Argo Reports Q2 Net Income Of $38.6 Million
Bermuda-based Argo Group International Holdings, Ltd. announced financial results for the three and six months ended June 30, 2014.
“Argo Group delivered another quarter of solid results despite the challenges of an increasingly competitive market environment,” said Argo Group CEO Mark E. Watson III. “We remain focused on disciplined, profitable underwriting while growing our better performing books of business.”
Highlights For The Second Quarter Ended June 30, 2014:
- Net income was $38.6 million or $1.45 per diluted share, compared to $31.7 million or $1.13 per diluted share for the second quarter of 2013.
- After-tax operating income was $23.8 million or $0.89 per diluted share, compared to $20.7 million or $0.74 per diluted share for the second quarter of 2013.
- Gross written premiums were $520.1 million compared to $542.2 million for the second quarter of 2013.
- The combined ratio was 95.8% compared to 98.3% for the second quarter of 2013.
- Net favorable prior-year reserve development was $14.4 million (benefiting the combined ratio by 4.3 points), compared with $12.8 million (benefiting the combined ratio by 4.0 points) for the second quarter of 2013.
- Estimated pre-tax catastrophe losses were $4.2 million or 1.3 points on the combined ratio, compared to $9.7 million or 3.1 points for the second quarter of 2013.
- The current accident year loss ratio excluding catastrophes was 58.1%, compared to 60.6% for the second quarter of 2013.
- Book value per share increased 4.2% to $62.80 from $60.29 at March 31, 2014, and 6.5% from $58.96 at Dec. 31, 2013.
- During the quarter the Company repurchased $23.9 million or 510,116 shares of its common stock at an average price of $46.84, which represents 1.9% of net shares outstanding at March 31, 2014.
Highlights For The Six Months Ended June 30, 2014:
- Net income was $78.8 million or $2.94 per diluted share, compared to $64.4 million or $2.29 per diluted share for the first half of 2013.
- After-tax operating income was $48.9 million or $1.83 per diluted share, compared to $40.7 million or $1.45 per diluted share for the first half of 2013.
- Gross written premiums were $983.2 million, compared to $980.4 million for the first half of 2013.
- The combined ratio was 95.7%, compared to 98.8% for the first half of 2013.
- Net favorable prior-year reserve development was $23.3 million (benefiting the combined ratio by 3.5 points), compared to $17.3 million (benefiting the combined ratio by 2.8 points) for the first half of 2013.
- Estimated pre-tax catastrophe losses were $8.4 million or 1.3 points on the combined ratio, compared to $11.6 million or 1.9 points for the first half of 2013.
- The current accident year loss ratio excluding catastrophes was 57.8%, compared to 59.3% for the first half of 2013.
- In the first half of 2014, the Company repurchased $31.4 million or 675,300 shares of its common stock at an average share price of $46.48, which represents 2.5% of net shares outstanding at Dec. 31, 2013.
- At June 30, 2014, cash and investments totaled $4.2 billion with a net pre-tax unrealized gain of approximately $284.8 million.
