Arch Capital Group (ACGL) reported $4.75 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 4.4%. EPS of $2.98 for the same period compares to $2.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.66 billion, representing a surprise of +1.97%. The company delivered an EPS surprise of +19.47%, with the consensus EPS estimate being $2.49.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Loss Ratio - Total: 53.6% compared to the 54.1% average estimate based on four analysts.
- Underwriting Expense Ratio - Mortgage Segment: 14.5% versus 16.5% estimated by four analysts on average.
- Expense Ratio - Other Operating Expense Ratio: 8.7% versus the four-analyst average estimate of 10.4%.
- Combined Ratio - Total: 80.6% versus the four-analyst average estimate of 83%.
- Revenues- Net premiums earned- Mortgage Segment: $290 million compared to the $304.7 million average estimate based on four analysts. The reported number represents a change of -5.2% year over year.
- Revenues- Other underwriting income (loss): $52 million versus the four-analyst average estimate of $32.51 million. The reported number represents a year-over-year change of +766.7%.
- Revenues- Net investment income: $434 million versus the four-analyst average estimate of $416.59 million. The reported number represents a year-over-year change of +7.2%.
- Revenues- Net premiums earned- Reinsurance Segment: $1.99 billion compared to the $1.89 billion average estimate based on four analysts. The reported number represents a change of +4.6% year over year.
- Revenues- Net premiums earned- Insurance Segment: $1.97 billion compared to the $2.07 billion average estimate based on four analysts. The reported number represents a change of +2.1% year over year.
- Revenues- Net premiums earned: $4.26 billion versus the four-analyst average estimate of $4.26 billion. The reported number represents a year-over-year change of +2.7%.
- Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $155 million versus the three-analyst average estimate of $123.79 million. The reported number represents a year-over-year change of +8.4%.
- Revenues- Other income (loss): $16 million versus the three-analyst average estimate of $9.67 million. The reported number represents a year-over-year change of +33.3%.
View all Key Company Metrics for Arch Capital here>>>
Shares of Arch Capital have returned +6.1% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Arch Capital Group Ltd. (ACGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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