Argo continues cost cutting
Argo could cut more jobs following a second year of losses.
The Bermuda-based re/insurer, which earlier this week reported a $118.8 million net loss for the fourth quarter and a net loss of $4.7m for 2021, has already cut headcount by 300 or 20% following a 2019 cost-cutting plan.
However, that could continue as the company seeks to reduce costs further, CEO Kevin Rehnberg told a Q4 investor call.
“Even though we’ve reduced a lot of headcount, we still have some work to do with some home office and group staff,” he said. “We’ve got some corporate structure things we can take out; we’ve got continued potential on the real estate side and third-party vendors,” he added.
Argo’s expense ratio fell from 37.5% in 2020 to 36.8% in 2021, while general and administrative costs have decreased faster than sales costs. In 2022 the company aims to reduce the ratio further to meet a 36% target.
Non-operating expenses hit results in 2021, with $132.3 million in adverse prior-year reserves resulting in the losses for Q4 and 2021.
