Argo puts a brave face on losses

Bermuda’s Argo Group International Holdings has reported a $118.8 million net loss for the fourth quarter of 2021, significantly worse than the $3.5m loss in the same period in 2020.  Over the full year, however, results improved: a net loss of $4.7m in 2021, compared to $58.7m the year before.

Gross written premiums for the quarter were up at $733.8m, against $717.6m in Q4 2020, but fell slightly for the full year, at $3.18 billion, compared to $3.23bn in 2020. The combined ratio deteriorated over both periods reaching 122.4% in Q4 2021, against 108.0% in the same period the year before, and 105.6% for the full year, against 105.4% in 2020.

That was despite lower catastrophe losses of $6.8 million for the fourth quarter of 2021, down from $51.0m in Q4 2020. Full year 2021 catastrophe losses were also down at $92.7m, from $179.2m in 2020. Operating income in 2021 was up, meanwhile, at $41.5m, compared to an operating loss of $10.0m in 2020. Net earned premium on ongoing business was also up, while its expense ratio also improved over the year and quarter.

“Our strategic priorities of pursuing profitable growth, reducing volatility, and disciplined expense management are evident in our 2021 current accident year underwriting results,” said Argo Group chief executive officer Kevin Rehnberg.

“We remain encouraged by the continued growth and underlying strength of our ongoing business.”