Argo warning ahead of Q4 results
Bermuda’s Argo Group International Holdings has warned that its fourth-quarter results will be negatively affected by adverse reserve developments for prior years as well as non-operating charges.
The group estimates reserve development of $130 million to $140 million for the quarter, with the largest increases relating to construction defect claims within its US operations for 2017 and earlier underwriting years. The developments are in business lines that have either been significantly remediated or discontinued, it added. Reserve increases in its run-off segment will also contribute.
The non-operating charges include impairment of goodwill and intangible assets of $40m-$45m related to Argo’s Syndicate 1200 business unit; and non-operating expense charges of $20m-$25m, primarily associated with the reduction in Argo’s real estate footprint in the UK and the impairment of certain information technology assets.
The fourth quarter results will be released after the close of business on 22 February 2022.
