Arch Capital Reports Q4 Profit Drop to $925 Million

Arch Capital reports Q4 earnings: profit drops to $925 million, per share stands at $2.42. This decline may impact investor sentiment as profitability weakens compared to the previous year.

Date: 11-02-2025

AI Rating: 4

Earnings Per Share (EPS): Arch Capital Group Ltd. reported a fourth-quarter EPS of $2.42, down from $6.12 per share the previous year. This significant decline in EPS may negatively influence investor confidence as it reflects a substantial decrease in profitability over the year.

Net Income: The report shows that Arch Capital's net income for the fourth quarter was $925 million, a decrease from $2.3 billion in the same quarter last year. Such a large drop in net income indicates a troubling trend that could affect future stock prices as investors react to the reduced earnings potential.

Operating Income: Operating income also fell to $866 million or $2.26 per share, compared to $945 million and $2.49 per share respectively from the prior year. This decline signals challenges within the company's operational effectiveness and profitability.

Net Premiums Written: In contrast, net premiums written for the quarter increased to $3.82 billion from $3.26 billion last year. This growth in written premiums may suggest a stronger sales performance in certain segments, potentially providing a buffer against the declines in profitability metrics.

Stocks: ACGL