Argo posts heavy Q1 loss ahead of new era
As it embarks on a new era of ownership following shareholders backing its merger with Brookfield Reinsurance, Bermuda-based Argo Group posted a heavy loss in the first quarter of the year as its gross written premiums also shrank.
The company made a net loss of $36.4 million compared with a loss of $3.6 million in the same period a year earlier. Its combined ratio for the quarter was 108.1% compared with 95% the year before. This was mainly due to a higher loss ratio of 73% (an increase of 14 percentage points), 12.5 percentage points of which was due to net adverse prior year reserve development.
The company’s gross written premiums fell by 17.2% to $596.7 million, which it said was due to businesses the company has exited or sold.
“We are pleased with the overwhelming shareholder support received for the announced merger with Brookfield Reinsurance at Argo’s special meeting of shareholders held on April 19, 2023,” said Argo Executive Chairman and Chief Executive Officer, Thomas A. Bradley. “The level of shareholder support reflects investor confidence that this transaction maximizes shareholder value and represents the best path forward for Argo. As we have started working closely with Brookfield Reinsurance on integration planning, we have developed an even greater appreciation for how this partnership will enhance our strong franchise and future growth prospects. While preparations for the merger’s closing move ahead, we remain focused on responding to the needs of customers and business partners. We continue to expect to complete the merger in the second half of 2023, subject to customary closing conditions, including receipt of required regulatory approvals.”