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ACGL

9/9 Score

Arch Capital Group Ltd.

Analysis Date: May 17, 2026

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability and workers' compensation exposures; marine and aviation; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was incorporated in 1995 and is based in Pembroke, Bermuda.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 20.5%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 15.6%

  • Cash Machine

    FCF / Assets > 5%

    Value: 9.1%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 14.4%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.9%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 42.8%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Financial Services

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.11x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 241.9%

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