Arch Cap Group Ltd Stock Price, News & Analysis

Arch Capital Group Ltd. (NASDAQ: ACGL) announced the rebranding of Watford Holdings Ltd. to Somers Group Holdings Ltd. as part of a strategic repositioning. This initiative aims to adopt a more traditional reinsurance model, backed by Arch's expertise. The rebranding has received an A- stable Financial Strength Rating from AM Best. New leadership appointments include Liz Cunningham as CEO and Sioned Butler as CFO. The strategic shift follows the acquisition of French insurer Axeria IARD, enhancing Somers' product offerings and positioning in the insurance market.

Arch Capital Group Ltd. (NASDAQ: ACGL) reported Q3 2021 net income of $388.8 million ($0.98/share), down 4.2% YoY. After-tax operating income surged to $294.7 million ($0.74/share) from $120.3 million ($0.29/share) in Q3 2020. Key losses included $335.9 million from Hurricane Ida and global events. The combined ratio improved to 91.4% from 94.9% YoY. Gross premiums rose 19.6% to $3.2 billion, while net premiums written grew 10.8%. The percentage of loans in default in mortgage insurance fell to 2.67% from 3.11%. Book value rose to $32.43, up 12.8% YoY.

Arch Mortgage Insurance Company released its Fall Housing and Mortgage Market Review, forecasting that while U.S. home prices, driven by demand and low mortgage rates, reached record highs, affordability challenges will slow future price gains. Chief Economist Parker Ross notes the anticipated rise in mortgage rates will stabilize home price appreciation. The report reviews housing demand factors, including Millennial trends and the effect of the pandemic on urban to suburban migration.

Arch Capital Group Ltd. reported estimated pre-tax net catastrophe losses of $330 million to $345 million for Q3 2021, primarily due to Hurricane Ida and European flooding. These losses constitute two-thirds from the reinsurance segment. The global property/casualty insurance industry endured approximately $45 billion in insured losses this quarter. Additionally, the Board of Directors has authorized a share repurchase program of up to $1.5 billion through Dec. 31, 2022, aiming to enhance shareholder value.

Arch Capital Group Ltd. has successfully redeemed all 18,000 of its outstanding 5.25% Series E Non-Cumulative Preferred Shares as of September 30, 2021. The redemption price was set at $25,000 per share, amounting to a total of $450 million. Record holders as of September 15, 2021, received a quarterly dividend of $328.125 per Series E Preferred Share, paid on the redemption date. Following the redemption, these shares ceased to exist, eliminating any future dividend obligations.

Arch Capital Group Ltd. announced that it will release its 2021 third quarter results after market hours on October 27, 2021. A conference call for investors is scheduled for 11:00 a.m. Eastern Time on October 28, 2021 and will be available via live webcast on their website. A replay of the call will be accessible starting from October 28 at 2:00 p.m. Eastern Time until November 4, 2021. Arch Capital Group has approximately $16.7 billion in capital as of June 30, 2021.

Arch Capital Group Ltd. (ACGL) has completed the acquisition of Westpac Lenders Mortgage Insurance Limited (WLMI), an Australian mortgage insurance provider. This strategic move allows Arch to combine WLMI's operations with its existing Australian division, Arch LMI Pty Ltd., making WLMI the exclusive provider of lenders mortgage insurance to Westpac for a decade. Arch aims to enhance its position as a globally diversified mortgage credit risk insurer. With this acquisition, Arch strengthens its commitment to delivering innovative solutions across Australia.

Arch Capital Group Ltd. has announced the redemption of all 18,000 of its outstanding 5.25% Series E Non-Cumulative Preferred Shares on September 30, 2021. The redemption price will be $25,000 per share, with holders as of September 15, 2021, set to receive a third-quarter dividend of $328.125 per share. Post-redemption, the shares will cease to be outstanding and dividends will no longer accrue. The notice of redemption has been sent to registered holders, and inquiries can be directed to the redemption agent, American Stock Transfer & Trust Company.

Arch Capital Group Ltd. [NASDAQ: ACGL] has appointed Francis Ebong and Eileen Mallesch to its Board of Directors, effective immediately. Ebong, previously at Alphabet and Facebook, brings extensive technology and operational expertise, while Mallesch adds over 30 years of finance and risk management experience from her roles in various sectors, including insurance. The appointments aim to enhance the Board’s capabilities and focus on fintech transformation, positioning the company for future growth.