Argo Group reported a net loss of $25.1 million for Q3 2019, compared to net income of $40.6 million for Q3 2018.
The loss included approximately $3.7 million of expenses resulting from activities associated with proxy solicitation efforts, including the cost of the independent directors’ review of governance and compensation matters.
Argo saw gross written premiums increase to $882.7 million in Q3 2019, up 5.1 percent from the same period in 2018. But its combined ratio was up 11.7 points year on year in Q3, to 111.4 percent.
Catastrophe losses were $19.3 million, compared to $24.6 million for Q3 2018, relating to Hurricane Dorian, Typhoon Faxai and US weather-related events.
Kevin Rehnberg, interim chief executive officer at Argo, said Argo is growing in profitable areas, remediating challenged lines, and taking steps to control its loss and expense ratios, but admitted: “We are clearly not satisfied with losses we experienced in the quarter.”
He said US results were being driven by the ongoing investments Argo has made in technology, process improvements and recruitment.
“Our ability to respond faster than our competitors will push us to greater levels of success,” he said. “We see potential for much stronger results.”
Argo Group, Kevin Rehnberg