We came across an upward thesis on Arch Capital Group on the substitution of Worldlyinvest. Since July 2, Arch Capital Group’s share has been negotiated at $ 88.38. ACGL monitoring and p / e were 9.06 and 9.78 respectively according to Yahoo Finance.
An insurance agent at his office by consulting a client on property and victims insurance.
The thesis on Arch Capital Group (ACGL) is built around the solid positioning of the company in a constantly difficult P&C insurance market. The current dur cycle, driven by high disaster losses, should continue, benefiting from ACGL continuous rate increases and premium growth. The company’s subscription discipline has improved and investment income should stimulate significant growth in BPA.
The analyst expects the ACGL outpowed due to the rear winds of the industry, operational excellence and undervaluation in relation to peers. The basic case projects a growth rate of 13% of raw written written insurance premiums (GWP) and 20% in reinsurance, a target price involving 39%. Risks include potential softening of insurance / reinsurance markets or poor management of the new CEO.
The thesis highlights the solid positioning of ACGL, the improvement of the subscription discipline and the growth potential, which makes it an attractive investment opportunity. The business management is positive and the new CEO has in -depth experience at ACGL. With a conservative basic case, the action offers 39% up the target price.
Although it is our first coverage on Arch Capital Group, we recently examined another Haussier thesis On a stock in the same insurance – diversified which highlights similar long -term dynamics. An Arch Capital Group (ACGL) and Fidelis Insurance Holdings Limited (FIHL) comparison reveals shared industry trends, but distinct strategic approaches. The two companies operate on a hard market in P&C insurance, reinsurance and specialty companies of FIHL are developing rapidly and ACGL in terms of continuous rate increases and premium growth. However, FIHL’s growth can be more vulnerable to market conditions, while the improved ACGG subscription discipline and the diversified portfolio provide a more stable base. In addition, although FIHL’s management has succeeded in increasing its accounting value by action, ACGL management is positive, with a new CEO with in -depth experience in the company. Overall, the two companies offer attractive investment opportunities, but with different risk profiles and growth strategies.
