Argo Group losses widen in Q3 on high cat bill
Argo Group International Holdings' net loss widened year-on-year on higher level of catastrophe losses, but the re/insurer's combined ratio improved slightly driven by better ex-cat loss ratio.
The Bermuda-based company reported a Q3 2020 net loss of $31.6 million, compared with a net loss of $25.1 million it made in the prior year period.
Gross written premiums grew to $890.2 million, from $882.7 million in the same period the previous year.
Argo's combined ratio was 110.7 percent, an improvement from 111.4 percent in Q3 2019.
The company recorded catastrophe losses of $71.2 million, including $16.9 million related to the COVID-19 pandemic, primarily resulting from contingency exposures in its international operations.
Argo chief executive officer Kevin Rehnberg, said: "We are pleased with the improved underlying margins of our business during the quarter, as well as the actions taken to simplify operations and exit lines that do not meet profitability expectations or are not aligned with our strategy. While the industry faced historic levels of catastrophe activity in the third quarter, we have continued to make progress on our strategic objectives.
“This progress combined with continued gross written premium growth within profitable lines of business, improvement in pricing and a plan to reduce expenses demonstrates our firm commitment to continuing on a path toward increased shareholder value.”
