Ariel Re deal helps boost growth in Argo’s Q2 results
Argo Group’s acquisition of Ariel Re in February 2017 helped drive solid growth in the business, which posted impressive increases in gross written premiums and profits in the second quarter of 2017.
The company as a whole increased its Q2 GWP by 22.6 percent to reach $687.2 million.
Within this, its US operations including its Excess & Surplus Lines and Commercial Specialty businesses posted an increase of 13.4 percent in its gross written premiums, which it said was achieved by executing on strategic growth initiatives across Liability, Professional, and Specialty lines and planned reductions within property lines due to continued pricing competition.
Its International Operations, which comprise Syndicate 1200, International Specialty, and the Ariel Re businesses including Syndicate 1910, posted an increase in GWP of some 35 percent in the second quarter. It said growth was driven by reinsurance business at Syndicate 1910, and by business in Bermuda and Brazil.
Argo’s net profit also increased sharply in the second quarter reaching $46 million, a big hike on the $30.9 million it posted in the same period a year earlier. The company’s combined ratio was 96.6 percent compared with 95.6 percent for the 2016 second quarter.
Its results were boosted by increases in net investment income which reached $43.6 million, compared with $35.7 million for the 2016 second quarter.
“Argo Group’s results for the first six months of 2017 reflect strong investment returns and profitable growth in our US, Bermuda, and Latin America operations,” said Argo Group CEO Mark E. Watson III.
“Book value per share grew 8.2 percent over the past 12 months and the annualized return on average shareholders equity was 9 percent at June 30, 2017. These results demonstrate continued value creation for our shareholders through our focus on specialized products and distribution globally.”
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