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Arch Capital (ACGL) Reports Q1 Earnings: What Key Metrics Have to Say

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For the quarter ended March 2023, Arch Capital Group (ACGL - Free Report) reported revenue of $3.09 billion, up 41.1% over the same period last year. EPS came in at $1.73, compared to $1.10 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.84 billion, representing a surprise of +8.72%. The company delivered an EPS surprise of +14.57%, with the consensus EPS estimate being $1.51.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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: 51% versus the three-analyst average estimate of 50.55%.
  • Underwriting Expense Ratio - Total: 29.6% compared to the 29.52% average estimate based on three analysts.
  • Combined Ratio - Total: 80.6% compared to the 80.17% average estimate based on three analysts.
  • Revenues- Net investment income: $199 million compared to the $155.12 million average estimate based on three analysts. The reported number represents a change of +147.4% year over year.
  • Revenues- Net premiums earned: $2.88 billion versus the three-analyst average estimate of $2.75 billion. The reported number represents a year-over-year change of +36%.
View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have returned +8.7% over the past month versus the Zacks S&P 500 composite's +2.6% 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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