Argo posts drop in income

Argo Group International Holdings has reported a net loss attributable to common shareholders of $51.4 million for the third quarter of this year. That compares to a net profit of $19.8 million for the same quarter of 2021.

The net loss included pre-tax net realised investment and other losses of $44.7 million, compared to $5.3 million of pre-tax net realised investment and other losses in Q3 2021. The net loss also included a $28.5 million impairment of goodwill and intangible assets related to the announced sale of Argo Underwriting Agency Limited and its Lloyd's Syndicate 1200.

Argo recorded $34.2 million of pre-tax realised losses related to the impairment of assets that will be transferred upon the close of the company's previously announced loss portfolio transfer transaction with a wholly owned subsidiary of Enstar Group.

Its gross written premium fell by 14.2% year on year to $750.9 million.

The combined ratio of 101.1 percent increased 0.8 percentage points, driven by a higher loss ratio, partially offset by an improved expense ratio.

Total catastrophe losses were $23.4 million or 5.1 percentage points on the loss ratio due to Hurricane Ian. Catastrophe losses in Q3 2021 were $27.3 million or 5.6 percentage points on the loss ratio.

"Over the past two years, we have transformed Argo, better positioning the company to advance our business strategies,” said Argo executive chairman and chief executive officer Thomas Bradley.

“In September, we announced the sale of our Lloyd’s operation, which marks a significant milestone in Argo becoming a focused, pureplay US specialty insurer. Importantly, this transaction further simplifies our corporate structure, enables greater focus on our diverse portfolio of profitable and scalable US specialty businesses, and better positions us to explore additional strategic alternatives to maximize shareholder value.”

He continued: “While our thoughts are with those impacted by Hurricane Ian, we are pleased the company's quarterly catastrophe losses once again decreased year-over-year despite elevated industry catastrophe losses.”