Argo Net Income Drops Due to Catastrophes

May 9, 2010

Bermuda based Argo Group International Holdings Ltd announced a net income of $20.7 million in the first quarter of 2010, a $6.3 million drop from last year’s first quarter.

The company sustained a $21.6 million loss from the earthquake in Chile, with Argo CEO Mark E. Watson saying the catastrophic events during the first quarter had a substantial impact on Argo’s results.

Highlights for the quarter ended March 31, 2010:

  • Total revenue was $372.3 million versus $369.5 million in the year-ago quarter
  • Gross written premiums were $404.5 million versus $496.1 million for the first quarter of 2009
  • Net income was $20.7 million or $0.67 per diluted share, compared to $27.0 million or $0.88 per diluted share for the three months ended March 31, 2009
  • Net pre-tax operating income, or pre-tax income before net realized investment gains and losses and foreign currency exchange gains and losses, was $12.2 million versus $43.2 million for the first quarter of 2009
  • Estimated pre-tax losses attributable to first quarter catastrophes net of estimated reinstatement premiums totaled $29.1 million, of which $21.6 million resulted from the earthquake in Chile, versus no material cat losses in the first quarter of 2009 impacting results. Catastrophe losses for the quarter totaled approximately 1.8% of December 31, 2009 shareholders equity
  • Net after-tax operating income per share was $0.32 versus $1.13 per share in the year-ago quarter
  • Book value per share (BVPS) increased to an all-time high of $53.81 at March 31, 2010, increasing 19.2% over the preceding 12-month period.

Headquartered in Hamilton, Bermuda, Argo Group International Holdings, Ltd. is an international underwriter of specialty insurance and reinsurance products in the property and casualty market.

Other 2010 first quarter results of Bermuda based companies here.

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