What does operating segments — loss ratio mean?

The percentage of earned premiums paid out in claims and related adjustment expenses.

How do you interpret operating segments — loss ratio?

A lower ratio suggests superior underwriting discipline and profitability, while a higher ratio may indicate adverse claims experience or inadequate pricing.

How does operating segments — loss ratio compare across companies?

Standard industry metric for insurance and reinsurance companies; peers typically target ratios below 70-80% depending on the line of business.

Arch Capital Group ACGL Operating Segments — Loss Ratio

Discontinued — last reported Q2 '18

Similar metrics at other companies

RNROperating Segments — Loss Ratio

23.3%-51.7pp

RNRLloyds — Loss Ratio

14.1%+1.0pp

RNRSpecialty Reinsurance — Loss Ratio

11.2%+2.4pp

RNROperating Segments — Combined Ratio

89.5%-53.5pp

RNROperating Segments — Underwriting Expense Ratio

66.2%-1.8pp

RNRProperty — Loss Ratio

9.3%-121pp

Other financials

Income statement

See full

Revenue$4.5B-3.3%

Net income$1.0B+82.4%

EPS (diluted)$2.88+94.6%

Balance sheet

See full

Cash & equivalents$1.8B-10.3%

Total debt$2.4B0.0%

Total equity$24.2B+12.3%

Total assets$81.4B+8.3%

Cash flow

See full

Operating cash flow$1.2B-18.5%

CapEx$8.0M-11.1%

Free cash flow$1.2B-18.6%

Valuation

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Market cap$31.86B-5.4%

Enterprise value$32.48B-4.7%

P/E6.5×-2.4×

P/S1.6×-0.2×

Profitability

See full

Net margin24.6%+3.9pp

FCF margin29.6%-6.3pp

Returns & leverage

See full

Return on equity21.3%+2.9pp

Debt / equity0.1×0.0×

Where this comes from

Reported directly by Arch Capital Group in its filing.

Tagged under the XBRL concept us-gaap:LossRatio.

The official record: Arch Capital Group’s 10-Q, filed August 8, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does operating segments — loss ratio mean?: The percentage of earned premiums paid out in claims and related adjustment expenses.
How do you interpret operating segments — loss ratio?: A lower ratio suggests superior underwriting discipline and profitability, while a higher ratio may indicate adverse claims experience or inadequate pricing.
How does operating segments — loss ratio compare across companies?: Standard industry metric for insurance and reinsurance companies; peers typically target ratios below 70-80% depending on the line of business.