Argo Group more than doubles net income in 2013
Argo Group International Holdings reports a combined ratio of 97.5 percent, down from 104.6 percent in 2012, and a net income of $143.2 million. This is almost three times the company’s 2012 net income of $52.3 million.
The company also reports gross written premiums of $1.9 billion for 2013 as the company continues some changes in underwriting strategy. An increase of 8.2 percent over the 2012 figure, the Group’s annual results do take into account a decline in reinsurance business for Q4 of 2013.
Mark Watson, CEO of Argo Group, says: “strong fourth quarter results capped off a year of solid progress. Over the year, we achieved profitable top line growth and generated improved underwriting margins in all of our businesses. We find ourselves well positioned to benefit from these themes as we enter the new year.”
Strong fourth quarter growth in excess and surplus lines in the fourth quarter was driven by higher premium in casualty, allied medical and environmental lines, while gross premiums written in commercial specialty lines declined in the same period, a continuation of Argo’s re-underwriting strategy to eliminate underperforming accounts at Trident and Argo Insurance, which offset modest growth in Argo Surety and other smaller programs.
International specialty reported a decline fourth quarter gross premiums written of 18.2 percent in the fourth quarter, driven mainly be a reduction in reinsurance business, while the growth of Argo’s Syndicate 1200 reflects higher business production in property and liability business units.