Argo Group International Holdings expects to report pre-tax net realised and unrealised investment losses of $162 million in Q1 2020, principally due to the impact of volatility on its investment portfolio.
This will be partially offset by net investment income of $35 million for the first quarter of 2020.
Argo said it expects to report pre-tax net catastrophe losses of $29 million, including approximately $26 million related to the COVID-19 pandemic, in Q1. The loss primarily results from contingency and property exposures in its international operations and property exposures related to business interruption in the US, as well as potential litigation costs.
Kevin Rehnberg, chief executive officer at Argo, warned there will be more losses in future quarters, but said: “Argo remains financially strong and will continue to support our customers and producers through the challenges ahead.”
Net prior year reserve development was not material in Q1, he added.
Argo Group International, Kevin Rehnberg