- Reduced Volatility: Total catastrophe losses were $2.5 million in the second quarter 2022; reflecting our strategy to reduce catastrophe exposure despite continued industry catastrophe losses this quarter.
- Achieved Further Strategic Growth: While net earned premiums decreased 3.4% from the prior year second quarter due to exited businesses, net earned premiums from ongoing business[1] grew approximately 12.0%, primarily attributable to business lines where we retain more of the risk on a net basis.
- Delivered Expense Reductions: Expense ratio of 35.4% for the second quarter 2022 improved 2.3 percentage points from a year ago, driven by reduced general and administrative expenses.
- U.S. Operations Loss Portfolio Transfer (“LPT”): Agreement on LPT transaction covering a majority of Argo’s U.S. casualty insurance reserves, including construction, for accident years 2011 to 2019.
HAMILTON, Bermuda – August 8, 2022 – Argo Group International Holdings, Ltd. (NYSE: ARGO) (“Argo” or the “company”) today announced financial results for the three and six months ended June 30, 2022.
“The company’s second quarter results reflect our focused approach to profitable growth as we successfully target the most attractive business lines,” said Argo Executive Chairman and Chief Executive Officer, Thomas A. Bradley. “We are pleased with the success in executing on our strategic priorities, particularly, managing expenses and reducing volatility. Ongoing cost reduction efforts significantly lowered the expense ratio from the prior year second quarter and our commitment to reducing volatility in the underwriting results has driven improvement in year-over-year catastrophe losses for five consecutive quarters.”
“Through six months, operating earnings increased four percent from a year ago, primarily due to significantly higher underwriting income. We are also encouraged by increasing interest income from our fixed income portfolio. The meaningful increase in underwriting income more than offset the lower contribution from alternative investment income. Looking ahead, we believe the company continues to be well-positioned to deliver profitable growth.”
View the Full 2nd Quarter Release
[1] Ongoing business excludes the following businesses the company is exiting, plan to exit, or have sold, including sales of Ariel Re, which was sold in November 2020, Contract Binding P&C in October 2021, U.S. Specialty Property exited in December 2021, Argo Seguros Brasil in February 2022, ArgoGlobal Holdings (Malta) in June 2022, and businesses in Italy, London Property D&F and North American Binders business in Syndicate 1200, and the U.S. grocery business.
