Argo Group International Holdings Ltd. returned to a profit of more than $27 million for the third quarter of 2009 as its book value reached a record level.

The international specialty re/insurer saw its net income climb to $27.6 million for the quarter from a net loss of $8.8 million for the same period in 2008.

It also boosted its total revenue by 9.2 percent to $383.8 million over last year's third quarter, while net operating income after tax was $25.4 million versus $12.2 million for the respective periods.

Book value per share at September 30, 2009, meanwhile, rose 7.4 percent to $51.04 from $47.51 at June 30, 2009, and has increased 15.5 percent year-to-date.

For the nine months ended September 30, 2009, total revenue was $1.16 billion compared to $908.7 million for the first nine months of last year, net income was up 49.7 percent at $76.5 million, and net operating income after tax for the opening nine months of 2009 was $100.3 million versus $68.9 million for the first nine months of 2008.

Argo Group's CEO Mark Watson, said: "Despite the difficult, competitive environment in our underwriting businesses and the equally challenging investment landscape, I'm pleased we have continued to deliver solid value creation for our shareholders.

"This is evidenced by our growth in book value per share, which is up more than 15 percent since the beginning of the year and stands at a record $51.04 per share.

"This follows a year when our book value per share experienced a very modest decline, which was much less pronounced than others in our industry. During this period we have invested in Argo Group's underlying business infrastructure and broadened the expertise of our senior management team.

"Our prudent underwriting and reserving policies have resulted in continued favourable development of business written in prior years. I believe Argo Group, therefore, is well positioned to manage through the current environment and poised to take advantage of opportunities as they become available."

The group combined ratio for the third quarter of 2009 was 98.6 percent versus 106.2 percent for the same period in 2008.

Gross written premiums for reinsurance during the quarter were $28.9 million, generating pre-tax operating income of $13.9 million and a combined ratio of 46.7 percent.

This compares to gross written premiums of $30.2 million, a pre-tax operating loss of $0.4 million and a combined ratio of 110.7 percent for the same quarter in 2008.

The underwriting results for the third quarter of 2009 included favourable prior years' loss development of $2.3 million versus no development in the third quarter of 2008.