From Barchart: 2025-06-11 16:41:00

UBS reaffirmed a Buy rating on Arch Capital Group (NASDAQ:ACGL) with a $124 price target, citing strong capital generation and potential for share repurchases. The insurer is expected to accumulate over $3 billion in capital in the next year, with $2 billion possibly allocated to buybacks, dividends, or M&A.

Meetings with senior management increased confidence in ACGL’s ability to maintain premium growth and underwriting margins. Management emphasized not holding capital for M&A unless opportunities arise, focusing on stock repurchases at attractive valuations. UBS sees shares as attractively priced at 1.6x book value with a mid-teens ROE.

UBS raised EPS forecasts for 2026 to $9.01 and 2027 to $9.98, reflecting the positive impact of anticipated share repurchases. Management’s focus on buybacks and potential for capital allocation to drive growth and shareholder value.



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