Prior accident year losses will weigh on Q2 results, warns Argo
Argo Group International Holdings’ Q2 results will be negatively impacted by prior accident year losses of approximately $22.5 million, or 5.2 points on its consolidated loss ratio for Q2, the company has warned.
The losses necessitated reserve increases, primarily in its Bermuda casualty business unit, and to a lesser extent European and London operations. These were slightly offset by modest reserve decreases within its US operations, Argo said.
Q2 results will be further weighed down by current accident year losses of approximately $10 million, or 2.3 points on its consolidated loss ratio for Q2, Argo said, primarily in its international property and energy lines.
The company will release Q2 2019 financial results after the close of US financial markets on August 5.
Mark Watson, CEO at Argo, said: “The losses we reported today reflect specialty insurance businesses that are subject to occasional volatility related to a number of large losses that we don’t believe are an indication of a longer term trend.”
He noted that Argo’s Bermuda casualty business has a strong track record of performance and long term profitability.
“The results in Europe and London are primarily related to businesses that we have previously exited or where we have taken aggressive remedial underwriting actions,” added Watson.
