Arch Capital GroupMIL:1ACGL +1.41%68 Interest Coverage is 30.97 as of Mar. 2026, which is 106% above its 10-year median of 15.02. GuruFocus rates MIL:1ACGL with a GF Score™ of 68/100 and a GF Value™ of €100.60 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 353 Insurance companies, Arch Capital Group ranks better than 65.44% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Arch Capital Group's
EBIT
for the
three
months ended in Mar. 2026 was €991 Mil. Arch Capital Group's Interest Expense for the
three
months ended in Mar. 2026 was €-32 Mil.
Arch Capital Group's interest coverage for the quarter that ended in Mar. 2026 was 30.97.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Arch Capital Group's Interest Coverage or its related term are showing as below:
MIL:1ACGL'
s Interest Coverage Range Over the Past 10 Years
Min: 7.45 Med: 15.02 Max: 37.07
Current: 37.07
MIL:1ACGL's Interest Coverage is ranked better than 65.44% of 353
companies
in the Insurance industry
Industry Median: 16.26
vs MIL:1ACGL: 37.07
Arch Capital Group (MIL:1ACGL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Arch Capital Group Interest Coverage Related Terms
Arch Capital Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arch Capital Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MIL:1ACGL vs HIG, AIG, PLGO: Interest Coverage Comparison
For the Insurance - Diversified subindustry, Arch Capital Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arch Capital Group Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Arch Capital Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arch Capital Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arch Capital Group (MIL:1ACGL) has a Interest Coverage of 30.97 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arch Capital Group and its competitors. This is 106% above median its historical median of 15.02. Over the past decade, Arch Capital Group's Interest Coverage has ranged from 7.45 to 37.07. According to the industry distribution chart, Arch Capital Group ranks #122 out of 353 companies in the Insurance industry, placing it in the top 34.6%.
Is Arch Capital Group's Interest Coverage too high?
Arch Capital Group's current Interest Coverage of 30.97 is 106% above median its 10-year median of 15.02. Over the past 10 years, this metric has ranged from a low of 7.45 to a high of 37.07. The Insurance industry median Interest Coverage is 16.26. Arch Capital Group's value of 30.97 is 90.5% above this industry median. Based on the distribution chart, Arch Capital Group ranks #122 out of 353 companies in the Insurance industry, which is above the industry midpoint. Overall, Arch Capital Group has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arch Capital Group's Interest Coverage compare to HIG and AIG?
According to the Insurance industry distribution chart, Arch Capital Group ranks #122 out of 353 companies for Interest Coverage. This puts Arch Capital Group in the upper half of its industry. The industry median Interest Coverage is 16.26. Arch Capital Group's value of 30.97 is 90.5% above this benchmark. Historically, Arch Capital Group's own Interest Coverage has ranged from 7.45 to 37.07 over the past decade. While the company's 10-year median is 15.02 vs. the industry median of 16.26, Arch Capital Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.26, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arch Capital Group's current Interest Coverage of 30.97 is 90.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arch Capital Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arch Capital Group's current Interest Coverage is 30.97, which is 106% above median its own 10-year median of 15.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arch Capital Group stock overvalued right now?
Based on GuruFocus' analysis, Arch Capital Group (MIL:1ACGL) is currently considered Modestly Undervalued. The stock's GF Value™ is €100.60, compared to a current price of €84.88 — trading 15.6% below its estimated fair value. The current Interest Coverage is 30.97, which is 106% above median its 10-year median of 15.02 and 90.5% above the Insurance industry median of 16.26. Arch Capital Group's overall GF Score™ is 68/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Arch Capital Group (MIL:1ACGL), the current Interest Coverage is 30.97 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arch Capital Group (MIL:1ACGL) Overvalued in 2026?
Based on GuruFocus' analysis, Arch Capital Group stock appears to be undervalued.
The current stock price of €84.88 is trading 15.6% below its estimated GF Value™ of €100.60.
GuruFocus considers Arch Capital Group to be Modestly Undervalued.
Key valuation signals for MIL:1ACGL:
Interest Coverage: 30.97 (106% above median its 10-year median of 15.02)
GF Value™: €100.60 vs. price of €84.88 (15.6% below fair value)
Industry Position: 90.5% above the Insurance median (#122 of 353)
No single metric tells the full story. See the MIL:1ACGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arch Capital Group Ltd is a Bermuda company that writes insurance and reinsurance with operations in the United States, Canada, Europe, Australia, and the United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients across various industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
68GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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