- Arch Capital's best-in-class underwriting capabilities have driven some impressive compounding over the last decade, with no sign of slowing down in the years to come.
- As we enter into the post-COVID recovery phase, macro data points are also inflecting along with pricing, which bode well for the mortgage and reinsurance businesses.
- Assuming the company delivers on its 15% long-term ROE target and accretive bolt-ons as well, there remains ample upside potential to be unlocked.
- At ~1.2x fwd book, ACGL offers long-term investors a very favorable risk/reward.
For further details see:
Arch Capital: A Reasonably Priced Compounder