Bermuda re/insurer’s Argo Group Holdings Ltd’s fourth-quarter earnings fell by two thirds as losses relating to an earthquake in New Zealand ate into profits.Argo said net income for the last three months of last year totalled $12.8 million, compared to $41 million the year before. Full-year profits also fell to $82.6 million from $117.5 million in 2009.Argo said its reinsurance segment incurred catastrophe losses of $10.2 million in the fourth quarter.And it estimated that losses from the Queensland flooding and Cyclone Yasi in Australia this year would impact first-quarter results with an estimated loss in the range of $15 million to $25 million.Total revenue slumped to $316.5 million for the quarter, compared to $391 million in 2009. Full-year total revenue was $1.38 billion, down just over 10 percent from 2009’s $1.54 billion.Gross written premiums for the quarter slid to $289 million compared to $415 million in the same period of 2009. Full-year grosss premiums written totalled $1.53 billion, compared to $1.99 billion in the prior year.Argo Group chief executive officer Mark Watson said: “As a market-leading company in an industry in a deep cyclical trough, impacted by a series of major events over the past year, Argo Group reached an all-time high in book value per share, produced profitable operating results, and returned $121 million in capital through share repurchases and common dividends.“Also significant was the progress we made during 2010 in areas not yet fully reflected in our financial results. These included the addition of experienced underwriting teams and continuing improvements to the efficiency of our systems and processes.“Looking ahead, we believe the progress made over the last year positions our specialty platform to take better advantage of improving economic and industry market conditions.”Book value per share climbed to $58.41 at the end of 2010, up 12.5 percent over the year, inclusive of dividends paid. Argo added that over the past eight years book value per share grew at a compound average growth rate of 12.1 percent.The company’s two biggest underwriting segments, excess and surplus lines, and commercial specialty, were both profitable, with respective combined ratios for the quarter of 94.9 percent and 93.4 percent. But international specialty generated a pre-tax operating loss of $31.2 million for the quarter and a combined ratio of 138.7 percent.During 2010, Argo paid out $106.5 million to buy back 3.2 million shares of its own stock, representing 10.4 percent of its shares outstanding at the end of 2009.