Bermuda-based specialty re/insurer Argo Group saw its 2016 net income fall by 11.2 percent from its 2015 equivalent figures, despite a 7.6 percent rise in gross written premiums.
The company said that its net income for 2016 came to $146.7 million, a fall on the $163.2 million it posted for 2015. Looking at the fourth quarter figures those also fell, going from $41.2 million in the last three months of 2015 to $32.9 million in the same period of 2016.
Gross written premiums on the other hand grew from $2.01 billion in 2015 to $2.16 billion in 2016, with excess and surplus lines seeing GWP growth of 4.1 percent and commercial specialty lines seeing GWP growth of 18.7 percent.
Looking at Argo’s Syndicate 1200, 2016 gross written premiums were $625.5 million, up $25.4 million or 4.2 percent from $600.1 million in 2015. The company said that the 2016 results reflected competitive market conditions and a reduced participation on the syndicate.
However, for Argo’s international specialty sector, 2016 gross written premiums were $261.3 million, down $5.0 million or 1.9 percent from $266.3 million in 2015.
Argo’s combined ratio weakened slightly, going from 95 percent for 2015 to 96.2 percent for 2016.
"These results demonstrate the value of a well-balanced and diverse portfolio of businesses as well as thoughtful asset allocation." said Argo Group CEO Mark Watson III. “The recently completed acquisition of Ariel Re provides us with additional presence and scale in both our Bermuda and London based operations."
Argo Group, Bermuda, Results 2016, Mark Watson III