Argo Group suffers wider first-half loss
Argo Group suffers wider first-half loss | Insurance Business New Zealand
Insurance News
Argo Group suffers wider first-half loss
Merger remains pending
Insurance News
By
Terry Gangcuangco
International underwriter Argo Group has announced its financial results for the quarter and half year ended June 30, 2023.
The company, whose merger with Brookfield Reinsurance is still awaiting completion, reported the following numbers:
Period
Net loss attributable to common shareholders
Operating (loss)/income earnings
Second quarter 2023
US$(0.5 million)
US$(0.8 million)
Second quarter 2022
US$(18.9 million)
US$31 million
First half 2023
US$(36.9 million)
US$(11.6 million)
First half 2022
US$(22.5 million)
US$74.4 million
During the quarter, Argo’s underwriting loss amounted to US$22.4 million, while the underwriting loss for the six-month span stood at US$54.1 million. A year ago, the group enjoyed positive underwriting results in both periods.
Commenting on the quarterly results, Argo executive chair and chief executive Thomas A. Bradley said: “Our second quarter performance further reflects the proactive steps we are taking to prioritise improving profitability. Our top line results reflect our deliberate and disciplined actions in certain lines of business.
“However, we continue to achieve growth across the rest of the portfolio, notably in our environmental, inland marine, and casualty segments. This is a testament to the importance of a diversified book of specialty businesses.
“We have remained focussed on lowering expenses and reducing earnings volatility. The success of these efforts was demonstrated in the second quarter by further improvement in the expense ratio, and a low level of catastrophe losses, despite elevated industry catastrophe losses during the period.”
Argo, which agreed to be sold to Brookfield Reinsurance for approximately US$1.1 billion, is waiting for the required regulatory approvals to make the sale official.
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