Watson: Argo Group performed as planned
Argo Group International Holdings achieved operating income of $23.5 million, or 68 cents per share, in the third quarter, beating analysts’ estimate of 56 cents.
The operating income was 141 per cent higher than the same period last year.
Profit for the quarter was $40.6 million, or $1.17 per share, compared to a loss of $61.3 million a year ago.
Mark Watson, chief executive officer of the Bermudian-based company, said: “At the beginning of 2018, following the integration of Ariel Re, we restructured our reinsurance programme to mitigate risk exposure to catastrophe events and reduce earnings volatility.
“In this year’s third quarter, the industry was hit by heavy catastrophe losses on a global basis. At Argo, our programme performed as planned. The company produced an overall underwriting profit for the quarter, and operating earnings of $23.5 million or $0.68 per diluted share.”
The company had gross written premiums of $839.9 million, which was up 4.3 per cent year-on-year. The combined ratio was 99.7 per cent. Catastrophe losses for the quarter were $24.4 million.
Mr Watson said: “Our US operations are generating strong profitable premium growth reflecting our strategic growth and digital initiatives. In our international operations, we are targeting growth in select markets, taking corrective underwriting actions in lines of business where needed, and utilising third-party capital to support our reinsurance business.
“The combination of improving margins, top-line growth, and strong investment results should generate improved returns for our shareholders, as we’ve already seen evidenced this quarter, with a 9 per cent annualised return on equity.”
During the third quarter, Argo Group repurchased 156,456 shares for $9.6 million. The book value per share at the end of September was $53.63.
Police name fatal crash victim
Dame Jennifer backs Mary Prince Day
William Zuill brand buckles up for success
Charity helps to reintegrate women prisoners
Hola from a digital nomad in Panama
Solar-power system is biggest in Hamilton
DigiCert completes $45m purchase of QuoVadis
Minibus operator, 67, assaulted in fare row
Child sex offender costs $230,000 a year
Tech entrepreneur launches takeout order app
They still don’t get it
Phillip-Fairn says farewell to BTA
Giving back when the giving is good
Six police sergeants promoted to inspector
Out of this world
Take Our Poll
- "Your new year's resolutions for 2019"
- Quit smoking
- Quit drinking/drink in moderation
- Do not drink and drive
- Lose weight
- Stop procrastinating
- Drive with greater care
- Total Votes: 2607
- Poll Archive