21 hours ago 1

UBS Affirms Buy Rating on Arch Capital Group Ltd and $124 Price Target

Neha Gupta

Mon, Jun 16, 2025, 9:50 AM 2 min read

Arch Capital Group Ltd (NASDAQ:ACGL) is one of the most undervalued financial stocks to buy, according to analysts. On June 11, UBS reiterated a Buy rating on the stock with a $124 price target. The bullish stance underscores confidence in the company's ability to deliver solid premium growth, attractive underwriting margins, and increased capital return.

UBS Affirms Buy Rating on Arch Capital Group Ltd and $124 Price Target

A successful independent agent or broker discussing the benefits of life and health insurance with a customer.

Analysts at UBS remain optimistic of Arch Capital's ability to deliver more than $3 billion of capital over the next 12 months. It also expects the financial institution to make more than $2 billion available for share buybacks and special dividends.

In addition, the analysts cited the better-than-expected insurance margins from MidCorp, strong capital management, and attractive valuation for the Buy rating. According to the research firm, Arch Capital boasts an attractive price-to-book ratio in line with its 10-year average. Its price-to-earnings ratio is also near the low end of the 10-year range. UBS expects Arch Capital to continue accumulating significant excess capital that could be deployed to benefit shareholders

Arch Capital Group Ltd (NASDAQ:ACGL) is a global financial services company operating worldwide, specializing in insurance, reinsurance, and mortgage insurance. They offer a variety of specialty risk solutions to clients across diverse industries and geographic locations.

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