Argonaut Group Reports Record 2005 Results Despite Hurricanes

San Antonio-based Argonaut Group Inc. announced financial results for the three months and year ended Dec. 31, 2005, noting that the company’s gross written premiums topped $1 billion for the first time in its history.

Among other highlights for the year ended Dec. 31, 2005 are:

–Record levels were achieved for net written and earned premiums;
–Underwriting income increased to a record $9.3 million compared to $1.4 million in 2004;
–Net income was $80.5 million, a 12.1 percent increase versus $71.8 million in 2004;
–Total revenue of $786.2 million and operating income of $78.2 million set new highs, up from 2004 levels by 11.6 percent and 40.9 percent, respectively;
–Cash flow from operations was $331.1 million compared to $122.9 million for 2004;
–Book value increased 10.4 percent to $21.73 per fully diluted share versus $19.68 per share at Dec. 31, 2004.

For the quarter ended Dec. 31, 2005:

–Record performances were set for gross written, net written and earned premiums;
–Total revenue was at a record $212.4 million;
–Argonaut Group’s Excess and Surplus Lines, Select Markets and Public Entity segments delivered sub-90 percent combined ratios;
–Net income was $25.4 million versus $26.2 million in the fourth quarter of 2004;
–Operating income increased to $26.1 million, a 9.7 percent increase over the fourth quarter of 2004.

In a news release, Argonaut Group President and Chief Executive Officer Mark E. Watson III stated, “Our excellent fourth quarter results helped Argonaut Group achieve a record-setting year. We are pleased with these results given the challenges the Company and our insureds experienced in 2005 from Hurricanes Katrina, Rita and Wilma.”

Source: Argonaut Group

Topics Catastrophe Natural Disasters Profit Loss Hurricane