Bermuda's Arch Capital Q4 net income rises

Overview

• Bermuda insurer's Q4 net income rises, EPS at $3.35

• Company repurchased $798 mln in shares

• Adjusted combined ratio for Q4 slightly increased to 79.5%

Outlook

• Arch Capital did not provide specific guidance for 2026 in its press release

Result Drivers

• UNDERWRITING INCOME - Arch Capital's Q4 underwriting income rose 32.3%, driven by reduced catastrophic losses and favorable prior year reserve development

• INSURANCE SEGMENT - Net premiums written fell 4.0% due to changes in business mix and timing of ceded premium accruals

• REINSURANCE SEGMENT - Growth in gross premiums written due to new business opportunities, despite a 5.2% drop in net premiums written

Key Details

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 $107.00, about 6% above its February 6 closing price of $100.95

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw3WCLGZa

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