NASDAQ$ACGL

Arch Capital Group Ltd. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Arch Capital reported first quarter results with a net income of $427.8 million.

Arch Capital Group Ltd. reported a strong first quarter in 2021, with net income available to Arch common shareholders reaching $427.8 million, or $1.05 per share, compared to $133.7 million, or $0.32 per share, for the 2020 first quarter.

  • Net income available to Arch common shareholders was $427.8 million, or $1.05 per share.
  • After-tax operating income available to Arch common shareholders was $239.8 million, or $0.59 per share.
  • The combined ratio excluding catastrophic activity and prior year development was 81.0%.
  • Book value per common share was $30.54 at March 31, 2021, a 0.8% increase from December 31, 2020 and a 17.0% increase from March 31, 2020.

Headline financials

Total Revenue

$2.27B

Previous: $1.53B+47.7%
EPS (adj)

$0.59

Previous: $0.46+28.3%
Loss ratio

61.7%

Previous: 63.9%-3.4%
Combined ratio

90.7%

Previous: 91.5%-0.9%
Adj. combined ratio

81.0%

Previous: 84.2%-3.8%
Free Cash Flow

$438M

Previous: $144M+204.0%
Net Income

$438M

Previous: $144M+204.0%
Operating Income

$454M

Previous: -$94.9M+578.2%
Gross Profit

$758M

Previous: $171M+343.1%
Cash & Equivalents

$942M

Previous: $882M+6.8%
Total Assets

$44.2B

Previous: $38.4B+15.1%
Stock-Based Comp

$40.8M

Previous: $28.5M+43.0%

Revenue & EPS history

Arch Capital · Revenue · Quarterly

$2.27B

Q1 2021+47.7%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Arch Capital · $1.8B total across 3 segments · Q1 2021

  • Insurance
    $819M+14.5%
  • Reinsurance
    $645M+18.7%
  • Mortgage
    $336M-2.5%

Forward guidance

The Company expects the transaction to close in the second quarter of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.9%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+6.5%

Q3 2023

Best reaction

-7.7%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.8%-3.5%-8.0%
Q4 2025+1.9%+2.4%-1.9%
Q3 2025-1.4%+0.4%+9.8%
Q1 2025-1.9%+0.2%+2.9%
Q4 2024-2.0%-3.6%-1.1%
Q3 2024-6.0%-9.4%-3.9%
Q2 2024-1.3%+1.7%+16.3%
Q1 2024+2.9%+3.9%+11.7%
Q4 2023+4.0%+2.4%+9.3%
Q3 2023+6.5%+5.1%+1.3%
Q2 2023-2.1%-4.5%-8.3%
Q1 2023+1.8%+4.6%-2.2%
Q4 2022+3.2%+5.6%-2.3%
Q3 2022+5.0%+16.8%+19.3%
Q2 2022-2.1%-1.7%+5.1%
Q1 2022+0.5%-1.4%+2.0%
Q4 2021-1.7%-3.7%-5.1%
Q3 2021-2.6%-1.3%-2.9%
Q2 2021-0.1%+1.8%+8.4%
Q1 2021-1.6%-1.1%-1.2%
Q4 2020+2.2%+2.9%+8.3%
Q3 2020+2.6%+8.4%+12.2%
Q2 2020+3.4%+2.8%+7.2%
Q1 2020+2.7%+12.3%+40.0%
Q4 2019+0.6%+1.9%-34.4%
Q3 2019+3.2%+2.8%+3.8%
Q2 2019+3.5%+1.4%+2.9%
Q1 2019+1.7%+2.6%+2.9%
Q4 2018+5.4%+3.9%+7.3%
Q3 2018+6.0%+4.7%+6.0%
Q2 2018-0.9%-1.3%+0.9%
Q1 2018-1.5%-1.6%-2.1%
Q4 2017+0.6%+3.4%-2.8%
Q3 2017-1.3%-2.1%-6.2%
Q2 2017-4.5%-1.9%-1.7%
Q1 2017+2.0%+1.4%-0.6%
Q4 2016+0.0%+1.1%+2.8%
Q3 2016-1.0%+0.2%+5.5%
Q2 2016+3.7%+4.9%+13.8%
Q1 2016-0.9%
Q4 2015+1.8%
Q3 2015+0.2%
Q2 2015+3.2%
Q1 2015+0.0%
Q4 2014+0.8%
Q3 2014-0.2%
Q2 2014+0.7%
Q1 2014-0.5%
Q4 2013+1.6%
Q3 2013+0.9%
Q2 2013+1.3%
Q1 2013+0.8%
Q4 2012-1.4%
Q3 2012-3.5%
Q2 2012-0.7%
Q1 2012+0.6%
Q4 2011+2.5%
Q3 2011-0.2%
Q2 2011-7.7%
Q1 2010+0.8%
Q1 2011+2.7%
Q4 2008+0.2%
Q4 2010+0.2%
Q3 2009-1.2%
Q3 2010-1.2%
Q2 2010-0.8%
Q2 2009-0.8%
Q4 2009-0.8%

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