Arch Capital vs WTW

This page compares Arch Capital Group Ltd. and Willis Towers Watson PLC, examining how their business models, financial performance, and market context differ. It offers neutral, accessible insights into strategy, client focus, and industry position, without investment recommendations. Educational content, not financial advice.

This page compares Arch Capital Group Ltd. and Willis Towers Watson PLC, examining how their business models, financial performance, and market context differ. It offers neutral, accessible insights i...

Comparison Snapshot

Key Financial Metrics

ACGL

Metric

WTW

$33.29B

Market Cap

$30.81B

16.43%

Potential Profit

15.60%

Buy

Analyst Rating

Buy

Why It's Moving

Arch Capital Boosts Share Buyback by $2B, Signaling Strong Capital Confidence Amid Recent Dip.

Board hiked buyback program by $2B, leaving ~$2.3B available post-Q3 2025 repurchases, to flexibly deploy excess capital.
CEO Nicolas Papadopoulo emphasized capital allocation's role in driving shareholder value through underwriting strength.
Upcoming earnings forecast EPS of $2.34 (up 3.54% YoY) and revenue of $4.73B (up 3.97% YoY), with stock trading at discounted Forward P/E of 10.19.

Sentiment:

🐃Bullish

Arch Capital Boosts Share Buyback by $2B, Signaling Strong Capital Confidence Amid Recent Dip.

Board hiked buyback program by $2B, leaving ~$2.3B available post-Q3 2025 repurchases, to flexibly deploy excess capital.
CEO Nicolas Papadopoulo emphasized capital allocation's role in driving shareholder value through underwriting strength.
Upcoming earnings forecast EPS of $2.34 (up 3.54% YoY) and revenue of $4.73B (up 3.97% YoY), with stock trading at discounted Forward P/E of 10.19.

Sentiment:

🐃Bullish

Investment Analysis

Arch Capital

ACGL

Pros

Arch Capital reported strong Q3 2025 results with net income of $1.3 billion and a 23.8% annualized return on average common equity.
The company achieved a record underwriting profit driven by improved reinsurance performance and lower catastrophe losses.
Arch Capital maintains a robust and growing book value per share, up 5.3% in Q3 2025 to $62.32, reflecting financial strength and capital growth.

Considerations

Combined ratio excluding catastrophes rose slightly to 80.5% in Q3 2025, indicating some pressures on underwriting efficiency.
Revenue for Q3 2025 trailed analyst estimates ($3.96 billion vs. $4.39 billion), signalling potential top-line growth challenges.
Despite strong recent profitability, Arch’s forward PE ratio near 9.4 suggests limited valuation upside relative to peers given moderate expected earnings growth.

WTW

Pros

Willis Towers Watson benefits from global diversification across insurance broking, consulting, and technology services.
The firm has shown steady organic growth driven by expanding demand for risk management and human capital solutions.
WTW possesses strong free cash flow and a solid balance sheet, supporting dividends and investments in innovation.

Considerations

Exposure to regulatory and macroeconomic uncertainties, especially in insurance broking markets, could pressure margins.
Willis Towers Watson faces intensified competition from both traditional and insurtech firms, potentially impacting market share.
The company’s cyclicality tied to economic conditions can lead to earnings volatility in downturns affecting client budgets.

About The Companies

Arch Capital (ACGL)

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance and reinsurance group that provides property & casualty, mortgage insurance and specialty risk solutions globally. With a market capitalisation of about $32.73 billion, Arch operates through diverse underwriting platforms and invests premiums to support profitability. Key considerations for investors include underwriting discipline, reserving practices, catastrophe exposure and the sensitivity of returns to interest rates and market volatility. The group's capital position and reinsurance arrangements help absorb large losses, but results can swing with severe natural catastrophes or adverse claims developments. Arch's business is cyclical and shaped by pricing cycles in insurance markets, regulatory frameworks across jurisdictions and investment performance. This summary is for educational purposes only and not personalised investment advice; values can rise or fall and past performance is not a reliable indicator of future results. Prospective investors should assess suitability against their own objectives and consider seeking independent financial advice.

WTW (WTW)

Willis Towers Watson (WTW) is a leading global advisory, broking, and solutions company. It helps organisations manage risk, cultivate talent, and optimise benefits through data-driven insights. The firm operates through two main segments. The Health, Wealth & Career (HWC) division offers advice and technology for employee benefit plans, compensation programmes, and institutional investments. The Risk & Broking (R&B) arm provides a wide range of risk advice and insurance brokerage services to clients, from small businesses to large multinational corporations. This diverse business model allows WTW to address interconnected challenges across human resources, risk management, and finance for a global client base. As with any investment, it's important to remember that the value can go down as well as up, and past performance is not a guide to the future.

Arch Capital (ACGL) Next Earnings Date

Arch Capital Group (ACGL) is scheduled to release its next earnings on February 9, 2026, at 4:00 PM ET, covering the Q4 2025 period. This date aligns with the company's investor relations calendar and analyst consensus projections. A conference call will follow on February 10, 2026, at 10:00 AM ET to discuss the results.

Arch Capital (ACGL) Next Earnings Date

Arch Capital Group (ACGL) is scheduled to release its next earnings on February 9, 2026, at 4:00 PM ET, covering the Q4 2025 period. This date aligns with the company's investor relations calendar and analyst consensus projections. A conference call will follow on February 10, 2026, at 10:00 AM ET to discuss the results.

Which Baskets Do They Appear In?

Property & Casualty Insurers Gain On European Strength

German insurer Allianz recently announced a significant increase in its second-quarter profits, surpassing expectations and signaling strength in the European insurance market. This suggests that other major European insurance companies with robust property and casualty operations could also be poised for growth.

Published: August 7, 2025

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Extreme-Weather Insurance Innovators

This collection features forward-thinking companies using cutting-edge technology to insure against catastrophic weather events. As climate-related disasters become more frequent, these specialized insurers and data providers are positioned to become essential components of the global risk management landscape.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Property & Casualty Insurers Gain On European Strength

German insurer Allianz recently announced a significant increase in its second-quarter profits, surpassing expectations and signaling strength in the European insurance market. This suggests that other major European insurance companies with robust property and casualty operations could also be poised for growth.

Published: August 7, 2025

Explore Basket

Extreme-Weather Insurance Innovators

This collection features forward-thinking companies using cutting-edge technology to insure against catastrophic weather events. As climate-related disasters become more frequent, these specialized insurers and data providers are positioned to become essential components of the global risk management landscape.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot

Why It's Moving

Arch Capital Boosts Share Buyback by $2B, Signaling Strong Capital Confidence Amid Recent Dip.

Arch Capital Boosts Share Buyback by $2B, Signaling Strong Capital Confidence Amid Recent Dip.