Argo warns of $32.5m hit to results
Bermudian-based specialty re/insurer Argo Group has announced that its results for the second quarter of 2019 will be adversely affected by several loss items in the London, Europe, and Bermuda operations.
The company is set to release second quarter 2019 financial results after the close of US financial markets on August 5.
The company said key items affecting the quarter include prior accident year losses of approximately $22.5 million, or 5.2 points on Argo’s consolidated loss ratio for the second quarter. Reserve increases primarily impacted the company’s Bermudian casualty business unit, the company said, and to a lesser extent European and London operations within Argo’s international operations, offset by modest reserve decreases within Argo’s US operations.
Also affecting quarterly results, the company said, are current accident year losses of approximately $10 million, or 2.3 points on Argo’s consolidated loss ratio for the second quarter. The increased losses primarily relate to a number of large losses, driven by property and energy lines, affecting Argo’s international operations.
Mark Watson, chief executive officer of Argo Group, said: “The losses we reported today reflect specialty insurance businesses that are subject to occasional volatility related to a number of large losses that we don’t believe are an indication of a longer-term trend.
“Our Bermuda casualty business has a strong track record of performance and has been very profitable over the long-term. The results in Europe and London are primarily related to businesses that we have previously exited or where we have taken aggressive remedial underwriting actions.”
Argo added that the actual ultimate net impact may differ materially from Argo Group’s estimates.