Argo Group Reports Q3 Net Income of $35.3M vs. $44.7M for Q3 2014
Bermuda-headquartered Argo Group International Holdings Ltd. reported net income of $35.3 million, or $1.24 per diluted share, compared to $44.7 million, or $1.54 per diluted share, for the third quarter of 2014. Net income for the nine month period ended Sept. 30 was $122.0 million, or $4.28 per diluted share, compared to $123.5 million, or $4.21 per diluted share, for the same period of 2014.
The company reported after-tax operating income of $24.6 million, or $0.86 per diluted share, compared to $23.5 million, or $0.81 per diluted share, for the third quarter of 2014. For the first nine months of 2015, after-tax operating income was $79.9 million, or $2.80 per diluted share, compared to $72.3 million, or $2.47 per diluted share, for the same period last year.
“Argo Group’s continued focus and commitment to specialty lines produced consistent underwriting profits across all of our business segments,” said CEO Mark E. Watson III. “In addition, we continue to selectively grow in our profitable niches.”
Highlights for the third quarter and nine month periods ended Sept. 30, 2015 include:
- Gross written premiums for the third quarter of 2015 were up 6.9 percent to $531.4 million from $497.2 million during the same period in 2014. For the nine month period, gross written premiums were up 5.8 percent to $1.566 billion from $1.480 billion in the first nine months of 2014.
- Pre-tax underwriting income during the third quarter increased 10.9 percent to $13.2 million from $11.9 million during the third quarter of 2014. For the first nine months, pre-tax underwriting income increased 24.1 percent to $50.4 million from $40.6 million in 2014.
- The combined ratio for the third quarter was 96.2 percent, compared to 96.4 percent for the same period in 2014. The loss and expense ratios for the quarter were 57.8 percent and 38.4 percent, respectively, compared to 56.8 percent and 39.6 percent for the third quarter of 2014. The combined ratio for the first nine months was 95.0 percent compared to 96.0 percent for the same period in 2014. The loss and expense ratios for the first nine months of 2015 were 55.9 percent and 39.1 percent, respectively, compared to 56.0 percent and 40.0 percent for the first same period in 2014.
- Net favorable prior-year reserve development during the third quarter of 2015 was $6.6 million (benefiting the combined ratio by 1.9 points), compared with $3.1 million for the third quarter last year. Net favorable prior-year reserve development for the first nine months of was $15.3 million (benefiting the combined ratio by 1.5 points), compared with $26.4 million for the first nine months of 2014.
- Estimated pre-tax catastrophe losses for the third quarter were $13.1 million or 3.9 points on the combined ratio, compared to $5.5 million or 1.7 points on the combined ratio for the third quarter of 2014. For the nine month period, estimated pre-tax catastrophe losses were $18.5 million or 1.8 points on the combined ratio, compared to $13.9 million or 1.5 points on the combined ratio for the first nine months of 2014.
- During the quarter, the company repurchased $4.8 million or 85,959 shares of its common stock at an average price of $55.27 per share. In the first nine months of 2015, the company repurchased $29.7 million or 575,055 shares of its common stock at an average share price of $51.58, which represents 2.0 percent of net shares outstanding at December 31, 2014.
Source: Argo Group International Holdings Ltd.
