Arch Capital Group Ltd. Depositary Shares Each Representing 1/1000th Interest in a Share of 5.45% Non-Cumulative Preferred Shares Series F (ACGLO) fair value

ACCE thesis

ACGLO is a depositary share, each representing a 1/1000th interest in a Series F 5.45% non-cumulative preferred share issued by Arch Capital Group, the Bermuda-based specialty insurer and reinsurer. The security is a fixed-dividend claim on the parent's preferred capital, so its appeal rests on the parent's credit quality and its ability to keep paying the coupon rather than on earnings growth. The parent reports a 19.9% ROE and a 26.6% operating margin, which supports the claim, though the -10.5% revenue growth figure and a score of 44/100 argue for caution. The headline 3.9 P/E belongs to the common equity and should not be read as a signal for the preferred. Worth a deeper look if you want a yield-oriented credit position, but the data provided does not establish the coupon, call terms or spread, so those need checking before any decision.