Texas-based Argonaut Group Inc., a specialty insurer, announced financial results for the three- and six-month periods ending June 30. In addition, the company’s board of directors declared a regular quarterly cash dividend of $0.15 per share payable Sept. 4 to shareholders of record Aug. 20.
During the second quarter of 2002, Argonaut reported net income after tax of $6.1 million, or $0.28 per diluted common share, compared to $1.9 million or $0.09 per share for the same three-month period in 2001. For the six months ended June 30, 2002, the company reported net income after tax of $13.6 million, or $0.63 per share, compared to $2.2 million, or $0.10 per share, for the first six months of 2001. Second quarter results include a charge of $1.1 million related to the previously announced acquisition of renewal rights for Fulcrum Insurance Company.
Net operating income after tax increased $3.7 million to $2.3 million for the second quarter, compared to an operating loss of $1.4 million for the same period in 2001. Operating income excludes gains on sales of investments, which totaled $3.8 million after tax during the second quarter. For the second quarter, total revenue, which includes gains on sales of investments, was $103.7 million, compared to $55.7 million for the same period in 2001. For the first six months of 2002, revenue totaled $209.7 million, compared to $101.1 million during the first half of 2001.
Colony Insurance Group, which was acquired by Argonaut Group during the third quarter of 2001, specializes in underwriting excess and surplus lines of insurance. For the second quarter of 2002, Colony’s net earned premiums totaled $30.9 million, generating an underwriting profit of $0.7 million. The Fulcrum transaction, which added an essential element in the diversification of Argonaut’s product and service offering in the excess and surplus marketplace, generated $5.7 million in gross written premium during its first two months.
Rockwood Casualty Insurance Company and Argonaut Great Central Insurance Company comprise Argonaut Group’s specialty commercial insurance lines. During the second quarter, these companies contributed net earned premiums of $25.8 million and underwriting income of $0.1 million, compared to net earned premiums of $8.5 million and an underwriting loss of $2.0 million during the same period in 2001.
Argonaut’s specialty workers’ compensation segment includes the results of Argonaut Insurance Company. Net earned premiums were $25.4 million for the three months ended June 30, 2002, resulting in a net underwriting loss of $9.0 million, compared to net earned premiums of $28.5 million and a net underwriting loss of $12.3 million for the same period in 2001.
Trident Insurance Services underwrites Argonaut Group’s public entity segment. Trident’s net earned premiums for the second quarter were $1.9 million, versus $0.9 million for the quarter ended June 30, 2001. The net underwriting loss of $0.2 million for the second quarter of 2002 was unchanged from the same period a year earlier.
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