A more streamlined operation with simplified processes, increased investment in technology and automation, and the outsourcing of all but core functions, is helping Hamilton-headquartered Argo Group International Holdings to be “leaner, smarter and more profitable”.

The changes are highlighted in Mark Watson’s letter to shareholders, which is included in the insurance and reinsurance company’s annual report released yesterday.

Argo Group secured gross written premiums of $2 billion, a company record, during 2015. Its combined ratio was 95.2 per cent, “just a hair off a goal we set in 2012 of delivering five points of underwriting profit,” noted Mr Watson, president and chief executive officer.

The company recorded a profit of $163.2 million, or $5.72 when expressed as net income per diluted common share. Total profit was down $20 million, year-on-year.

A reoccurring theme in the report is the company’s move to a simpler way of operating.

“We began simplifying how we do business; we still have a lot of work to do. We also continued making the sweeping improvements that allow us to be leaner, smarter and more profitable. We believe these changes will put a team in place with better tools than ever before,” explained Mr Watson.

Argo Group has undergone a company-wide programme of system and process improvements. Mr Watson described it as a “comprehensive programme to bring simplification, automation and unwavering customer focus into every corner of the company is elemental to our strategy. We continuously improve the way our company operates”.

He added: “As such, we will go on making tough decisions, confident that the reasons we were better this year are the same reasons we can continue improving.

“Our investments in business processes, technology and people allow us to serve our clients better, faster and easier. We can now better select risk and better manage our portfolio mix. Our investment in people has built a more nimble team than we had even three years ago.

“By outsourcing all but core functions, that team now has the time to focus on making better decisions.”

The company’s gross written premiums in excess and surplus lines improved by 11.9 per cent last year, while its commercial specialty segment rose 5.8 per cent.

The group’s Syndicate 1200 improved by 3.8 per cent even as competition “remained robust” in the Lloyd’s market.

Elsewhere, Argo Group’s international specialty segment declined by 3.9 per cent partly due to economic conditions in Brazil, including weak local currency. However, the company reports it has made “selective changes” that have produced positive results, evidenced by a combined ratio of 84.9 per cent for the sector.

Argo Group has its corporate office on Pitts Bay Road, Pembroke. At the end of 2015 it had total assets of $6.65 billion. Its market capitalisation is estimated at $1.56 billion.