Bermuda insurer Argo Group International Holdings Ltd saw second-quarter profits increase by more than 21 percent over last year.

Last night, the company announced net income of $38.6 million, or $1.45 per share, compared to $31.7 million, or $1.13 per diluted share in the corresponding quarter of last year.

“Argo Group delivered another quarter of solid results despite the challenges of an increasingly competitive market environment,” said Argo Group CEO Mark Watson. “We remain focused on disciplined, profitable underwriting while growing our better performing books of business.”

After-tax operating income was $23.8 million or 89 cents per share, up from the $20.7 million or 74 cents per share reported last year and beating the 81 cents per share consensus forecast of analysts tracked by Yahoo Finance.

The company wrote less business, as gross written premiums were $520.1 million, compared to $542.2 million for the second quarter of 2013.

The combined ratio — the proportion of premium dollars spent on claims and expenses, improved to 95.8 percent from the 98.3 percent achieved in 2013.

The company said net favourable prior-year reserve development was $14.4 million (benefiting the combined ratio by 4.3 points).

Estimated pre-tax catastrophe losses were $4.2 million or 1.3 points on the combined ratio, compared to $9.7 million or 3.1 points for the second quarter of 2013.

Book value per share increased 4.2 percent to $62.80 from $60.29 at March 31, 2014, and 6.5 percent from $58.96 at December 31, 2013.

During the quarter Argo repurchased $23.9 million or 510,116 shares of its common stock at an average price of $46.84, which represents 1.9 percent of net shares outstanding at March 31, 2014.

Net income for the first six months of the year was $78.8 million or $2.94 per diluted share, compared to $64.4 million or $2.29 per diluted share for the first half of 2013.

At June 30, 2014, cash and investments totalled $4.2 billion with a net pre-tax unrealised gain of approximately $284.8 million.

All per share amounts, except share repurchase figures, are adjusted for the ten percent stock dividend that was paid on June 17, 2013, to stockholders of record on June 3, 2013.