Argo bounces back to profit on tighter underwriting discipline
Bermuda-based re/insurer Argo benefited from its focus on disciplined underwriting and turned around last year's loss into a comfortable profit for the second quarter of 2021.
The company delivered a net profit of $67.1 million for Q2 2021, compared with a net loss of $5.4 million for Q2 2020.
Gross written premiums increased to $815.3 million for Q2 2021, up from $799.6 million in the same period the previous year. Its combined ratio for Q2 improved to 95.4 percent in 2021, from 99.9 percent in 2020.
Kevin Rehnberg (pictured), Argo’s chief executive officer, noted Argo had achieved its highest quarterly operating income in more than ten years during Q2, of $56.1 million, having recorded a loss of $3.6 million for the same period the previous year. This was “a result of our focus on disciplined underwriting and strong investment contributions," he explained.
"Our targeted growth efforts have accelerated across the company during 2021 and we remain optimistic about current market conditions and underwriting opportunities,” added Rehnberg. “We continue to focus on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses. All of this is focused on generating superior shareholder returns over time.”
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