Roth Capital Cites Low Catastrophe Losses for Arch Capital (ACGL) Earnings Beat While Highlighting Growth Concerns

Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the most profitable value stocks to invest in right now. On December 2, Roth Capital lowered the firm’s price target on Arch Capital to $110 from $125 with a Buy rating on the shares. The firm noted that the company’s earnings beat was primarily driven by an unusually low level of catastrophe losses within its reinsurance division. However, written premium growth underperformed expectations across both insurance and reinsurance. Roth Capital believes that this trend will persist in the coming periods.

Earlier on November 24, RBC Capital resumed coverage of Arch Capital with an Outperform rating and $108 price target. This sentiment was posted as part of the firm’s broader research note launching coverage on P&C insurance carriers and brokers. The firm maintains a cautious outlook for insurers in 2026 due to emerging headwinds such as a weakening P&C pricing cycle and tough comps for catastrophe losses. Regarding the company’s specific portfolio, RBC Capital expects headwinds in Mortgage and Reinsurance to be offset by strong underwriting and higher yields on investment income.

In Q3 2025, Arch Capital Group delivered $3.96 billion in quarterly revenue, with a net income of $1.3 billion, which rose by 37% year-over-year. This translated to operating earnings of $2.77 per share, which beat Street estimates by $0.52.

Arch Capital Group Ltd. (NASDAQ:ACGL), together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the US, Canada, Bermuda, the United Kingdom, Europe, and Australia.

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Disclosure: None. This article is originally published at Insider Monkey.