Argo sails back to profitability
Argo Group International Holdings, Ltd. has reported second quarter to June 30 net income attributable to common shareholders of $67.1 million or $1.92 per diluted common share, compared to a net loss attributable to common shareholders of $5.4 million or $(0.16) per diluted common share for the 2020 second quarter.
Operating income in the second quarter of 2021 was $56.1 million or $1.60 per diluted common share, compared to an operating loss of $3.6 million or $0.10 per diluted common share for the 2020 second quarter.
"Argo reported its highest quarterly operating income in more than ten years during the second quarter as a result of our focus on disciplined underwriting and strong investment contributions," said Argo Chief Executive Officer Kevin J. Rehnberg.
"Our targeted growth efforts have accelerated across the company during 2021 and we remain optimistic about current market conditions and underwriting opportunities.
“We continue to focus on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses. All of this is focused on generating superior shareholder returns over time.”
Gross written premiums increased 2.0 per cent to $815.3 million during the second quarter of 2021. Premium growth of 6.8 per cent in US Operations was partially offset by a 5.4 per cent decline in International Operations.
Adjusting for the sale of Ariel Re in November 2020 and planned or executed exits of business in Italy, Malta and the US grocery business, underlying premiums grew approximately 14 per cent during the second quarter of 2021.
In the US, premium growth in strategic growth areas was up 25 per cent, while overall growth was tempered by business exits and re-underwriting actions in certain underperforming businesses and property lines.
The combined ratio was 95.4 per cent during the second quarter of 2021 compared to 99.9 per cent in the prior year quarter.
The improved combined ratio was driven by lower losses related to COVID-19 and natural catastrophes, as well as an improved current accident year, ex-catastrophe loss ratio.