Arch Capital Q3 net income falls, catastrophe losses rise

Arch Capital

27/10/2026 20:12

Overview
Insurer's Q3 net income and after-tax operating income declined yr/yr
Gross premiums written nearly flat, underwriting income fell about 19% from prior year
Combined ratio rose due to higher catastrophe losses, including Iran conflict

Outlook
Company says market conditions are increasingly uneven and expects continued evolution in the market
Arch Capital remains focused on long-term risk-adjusted returns amid market uncertainty
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
CATASTROPHE LOSSES - Higher catastrophe losses, including from the Iran conflict, weighed on results
INVESTMENT INCOME - Net investment income rose due to growth in average investable assets
REINSURANCE PREMIUMS - Reinsurance segment premiums declined due to non-renewals and share reductions

Company press release: ID:nBw32scr2a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Gross Premiums Written
 
$5.39 bln
 
Q3 EPS
 
$3
 
Q3 Adjusted Combined Ratio
 
81.20%
 
Q3 Combined Ratio
 
82.50%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold."
Wall Street's median 12-month price target for Arch Capital Group Ltd. is $107.00, about 4.6% above its October 26 closing price of $102.34
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)