Argo Group International Holdings Ltd. reported a drop in net income and a spike in its Q2 2019 combined ratio, due to overseas and higher catastrophe losses.

At the same time, rate increases helped boost both gross written and net earned premiums.

The Bermuda-based specialty insurer and reinsurer booked $28.8 million in net income for the quarter, or $0.83 per diluted share. That’s down from just under $42 million in net income, or $1.20 per diluted share, for the 2019 second quarter.

Argo Group had previously said that Q2 2019 net income included pre-tax charges of $32.3 million due to higher current and prior accident year losses of $10 million and $22.3 million, respectively.

Argo produced a 103.4 combined ratio during the quarter, versus 96.3 a year ago. Catastrophe losses were $6.5 million for the quarter, versus $1.7 million in Q2 2019.

Other result highlights:

• Consolidated gross written premiums reached just under $773 million in the second quarter, 10 percent higher than the $702.8 produced in the 2018 second quarter. Premiums grew in the U.S. and internationally, the company said.
• Net written premiums were at $455.2 million for the quarter, up from $443.3 million a year ago.
• Net investment income hit $42.8 million, compared to $33.2 million in the 2018 first quarter.

Source: Argo Group