Ron Baron Comments on Arch Capital

- By Holly LaFon

Arch Capital's (NASDAQ:ACGL) shares fell in the quarter due to unusual storm activity that, surprisingly, did not cause as large an increase in insurance rates as many expected. This is the result of substantial liquidity throughout America's financial businesses. Arch's recent acquisition of a leading mortgage insurer provides it with an attractive diversifier to its property and casualty businesses. We believe this acquisition could have added as much as 10% to this company's asset value.

• Warning! GuruFocus has detected 3 Warning Sign with ACGL. Click here to check it out.

• ACGL 15-Year Financial Data

• The intrinsic value of ACGL

• Peter Lynch Chart of ACGL

From Ron Baron (Trades, Portfolio)'s Partners Fund 2018 shareholder letter.

This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 3 Warning Sign with ACGL. Click here to check it out.

• ACGL 15-Year Financial Data

• The intrinsic value of ACGL

• Peter Lynch Chart of ACGL