Argo Group announces 2017 profit
Argo Group has reported net income of $28.9 million in the fourth quarter of 2017, a slight fall from the $32.9 million it made in the same quarter of 2016.
However, net income for full year 2017 came to $50.3 million, down from the $146.7 the company made in 2016.
According to Argo estimated pre-tax catastrophe losses for fourth quarter events were $37.5 million. In addition, during the last quarter of 2017, third quarter estimates and other 2017 CATs were reduced by $7.6 million. Consistent with the third quarter 2017, fourth quarter 2017 results were further impacted by $4.4 million of catastrophe related premium charges. The net impact on the last quarter of 2017 for these items is a charge of $34.3 million, compared to a $22.8 million charge in the 2016 fourth quarter. There were no comparable catastrophe-related premium charges in 2016.
The company added that estimated pre-tax catastrophe losses for all of 2017 came to $126.2 million. 2017 included $18.9 million of catastrophe-related premium charges, with the result that the full year 2017 results include a total catastrophe impact of $145.1 million, compared to $61.7 million in 2016. There were no comparable catastrophe-related premium charges in 2016.
Argo said that its combined ratio for 2017 was 107.2 percent, compared to 96.2 percent in 2016.
Gross written premiums for the fourth quarter of 2017 were to $606.3 million, up 21.5 percent from the $499.0 million written in the fourth quarter of 2016. Gross written premiums for 2017 totalled $2.7 billion, a rise of 24.6 percent from the $2.2 billion written in 2016.
“It has been a noteworthy year for the property and casualty industry, with significant catastrophe losses, continued low interest rates, new tax laws in the US, and continued merger and acquisition activity,” said Argo Group chief executive Mark Watson. “In this market, Argo continues to emerge as a leading, innovative specialty insurer, demonstrated by the nearly 25 percent growth in gross written premium in 2017. And while catastrophe losses impacted our underwriting margins, our strong investment performance and capital management framework helped us generate net income and growth in book value per share.”
