ARCH
Arch Capital Group
Is ARCH Halal?
Conventional insurance, reinsurance and mortgage-insurance underwriting is a core activity, and the current liquidity screen also fails.
What You Should Know
Arch Capital's March 31, 2026 Form 10-Q reports assets of $81,446 million, senior notes of $2,729 million, cash of $914 million, total investments of $46,786 million, receivables of $9,422 million and quarterly total revenue of $4,521 million. Debt/assets is 3.35%, liquidity/assets is 58.57% and receivables plus cash/assets is 12.69%; gross interest income is not separately disclosed. Arch's core commercial insurance, reinsurance and mortgage-insurance underwriting is a conventional insurance activity with gharar concerns, so the qualitative business screen fails regardless of the asset ratios.
⚠️ Concerns
- •Conventional property, casualty, reinsurance and mortgage-insurance underwriting is the core business
- •Liquidity/assets is 58.57%, above the examined 33.333% limits
- •Large investment portfolio and float generate investment income
- •Gross interest income and a fixed purification percentage are not separately established
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
2,729 / 81,446
47,700 / 81,446
10,336 / 81,446
- Financial
- Fails
- Overall
- Fails
Debt/assets is 3.35%, liquidity/assets is 58.57% and receivables plus cash/assets is 12.69%; liquidity exceeds the examined FTSE limit, and the conventional-insurance business screen fails.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 58.57%, above the examined MSCI 33.33% limit; conventional insurance also fails the qualitative business screen.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 58.57%, above the examined Malaysia 33% limit; this is not an official SAC classification and the business screen fails.
- Financial
- Not calculated
- Overall
- Fails
No licensed 24- or 36-month market-cap series is stored; the asset-based and business-activity screens already fail.
Business-activity disclosure
Arch Capital's core operations are commercial insurance, reinsurance and mortgage insurance underwriting. Conventional insurance is a material core activity and is treated as a failed business-activity screen in this qualitative review.
Limitation: The filing does not allocate every investment or underwriting line to a universal prohibited-revenue taxonomy, so no separate prohibited-revenue percentage is asserted.
Purification
Investment income is disclosed in aggregate but a gross interest-income numerator and scholar-approved purification percentage are not separately established; the core business screen already fails.
Inputs, assumptions and primary sources
- March 31, 2026 figures are USD millions from Arch's Q1 2026 Form 10-Q.
- Senior notes are $2,729 million; cash is $914 million and total investments are $46,786 million. Premiums receivable, reinsurance recoverable, contractholder receivables and receivable for securities sold total $9,422 million.
- Total revenue is $4,521 million, including $3,986 million of net premiums earned and $408 million of net investment income.
- The $3,986 million non-compliant-revenue input is a transparent core-activity proxy for net premiums earned, not a universal prohibited-revenue taxonomy; the filing does not allocate every line by school or standard.
- The filing does not provide a reproducible gross interest-income numerator for the financial screen.
- Arch's core insurance, reinsurance and mortgage-insurance underwriting activities are conventional insurance activities; the business screen is therefore failed independently of the asset ratios.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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