ARCH CAPITAL Reports Q2 FY2023 Earnings Results on June 30 2023
July 29, 2023
🌥️Earnings Overview
ARCH CAPITAL ($NASDAQ:ACGL) announced its second quarter FY2023 earnings results on June 30 2023, reporting total revenue of USD 3088.0 million, a jump of 37.6% as compared to Q2 of FY2022. Net income also increased by 65.9%, totaling USD 671.0 million.
Price History
On Wednesday June 30 2023, ARCH CAPITAL reported its financial results for the second quarter of Fiscal Year 2023. The company opened the day’s trading at $81.3 and closed with a 0.9% increase from the previous closing price of 81.4, closing at $82.1. This was an impressive performance for ARCH CAPITAL amidst a volatile market. The company reported strong operating results and robust cash flow generation for the quarter, driven in part by higher demand from its customers for insurance and reinsurance products and services.
The company’s continued focus on delivering high quality services to its customers, combined with its disciplined approach towards cost management, has enabled it to stay ahead of the competition in a challenging market environment. Going forward, ARCH CAPITAL will continue to focus on delivering value to its shareholders and customers alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arch Capital. More…
| Total Revenues | Net Income | Net Margin |
| 11.69k | 2.22k | 19.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arch Capital. More…
| Operations | Investing | Financing |
| 4.48k | -4.29k | -68.61 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arch Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 53.86k | 39.21k | 39.31 |
Key Ratios Snapshot
Some of the financial key ratios for Arch Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.0% | – | 21.1% |
| FCF Margin | ROE | ROA |
| 37.8% | 10.8% | 2.9% |
Analysis
GoodWhale has conducted an analysis of ARCH CAPITAL‘s financials, and the results have been positive. According to our Star Chart, ARCH CAPITAL receives a high health score of 8 out of 10, indicating that the company has strong cash flows and is capable of sustaining future operations in times of crisis. Additionally, ARCH CAPITAL is strong in terms of growth while being medium in asset and weak in dividend and profitability. This has led us to classify ARCH CAPITAL as a ‘cheetah’ type of company – a company with high revenue or earnings growth but considered less stable because of lower profitability. This type of company may be of interest to investors looking for growth potential, despite the higher risk associated with the company’s low profitability. These investors may be willing to accept the higher risk in exchange for the potential high returns that this type of stock may provide. More…
Peers
The company’s segments include Property and Casualty, Mortgage, and Title. Arch Capital Group Ltd’s competitors include UNIQA Insurance Group AG, American National Group Inc, and Old Republic International Corp.
– UNIQA Insurance Group AG ($LTS:0GDR)
UNIQA Insurance Group AG is a European insurance group with operations in Austria, Croatia, the Czech Republic, Hungary, Romania, Slovakia, and Switzerland. The company offers a wide range of insurance products, including property and casualty, life, and health insurance. UNIQA has a strong focus on customer service and offers a wide range of digital channels for customer interaction. The company’s return on equity was 10.93% in 2020.
– American National Group Inc ($NYSE:ORI)
Republic International Corporation is a holding company that, through its subsidiaries, engages in the life and health insurance, and reinsurance businesses. It operates through the following segments: Individual Life, Group Life and Health, International Life, and Other. The Individual Life segment offers whole life, term life, universal life, and annuity products. The Group Life and Health segment provides group life, health, and disability products. The International Life segment offers life insurance products. The Other segment comprises of investment management, corporate-owned life insurance, and mortgage insurance businesses. The company was founded by Harrison E. Kline in 1940 and is headquartered in Columbus, OH.
Summary
ARCH CAPITAL reported strong earnings results in its second quarter of FY2023. Revenue increased by 37.6% year-over-year, and net income rose by 65.9%, totaling USD 671.0 million. These results show that the company is performing well and investors may find value in investing in ARCH CAPITAL. The company has a solid financial standing and a healthy balance sheet, making it a viable investment opportunity.
Additionally, the company is continuing to invest in research and development, which could potentially lead to further growth in the future. Overall, ARCH CAPITAL appears to be an attractive stock to consider for potential investors.
