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Arch Capital Group Ltd. Reports Operating Results (10-K)

February 28, 2011 | About:

Arch Capital Group Ltd. (NASDAQ:ACGL) filed Annual Report for the period ended 2010-12-31.

Arch Capital Group Ltd. has a market cap of $4.4 billion; its shares were traded at around $89.9 with a P/E ratio of 9.56 and P/S ratio of 1.35. Arch Capital Group Ltd. had an annual average earning growth of 26.1% over the past 10 years.Hedge Fund Gurus that owns ACGL: Glenn Greenberg of Brave Warrior Capital, Inc., Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns ACGL: Ron Baron of Baron Funds, Diamond Hill Capital of Diamond Hill Capital Management Inc, Third Avenue Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

Arch Capital Group Ltd. is a Bermuda public limited liability company with approximately $4.91 billion in capital at December 31, 2010 and, through operations in Bermuda, the United States, Europe and Canada, writes insurance and reinsurance on a worldwide basis. While we are positioned to provide a full range of property and casualty insurance and reinsurance lines, we focus on writing specialty lines of insurance and reinsurance. For 2010, we wrote $2.51 billion of net premiums and reported net income available to common shareholders of $816.7 million. Diluted book value per share was $89.98 at December 31, 2010, compared to $73.01 per share at December 31, 2009.

The growth of our insurance and reinsurance platforms was supported through the net proceeds of: (1) an equity capital infusion of $763 million led by funds affiliated with Warburg Pincus LLC ("Warburg Pincus funds") and Hellman & Friedman LLC ("Hellman & Friedman funds") in late 2001; (2) a public offering of 7.5 million of our common shares with net proceeds of $179 million in April 2002; (3) the exercise of class A warrants by our principal shareholders and other investors in September 2002, which provided net proceeds of $74 million; (4) a March 2004 public offering of 4.7 million of our common shares with net proceeds of $179 million; (5) a May 2004 public offering of $300 million principal amount of our 7.35% senior notes due May 2034; (6) a February 2006 public offering of $200 million of our 8.00% series A non-cumulative preferred shares with a liquidation preference of $25.00 per share; and (7) a May 2006 public offering $125 million of our 7.875% series B non-cumulative preferred shares with a liquidation preference of $25.00 per share.

In February 2011, the board of directors of ACGL authorized the investment of up to an additional $1.0 billion in ACGL's common shares through its share repurchase program. Repurchases under the share repurchase program may be effected from time to time in open market or privately negotiated transactions through December 31, 2012. Since the inception of the share repurchase program in February 2007 through February 24, 2011, ACGL has repurchased approximately 33.4 million common shares for an aggregate purchase price of $2.42 billion. At February 24, 2011, the total remaining authorization under the share repurchase program was $1.08 billion.

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Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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