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Compared to Estimates, Arch Capital (ACGL) Q1 Earnings: A Look at Key Metrics
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For the quarter ended March 2025, Arch Capital Group (ACGL - Free Report) reported revenue of $4.56 billion, up 21.3% over the same period last year. EPS came in at $1.54, compared to $2.45 in the year-ago quarter.
The reported revenue represents a surprise of -0.99% over the Zacks Consensus Estimate of $4.61 billion. With the consensus EPS estimate being $1.37, the EPS surprise was +12.41%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss Ratio - Total: 61.8% versus 65% estimated by five analysts on average.
Combined Ratio - Mortgage Segment: 16.1% compared to the 25.9% average estimate based on five analysts.
Loss Ratio - Mortgage Segment: 1.1% versus 8% estimated by five analysts on average.
Combined Ratio - Reinsurance Segment: 91.8% versus the five-analyst average estimate of 93.9%.
Revenues- Net investment income: $378 million versus the five-analyst average estimate of $415.07 million. The reported number represents a year-over-year change of +15.6%.
Revenues- Net premiums earned: $4.19 billion versus $4.09 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +22.4% change.
Revenues- Net premiums earned- Insurance Segment: $1.86 billion compared to the $1.80 billion average estimate based on four analysts. The reported number represents a change of +28.2% year over year.
Revenues- Net premiums earned- Reinsurance Segment: $2.03 billion compared to the $2.01 billion average estimate based on four analysts. The reported number represents a change of +21.7% year over year.
Revenues- Net premiums earned- Mortgage Segment: $300 million compared to the $290.01 million average estimate based on four analysts. The reported number represents a change of -1.6% year over year.
Revenues- Other underwriting income (loss): $53 million compared to the $7.41 million average estimate based on four analysts. The reported number represents a change of +341.7% year over year.
Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $53 million versus $111.56 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -46.5% change.
Revenues- Other income (loss): -$2 million versus the three-analyst average estimate of $6.33 million. The reported number represents a year-over-year change of -114.3%.
Shares of Arch Capital have returned -5.2% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, Arch Capital (ACGL) Q1 Earnings: A Look at Key Metrics
For the quarter ended March 2025, Arch Capital Group (ACGL - Free Report) reported revenue of $4.56 billion, up 21.3% over the same period last year. EPS came in at $1.54, compared to $2.45 in the year-ago quarter.
The reported revenue represents a surprise of -0.99% over the Zacks Consensus Estimate of $4.61 billion. With the consensus EPS estimate being $1.37, the EPS surprise was +12.41%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Loss Ratio - Total: 61.8% versus 65% estimated by five analysts on average.
- Combined Ratio - Mortgage Segment: 16.1% compared to the 25.9% average estimate based on five analysts.
- Loss Ratio - Mortgage Segment: 1.1% versus 8% estimated by five analysts on average.
- Combined Ratio - Reinsurance Segment: 91.8% versus the five-analyst average estimate of 93.9%.
- Revenues- Net investment income: $378 million versus the five-analyst average estimate of $415.07 million. The reported number represents a year-over-year change of +15.6%.
- Revenues- Net premiums earned: $4.19 billion versus $4.09 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +22.4% change.
- Revenues- Net premiums earned- Insurance Segment: $1.86 billion compared to the $1.80 billion average estimate based on four analysts. The reported number represents a change of +28.2% year over year.
- Revenues- Net premiums earned- Reinsurance Segment: $2.03 billion compared to the $2.01 billion average estimate based on four analysts. The reported number represents a change of +21.7% year over year.
- Revenues- Net premiums earned- Mortgage Segment: $300 million compared to the $290.01 million average estimate based on four analysts. The reported number represents a change of -1.6% year over year.
- Revenues- Other underwriting income (loss): $53 million compared to the $7.41 million average estimate based on four analysts. The reported number represents a change of +341.7% year over year.
- Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $53 million versus $111.56 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -46.5% change.
- Revenues- Other income (loss): -$2 million versus the three-analyst average estimate of $6.33 million. The reported number represents a year-over-year change of -114.3%.
View all Key Company Metrics for Arch Capital here>>>Shares of Arch Capital have returned -5.2% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.