Reported Q: Q2 2025 Rev YoY: +22.4% EPS YoY: -2.4% Move: -0.08%
Arch Capital Group Ltd
ACGLN
$17.52 -0.08%
Exchange NASDAQ Sector Financial Services Industry Insurance Diversified
Q2 2025
Published: Aug 5, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for ACGLN

Reported

Report Date

Aug 5, 2025

Quarter Q2 2025

Revenue

4.97B

YoY: +22.4%

EPS

3.23

YoY: -2.4%

Market Move

-0.08%

Previous quarter: Q1 2025

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Earnings Highlights

  • Revenue of $4.97B up 22.4% year-over-year
  • EPS of $3.23 decreased by 2.4% from previous year
  • Gross margin of 37.1%
  • Net income of 1.24B
  • ""After-tax operating income of $979 million, resulting in an operating earnings per share of $2.58."" - Nicolas Papadopoulo
ACGLN
Company ACGLN

Executive Summary

Arch Capital reported solid QQ2 2025 results underpinned by resilient underwriting discipline and a diversified platform. After-tax operating income amounted to $979 million, yielding operating earnings per share of $2.58, with book value per share rising 7.3% in the quarter and year-to-date BVPS up 11.4%. The company also highlighted a robust, risk-adjusted return profile, evidenced by an annualized operating ROE of 18.2%. The year saw meaningful contributions from the Allianz MidCorp and entertainment acquisitions, with net premiums written from the acquired units totaling $451 million and contributing 28.9 percentage points to year-over-year premium growth in the insurance segment.

Segment performance remained favorable on a combined basis, with an ex-cat accident-year combined ratio of 80.9% (down 10 bps QoQ). Management underscored continued disciplined capital deployment—principally through buybacks (July buyback of $161 million; $360 million repurchased in H1 2025)—and emphasized a preference for growth in lines with attractive risk-adjusted returns. The Mortgage segment delivered another strong quarter (underwriting income of $238 million), supported by a durable in-force portfolio and steady profitability despite lower originations. In property-cat reinsurance, Florida expansion yielded attractive risk-adjusted returns, supported by a higher FHCF attachment and broad capacity deployment. Management cautioned that 2H 2025 will reflect midyear timing effects (notably ceded premium accruals) but expects the ongoing integration to unlock efficiency gains and margin expansion over time. Overall, Arch remains positioned to navigate multiple underwriting cycles, sustain elevated investment income, and balance growth with underwriting profitability.

Key Performance Indicators

Revenue
Increasing
4.97B
QoQ: 8.30% | YoY: 22.43%
Gross Profit
Increasing
1.85B
37.12% margin
QoQ: 48.75% | YoY: 15.23%
Operating Income
Increasing
1.41B
QoQ: 108.11% | YoY: 22.27%
Net Income
Decreasing
1.24B
QoQ: 115.51% | YoY: -2.52%
EPS
Decreasing
3.30
QoQ: 118.54% | YoY: -2.37%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q4 2025 0.00 0.00 +0.0% View
Q3 2025 4,977.00 3.56 +11.1% View
Q2 2025 4,973.00 3.23 +22.4% View
Q1 2025 4,592.00 1.48 +18.4% View
Q4 2024 4,510.00 2.42 +16.5% View