NASDAQ$ACGL

Arch Capital Group Ltd. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Arch Capital reported third quarter results for 2020.

Arch Capital Group Ltd. announced its 2020 third quarter results, with a net income available to Arch common shareholders of $408.6 million, or $1.00 per share, compared to $382.1 million, or $0.92 per share, for the 2019 third quarter.

  • Net income available to Arch common shareholders of $408.6 million, or $1.00 per share.
  • After-tax operating income available to Arch common shareholders of $120.3 million, or $0.29 per share.
  • Pre-tax current accident year catastrophic losses of $203.3 million.
  • Combined ratio excluding catastrophic activity and prior year development of 84.3%.

Headline financials

Total Revenue

$2.31B

Previous: $1.68B+37.5%
EPS (adj)

$0.29

Previous: $0.63-54.0%
Loss ratio

68.7%

No prior period
Combined ratio

94.9%

No prior period
Free Cash Flow

$419M

Previous: $392M+6.8%
Net Income

$419M

Previous: $392M+6.8%
Operating Income

$598M

Previous: $435M+37.5%
Gross Profit

$849M

Previous: $669M+26.9%
Cash & Equivalents

$976M

Previous: $880M+10.9%
Total Assets

$42.7B

Previous: $35.6B+20.1%
Stock-Based Comp

$14.5M

Previous: $12.9M+12.6%

Revenue & EPS history

Arch Capital · Revenue · Quarterly

$2.31B

Q3 2020+37.5%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Arch Capital · $1.63B total across 3 segments · Q3 2020

  • Insurance
    $719M
  • Reinsurance
    $554M
  • Mortgage
    $351M

Forward guidance

This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance.

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 Q3 2020

Historical avgQ3 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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