The business behind the dividend
| Measure | ACGL | Median | Formula |
|---|---|---|---|
| Return on equity | 18.2% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $6.13bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 25.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 22.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Owner earnings, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 18.2% | 20.7% | 24.2% | 11.4% | 15.9% | 10.7% | 14.2% | 8.0% | 6.7% | 8.4% | 11.4% |
| Operating margin | 25.9% | 26.8% | 26.2% | 16.2% | 25.6% | 18.5% | 26.7% | 15.4% | 13.5% | 19.2% | 19.2% |
| Net margin | 22.1% | 24.7% | 32.6% | 15.4% | 23.3% | 16.5% | 23.6% | 13.9% | 11.0% | 15.5% | 16.5% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, Arch Capital Group pays out less than 15 of them. The median for that group is 34.0%, against this company’s 43.1%.
Closest on GAAP earnings
- Citigroup (C) 41.0%
- Unum Group (UNM) 41.2%
- Berkley W R (WRB) 41.6%
- US Bancorp \De\ (USB) 44.2%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →