as property and casualty (P&C) insurance stocks broadly outpaced the market amid heightened volatility. P&C insurance stocks tend to be resilient during turbulent markets and are less exposed to the AI-related concerns weighing on other sectors. In addition, Arch reported better-than-expected quarterly earnings, and management expects a continuation of double-digit growth in book value per share. We continue to own the stock due to Arch’s strong management team and our expectation of continued growth in earnings and book value over time."Is Arch Capital Group Ltd. (ACGL) the Best Insurance Stock for the Long Term?
Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the fourth quarter, up from 40 in the previous quarter. While we acknowledge the potential of Arch Capital Group Ltd. (NASDAQ:ACGL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Story Continues
In another article, we covered Arch Capital Group Ltd. (NASDAQ:ACGL) and shared the list of dirt-cheap stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
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- Here is What to Know Beyond Why Arch Capital Group Ltd. (ACGL) is a Trending Stock
May 7, 2026 · zacks.com
Recently, Zacks.com users have been paying close attention to Arch Capital (ACGL). This makes it worthwhile to examine what the stock has in store.
- AIG Beats Q1 Earnings Estimates on Robust Underwriting, Lower Expenses
May 1, 2026
American International Group, Inc. AIG reported first-quarter 2026 adjusted earnings per share of $2.11, which topped the Zacks Consensus Estimate of $1.90 per share. The bottom line surged 80.3% year over year.
Adjusted operating revenues advanced 5.4% year over year to $6.97 billion. The top line beat the consensus mark by 1.2%.
The strong quarterly results were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses and reduced total losses and expenses. However, the upside was partly offset by lower investment income.
American International Group, Inc. Price, Consensus and EPS SurpriseAmerican International Group, Inc. Price, Consensus and EPS Surprise
American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote
AIG’s Q1 Operational Update
Net premiums written totaled $5.6 billion, reflecting 24% year-over-year growth, driven by 21% growth in Global Commercial and 11% growth in Global Personal.
Total net investment income declined 36% year over year to $712 million, which missed the consensus mark by 29.7%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities, partly offset by higher income from available-for-sale fixed maturity securities. AIG holds a 5.6% stake in Corebridge.
Total benefits, losses and expenses amounted to $5.7 billion, down 2.7% year over year, mainly due to lower losses and loss adjustment expenses incurred.
Adjusted return on equity improved 450 basis points year over year to 10.9%, reflecting enhanced profitability and capital efficiency.
Underwriting income for the General Insurance segment rose to $774 million, reflecting a more than threefold increase over the previous year. This result significantly outperformed the Zacks Consensus Estimate by 33.9%. The segment’s combined ratio improved 850 basis points to 87.3%, reflecting significantly stronger underwriting performance compared with the prior-year quarter.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment’s net premiums written increased 37% year over year to $1.6 billion in the first quarter. The uptick was driven by a combination of organic growth in high-priority areas, key renewals from the Everest Group partnership, and optimized reinsurance program changes.
Underwriting income surged 153% year over year to $327 million. This increase was mainly driven by lower catastrophe-related losses and higher favorable prior-year development. The combined ratio improved 840 basis points to 85.5%, reflecting significantly stronger underwriting performance year over year.
Story Continues
General Insurance – International Commercial
The segment reported net premiums written of $2.5 billion, up 21% year over year. The growth was mainly due to the Convex Group quota share, Everest renewals, and changes in reinsurance programs.
Underwriting income increased 16% year over year to $278 million in the quarter and beat the Zacks Consensus Estimate by 2.2%. The combined ratio improved 90 basis points to 87.3%. This was mainly due to lower catastrophe losses, reduced operating expenses, and favorable prior-year reserve development. This was partly offset by prior-year premiums.
General Insurance – Global Personal
Net premiums written totaled $1.5 billion, which improved 17% year over year. The increase was mainly driven by reinsurance program changes and growth in the U.S. High Net Worth and Accident and Health businesses.
Underwriting income rose to $169 million compared to a loss of $126 million last year. The combined ratio improved 1,850 basis points to 89.4%. This was driven by favorable prior-year reserve development and reduced catastrophe losses.
Other Operations
Net investment income and other fell 51% year over year to $54 million. This was mainly due to lower parent liquidity and reduced dividends from Corebridge, reflecting a smaller ownership stake. Interest expense rose 10% to $100 million, caused by new debt issued in 2025, partly offset by interest savings from debt repurchases.
Adjusted pre-tax loss widened 89% year over year to $125 million.
Financial Position of AIG (As of March 31, 2026)
AIG ended the first quarter with a cash balance of $1.5 billion compared with $1.3 billion at the end of 2025. Total assets were $161.5 billion, slightly higher than $161.3 billion at the end of 2025.
Long-term debt totaled $9 billion in the first quarter of 2026, which remained unchanged from year-end 2025. Total shareholders’ equity fell to $40.4 billion from $41.2 billion at year-end 2025.
Adjusted book value per share improved to $78.55 from $74.45 in the prior-year quarter.
AIG’s Capital Deployment Update
AIG returned capital to its shareholders through approximately $519 million in share repurchases and $241 million in dividends during the first quarter of 2026.
The company announced a cash dividend of 50 cents per common share, representing an 11% increase over the previous quarterly payout.
American International’s Zacks Rank
AIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Companies belonging to the broader Finance space, such as Arch Capital Group Ltd. ACGL, AXIS Capital Holdings Limited AXS and Selective Insurance Group SIGI, have also posted their quarterly results. Here’s how they have performed:
Arch Capital reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
ACGL’s operating revenues of $4.3 billion decreased 3.8% year over year due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s quarterly results benefited from higher net premiums earned and stronger underwriting income, partly offset by lower net investment income and higher expenses.
Selective Insurance reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
SIGI’s operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure matched our estimate.
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- How Strong Q1 Results and Bigger Buyback Plan Could Impact Arch Capital Group (ACGL) Investors
May 1, 2026
In late April 2026, Arch Capital Group Ltd. reported first-quarter revenue of US$4.52 billion, with net income rising to US$1.05 billion and diluted earnings per share from continuing operations increasing to US$2.88, while also expanding its equity buyback authorization to US$6.00 billion. The combination of stronger underwriting-driven profitability, higher investment income, and an enlarged share repurchase program highlights management’s focus on earnings quality and capital efficiency. Next, we’ll examine how this earnings strength and enlarged buyback authorization may influence Arch Capital’s investment narrative and risk-reward profile.
Find 51 companies with promising cash flow potential yet trading below their fair value.
Arch Capital Group Investment Narrative Recap
To own Arch Capital, you need to be comfortable with a diversified insurance and reinsurance business where earnings hinge on underwriting discipline, investment income, and catastrophe experience. The latest quarter’s stronger profitability and enlarged buyback authorization support the current earnings story in the near term, but they do not meaningfully alter the key short term catalyst of sustained underwriting strength or reduce the biggest risk from large natural catastrophe losses hitting margins.
The most relevant recent announcement is the US$3,000 million increase in Arch Capital’s equity buyback authorization to a total of US$6,000 million. For investors focused on the risk reward trade off, this step sits alongside the latest earnings strength and places more attention on how consistently Arch can convert underwriting performance into cash that can support both capital returns and resilience against events such as wildfire driven catastrophe losses.
Yet investors should also be aware that heavy catastrophe exposure could quickly change the picture if...
Read the full narrative on Arch Capital Group (it's free!)
Arch Capital Group's narrative projects $18.0 billion revenue and $3.7 billion earnings by 2029. This assumes revenue will decline by 3.4% per year and implies an earnings decrease of $0.7 billion from $4.4 billion today.
Uncover how Arch Capital Group's forecasts yield a $109.84 fair value, a 16% upside to its current price.
Exploring Other PerspectivesACGL 1-Year Stock Price Chart
Two fair value estimates from the Simply Wall St Community span roughly US$110 to US$238 per share, showing very different views of Arch Capital’s potential. Against that backdrop, the recent earnings strength and expanded US$6,000 million buyback highlight how closely you may want to track underwriting driven profitability and catastrophe risk when weighing these contrasting opinions.
Story Continues
Explore 2 other fair value estimates on Arch Capital Group - why the stock might be worth over 2x more than the current price!
Reach Your Own Conclusion
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Arch Capital Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Arch Capital Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arch Capital Group's overall financial health at a glance.
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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 editorial-team@simplywallst.com
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- Everest Q1 Earnings Top, Revenues Miss Estimates, Premiums Decline Y/Y
Apr 30, 2026
Everest Group, Ltd. EG reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year.
Everest Group benefited from solid investment income growth and improved catastrophe losses, which driving a sharp improvement in profitability despite weaker premiums and top-line pressure.
EG’s Q1 Operational Update
Total operating revenues of about $4 billion declined 4.6% year over year, reflecting lower premiums. The top line missed the Zacks Consensus Estimate by 7.7%.
Everest Group, Ltd. Price, Consensus and EPS SurpriseEverest Group, Ltd. Price, Consensus and EPS Surprise
Everest Group, Ltd. price-consensus-eps-surprise-chart | Everest Group, Ltd. Quote
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Total claims and expenses declined 17% to $3.3 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.7 billion.
Underwriting income totaled $316 million in contrast to an underwriting loss of $104 million in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $130 million, narrower than $472 million a year ago.
The combined ratio improved 1160 basis points year over year to 91.2. The Zacks Consensus Estimate was 94.2, while our estimate was 93.9.
Q1 Segmental Update of Everest Group
Reinsurance Treaty segment generated gross written premiums of $2.7 billion, down 8.5% year over year and below our estimate of $3.6 billion. The decline reflected lower volumes in Property Non-Catastrophe XOL, Casualty Pro-Rata and Casualty XOL, which were offset by growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio improved to 87.2 from 104.7 a year ago. Our estimate was 91.
Global Wholesale & Specialty segment posted gross written premiums of $793 million, up 1.6% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 110 basis points year over year to 96.8. Our estimate was 100.4.
Story Continues
Legacy Segment posted gross written premium declined sharply by 80.3% year over year to $135 million, reflects a limited volume of renewal and new policies tied to the commercial retail insurance business. Net premiums earned fell 26.1% year over year to $399 million.
Underwriting loss widened to $22 million from $14 million incurred in the year ago quarter.
EG’s Financial Update
Everest Group exited the first quarter of 2026 with total investments and cash of $45 billion, up 0.9% from the 2025-end level.
Shareholders’ equity fell 1.3% year over year to $15.3 billion.
Book value per share increased 1% year over year to $383.75 as of March 31, 2026.
Annualized net income return on equity improved 1110 basis points year over year to 16.8%.
Cash flow from operations totaled $649 million for the year, down 30.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $331 million worth of shares in this quarter.
EG’s Zacks Rank
Everest Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Chubb Limited CB reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.
Arch Capital Group Ltd. ACGL reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.3 billion decreased 3.8% year over year, due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% year over year to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
Selective Insurance Group SIGI reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
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