Argo reports Q1 profit as expense focus generates positive momentum

Argo Group International Holdings has reported a comfortable profit for the first quarter of 2021, turning around the loss it made in the same period of 2020 as the business continues to make changes to place itself on a more sustainable footing.

Argo reported first quarter 2021 net profit of $27.2 million, compared to a net loss of $24.7 million for the first quarter of 2020.

Across the business Argo reported gross written premiums of $756.5 million for Q1 2021, down from $825.9 million in the same period of 2020, a decline of 8.4 percent. Its combined ratio also expanded slightly, to 103.8 percent, from 103.2 percent the previous year.

Its US operation specifically reported gross written premiums of $489.4 million, up from $476.5 million in Q1 2020, with its combined ratio inching up to 96.4 percent from 94.5 percent the previous year.

Meanwhile, its international operation reported gross written premiums of $266.9 million, down from $349.2 million, a year on year drop of 23.6 percent. Its combined ratio for the international operation was 114.4 percent, down from 114.7 percent.

Kevin Rehnberg, chief executive officer at Argo, said the results overall provided further evidence that Argo is making the right changes to improve its business.

“This positive momentum is supported by our expense focus and positions us to take advantage of market opportunities and execute on our targeted growth strategy,” he said.

“While the first quarter included elevated catastrophe losses, we have made good progress on reducing our property exposure,” Rehnberg added. “We expect the majority of our targeted actions to be completed ahead of US wind season. This will reduce our exposure to future events.”