Reinsurance News

Argo expands in reinsurance thanks to Ariel Re acquisition

8th August 2017 - Author: Steve Evans

Argo Group International Holdings, Ltd. has expanded its reinsurance portfolio with the help of the scale and reach added following the acquisition of Ariel Re.

Argo Group logoOverall Argo has increased its gross written premiums by almost 23% to $687.2 million in Q2 2017, but in its international business the reinsurance growth thanks to the ex-Ariel Re platform was even more impressive at 35% premium growth for the quarter.

Argo said that leading its international segment growth was the Ariel Re Lloyd’s of London Syndicate 1910, as well as other business bound in Bermuda and Brazil.

Argo is clearly targeting global diversification of its reinsurance book, with Latin America an increasing focus for the company.

“Argo Group’s results for the first six months of 2017 reflect strong investment returns and profitable growth in our U.S., Bermuda, and Latin America operations,” commented Argo Group CEO Mark E. Watson III. “These results demonstrate continued value creation for our shareholders through our focus on specialized products and distribution globally.”

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Argo’s increase in gross premiums written could be looked on as questionable, given the current challenging and softened nature of the reinsurance marketplace. But the company will be hoping that it is simply a sign of it moving from one tier of the market to the next, leveraging its increased scale since the acquisition of Ariel Re in order to increase the size of its underwriting business, and as a result gain greater diversification as well as profit.

Argo’s acquisition of Ariel Re should position the firm for a greater chance of sustaining the lower returns evident among reinsurers. It’s now larger underwriting book should give the company a greater chance of maintaining and even increasing its relevance in the market, particularly in its line of business and regional specialisms.

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