It’s a coming-of-age moment for our company.
In 2021, we celebrated Arch’s 20th birthday. And in 2022, Arch Capital Group Ltd. (nasdaq: ACGL) was added to the Standard & Poor’s (S&P) 500 Index.
“This is big, a significant moment in our history,” said Chief Executive Officer Marc Grandisson. “Every Arch employee should take pride in being part of an S&P 500 company.”
The S&P 500 is a stock market index that tracks performance of the top 500 companies listed on stock exchanges in the United States. It’s a respected index, and it’s used as one of the factors in forecasting the direction of the U.S. economy.
Arch Replaced Twitter
Companies included in the S&P 500 are considered among the most significant businesses in the world.
Arch replaced social media giant Twitter (now X) on the S&P 500.
“All of us at Arch should be very proud of this accomplishment,” said François Morin, Chief Financial Officer and Treasurer of Arch. “It’s a validation of the work done since our inception. We’re being recognized as one of the best 500 companies in North America and, by the nature of the global economy, one of the best companies in the world. If you focus solely on financial companies, it’s an even more exclusive club that we’re now part of. Investors will want to invest with us. Clients and brokers will want to work with us, and top talent will want to work for us.”
Arch was the first Property & Casualty insurance company added to the S&P 500 since W.R. Berkley in 2019. And Arch joins just a small handful of other Property & Casualty and Reinsurance companies on the S&P 500.
It’s exclusive company, indeed, and makes Arch even more attractive.
The Secret Is Out
“From an investor perspective, this puts our stock on a much larger stage,” said Don Watson, Executive Vice President of Financial Services and head of Investor Relations. “For nearly 20 years, our investors have been those who had a particular focus or interest in insurance along with those who were ‘in the know’ about Arch’s financial performance. In some ways we were one of the investing world’s best kept secrets.
“Well, the secret is out. Being part of the S&P 500 means we’ll be held by many of the large index funds as well as other funds that look to create proxies of the S&P 500 because they want broad exposure to the U.S. economy. And, looking at the laws of supply and demand, if more people are interested in our stock, but we’re not issuing more, that’s good for the stock price.”
“This isn’t a victory lap by any means, but it’s nice to be recognized as one of the most important companies in the global financial markets,” said Grandisson. “You don’t get this recognition simply because you have a cool name or some unproven product. You have to perform. And that’s what we do best. So let it soak in and feel good about this — I certainly do. We really are just getting started.”
Nasdaq signage congratuatles Arch on its addition to the S&P 500.