Bermudian-based Argo Group International Holdings Ltd has reported a third-quarter net loss attributable to common shareholders of $49.5 million.

That compares with a net loss attributable to common shareholders of $51.4 million in the prior-year quarter.

The annualised return on average common shareholders' equity was negative 18.7 per cent, compared with negative 16.5 per cent in the prior-year quarter.

The net loss attributable to common shareholders in the quarter included $5.1 million of non-operating expenses, which were mainly attributable to non-operating legal fees for the company's pending merger with Brookfield Reinsurance, the company said.

Argo said the merger agreement outside date for completing the transaction has been automatically extended to February 8, 2024, pursuant to the terms of the merger agreement, as all conditions to closing are satisfied other than receipt of the remaining required regulatory approvals.

It added that both companies remain committed to closing the transaction as expeditiously as possible, and expect it to close in 2023, subject to receipt of the remaining required regulatory approvals.

Argo executive chairman and chief executive Thomas A. Bradley said: "We were pleased to receive a majority of the required regulatory approvals for the merger with Brookfield Reinsurance.

"As we wait to receive the remaining required regulatory approvals, we continue to work diligently with Brookfield Reinsurance on integration planning and anticipate an orderly transition for our customers and business partners once the transaction is completed.”

Mr Bradley added: "Argo's third-quarter performance benefited from disciplined expense management and increased investment returns.

“We are encouraged by the progress of our ongoing efforts to optimise the business to deliver improved profitability moving forward and believe the company is well positioned to capitalise on its enhanced future growth prospects as part of Brookfield Reinsurance."

Argo said gross written premiums of $528.3 million decreased $222.6 million, or 29.6 per cent, primarily due to businesses the company has sold and exited.

Earned premiums of $342.7 million decreased $112.3 million, or 24.7 per cent.

The combined ratio of 115.8 per cent increased 14.7 percentage points, driven by a higher loss ratio of 82 per cent, which increased 16.3 percentage points, compared with 65.7 per cent for the prior-year quarter.

Total catastrophe losses were $24.7 million or 7.2 percentage points on the loss ratio.

Net investment income of $40.4 million increased by $6.4 million or 18.8 per cent from the prior-year third quarter.

Argo said the increase was driven by higher interest rates and improved returns on alternative investments.