Argo Group Sees Progress After Rate Hikes, Reducing Property Catastrophe Exposure

November 3, 2021

Argo Group International Holdings made money during the 2021 third quarter versus a net loss the year before. Results stemmed, in part, from the Bermuda-based specialty insurer reducing its property catastrophe exposure as well as an improved underwriting margin.

Net income for Q3 2021 came in at just under $20 million, or $0.56 per diluted common share. Over the same period in 2020, Argo Group lost more than $25 million, or negative $0.72 per diluted share.

Catastrophe losses reached $27.3 million during the quarter, down from $71.2 million in Q3 2020.

Kevin Rehnberg

“Argo continues to pursue profitable growth, improve underwriting margins, reduce volatility and maintain disciplined expense management,” said Argo Chief Executive Officer Kevin Rehnberg in prepared remarks. “The successful implementation of our strategy is evidenced in our financial performance. As we continue to optimize our business mix, the underlying strength of our core lines of business is more clear.”

Argo said it enjoyed strong growth from ongoing business in both the U.S. and international segments after various underwriting actions including rate increases. It also booked a consolidated combined ratio of 100.3, just shy of profitability. A lower number is healthier, of course, but it compares to a 110.1 combined ratio in the same, year-ago quarter. Rehnberg said the improvement stems, in part from reducing property catastrophe exposure.

Here are other Q3 result highlights:

Source: Argo Group International Holdings