The Bermuda-based Argo Group International Holdings, Ltd. reported earnings figures for the third quarter of 2010 which show net income of $23 million or $0.77 per diluted share, compared to $27.6 million or $0.89 per diluted share for the three months ended Sept. 30, 2009.
Net pre-tax operating income, or pre-tax income before net realized investment gains and losses and foreign currency exchange gains and losses, was $25.7 million compared to $31.7 million in Q3 2009; net after-tax operating income per diluted share was $0.69 versus $0.82 per diluted share in the year-ago quarter.
Book value per share (BVPS) increased to an all-time high of $58.30 at Sept.30, 2010, up 6.5 percent from June 30, 2010, and 14.2 percent from Sept. 30, 2009.
Total revenue was $333.3 million compared to $380.5 million in the third quarter of 2009;
The Group combined ratio for the third quarter of 2010 was 101.3 percent versus 98.6 percent for the same period in 2009. Argo Group’s 2010 third quarter combined ratios for each business segment were as follows: Excess & Surplus Lines at 98.0 percent; Commercial Specialty at 93.6 percent; Reinsurance at 72.2 percent; and International Specialty at 106.9 percent.
Argo’s bulletin also listed the following highlights for the nine months ended Sept. 30, 2010:
— Total revenue was $1.1 billion compared to $1.2 billion for the first nine months of 2009;
— Net income was $69.8 million or $2.31 per diluted share versus $76.5 million or $2.48 per diluted share for the nine months ended Sept. 30, 2009;
— Net pre-tax operating income, or pre-tax income before net realized investment gains and losses, foreign currency exchange gains and losses and an intangible asset impairment charge, was $56.5 million versus $125.4 million for the same nine-month period of 2009;
— Net after-tax operating income per diluted share was $1.49 versus $3.26 per diluted share for the nine months ended Sept. 30, 2009.
Group CEO Mark E. Watson III commented: “We produced positive financial results in the third quarter despite the competitive underwriting environment, a major cat event in New Zealand and a sluggish global economy that affects the market niches we serve.
“Given these challenges, I’m pleased we have continued to increase book value per share sequentially while at the same time being in a position to return capital to shareholders through share repurchases and cash dividend payments. Our focus continues to be on effectively managing our capital base and pursuing opportunities that will expand our enterprise through product innovation and geographic diversification.”
The complete earnings release, as well as a replay of the conference call held Tuesday, Nov. 2, is available on the Group’s web site.
Source: Argo Group
Topics Profit Loss
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