The Bermuda-based Argo International Holdings, Ltd. (The successor to Argonaut Insurance) announced comparatively good financial results for the three and six months ended June 30, 2008. Net income for the second quarter rose to $23 million from $21 million in Q2 2007, while net income for the first six months of 2008 reached $59.9 million, compared to $46.1 million in 2007.
Argo listed the following highlights for the three months ended June 30, 2008:
— Argo Group closed on its all-cash acquisition of Heritage Underwriting Agency plc;
— Net income increased to $23.0 million, impacted by $16.4 million of pre-tax storm losses;
— Gross written premiums totaled $397.6 million including $74.3 million attributable to Heritage;
— Net investment income increased 29 percent over the same quarter of 2007;
— A.M. Best Co. affirmed the financial strength rating of A (excellent), an issuer credit rating of “a” and an outlook of stable for Argo Group’s U.S. operations.
Highlights for the six months ended June 30, 2008 were as follows:
–Net income increased by 30 percent to $59.9 million, impacted by $20.6 million of pre-tax storm losses;
— Gross written premiums totaled $744.2 million including $74.3 million attributable to Heritage;
— Book value per share at June 30, 2008 increased to $45.85 from $45.15 per share at Dec. 31, 2007.
Argo Group President and CEO Mark E. Watson III commented: “Early in the second quarter we completed a significant transaction in the acquisition of Heritage Underwriting Agency, a leading Lloyd’s specialty underwriter. The addition was core to the expansion of our operating platform giving us more complete access to what has become a single broadly distributed specialty insurance marketplace. We now have a platform differentiated from most of our industry peers and believe the breadth of our operations in Bermuda, the U.S. and London will provide increasing opportunities for intelligent growth in all areas of our business.
“While we were disappointed by the frequency of losses brought on by the significant number of severe storms that affected the mid section of the United States in the quarter, the losses incurred were not unexpected given the geographic dispersion of our business. Despite this, it was encouraging that our Reinsurance segment, in only its second full quarter of operations, performed in line with our expectations by writing what we believe are attractive risks in the catastrophe reinsurance market.”
The complete report and details to access the investors’ conference call may be obtained on the Group’s web site at: www.argolimited.com.
Source: Argo Group
Topics Trends USA Profit Loss
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