Arch Capital Group (ACGL): a bull box theory

We encountered a knife thesis On the Arch Capital Group about the worldwester’s substitute. From July 2, Arch Capital Group shares traded at $ 88.38. According to ACGL tracking and forward P / E, Yahoo finance was 9.06 and 9.78 respectively.

An insurance agent about the table, property and loss insurance with the table.

Arch Capital Group (ACGL) thesis is a stiff P & C insurance market in a stiff P & C insurance market. The existing hard period managed by high disaster losses is expected to continue the increase in continued ratio and award growth. The company’s underwriting discipline improved and investment revenues are expected to grow an important EPS.

Analyst is waiting for ACGL to be superior to strong industrial tails, due to impairment than the operational excellence and peers. Basic Work Projects, Insurance General Written Awards (GWP) 13% growth rate and 20% reinsurance, a target price of 39% under the top. The risks include the potential mitigation of insurance / reinsurance markets or management under the new CEO.

Thesis, the powerful placement of ACGL, is attractive to improved underwriting discipline and growth potential, makes it an attractive investment opportunity. The company’s management is positive and the new Director General has a deep experience in ACGL. With a conservative base, the stock offers a 39% reverse in the target price.

This is our first coverage in TRC Capital Group, although we have recently studied another knife thesis The same insurance shareholder – a light-led dynamic dynamics. Arch Capital Group (ACGL) and Fidelis Insurance Holdings Limited (FIHL) comparison is the tendencies of the shared industry, but causing different strategic approaches. Both companies operate in the hard P & C insurance market, the FIHL’s reinsurance and qualification enterprises are growing rapidly and the ACGL is preparing to benefit from an increase in the ongoing rate and premium growth. However, FIHL’s growth, can be more sensitive to change market terms, although ACGL’s improved underwriting discipline and diversified portfolio provide a more stable foundation. In addition, although the FIHL management successfully increases the book value for a share, ACGL management is positive, has a deep experience with a new CEO company’s deep experience. In general, both companies offer attractive investment opportunities, but with different risk profiles and growth strategies.