Argo posts $1m net loss in first quarter

Argo Group International Holdings is confident it will meet its financial targets for the year despite a loss in the three months to 31 March. The property & casualty underwriter highlighted that it had turned around its underwriting result, from a loss of $17.9 million in Q1 2021, to a profit of $24.1 million this year.

Net income fell year on year to a loss of $1 million from a profit of almost $30 million. Argo reported a net loss attributable to common shareholders of $3.6 million compared to a net profit of $27.2 million in the first quarter 2021.

Gross written premium (GWP) dipped by 4.7% to $721 million from $757 million. GWP in its US business was down by 2.9% to $475 million from $489 million, and down by 8.1% in its international operations to $245 million from $267 million.

The company’s combined ratio improved by 8.8 percentage points to 95% for the first quarter from 104%.

“We continue to execute on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses,” said Argo’s executive chairman and interim CEO Thomas Bradley.

“We are pleased to report operating income of $43.4 million, and an operating return on equity of 11.4% for the first quarter 2022. The loss ratio was solid at 59%, our catastrophe losses were significantly lower than a year ago, and the expense ratio of 36% improved nearly two percentage points from the prior year first quarter.

“Looking forward, we are pleased with the opportunities for growth across our ongoing businesses and remain confident in achieving our 2022 financial objectives.”

Argo recently announced it could be on the market for sale or a merger.