Argo Group has reported second quarter net income attributable to common shareholders of $67.1 million, up from the $5.4 million reported in the prior year period.
Operating income in the second quarter was $56.1 million compared to an operating loss of $3.6 million last year.
Gross written premiums increased 2.0% to $815.3 million while premium growth hit 6.8% in the US.
The combined ratio was 95.4% during the second quarter of 2021 compared to 99.9% in the prior year quarter.
The improved combined ratio was driven by lower losses related to COVID-19 and natural catastrophes, as well as an improved current accident year, ex-catastrophe loss ratio.
Total catastrophe losses in the second quarter of 2021 were $11.1 million or 2.4 points on the loss ratio.
Natural catastrophes accounted for $6.5 million and losses related to the COVID-19 pandemic were $4.6 million.
Catastrophe losses in the second quarter of 2020 were $27.9 million or 6.4 points on the loss ratio and included $17.4 million related to the COVID-19 pandemic.
Net favorable reserve development for the 2021 second quarter was $1.2 million, or 0.3 points on the loss ratio, and was recognized in both U.S. and International Operations. Net reserve development of $1.8 million added 0.4 points to the loss ratio in the second quarter of 2020.
“Argo reported its highest quarterly operating income in more than ten years during the second quarter as a result of our focus on disciplined underwriting and strong investment contributions,” said Argo Chief Executive Officer Kevin J. Rehnberg.
“Our targeted growth efforts have accelerated across the company during 2021 and we remain optimistic about current market conditions and underwriting opportunities.
“We continue to focus on our strategic priorities of improving underwriting margins, reducing volatility and managing expenses. All of this is focused on generating superior shareholder returns over time.”
