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Here's How Much You'd Have If You Invested $1000 in Arch Capital Group a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Arch Capital Group (ACGL - Free Report) ten years ago? It may not have been easy to hold on to ACGL for all that time, but if you did, how much would your investment be worth today?
Arch Capital Group's Business In-Depth
With that in mind, let's take a look at Arch Capital Group's main business drivers.
Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers compensation and umbrella liability and employers liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
Arch Capital classifies its operations into three underwriting segments and two other operating segments (non-underwriting). The underwriting segments are Insurance, Reinsurance and Mortgage. The other two operating (non-underwriting) segments are “Other” and Corporate.
The Insurance (43% of 2023 gross premiums written) segment provides primary and excess casualty coverages, loss-sensitive primary casualty insurance programs, professional indemnity, and other financial coverages, and commercial automobile and inland marine products. These apart, the segment deals in property, energy, marine, and aviation insurance, captive insurance programs, and employers’ liability insurance coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers.
The Reinsurance (50%) segment primarily offers reinsurance for third-party liability and workers' compensation exposures, reinsurance protection for catastrophic losses and commercial property risks, life reinsurance, risk management solutions for accident and health, workers compensation catastrophe. This segment markets its reinsurance products through brokers, and directly to ceding companies.
Mortgage (7%) segment provides private mortgage insurance covering one-to-four-family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance, and risk-sharing products. This segment sells its products directly as well as through brokers to its bank and credit union customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Arch Capital Group a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $5,014, or a gain of 401.40%, as of April 8, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 179.04% and gold's return of 70.62% over the same time frame.
Going forward, analysts are expecting more upside for ACGL.
Arch Capital boasts a strong product portfolio and has an exemplary track record of premium growth. Premiums should benefit from new business opportunities, rate increases, growth in existing accounts and growth in Australian single-premium mortgage insurance. This apart, it has been diversifying its Mortgage Insurance business via strategic acquisitions that also complement the strength in the specialty insurance and reinsurance businesses. A solid capital position shields it from market volatility. Strategic buyouts strengthen the portfolio and offer geographic diversification. Shares of Arch Capital have outperformed the industry in the past year. However, exposure to catastrophe loss induces earnings volatility. Escalating expenses tend to weigh on the company's margins. High leverage poses a financial risk for the company.
Shares have gained 8.32% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Arch Capital Group a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Arch Capital Group (ACGL - Free Report) ten years ago? It may not have been easy to hold on to ACGL for all that time, but if you did, how much would your investment be worth today?
Arch Capital Group's Business In-Depth
With that in mind, let's take a look at Arch Capital Group's main business drivers.
Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers compensation and umbrella liability and employers liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
Arch Capital classifies its operations into three underwriting segments and two other operating segments (non-underwriting). The underwriting segments are Insurance, Reinsurance and Mortgage. The other two operating (non-underwriting) segments are “Other” and Corporate.
The Insurance (43% of 2023 gross premiums written) segment provides primary and excess casualty coverages, loss-sensitive primary casualty insurance programs, professional indemnity, and other financial coverages, and commercial automobile and inland marine products. These apart, the segment deals in property, energy, marine, and aviation insurance, captive insurance programs, and employers’ liability insurance coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers.
The Reinsurance (50%) segment primarily offers reinsurance for third-party liability and workers' compensation exposures, reinsurance protection for catastrophic losses and commercial property risks, life reinsurance, risk management solutions for accident and health, workers compensation catastrophe. This segment markets its reinsurance products through brokers, and directly to ceding companies.
Mortgage (7%) segment provides private mortgage insurance covering one-to-four-family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance, and risk-sharing products. This segment sells its products directly as well as through brokers to its bank and credit union customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Arch Capital Group a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $5,014, or a gain of 401.40%, as of April 8, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 179.04% and gold's return of 70.62% over the same time frame.
Going forward, analysts are expecting more upside for ACGL.
Arch Capital boasts a strong product portfolio and has an exemplary track record of premium growth. Premiums should benefit from new business opportunities, rate increases, growth in existing accounts and growth in Australian single-premium mortgage insurance. This apart, it has been diversifying its Mortgage Insurance business via strategic acquisitions that also complement the strength in the specialty insurance and reinsurance businesses. A solid capital position shields it from market volatility. Strategic buyouts strengthen the portfolio and offer geographic diversification. Shares of Arch Capital have outperformed the industry in the past year. However, exposure to catastrophe loss induces earnings volatility. Escalating expenses tend to weigh on the company's margins. High leverage poses a financial risk for the company.
Shares have gained 8.32% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.