Market Intelligence Center  Apr 6  Comment 
After closing Thursday at $61.91, Arch Capital Group Ltd (ACGL) presents an attractive opportunity to get a 2.37% return in just 165 days, which is an annualized return of 5.25% (for comparison purposes only). To enter this trade, sell one Sep....
Market Intelligence Center  Mar 27  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Arch Capital Group Ltd (ACGL) that should provide a 2.15% return in just 175 days. Sell one Sep. '15 call at the $60.00 level for each 100...
Market Intelligence Center  Mar 13  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 2.83% return in just 189 days. Sell one Sep. '15 call at the...
Benzinga  Dec 8  Comment 
Analysts at Goldman Sachs upgraded Southwest Airlines Company (NYSE: LUV) from Neutral to Buy. The price target for Southwest Airlines has been raised from $44 to $55. Southwest Airlines' shares closed at $41.12 on Friday. Analysts at Keefe...
Benzinga  Dec 8  Comment 
Analysts at BMO Capital upgraded Arch Capital Group (NASDAQ: ACGL) from Market Perform to Outperform. The price target for Arch Capital Group has been raised from $60 to $65. Arch Capital Group shares have dropped 0.34% over the past 52...
DailyFinance  Sep 29  Comment 
Arch Capital Group Ltd. [NASDAQ:ACGL] announced that it expects to release its 2014 third quarter results after the close of regular stock market hours on Wednesday, October 29, 2014. The Company will hold a conference call...
Forbes  Sep 25  Comment 
Investors in Arch Capital Group Ltd (NASD: ACGL) saw new options become available this week, for the November 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACGL options chain for the new November 22nd...
SeekingAlpha  Sep 11  Comment 
By Stephen Simpson, CFA: Arch Capital (NASDAQ:ACGL) is often lauded as a well-run insurance and reinsurance company and a good stock to own for those seeking more defensive exposure to insurance. Interestingly, while Arch Capital may be labeled as...


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.
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