- Improved Underlying Results: GWP of $800 million, with 5.9% growth in the U.S. and 3.5% on a consolidated basis; combined ratio of 100.3% and CAY ex-CAT combined ratio of 93.0%; strongest U.S. underwriting income in Argo history.
- Operational Enhancement Actions: Announced new executive leadership team responsibilities; U.S. expense management and International re-underwriting initiatives yielding positive results; continued pricing improvement in both U.S. and International Operations.
- Capital Management Actions: Book value of $49.94 per share, a 6.1% increase including dividends from March 31, 2020; closed on the sale of Trident, recording a $32 million pre-tax gain; preferred share offering in July strengthens capital position and supports plans for strategic growth.
Hamilton, Bermuda – August 3, 2020 – Argo Group International Holdings, Ltd. (NYSE: ARGO) (“Argo” or the “Company”) today announced financial results for the three and six months ended June 30, 2020.
“We are pleased to report the strongest quarterly underwriting income for the U.S. in Argo’s history,” said Argo Chief Executive Officer Kevin J. Rehnberg. “This demonstrates our shift to more positive underlying performance, particularly in our core U.S. specialty business that delivered an excellent quarter despite the broader economic challenges related to COVID-19. The company’s operating results were, however, still negatively impacted by market volatility in our investment portfolio and the pandemic’s effects on premium growth and catastrophe losses, particularly in our International Operations.
“We continue to experience strong improvement in pricing across the business,” added Rehnberg. “We remain optimistic that current market conditions will provide opportunity for continued growth and margin improvement. In addition, our recent preferred stock offering provides Argo with additional capital, enhancing our financial strength, and enables us to more aggressively pursue our strategic growth objectives in this attractive underwriting environment.”
