Argo today ‘markedly different’ from Argo of only two years ago: CEO
Bermuda-based global re/insurer Argo Group reported a widened loss for 2022 with a drastic decline in gross written premiums in a year its CEO described as “transformative” for the business, as it positioned itself to become a focused, pure play US specialty insurer leading to its recently agreed $1.1 billion sale to Brookfield Reinsurance.
“The Argo of today is markedly different from the Argo of only two years ago,” said its chief executive Thomas Bradley (pictured). “We have streamlined the company to focus on our most profitable business lines, achieved targeted expense reductions, and continued to de-risk the balance sheet. At the same time, we have remained nimble in the marketplace responding to the needs of customers and business partners.”
Argo made a net loss of $185.7 million last year, a deterioration on the $3.8 million loss it made a year earlier. Its combined ratio remained unchanged at 105.6% for the year. Net investment income of $129.8 million declined on the $187.6 million it made a year earlier.
The company's gross written premiums plummeted to $2.8 billion in 2022, a 10.5% decline on the same period a year earlier.
It has been a period of major strategic changes for the company wherein it finalised the sale of Argo Underwriting Agency and its Lloyd’s Syndicate 1200, transforming Argo into a focused, pure play US specialty insurer, and its sale to Brookfield Reinsurance for $1.1 billion.
In the fourth quarter of last year, Argo completed a US loss portfolio transfer, reflecting an after tax charge of approximately $100 million in connection with the transaction.
Additionally, it reduced its catastrophe exposure by more than 50% compared to the prior year. Its total catastrophe losses were $9.4 million in the fourth quarter 2022, and $44 million in full year 2022.
“2022 was a transformative year for the company,” Bradley said. “The strategic actions we have taken strengthened Argo and better position it to deliver strong returns moving forward.
“We are excited about our next chapter as part of Brookfield Reinsurance. We believe the merger transaction that we announced on February 8, 2023, will enhance our opportunities for growth, and scale Argo into a market leading specialty insurer with capabilities across admitted and E&S markets. Lastly, I want to thank our leadership team and employees for their dedication over the past year as we worked through the strategic alternatives review process.”
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