Arch Capital GroupMIL:1ACGL 68 Return-on-Tangible-Equity is 18.33% as of Mar. 2026, which is 27% above its 10-year median of 14.43. GuruFocus rates MIL:1ACGL with a GF Score™ of 68/100 and a GF Value™ of €96.53 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 500 Insurance companies, Arch Capital Group ranks better than 71.4% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arch Capital Group's annualized net income for the quarter that ended in Mar. 2026 was €3,623 Mil. Arch Capital Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €19,761 Mil. Therefore, Arch Capital Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.33%.
The historical rank and industry rank for Arch Capital Group's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1ACGL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.73 Med: 14.43 Max: 29.89
Current: 22.07
During the past 13 years, Arch Capital Group's highest Return-on-Tangible-Equity was 29.89%. The lowest was 7.73%. And the median was 14.43%.
MIL:1ACGL's Return-on-Tangible-Equity is ranked better than 71.4% of 500
companies
in the Insurance industry
Industry Median: 13.515
vs MIL:1ACGL: 22.07
Arch Capital Group (MIL:1ACGL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arch Capital Group Return-on-Tangible-Equity Related Terms
Arch Capital Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Arch Capital Group's Return-on-Tangible-Equity 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.
Arch Capital Group Return-on-Tangible-Equity Chart
MIL:1ACGL vs HIG, AIG, PLGO: Return-on-Tangible-Equity Comparison
For the Insurance - Diversified subindustry, Arch Capital Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Arch Capital Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arch Capital Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.33% mean?
Arch Capital Group (MIL:1ACGL) has a Return-on-Tangible-Equity of 18.33% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arch Capital Group and its competitors. This is 27% above median its historical median of 14.43. Over the past decade, Arch Capital Group's Return-on-Tangible-Equity has ranged from 7.73 to 29.89. According to the industry distribution chart, Arch Capital Group ranks #143 out of 500 companies in the Insurance industry, placing it in the top 28.6%.
Is Arch Capital Group's Return-on-Tangible-Equity too high?
Arch Capital Group's current Return-on-Tangible-Equity of 18.33% is 27% above median its 10-year median of 14.43. Over the past 10 years, this metric has ranged from a low of 7.73 to a high of 29.89. The Insurance industry median Return-on-Tangible-Equity is 13.52. Arch Capital Group's value of 18.33% is 35.6% above this industry median. Based on the distribution chart, Arch Capital Group ranks #143 out of 500 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 Return-on-Tangible-Equity compare to HIG and AIG?
According to the Insurance industry distribution chart, Arch Capital Group ranks #143 out of 500 companies for Return-on-Tangible-Equity. This puts Arch Capital Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.52. Arch Capital Group's value of 18.33% is 35.6% above this benchmark. Historically, Arch Capital Group's own Return-on-Tangible-Equity has ranged from 7.73 to 29.89 over the past decade. While the company's 10-year median is 14.43 vs. the industry median of 13.52, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arch Capital Group's current Return-on-Tangible-Equity of 18.33% is 35.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arch Capital Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arch Capital Group's current Return-on-Tangible-Equity is 18.33%, which is 27% above median its own 10-year median of 14.43. 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 €96.53, compared to a current price of €85.50 — trading 11.4% below its estimated fair value. The current Return-on-Tangible-Equity is 18.33%, which is 27% above median its 10-year median of 14.43 and 35.6% above the Insurance industry median of 13.52. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arch Capital Group (MIL:1ACGL), the current Return-on-Tangible-Equity is 18.33% 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 €85.50 is trading 11.4% below its estimated GF Value™ of €96.53.
GuruFocus considers Arch Capital Group to be Modestly Undervalued.
Key valuation signals for MIL:1ACGL:
Return-on-Tangible-Equity: 18.33% (27% above median its 10-year median of 14.43)
GF Value™: €96.53 vs. price of €85.50 (11.4% below fair value)
Industry Position: 35.6% above the Insurance median (#143 of 500)
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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