9 February 2016News

Cat losses contribute to fall in Argo profits

Bermuda-based Argo Group has reported a slight fall in its profits for 2015 to $163.2 million, compared with $183.2 million in 2014.

The underwriter did post a 5.6 percent increase in its gross written premiums (GWP) last year however to $2.01 billion, compared with £1.91 billion in the previous year. Argo’s combined ratio was also down to 95.2 percent in 2014, compared with 96.2 percent in 2014.

The company’s loss and expense ratios in 2015 stayed quite stable at 55.8 percent and 39.4 percent respectively, compared to 55.9 percent and 40.3 percent in 2014. Estimated pre-tax catastrophe losses were up however last year to $23.7 million or 1.8 points on the combined ratio, compared to $17.7 million or 1.4 points on the combined ratio in 2014.

"This concludes a record year of underwriting income for Argo Group," said Mark Watson III, chief executive officer, Argo.

"We continue to benefit from initiatives aimed at improving underwriting and simplifying business processes. For 2016, we will drive growth through innovation in products and distribution in our selected customer niches.”