Arch Capital raises its buyback authorization by $3.0bn, leaving about $3.6bn to spend
The insurer announced the larger authorization after agreeing on October 30 to buy Premier Dealer Holding, a deal for which it gave no price.
Chart: ACGL, one-minute prices, three sessions
Arch Capital Group has raised its share repurchase authorization by $3.0bn, leaving about $3.6bn available as of November 5. The insurer also declared quarterly dividends on its Series F and Series G preferred depositary shares, payable December 31 to holders of record on December 15.
The preferred dividends are routine. The buyback is the news. It comes as insurers broadly have been building excess capital after favorable underwriting years, and Arch is choosing to return more of it rather than hold cash.
It is doing so while still making acquisitions. On October 30, Arch Insurance North America agreed to buy Premier Dealer Holding Corp., parent of Premier Dealer Services. A larger buyback after that deal suggests the two uses of capital are not competing for the same dollars.
The second quarter fits that reading. Arch's gross written premiums fell 1.1% to $6.13bn, and net premiums written fell 6.9% to $4.05bn. Earnings per share of $2.56 still beat expectations by $0.09. A business writing less premium can have capital to spare.
Arch gave no price for Premier Dealer. The deal needs regulatory approvals and is expected to close by the end of 2026.
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- · From the wire
Arch Capital Group's Arch Insurance North America unit agrees to acquire Premier Dealer Holding Corp., the Dublin, Ohio-based parent of Premier Dealer Services, a provider of automotive finance and insurance products. The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close by the end of 2026, after which Premier Dealer Services is expected to operate as a standalone business within Arch Insurance's Consumer Division. No deal value is disclosed.