Property & casualty underwriter Argo Group International Holdings, Ltd. has turned things around, reporting a profit in the third quarter after suffering a loss in the same period last year.
According to the Bermuda-headquartered insurance group, its net income attributable to common shareholders amounted to US$19.8 million (about NZ$26.72 million) in Q3 – a major leap from the US$25.1 million attributable net loss posted in 2020.
Operating income in the quarter, meanwhile, stood at US$31.7 million. The corresponding figure a year ago was an operating loss worth US$10 million.
In the nine months ended September 30, Argo enjoyed US$114.1 million in net income attributable to common shareholders. Last year, the insurer was hit with a net loss attributable to common shareholders of US$55.2 million.
Also, operating income in the first nine months reached US$103.4 million – an improvement, as well, from the US$1.1 million operating loss incurred previously.
“Argo continues to pursue profitable growth, improve underwriting margins, reduce volatility, and maintain disciplined expense management,” said chief executive Kevin J. Rehnberg, whose team announced a revamped management structure in August. “The successful implementation of our strategy is evidenced in our financial performance.
“As we continue to optimise our business mix, the underlying strength of our core lines of business is more clear. We are particularly pleased that our efforts to reduce property catastrophe exposure have led to a significant improvement in our results, against the backdrop of the elevated catastrophe losses the insurance industry experienced this quarter.”
Argo’s total catastrophe losses in Q3 were US$27.3 million, a significant decrease from last year’s US$71.2 million.