Arch Capital Group Ltd (ACGL)
NASDAQ:ACGL
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Earnings Data
Report Date
Aug 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.45Last Year’s EPS
2.58Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed solid operational and financial results — strong underwriting income across all three segments, favorable prior-year development, investment contributions, book value growth, and significant share repurchases. At the same time, management was candid about increased market competitiveness, rate erosion in property lines, elevated operating expenses tied to strategic integrations, and ongoing man-made catastrophe exposure (Iran conflict) that could affect near-term results. Overall, Arch presented a confident and disciplined stance: profitable performance and active capital deployment balanced against cautious underwriting posture and clear awareness of near-term headwinds.Company Guidance
Strong Quarterly Operating Income and EPS
After-tax operating income of $901 million, or $2.50 per share for 1Q 2026. Management reported an annualized net income return on average common equity of 17.8% (Nicolas) and an annualized operating income return on average common equity of 15.4% (François), reflecting strong profitability.
Segment Underwriting Performance
All three business segments produced positive underwriting income: Insurance $66 million, Reinsurance $441 million, Mortgage $221 million. Reinsurance achieved a 76% combined ratio (fourth straight quarter sub-80%) and the reinsurance ex-cat accident year combined ratio was 78.1%.
Favorable Prior Year Development
Recognized $200 million of favorable prior-year development (pretax) in the quarter, representing roughly a 5-point benefit on the overall combined ratio; reinsurance prior-year development was further boosted by a large commutation (~25% increase in favorable development for the segment).
Investment and Cash Flow Contribution
Investments materially contributed to earnings: net investment income cited at $408 million ($1.13 per share) and combined net investment income plus equity-method income of $568 million ($1.57 per share) (different reported measures). Cash flow from operations remained positive at $1.2 billion for the quarter.
Capital Return and Balance Sheet Strength
Repurchased $783 million of common stock during the quarter (8.3 million shares) with an additional $311 million repurchased subsequently; Board increased share repurchase authorization by $3 billion. Book value per share grew 1.7% in the quarter and balance sheet described as well-capitalized with low leverage.
Mortgage Portfolio Quality and Performance
Mortgage segment delivered strong results: underwriting income $221 million, net premiums return $266 million. U.S. mortgage insurance delinquency rate decreased to 2.06% and credit quality described as excellent with delinquencies normalizing from seasonally higher Q4 2025 levels.
Operational Milestone: Systems Migration
Completed data and system migration of the acquired middle-market commercial business from Allianz to Arch in 18 months — highlighted as a significant operational achievement and a use case for AI accelerating systems/platform transformation and testing.
Disciplined Cycle and Portfolio Management
Management emphasized dynamic portfolio allocation and underwriting discipline (adding where returns attractive, declining where margins inadequate). Insurance focused on profitability over volume, and reinsurance actively managed mix to maintain risk-adjusted returns.
ACGL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ACGL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $97.06 | $92.72 | -4.47% |
Feb 09, 2026 | $96.06 | $97.85 | +1.86% |
Oct 27, 2025 | $85.94 | $84.72 | -1.42% |
Jul 29, 2025 | $86.12 | $85.61 | -0.59% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Arch Capital Group Ltd (ACGL) report earnings?
Arch Capital Group Ltd (ACGL) is schdueled to report earning on Aug 04, 2026, After Close (Confirmed).
What is Arch Capital Group Ltd (ACGL) earnings time?
Arch Capital Group Ltd (ACGL) earnings time is at Aug 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ACGL EPS forecast?
ACGL EPS forecast for the fiscal quarter 2026 (Q2) is 2.45.