Argo Group Reports Third Quarter Results
Bermuda-based Argo Group International Holdings, Ltd. announced financial results for the three and nine months ended Sept. 30, 2015.
“Argo Group’s continued focus and commitment to specialty lines produced consistent underwriting profits across all of our business segments,” said CEO Mark E. Watson III. “In addition, we continue to selectively grow in our profitable niches.”
Highlights for the Third Quarter Ended Sept. 30, 2015:
- Gross written premiums were up 6.9% to $531.4 million from $497.2 million in the third quarter of 2014.
- After-tax operating income was $24.6 million or $0.86 per diluted share, compared to $23.5 million or $0.81 per diluted share for the third quarter of 2014.
- Net income was $35.3 million or $1.24 per diluted share, compared to $44.7 million or $1.54 per diluted share for the third quarter of 2014.
- Pre-tax underwriting income increased 10.9% to $13.2 million in the third quarter of 2015 from $11.9 million for the third quarter of 2014.
- The combined ratio was 96.2% compared to 96.4% for the third quarter of 2014. The loss and expense ratios for the quarter were 57.8% and 38.4%, respectively, compared to 56.8% and 39.6% for the third quarter of 2014.
- Net favorable prior-year reserve development was $6.6 million (benefiting the combined ratio by 1.9 points), compared with $3.1 million (benefiting the combined ratio by 0.9 points) for the third quarter of 2014.
- Estimated pre-tax catastrophe losses were $13.1 million or 3.9 points on the combined ratio, compared to $5.5 million or 1.7 points on the combined ratio for the third quarter of 2014.
- The loss ratio excluding catastrophes and reserve development was 55.8% for the third quarter of 2015, compared to 56.0% for the third quarter of 2014.
- During the quarter, the Company repurchased $4.8 million or 85,959 shares of its common stock at an average price of $55.27 per share.
Highlights for the Nine Months Ended Sept. 30, 2015:
- Gross written premiums were up 5.8% to $1.566 billion from $1.480 billion in the first nine months of 2014.
- After-tax operating income was $79.9 million or $2.80 per diluted share, compared to $72.3 million or $2.47 per diluted share for the first nine months of 2014.
- Net income was $122.0 million or $4.28 per diluted share, compared to $123.5 million or $4.21 per diluted share for the first nine months of 2014.
- Pre-tax underwriting income increased 24.1% to $50.4 million in the first nine months of 2015 from $40.6 million in 2014.
- The combined ratio was 95.0% compared to 96.0% for the first nine months of 2014. The loss and expense ratios for the first nine months of 2015 were 55.9% and 39.1%, respectively compared to 56.0% and 40.0% for the first nine months of 2014.
- Net favorable prior-year reserve development was $15.3 million (benefiting the combined ratio by 1.5 points), compared with $26.4 million (benefiting the combined ratio by 2.6 points) for the first nine months of 2014.
- Estimated pre-tax catastrophe losses were $18.5 million or 1.8 points on the combined ratio, compared to $13.9 million or 1.5 points on the combined ratio for the first nine months of 2014.
- The loss ratio excluding catastrophes and reserve development was 55.6% for the first nine months of 2015, compared to 57.2% for the first nine months of 2014.
- In the first nine months of 2015, the Company repurchased $29.7 million or 575,055 shares of its common stock at an average share price of $51.58, which represents 2.0% of net shares outstanding at December 31, 2014.
- Book value per share increased to $58.89, up 1.2% from $58.22 at Dec. 31, 2014.
- At Sept. 30, 2015, cash and investments totaled $4.2 billion with a net pre-tax unrealized gain of approximately $99.7 million.
