Argo Group’s Q2 Net Income Drops as Combined Ratio Climbs

Argo Group International Holdings Ltd. reported a drop in net income and a spike in its Q2 2019 combined ratio, due to higher catastrophe losses.

At the same time, rate increases helped boost both gross written and net earned premiums.

The Bermuda-based specialty insurer and reinsurer booked $28.8 million in net income for the quarter, or $0.83 per diluted share. That’s down from just under $42 million in net income, or $1.20 per diluted share, for the 2019 second quarter.

Argo Group had previously said that Q2 2019 net income included pre-tax charges of $32.3 million due to higher current and prior accident year losses of $10 million and $22.3 million, respectively.

Argo produced a 103.4 combined ratio during the quarter, versus 96.3 a year ago. Catastrophe losses were $6.5 million for the quarter, versus $1.7 million in Q2 2019.

Other result highlights:

• Consolidated gross written premiums reached just under $773 million in the second quarter, 10 percent higher than the $702.8 produced in the 2018 second quarter. Premiums grew in the U.S. and internationally, the company said.
• Net written premiums were at $455.2 million for the quarter, up from $443.3 million a year ago.
• Net investment income hit $42.8 million, compared to $33.2 million in the 2018 first quarter.

Source: Argo Group

This article first was published in Insurance Journal’s sister publication, Carrier Management.

Topics Profit Loss