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ACGL vs AIG
Which Stock Would AI Choose? Arch Capital Group Ltd. (ACGL) vs. American International Group, Inc. (AIG) Stock Comparison
Key Takeaways
- ACGL trades at a lower P/E ratio (price-to-earnings) of 8.31 compared to AIG's 13.65, indicating potential undervaluation.
- ACGL shows superior ROE (return on equity) at 19.54% versus AIG's 7.40%.
- Both stocks are set for Q1 earnings this week, with analysts forecasting significant EPS (earnings per share) growth for each.
- AIG has a larger market cap at $39.65B compared to ACGL's $34.33B.
- Recent weekly momentum favors ACGL at +2.78% over AIG's +1.55%.
- ACGL demonstrates higher net margins (22.07%) than AIG (11.56%).
Introduction
Arch Capital Group Ltd. (ACGL) and American International Group, Inc. (AIG) are prominent players in the multi-line insurance sector, focusing on property and casualty lines. This stock comparison analyzes their recent market positioning, financial metrics, and performance trends amid evolving sector dynamics like catastrophe risks and interest rate shifts. Investors seeking exposure to insurance through stable dividend payers or growth-oriented underwriters, as well as short-term traders eyeing earnings catalysts, will find value in understanding their relative strengths in valuation, profitability, and momentum. With both reporting Q1 results imminently, the analysis highlights key contrasts for informed decision-making in today's market environment.
ACGL Overview and Recent Performance
Arch Capital Group Ltd. (ACGL), a Bermuda-domiciled insurer, specializes in specialty property-casualty insurance and reinsurance across global markets. Its business emphasizes disciplined underwriting and diversified lines including mortgage, casualty, and professional liability. In recent market activity, ACGL shares have shown resilience, trading around $96 with a 52-week range of $82.45 to $103.39. YTD performance stands at +0.45%, with a modest 2.77% gain over the recent month amid broader sector volatility. Sentiment has been buoyed by anticipation for Q1 earnings on April 28, projecting 59.1% EPS growth to $2.45 and revenue of $4.67B, following strong Q4 results. Occasional pullbacks, such as lagging market upticks, reflect property-casualty pressures, but high ROE of 19.54% and low debt-to-equity of 11.92% underpin stability.
AIG Overview and Recent Performance
American International Group, Inc. (AIG), a global insurance leader, offers a broad portfolio of property-casualty, life, and retirement products through commercial, personal, and specialty lines. Recent weeks have seen AIG shares fluctuate around $74, within a 52-week range of $71.25 to $87.46. YTD gains reach 12.84%, though recent sessions posted a 1.34% decline. Key developments include the completion of its CEO transition to Eric Andersen, shifting focus to execution amid growth targets. Q1 earnings due April 30 anticipate 63.3% EPS growth to $1.91, supported by solid underwriting. Lower ROE at 7.40% and higher debt-to-equity of 24.41% highlight balance sheet contrasts, with performance influenced by leadership changes and sector headwinds.
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Head-to-Head Comparison
Both ACGL and AIG operate in multi-line insurance but differ in scale and focus: ACGL leans toward specialty reinsurance with nimble growth drivers like M&A (mergers and acquisitions), while AIG emphasizes broader commercial lines post-restructuring. Valuation favors ACGL with its lower P/E and superior net margins, contrasting AIG's premium pricing amid CEO transition risks. Recent momentum shows ACGL edging ahead weekly, though AIG leads YTD. Risk profiles diverge with ACGL's lower leverage versus AIG's execution uncertainties; sector exposure is similar to cat losses (catastrophe losses) but sentiment tilts toward ACGL's profitability edge.
Tickeron AI Verdict
Tickeron's AI currently leans toward ACGL based on consistent trend strength, elevated ROE, attractive valuation multiples, and robust earnings outlook relative to AIG. While AIG offers scale advantages and YTD outperformance, ACGL's superior profitability and lower risk positioning provide higher probability for near-term upside in the insurance sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ACGL is a Buy and AIG is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ACGL’s FA Score shows that 1 FA rating(s) are green whileAIG’s FA Score has 1 green FA rating(s).
- ACGL’s FA Score: 1 green, 4 red.
- AIG’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ACGL’s TA Score shows that 5 TA indicator(s) are bullish while AIG’s TA Score has 4 bullish TA indicator(s).
- ACGL’s TA Score: 5 bullish, 4 bearish.
- AIG’s TA Score: 4 bullish, 4 bearish.
Price Growth
ACGL (@Multi-Line Insurance) experienced а +0.58% price change this week, while AIG (@Multi-Line Insurance) price change was +1.76% for the same time period.
The average weekly price growth across all stocks in the @Multi-Line Insurance industry was -0.64%. For the same industry, the average monthly price growth was -0.84%, and the average quarterly price growth was -2.93%.
Reported Earning Dates
ACGL is expected to report earnings on Jul 29, 2026.
AIG is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Multi-Line Insurance (-0.64% weekly)A multi-line insurance contract bundles together exposures to risk and covers them under a single contract. For providers of such policies, the bundle is a potential risk diversification strategy since their exposure gets spread over several factors, which helps them mitigate a financial burden if a catastrophic event were to occur. Other potential benefits include getting more premiums from including more than one type of insurance in a bundle, and getting a competitive edge by procuring multiple insurance contracts with a customer. Examples of companies in this industry are Berkshire Hathaway (which owns several insurance companies), Chubb Limited, American International Group, Inc. and Sun Life Financial Inc.
| ACGL | AIG | ACGL / AIG | |
| Capitalization | 32.7B | 40.6B | 81% |
| EBITDA | N/A | N/A | - |
| Gain YTD | -4.055 | -9.418 | 43% |
| P/E Ratio | 7.08 | 13.45 | 53% |
| Revenue | 19.1B | 26.6B | 72% |
| Total Cash | 12.2B | N/A | - |
| Total Debt | 2.73B | 9.16B | 30% |
ACGL | AIG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 60 | 14 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 61 Fair valued | 38 Fair valued | |
PROFIT vs RISK RATING 1..100 | 21 | 25 | |
SMR RATING 1..100 | 49 | 93 | |
PRICE GROWTH RATING 1..100 | 59 | 61 | |
P/E GROWTH RATING 1..100 | 75 | 84 | |
SEASONALITY SCORE 1..100 | 65 | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
AIG's Valuation (38) in the Multi Line Insurance industry is in the same range as ACGL (61) in the Property Or Casualty Insurance industry. This means that AIG’s stock grew similarly to ACGL’s over the last 12 months.
ACGL's Profit vs Risk Rating (21) in the Property Or Casualty Insurance industry is in the same range as AIG (25) in the Multi Line Insurance industry. This means that ACGL’s stock grew similarly to AIG’s over the last 12 months.
ACGL's SMR Rating (49) in the Property Or Casualty Insurance industry is somewhat better than the same rating for AIG (93) in the Multi Line Insurance industry. This means that ACGL’s stock grew somewhat faster than AIG’s over the last 12 months.
ACGL's Price Growth Rating (59) in the Property Or Casualty Insurance industry is in the same range as AIG (61) in the Multi Line Insurance industry. This means that ACGL’s stock grew similarly to AIG’s over the last 12 months.
ACGL's P/E Growth Rating (75) in the Property Or Casualty Insurance industry is in the same range as AIG (84) in the Multi Line Insurance industry. This means that ACGL’s stock grew similarly to AIG’s over the last 12 months.
| ACGL | AIG | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 81% | N/A |
| Stochastic ODDS (%) | 2 days ago 58% | 2 days ago 50% |
| Momentum ODDS (%) | 2 days ago 62% | 2 days ago 62% |
| MACD ODDS (%) | 2 days ago 58% | 2 days ago 63% |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 62% |
| TrendMonth ODDS (%) | 2 days ago 42% | 2 days ago 46% |
| Advances ODDS (%) | 14 days ago 59% | 12 days ago 60% |
| Declines ODDS (%) | 6 days ago 47% | 6 days ago 51% |
| BollingerBands ODDS (%) | 2 days ago 67% | N/A |
| Aroon ODDS (%) | 2 days ago 53% | 2 days ago 57% |
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ACGL and
Correlation & Price change
A.I.dvisor indicates that over the last year, ACGL has been closely correlated with ORI. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if ACGL jumps, then ORI could also see price increases.
| Ticker / NAME | Correlation To ACGL | 1D Price Change % | ||
|---|---|---|---|---|
| ACGL | 100% | +0.93% | ||
| ORI - ACGL | 73% Closely correlated | +1.01% | ||
| HIG - ACGL | 69% Closely correlated | +0.97% | ||
| AIG - ACGL | 49% Loosely correlated | +3.17% | ||
| PLGO - ACGL | 44% Loosely correlated | +0.17% | ||
| GSHD - ACGL | 37% Loosely correlated | +5.64% | ||
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