Bermuda's Arch Capital Q1 net income nearly doubles on improved underwriting

Arch Capital

28/04/2026 21:21

Overview

Bermuda insurance and reinsurance provider's Q1 net income nearly doubled yr/yr

After-tax operating income rose sharply, driven by improved underwriting results

Company repurchased $783 mln in shares during the quarter

Outlook

Arch Capital did not provide specific financial guidance for future periods

Result Drivers

LOWER CATASTROPHE LOSSES - Co said reduced catastrophe activity, especially compared to prior yr's California wildfires, lowered loss ratios in insurance and reinsurance segments

FAVORABLE PRIOR YEAR RESERVE DEVELOPMENT - Net favorable development in prior year loss reserves reduced loss ratios

HIGHER EXPENSES IN INSURANCE SEGMENT - Co reported increased compensation and transitional costs tied to MCE Acquisition, raising insurance segment's expense ratio

Company press release: ID:nBw5zfs9fa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross Premiums Written
$6.43 bln
Q1 EPS
$2.88
Q1 Adjusted Combined Ratio
82.30%
Q1 Combined Ratio
81.70%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "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 $109.50, about 13.6% above its April 27 closing price of $96.35

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)