- Continued Strategic Growth: Net earned premium increased 3.1% in the first quarter 2022; strong net earned premium growth in our ongoing business[1] of approximately 20.8%
- Disciplined Expense Focus: Expense ratio of 36.0% for the first quarter 2022 improved 1.8 percentage points from the first quarter 2021, driven by reduced General and Administrative expenses
- Improved Underwriting Performance: Combined ratio of 95.0% for the first quarter 2022 improved 8.8 percentage points from the first quarter 2021, driven by improvement in both the loss and expense ratio
- Reduced Catastrophe Losses: Total catastrophe losses of $8.7 million for the first quarter 2022 decreased $38.8 million from the first quarter 2021
- Syndicate 1200 Loss Portfolio Transfer (“LPT”): Agreement on LPT transaction for Syndicate 1200’s reserves for the 2018 and 2019 Years of Account
HAMILTON, Bermuda – May 2, 2022 – Argo Group International Holdings, Ltd. (NYSE: ARGO) (“Argo” or the “Company”) today announced financial results for the three months ended March 31, 2022. Argo reported a net loss attributable to common shareholders of $3.6 million or $0.11 per diluted common share, for the first quarter 2022, compared to net income attributable to common shareholders of $27.2 million or $0.78 per diluted common share for the first quarter 2021. Annualized return on average common shareholders’ equity was (0.9%) in the first quarter 2022, compared to 6.4% in the prior year first quarter. Operating income in the first quarter 2022 was $43.4 million or $1.24 per diluted common share, compared to $15.5 million or $0.44 per diluted common share for the first quarter 2021. Annualized operating return on average common shareholders’ equity was 11.4% in the first quarter 2022, compared to 3.7% in the prior year first quarter.
“We continue to execute on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses,” said Argo Executive Chairman and Interim Chief Executive Officer Thomas A. Bradley. “The success of these efforts is reflected in the results and provides a strong start to the year.
“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.”
[1] Ongoing business does not include the businesses the Company is exiting, plan to exit or have sold, including sales of Ariel Re in November 2020, Contract Binding P&C in October 2021, U.S. Specialty Property in December 2021, Argo Seguros Brasil in February 2022 and businesses in Italy, Malta, London Property D&F and North American Binders business in Syndicate 1200, and the U.S. grocery business.
View the Full 1st Quarter Release
Contacts:
Andrew Hersom
Head of Investor Relations
860-970-5845
[email protected]
Gregory Charpentier
AVP, Investor Relations and Corporate Finance
978-387-4150
[email protected]
David Snowden
Senior Vice President, Communications
210-321-2104
[email protected]
