
Arch Capital (ACGL) Stock Forecast & Price Target
Arch Capital (ACGL) Analyst Ratings
Bulls say
Arch Capital Group Ltd has demonstrated substantial growth in its insurance and reinsurance segments, notably with the acquisition of Allianz's US MidCorp and Entertainment businesses, which has bolstered top-line performance significantly. The reinsurance unit has evolved into the largest segment by net written premiums, showcasing impressive growth from $1.9 billion in 2018 to over $11 billion in 2024, driven by favorable market conditions and strong pricing trends. Furthermore, the company's net investment income has benefited from rising global yields, contributing to an anticipated growth in book value per share to approximately $75 by year-end 2027, underpinned by robust core results and effective capital generation initiatives.
Bears say
The analysis indicates that Arch Capital Group is facing significant challenges, with a reported 13.5% year-over-year decline in property premiums during the second quarter of 2025, signaling weakening demand. Furthermore, underwriting income is projected to decline nearly 25% by 2027, contributing to an overall expected deterioration of about 18% in underwriting income by fiscal year 2027 compared to the estimates for 2025. The forecast suggests a potential increase in the combined ratio and downward pressure on earned premiums due to intensified pricing competition and the consequences of social inflation and possible catastrophic losses, which could further compromise the company's financial stability.
This aggregate rating is based on analysts' research of Arch Capital and is not a guaranteed prediction by Public.com or investment advice.
Arch Capital (ACGL) Analyst Forecast & Price Prediction
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