Argo Group International Holdings, which has moved to simplify its business model, posted losses in both the quarter and nine months ended September 30.
For the third quarter, Argo’s net loss attributable to common shareholders amounted to US$51.4 million; in 9M, US$73.9 million. The negative results were a dive from 2021’s US$19.8 million and US$114.1 million in net income attributable to common shareholders for Q3 and the nine-month span, respectively.
“The net loss attributable to common shareholders in the third quarter 2022 included pre-tax net realized investment and other losses of US$44.7 million, compared to US$5.3 million of pre-tax net realized investment and other losses in the prior year third quarter,” noted the insurance group, which reported lower catastrophe losses in the quarter despite elevated industry catastrophe losses.
“The increase was primarily driven by US$34.2 million of pre-tax realized losses related to the impairment of assets that will be transferred upon the close of the company’s previously announced loss portfolio transfer transaction with a wholly owned subsidiary of Enstar Group Limited.”
Argo went on to outline: “The net loss attributable to common shareholders in the third quarter 2022 also included a US$28.5 million impairment of goodwill and intangible assets related to the announced sale of Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200.”
Offloading Argo Underwriting Agency was part of the group’s simplification efforts.
Meanwhile, operating earnings in Q3 and 9M stood at US$15.5 million and US$89.8 million, respectively. The corresponding figures in 2021 were higher. In terms of underwriting in the quarter, the company’s US operations enjoyed an underwriting income while the international operations reported an underwriting loss.
When the financial results were released, executive chair and chief executive Thomas A. Bradley highlighted: “Over the past two years, we have transformed Argo, better positioning the company to advance our business strategies. In September, we announced the sale of our Lloyd’s operation, which marks a significant milestone in Argo becoming a focused, pure-play US specialty insurer.
“Importantly, this transaction further simplifies our corporate structure, enables greater focus on our diverse portfolio of profitable and scalable US specialty businesses, and better positions us to explore additional strategic alternatives to maximize shareholder value.”
