Arch Capital Group

Arch Capital Group is a Bermuda-based specialty insurer and reinsurer, active in property and casualty lines as well as mortgage insurance. It has built a reputation for disciplined underwriting, expanding capacity when pricing is favourable and pulling back when it is not, a cyclically opportunistic approach that has driven strong long-term book value growth. Arch has historically returned capital chiefly through share buybacks rather than a regular common dividend, so its dividend record is limited and its recurring yield modest at the common level. The business is financially strong, but income seekers should note that management favours repurchases and book-value compounding over a steady, growing dividend as the primary form of shareholder return.