All in all, business continues to go well for Arch Capital (ACGL).
The Street seems a little more rational about the company’s mortgage
insurance business relative to just a month or two ago, while the
insurance business continues to do well relative to an environment with
rising claims expense. This wasn’t the sort of result that’s going to
change minds on the stock though. If you liked it before, you’ll almost
certainly still like it and if you didn’t like it before, I’m sure
you’ll work up some justification for that too.
As
far as valuation goes, the 15% or so move from recent lows takes it out
of “can't miss” territory and more into “decent long-term hold”
territory. At this price, I believe investors can expect a high
single-digit total annualized return, which isn’t bad from one of the
best-run insurance companies out there.
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Arch Capital Reports Another Good, Balanced Quarter
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