Argo Group International Holdings said it recorded a first-quarter profit of nearly $20 million compared to a $94.1 million loss in the same period last year.The Bermuda-based international underwriter of speciality re/insurance products said gross written premiums rose $48.5 million to $396.3 million and earned premiums for the three months ended March 31 were $277.3 million compared to $261.4 million. Total revenue for the quarter rose to $323.1 million compared to $297.2 million.“Our results this quarter show that last year’s actions and strategic initiatives are beginning to bear fruit. I am confident that, as this year progresses, we will see further evidence of action being translated into results,” said Argo Group CEO Mark Watson.The company’s net income of 74 cents per diluted share compared to a net loss of $3.42 per diluted share in the first quarter of 2011. The company produced net operating income of $14.3 million or $0.54 per diluted share.Estimated pre-tax catastrophe losses, net of reinsurance and estimated reinstatement premiums, were $4.0 million compared to $113.1 million in the first quarter of 2011, the company said.Book value per share was $57.91 at March 31, an increase of 4.2 percent from $55.60 at December 31, 2011.During the first three months of 2012, Argo Group repurchased $10 million or 338,876 shares of its outstanding common stock, which represents 1.3 percent of shares outstanding at December 31.The company said the difference between net income and net operating income for the three months ended March 31, 2012, reflected $13.1 million of pre-tax realised investment gains associated with the company’s investment portfolio and a $2.9 million pre-tax foreign currency exchange loss.Net investment income for the three months ended March 31, 2012 and 2011 was $31.4 million and $33.4 million, respectively. Net realised investment gains for the three months ended March 31 and 2011 were $13.1 million and $2.3 million, respectively.The Group’s combined ratio for the three months ended March 31, 2012 and 2011 was 103.4 percent and 144.9 percent, respectively.At March 31, the investment portfolio was approximately $4.2 billion with a net pre-tax unrealised gain of approximately $280 million, an increase of $48 million from the net pre-tax unrealised gain as of December 31, 2011.