Argo slips to $3.6m quarterly loss before exploring sale or merger

Bermuda-based global re/insurer  Argo Group International Holdings turned around its underwriting result but plunged to a net loss in the first three months of the year. The report follows announcement that the carrier could be  on the market for sale, merger or other strategic transaction.

Argo reported a net loss of $3.6 million in Q1 2022, compared with a net profit of $27.2 million in the first quarter of 2021.

Gross written premium (GWP) also dipped by 4.7% to $721 million from $757 million. GWP in its US business was down by 2.9% to $475 million from $489 million, and down by 8.1% in its international operations to $245 million from $267 million.

The carrier, however, bounced back to a $24.1 million underwriting profit this year from a loss of $17.9 million in the prior year quarter.

The combined ratio improved by 8.8 percentage points to 95% for the first quarter from 104%.

“We continue to execute on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses,” said  Argo’s executive chairman and interim CEO Thomas Bradley (pictured).

“We are pleased to report operating income of $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.

“Looking forward, we are pleased with the opportunities for growth across our ongoing businesses and remain confident in achieving our 2022 financial objectives.”

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