NASDAQ$ACGL

Arch Capital Group Ltd. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Arch Capital reported mixed results due to COVID-19 impact and catastrophic losses, but also saw growth in gross premiums written.

Arch Capital Group Ltd. reported a net income of $288.4 million, or $0.71 per share, and after-tax operating income of $16.6 million, or $0.04 per share. The results were impacted by $207.2 million in pre-tax current accident year catastrophic losses, including $173.1 million related to COVID-19. Gross premiums written increased by 19.6% to $2,317.7 million.

  • Net income available to Arch common shareholders was $288.4 million, or $0.71 per share.
  • After-tax operating income available to Arch common shareholders was $16.6 million, or $0.04 per share.
  • Pre-tax current accident year catastrophic losses were $207.2 million, including $173.1 million of COVID-19 related losses.
  • The percentage of loans in default on U.S. primary mortgage business was 5.14% at June 30, 2020, compared to 1.42% at March 31, 2020.

Headline financials

Total Revenue

$2.29B

Previous: $1.78B+28.8%
EPS (adj)

$0.04

Previous: $0.77-94.8%
Loss ratio

73.9%

No prior period
Combined ratio

101.8%

No prior period
Free Cash Flow

$299M

Previous: $469M-36.3%
Net Income

$299M

Previous: $469M-36.3%
Operating Income

$559M

Previous: $564M-0.8%
Gross Profit

$807M

Previous: $802M+0.6%
Cash & Equivalents

$854M

Previous: $605M+41.1%
Total Assets

$41.2B

Previous: $34.9B+18.2%
Stock-Based Comp

$13.4M

Previous: $15.6M-14.6%

Revenue & EPS history

Arch Capital · Revenue · Quarterly

$2.29B

Q2 2020+28.8%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Arch Capital · $1.53B total across 3 segments · Q2 2020

  • Insurance
    $688M
  • Reinsurance
    $480M
  • Mortgage
    $366M

Forward guidance

The document does not contain explicit forward guidance. Therefore, this section is left blank.

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 Q2 2020

Historical avgQ2 2020

+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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