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Argo Group posts losses in interim results

Argo Group posts losses in interim results | Insurance Business UK

Argo Group posts losses in interim results

Argo Group International Holdings Ltd. has shared its latest set of financial results, revealing losses in both the second quarter and first half of 2022.

For the three months ended June 30, Argo’s net loss attributable to common shareholders amounted to US$18.9 million. In the same period last year, the company enjoyed a US$67.1 million net income attributable to common shareholders.

Argo noted: “The net loss attributable to common shareholders in the second quarter 2022 included pre-tax net realised investment and other losses of US$40.4 million, of which US$21.3 million was attributable to a loss on the sale of the company’s Malta operations, ArgoGlobal Holdings.

“In comparison, net income attributable to common shareholders in the prior year second quarter included US$24.7 million of pre-tax net realised investment and other gains.”

According to the insurance group, the loss figure in Q2 also included non-operating expenses worth US$15.6 million. This spanned non-operating advisory fees and severance expenses.

Similarly, Argo suffered a US$22.5 million net loss attributable to common shareholders in the first six months of the year. It was a different story a year ago, when Argo posted US$94.3 million in attributable net income.

Meanwhile, other Q2 results included lower gross written premiums; US$2.5 million in total catastrophe losses, which represented a decline from 2021’s US$11.1 million; a 44.4% fall in net investment income; a 19.2% decrease in underwriting income; as well as US$31 million in operating income, which shrank from US$56.1 million previously.

In H1, Argo’s operating income stood at US$74.4 million. The sum is 3.9% higher compared to the corresponding figure in the first half of 2021.

Despite the losses, Argo executive chair and chief executive Thomas A. Bradley had this to say: “The company’s second quarter results reflect our focussed approach to profitable growth as we successfully target the most attractive business lines.

“We are pleased with the success in executing on our strategic priorities, particularly, managing expenses and reducing volatility. Ongoing cost reduction efforts significantly lowered the expense ratio from the prior year second quarter, and our commitment to reducing volatility in underwriting results has driven improvement in year-over-year catastrophe losses for five consecutive quarters.”