Argo Group International Holdings Ltd. is warning that its results for its 2019 second quarter will take a hit due to losses affecting operations in London, Europe and Bermuda.
Issues at play include:
- Prior year losses of about $22.5 million, or 5.2 points on Argo’s consolidated loss ratio for the second quarter.
- Reserve increases primarily impacted the Company’s Bermuda casualty business unit, and to a lesser extent European and London operations within Argo’s International Operations, offset by modest reserve decreases within Argo’s U.S. Operations.
- Current accident year losses of $10 million or 2.3 points on Argo’s consolidated loss ratio for the second quarter. The increased losses stem from a number of large losses, driven by property and energy lines, affecting Argo’s International Operations.
Argo Group CEO Mark Watson III said the company’s financial warning involves losses subject to some volatility that don’t necessarily indicate a longer term trend.
“Our Bermuda casualty business has a strong track record of performance and has been very profitable over the long-term,” Watson said in prepared remarks. “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.”
The company will release its Q2 2019 earnings on Aug. 5, 2019, after the markets close, with an investor conference planned on Tuesday, Aug. 6, 2019 at 10 a.m. Eastern.
Source: Argo Group