Argo Group has reported a sharp increase in its net income due to successful investment returns in the second quarter of 2016, however, catastrophe losses have negatively affected its combined ratio.
Argo’s net income was $30.9 million for the second quarter of this year, with an increase of 12.3 percent from $27.9 million made in the same period last year.
Its net investment income was 35.7 million, compared with $24.4 million in the same period in 2015.
However, its combined ratio has increased by 0.2 percentage points to 95.6 percent for the period ending June 30, 2016.
Argo’s approximate pre-tax catastrophe losses were $22.7 million, or 6.8 points on the combined ratio, compared with $2.3 million or 0.6 points on the combined ratio for the same period last year.
Argo reported its gross written premiums (GWP) of $560.6 million for the three-month period ending June 30, up 0.5 percent from $557.8 million in the second quarter of 2015.
This was based on a mixed picture. Argo’s commercial specialty segment reported GWP of $153.7 million, a 27 percent increase from $121 million for the same period of last year. Argo credited its programme and surety business for this strong growth.
In contrast, its excess and surplus lines segment reported a GWP of $168.1 million, an increase from $167.7 million in the second quarter in 2015. Argo attributed the slower growth to increased competition and de-emphasising of select business lines.
Argo Group, Bermuda, Insurance, Reinsurance, Catastrophe, Results