Argo Group hit with loss in Q1 2022
In the first quarter, Argo posted a net loss attributable to common shareholders worth US$3.6 million. In the same period last year, the company enjoyed a US$27.2 million net income attributable to common shareholders.
Gross written premium (GWP) slid slightly from US$756.5 million in Q1 2021 to US$720.6 million this time around. Operating income, meanwhile, grew 180% to US$43.4 million.
The group also saw a turnaround in its underwriting result. From last year’s US$17.9 million underwriting loss, Argo bounced back to a US$24.1 million underwriting income. As for net investment income, the sum fell 15.1% to US$37.7 million.
Broken down, here’s how Argo’s US and international operations performed in the three-month span:
Metric
Q1 2022 (US)
Q1 2021 (US)
Q1 2022 (International)
Q1 2021 (International)
GWP
US$475.2 million
US$489.4 million
US$245.4 million
US$266.9 million
Underwriting income / (loss)
US$22.5 million
US$11.3 million
US$13.3 million
US$(21.8 million)
Net investment income
US$25.6 million
US$28.8 million
US$11.4 million
US$12 million
Pre-tax operating income / (loss)
US$44.2 million
US$36.6 million
US$23.8 million
US$(11.6 million)
Commenting on the numbers, Argo executive chair and interim chief executive Thomas A. Bradley highlighted the positives.
“We continue to execute on our strategic priorities of improving underwriting margins, reducing volatility, and managing expenses,” asserted Bradley, who has been in charge since early March amid CEO Kevin J. Rehnberg’s medical leave of absence.
“The success of these efforts is reflected in the results and provides a strong start to the year. We are pleased to report operating income of US$43.4 million, and an operating return on equity of 11.4% for the first quarter 2022. The loss ratio was solid at 59%, our catastrophe losses were significantly lower than a year ago, and the expense ratio of 36% improved nearly two percentage points from the prior year first quarter.”
The acting chief added: “Looking forward, we are pleased with the opportunities for growth across our ongoing businesses and remain confident in achieving our 2022 financial objectives.”
