Arch Capital Group (ACGLN) Q3 2026 Earnings Report
MX:ACGLN Q3 2026 EPS Results
- Actual EPS
- MXN 50.16
- Consensus EPS
- MXN 43.45
- Beat/Miss
- Beat by +MXN 6.71
- One Year Ago EPS
- MXN 52.04
MX:ACGLN Q3 2026 Revenue Results
- Actual Revenue
- MXN 83.24B
- Expected Revenue
- MXN 76.34B
- Beat/Miss
- Beat by +MXN 6.90B
- YoY Revenue Growth
- -10.93%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
MX:ACGLN Upcoming Earnings
Arch Capital Group's next earnings date is estimated for February 15, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ACGLN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Arch reported strong earnings, underwriting profitability across all three segments, substantial capital returns, strong investment income, low mortgage delinquencies, and significant tangible book value growth. Management also expressed confidence in its cycle-management capabilities and long-term opportunities. These positives outweighed the challenges from competitive pricing, declining reinsurance premiums, constrained mortgage originations, catastrophe losses, and uncertainty around Bermuda tax credits.
Company Guidance
Management said underlying insurance growth is in the low single-digit range, with a good opportunity to grow at some level in 2026 and an environment in 2027 that is attractive in some places; the premium expense ratio has a chance to come down a little from current levels, Bermuda QRTCs are expected to go up in 2027 on a percentage basis, and normal inflationary costs on expenses should track generally closely to premium growth. Management does not give guidance for reinsurance, but expects continued pressure on the short-tail book and rates, while marine war risk premium in the fourth quarter is expected at a similar amount to the quarter; the reinsurance underlying loss ratio probably could go up a couple of hundred basis points maybe over the next little while. Share repurchases could go up or could go down, with no set number, and the company will be in a position to probably most likely return back even more capital as it moves forward.
- Strong Quarterly Earnings and ReturnsThird-quarter after-tax operating income was $910 million, or $2.67 per share, producing an annualized operating return on average common equity of 16%. Strong equity method investment returns contributed to an annualized net income return on average common equity of 18.1%.
- Excellent Underwriting PerformanceAll three business segments delivered strong underlying results, with an overall ex-catastrophe accident year combined ratio of 81.2%, up 70 basis points from the same quarter last year. Underwriting income included $179 million of favorable prior-year development, equal to 4.5 points on the overall combined ratio.
- Significant Share Repurchases and Capital ReturnsArch repurchased 14.8 million common shares for an aggregate cost of $1.4 billion in the quarter, returning approximately $1.4 billion to common shareholders. Through nine months of 2026, the company had repurchased approximately 109% of its net income in its own shares, and it bought back approximately $100 million more in October through the night before the call.
- Improved Tangible Book ValueAlthough book value per share was essentially flat during the quarter, tangible book value per share excluding AOCI increased approximately 15% from a year ago.
- Insurance Segment Profitability and Selective GrowthInsurance generated $108 million of underwriting income, with a 94.4% combined ratio and an 89.2% current accident year combined ratio excluding catastrophes. Gross premiums written increased 7.8% and net premiums written increased 2.7% year over year, supported by a new captive program in alternative markets and increased marine war risk writings related to the Iran conflict.
- Insurance Loss Ratio ImprovementThe insurance ex-catastrophe accident year loss ratio, net of reinstatement premiums, improved by 170 basis points to 55.8% year over year. Management said most of the improvement came from incremental marine war breach earned premium.
- Attractive Insurance Market OpportunitiesArch continues to see opportunities in North American excess and surplus casualty, construction, and national account casualty, as well as across international classes where it is a lead market at Lloyd's. Management said primary casualty rates remain about loss trend and that the business Arch writes still has a very good margin and meets its return threshold.
- Strong Reinsurance Underwriting ResultsReinsurance delivered $393 million of underwriting income with a 78.3% combined ratio, aided by light catastrophe activity. Management said Arch continues to find opportunities and will deploy capital where pricing, terms, and conditions appropriately reflect the underlying risk.
- Effective Use of Third-Party CapitalArch is increasingly leveraging third-party capital and sidecars to manage net exposure and optimize returns on its own capital. Management said a large portion of reinsurance premium is already ceded to third-party capital and that the platform helps Arch remain in front of clients while managing the net portfolio.
- Strong Mortgage Segment ContributionThe mortgage segment generated $201 million of underwriting income. The underlying quality of the in-force portfolio remains strong, with a low delinquency rate of 2.2% at September 30, favorable cure activity, and persistency of approximately 80%.
- Mortgage Diversification and Homeownership SupportBusinesses outside primary U.S. mortgage insurance wrote $66 million of net premium in the quarter and continue to provide diversification from USMI. Management said mortgage insurance supported 75,000 first-time homebuyers in the United States last year and described the business as a terrific business for Arch.
- Strong Investment Income and Equity Method ResultsPre-tax net investment income was $451 million, while the equity method investment contributed $224 million to pre-tax net income. Combined net investment income and equity method income totaled $675 million, or $1.98 per share pre-tax, up from $1.76 per share in the prior quarter.
- Investment Tailwind from Higher New-Money YieldsWith $49.2 billion of investable assets, investment income is expected to remain an important contributor to earnings. Management said higher interest rates are expected to provide a tailwind to net investment income because the fixed-income portfolio has short duration and new-money yields exceed book yield by approximately 65 to 70 basis points.
- Strong Operating Cash Flow and Low LeverageCash flow from operations was $1.8 billion in the quarter, supported by strong underwriting results. Management said debt to capital remains very low, and a $500 million debt maturity will be redeemed or repaid in December, reducing leverage further.
- Expense Management and Sustainable Bermuda CreditsBermuda QRTCs are sustainable rather than a one-time event, and the credits are expected to increase in 2027 on a percentage basis based on the Bermuda government's commitment. The company also expects the end of duplicate expenses related to middle-market integration to provide a benefit, and management said the premium expense ratio has a chance to decline somewhat from current levels.
- Strong Strategic Equity InvestmentManagement described its Coface equity investment as very important and said the investment and relationship have been good to Arch. Coface's results were described as terrific, with management expressing confidence in its CEO and noting that the company is competing to become the number-one player in its space.
- 25th Anniversary and Long-Term Cycle ManagementArch celebrated its 25th anniversary. Management emphasized the company's global franchise, brand, underwriting expertise, data and analytics capabilities, and culture as foundations for adapting across market environments and generating attractive long-term risk-adjusted returns.
MX:ACGLN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 15, 2027 | 2026 (Q4) | 47.13- | 55.98 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 43.4550.16 | 52.04 | -3.61% (-1.88) | |
| Jul 28, 2026 | 2026 (Q2) | 46.3348.09 | 48.47 | -0.78% (-0.38) | |
| Apr 28, 2026 | 2026 (Q1) | 46.4046.97 | 28.93 | 62.34% (+18.03) | |
| Feb 09, 2026 | 2025 (Q4) | 48.7355.98 | 42.46 | 31.86% (+13.53) | |
| Oct 27, 2025 | 2025 (Q3) | 42.3852.04 | 37.38 | 39.20% (+14.65) | |
| Jul 29, 2025 | 2025 (Q2) | 43.2548.47 | 48.28 | 0.39% (+0.19) | |
| Apr 29, 2025 | 2025 (Q1) | 24.8428.93 | 46.03 | -37.14% (-17.10) | |
| Feb 10, 2025 | 2024 (Q4) | 34.0642.46 | 46.78 | -9.24% (-4.32) | |
| Oct 30, 2024 | 2024 (Q3) | 37.5937.38 | 43.4 | -13.85% (-6.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed