Insurance Journal  Nov 12  Comment 
Bermuda-based Arch Capital Group Ltd. (ACGL) announced that Marc Grandisson will be promoted to the position of president and chief operating officer, effective Jan. 1, 2016. Grandisson, 48, joined the company in 2001 and currently serves as...
Benzinga  Oct 30  Comment 
Analysts at Bank of America downgraded Arch Capital Group Ltd. (NASDAQ: ACGL) from Neutral to Underperform. Arch Capital Group shares closed at $77.65 on Thursday. Raymond James downgraded DigitalGlobe Inc (NYSE: DGI) from Outperform to Market...
Insurance Journal  Oct 29  Comment 
Bermuda-headquartered Arch Capital Group Ltd. reported net income available to common shareholders for the third quarter ending 2015 was $74.5 million, or $0.60 per share, compared to $223.2 million, or $1.64 per share, for the same period last...
Market Intelligence Center  Oct 29  Comment 
MarketIntelligenceCenter.com's option-trade picking algorithms have identified an attractive covered-call trade on Arch Capital Group Ltd (ACGL). Look at the Mar. '16 $75.00 covered call for a net debit in the $73.35 area. This trade has a...
SeekingAlpha  Oct 28  Comment 
Benzinga  Oct 16  Comment 
General Electric Company (NYSE: GE) shares reached a new 52-week high of $28.75 after the company reported upbeat earnings for the third quarter. Paycom Software Inc (NYSE: PAYC) shares gained 3.96 percent to reach a new 52-week high of...
Market Intelligence Center  Oct 9  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Arch Capital Group Ltd (ACGL) that should provide a 2.57% return in just 70 days. Sell one Dec. '15 call at the...
Market Intelligence Center  Sep 24  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Arch Capital Group Ltd (ACGL) that should provide a 2.65% return in just 176 days. Sell one Mar. '16 call at the $65.00 level for each 100...
Market Intelligence Center  Sep 21  Comment 
For a hedged play on Arch Capital Group Ltd (ACGL), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Mar. '16 $65.00 covered call for a net debit in the $63.14 area. That is also the break-even stock price for the...


Arch Capital Group Ltd. (NASDAQ:ACGL) writes major insurance policies for businesses and sells reinsurance to other insurance companies. The company targets insurance policies that have an anticipated minimum return (ROE) of 15%,[1] which is problematic in economic downturns as companies become more price sensitive. This ROE litmus test means that Arch first evaluates a projected combined ratio for a potential policy, and from that ratio Arch attaches a projected net income to the policy. If this is below what is needed to generate a 15% ROE, then Arch does not write the policy.

Like other insurance companies, Arch invests the premiums it collects to earn income. Its portfolio consists solely of fixed income securities rated in the range of AAA to AA, with virtually no investment in hedge funds or private equity.[2] Importantly, its portfolio of investments holds no collateralized debt obligations (CDOs) or loan obligations (CLOs). This conservative investment strategy stands in stark contrast to the investments of many other insurance companies, most notably AIG, whose well-publicized write-offs were centered on collateralized debt obligations (CDOs). [3]

Corporate Overview

This piece was cogent, well-wrtietn, and pithy.

Ah yes, nceily put, everyone.


Competitors are insurance subsidiaries of global conglomerates or independent companies. As defined by Arch Capital Group, its competitors in insurance are: [4]

In response to price competition from larger insurers and subsidiary companies, Arch is aggressively shifting its strategy toward opening smaller insurance policies with businesses in a diverse set of specialty markets, where it can offer a higher level of expertise than many of its larger competitors. [5]

The company also faces competition from emerging alternatives to insurance, such as catastrophe bonds and alternatives to traditional reinsurance such as finite reinsurance products.


  1. ACGL. ACGL Annual Report 2007, To Our Shareholders Letter, Pg 1.
  2. ACGL. Annual Report 2007, Cash Flow, Investable Assets and Investment Income, Pg 2.
  3. WSJ. AIG reports $5.36 billion quarterly net loss.
  4. ACGL. Annual Report 2007, Pg 23.
  5. ACGL. Annual Report 2007, Market Positions and Strategic Principles, Pg 2.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki