NASDAQ · Financial Services

Arch Capital Group Ltd.

ACGL · Insurance - Diversified

$93.66

▼ -0.17 (-0.18%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Arch Capital Group Ltd. at $93.66.

The business passes 5 of 6 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Net Income Margin 22.8%

Fin. Health A

Years to Pay Off Debt 0.6 yrs

Valuation C

Margin of Safety 28.7%

Price-to-Book 1.42x

Cash Flow A

Free Cash Flow $6.1B

CapEx % of Net Income 1.0%

Owner Earnings $4.6B

5/6

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $33.1B

Enterprise Value $32.9B

P/E (TTM) 7.20

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 22.8%

Company Info

Sector Financial Services

Industry Insurance - Diversified

Employees 8000

Country Bermuda

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Arch Capital Group Ltd. at $93.66.

The business passes 5 of 6 of Graham's defensive criteria — adequate but not exceptional.

At $93.66, the stock trades below its Graham Number of $131.43 — suggesting a margin of safety exists.

The margin of safety of 28.7% offers some protection but falls short of Graham's preferred 33% buffer.

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Arch Capital Group Ltd.

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. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 and is headquartered in Pembroke, Bermuda.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	N/A •	N/A	N/A	N/A	N/A
Operating Margin %	N/A •	N/A	N/A	N/A	N/A
Net Income %	22.8% ▼	25.5%	33.4%	15.4%	N/A
Diluted EPS	11.60 ▲	11.19	11.62	3.80	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$79.2B	$70.9B	$58.9B	$48.0B	N/A
Total Debt	$2.7B ↑	$2.7B	$2.7B	$2.7B	N/A
Working Capital	N/A •	N/A	N/A	N/A	N/A
Years to Pay Debt	0.62	0.63	0.61	1.85	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$6.1B ▼	$6.6B	$5.7B	$3.8B	N/A
Owner Earnings	$4.6B	$4.6B	$4.6B	$1.6B	N/A
CapEx % of Net Income	1.0%	1.2%	1.2%	3.4%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Net Income From Continuing Operation Net Minority Interest	4,399,000	4,312,000	4,443,000	1,476,000
Reconciled Depreciation	193,000	235,000	95,000	106,000
EBIT	5,127,000	4,615,000	3,518,000	1,618,000
Net Interest Income	-148,000	-141,000	-133,000	-131,000
Interest Expense	148,000	141,000	133,000	131,000
Normalized Income	4,399,000	4,312,000	4,443,000	1,476,000
Net Income From Continuing And Discontinued Operation	4,399,000	4,312,000	4,443,000	1,476,000
Total Expenses				8,126,000	6,820,000
Diluted Average Shares	375,900	381,800	378,800	377,610
Basic Average Shares	368,400	372,500	368,700	368,612
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,359,000	4,272,000	4,403,000	1,436,000
Net Income Common Stockholders	4,359,000	4,272,000	4,403,000	1,436,000
Otherunder Preferred Stock Dividend					15,000
Preferred Stock Dividends	40,000	40,000	40,000	40,000
Net Income	4,399,000	4,312,000	4,443,000	1,476,000
Minority Interests	0	0	1,000	-6,000
Net Income Including Noncontrolling Interests	4,399,000	4,312,000	4,442,000	1,482,000
Net Income Continuous Operations	4,399,000	4,312,000	4,442,000	1,482,000
Earnings From Equity Interest Net Of Tax	180,000	200,000	184,000	75,000
Tax Provision	760,000	362,000	-873,000	80,000
Pretax Income	4,979,000	4,474,000	3,385,000	1,487,000
Other Income Expense	271,000	68,000	58,000	-14,000
Net Non Operating Interest Income Expense	-148,000	-141,000	-133,000	-131,000
Interest Expense Non Operating	148,000	141,000	133,000	131,000
Other Operating Expenses	1,955,000	1,667,000	1,404,000	1,236,000
Depreciation And Amortization In Income Statement	193,000	235,000	95,000	106,000
Amortization	193,000	235,000	95,000	106,000
Selling General And Administration			102,000	95,000	78,000
General And Administrative Expense			102,000	95,000	78,000
Other Gand A			102,000	95,000	78,000
Total Revenue	19,294,000	16,930,000	13,297,000	9,613,000
Operating Revenue	19,294,000	16,930,000	13,297,000	9,613,000
Loss Adjustment Expense	9,370,000	8,342,000	6,246,000	5,028,000
Net Policyholder Benefits And Claims	9,370,000	8,342,000	6,246,000	5,028,000
Policyholder Benefits Gross	13,235,000	11,813,000	8,714,000	7,549,000
Policyholder Benefits Ceded	3,865,000	3,471,000	2,468,000	2,521,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	240,800	219,200	218,500	217,905
Preferred Shares Number	830	830	830	830
Ordinary Shares Number	359,000	376,400	373,400	370,346
Share Issued	599,800	595,600	591,900	588,251
Net Debt	1,736,000	1,749,000	1,809,000	1,870,000
Total Debt	2,729,000	2,728,000	2,726,000	2,725,000
Tangible Book Value	22,154,000	18,639,000	16,792,000	11,276,000
Invested Capital	26,105,000	22,718,000	20,249,000	14,805,000
Net Tangible Assets	22,984,000	19,469,000	17,622,000	12,106,000
Common Stock Equity	23,376,000	19,990,000	17,523,000	12,080,000
Preferred Stock Equity	830,000	830,000	830,000	830,000
Total Capitalization	26,935,000	23,548,000	21,079,000	15,635,000
Total Equity Gross Minority Interest	24,206,000	20,820,000	18,355,000	12,921,000
Minority Interest		0	2,000	11,000	9,233
Stockholders Equity	24,206,000	20,820,000	18,353,000	12,910,000
Gains Losses Not Affecting Retained Earnings	5,000	-720,000	-676,000	-1,646,000
Other Equity Adjustments	5,000	-720,000	-676,000	-1,646,000
Treasury Stock	6,410,000	4,487,000	4,424,000	4,378,000
Retained Earnings	27,045,000	22,686,000	20,295,000	15,892,000
Additional Paid In Capital	2,735,000	2,510,000	2,327,000	2,211,000
Capital Stock	831,000	831,000	831,000	831,000
Common Stock	1,000	1,000	1,000	1,000
Preferred Stock	830,000	830,000	830,000	830,000
Total Liabilities Net Minority Interest	55,035,000	50,086,000	40,551,000	35,069,000
Long Term Debt And Capital Lease Obligation	2,729,000	2,728,000	2,726,000	2,725,000
Long Term Debt	2,729,000	2,728,000	2,726,000	2,725,000
Payables And Accrued Expenses	4,597,000	4,302,000	3,817,000	3,264,000
Payables	4,597,000	4,302,000	3,817,000	3,264,000
Accounts Payable	4,597,000	4,302,000	3,817,000	3,264,000
Total Assets	79,241,000	70,906,000	58,906,000	47,990,000
Investments And Advances	45,860,000	39,645,000	33,198,000	27,215,000
Long Term Equity Investment	7,766,000	7,220,000	5,685,000	4,739,000
Investments In Other Ventures Under Equity Method	7,766,000	7,220,000	5,685,000	4,739,000
Goodwill And Other Intangible Assets	1,222,000	1,351,000	731,000	804,000
Other Intangible Assets	615,000	780,000	386,000	462,000
Goodwill	607,000	571,000	345,000	342,000
Prepaid Assets	2,659,000	2,428,000	2,170,000	1,799,000
Receivables	17,519,000	16,055,000	13,522,000	11,920,000
Accounts Receivable	17,519,000	16,055,000	13,522,000	11,920,000
Cash Cash Equivalents And Short Term Investments	11,543,000	9,308,000	8,047,000	6,500,000
Other Short Term Investments	10,550,000	8,329,000	7,130,000	5,645,000
Cash And Cash Equivalents	993,000	979,000	917,000	855,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	6,128,000	6,622,000	5,697,000	3,766,000
Repurchase Of Capital Stock	-1,889,000	-24,000	-2,000	-586,000
Issuance Of Capital Stock	50,000	7,000	0	6,000
Capital Expenditure	-44,000	-51,000	-52,000	-50,000
Interest Paid Supplemental Data	127,000	127,000	127,000	128,000
Income Tax Paid Supplemental Data	458,000	378,000	267,000	255,000
End Cash Position	2,067,000	1,760,000	1,498,000	1,273,000
Beginning Cash Position	1,760,000	1,498,000	1,273,000	1,314,000
Effect Of Exchange Rate Changes	61,000	-25,000	13,000	-50,000
Changes In Cash	246,000	287,000	212,000	9,000
Financing Cash Flow				-706,000	-1,229,000
Cash Flow From Continuing Financing Activities	-1,890,000	-1,925,000	-69,000	-706,000
Net Other Financing Charges	-4,000	-2,000	-27,000	-86,000
Cash Dividends Paid	-47,000	-1,906,000	-40,000	-40,000
Preferred Stock Dividend Paid	-40,000	-40,000	-40,000	-40,000
Common Stock Dividend Paid	-7,000	-1,866,000	0	0
Net Preferred Stock Issuance			0	0	36,000
Preferred Stock Payments			0	0	-450,000
Preferred Stock Issuance			0	0	486,000
Net Common Stock Issuance	-1,839,000	-17,000	-2,000	-580,000
Common Stock Payments	-1,889,000	-24,000	-2,000	-586,000
Common Stock Issuance	50,000	7,000		6,000	6,000
Investing Cash Flow	-4,036,000	-4,461,000	-5,468,000	-3,101,000
Cash Flow From Continuing Investing Activities	-4,036,000	-4,461,000	-5,468,000	-3,101,000
Net Other Investing Changes	106,000	-30,000	-23,000	125,000
Net Investment Purchase And Sale	-4,098,000	-5,232,000	-5,393,000	-3,176,000
Sale Of Investment	36,068,000	31,240,000	15,992,000	15,800,000
Purchase Of Investment	-40,166,000	-36,472,000	-21,385,000	-18,976,000
Net Business Purchase And Sale	0	852,000	0	0
Sale Of Business	0	852,000	0	0
Purchase Of Business			0	0	-1,103,000
Net PPE Purchase And Sale	-44,000	-51,000	-52,000	-50,000
Purchase Of PPE	-44,000	-51,000	-52,000	-50,000
Operating Cash Flow	6,172,000	6,673,000	5,749,000	3,816,000
Cash Flow From Continuing Operating Activities	6,172,000	6,673,000	5,749,000	3,816,000
Change In Working Capital	2,331,000	2,666,000	1,152,000	1,335,000
Change In Other Working Capital	309,000	-394,000	-1,253,000	-434,000
Change In Payables And Accrued Expense	137,000	179,000	455,000	-36,000
Change In Payable	137,000	179,000	455,000	-36,000
Change In Account Payable	137,000	179,000	455,000	-36,000
Change In Receivables	38,000	-818,000	-981,000	-1,110,000
Changes In Account Receivables	38,000	-818,000	-981,000	-1,110,000
Stock Based Compensation	148,000	133,000	93,000	88,000
Depreciation And Amortization	193,000	235,000	95,000	106,000
Amortization Cash Flow	193,000	235,000	95,000	106,000
Amortization Of Intangibles	193,000	235,000	95,000	106,000
Operating Gains Losses	-899,000	-673,000	-33,000	805,000
Earnings Losses From Equity Investments	-459,000	-488,000	-215,000	154,000
Gain Loss On Investment Securities	-440,000	-185,000	182,000	651,000
Net Income From Continuing Operations	4,399,000	4,312,000	4,442,000	1,482,000

These metrics estimate what Arch Capital Group Ltd. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$131.43

Margin of Safety

28.7%

Market Cap ÷ Company Value

1.11

P/B Ratio

1.42

Warren's Owner Earnings

$4.6B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

5/6 — Enterprising Investor

✅ Adequate Size

$19.3B

vs > $1.5B revenue

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+205.3% EPS growth

vs > 33% EPS growth

✅ Moderate P/E Ratio

7.2x

vs P/E ≤ 15.0x

✅ Moderate Price-to-Book

1.42x P/B (P/E×P/B: 10.2)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

N/A

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	1.0%	1.2%	1.2%	3.4%	N/A
Repurchase of Capital Stock	-$1.9B	-$24M	-$2M	-$586M	N/A
Free Cash Flow	$6.1B ▼	$6.6B ▲	$5.7B ▲	$3.8B •	N/A •
Warren's Owner Earnings	$4.6B	$4.6B	$4.6B	$1.6B	N/A

Peers & Industry

No auto-detected peers for Insurance - Diversified. You can manually compare ACGL against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

2.59%

Low — management has little skin in the game

Return on Equity (ROE)

18.8%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

5.6%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.9B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is roughly stable

Leadership Team

Nicolas Alain Emmanuel Papadopoulo

CEO & Director

Age 63

Pay: $7,285,628

0.166% of net income

Maamoun Jamil Rajeh

President

Age 55

Pay: $4,826,231

0.110% of net income

David Evan Gansberg

President

Age 53

Pay: $4,309,516

0.098% of net income

Francois Morin

Executive VP, CFO & Treasurer

Age 58

Pay: $3,721,770

0.085% of net income

Donald Watson

Executive Vice President of Financial Services

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	11.59%	41,288,784
Blackrock Inc.	8.91%	31,735,316
Artisan Partners Limited Partnership	6.53%	23,247,700
BAMCO Inc.	5.05%	17,987,505
State Street Corporation	4.62%	16,451,086
WCM Investment Management, LLC	3.73%	13,283,915
Geode Capital Management, LLC	2.94%	10,466,550
JPMORGAN CHASE & CO	1.89%	6,741,396

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.33

Low volatility — more stable than the market

Short Interest

2.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.11x

Conservative balance sheet — low financial risk

Current Ratio

0.54x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $82.45 Current: $93.66 High: $103.39

Currently at 54% of 52-week range

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