ARGO BEATS FORECAST DESPITE DEEPENING UNDERWRITING LOSS

Bermudian re/insurer Argo Group International Holdings swung to first-quarter net earnings of $27.2m from a net loss of $24.7m, as a positive $49.3m swing in realised investment gains offset a 28% deepening of its underwriting loss. Operating income per share rose to 44¢ from 36¢, beating analysts’ forecast of a 4¢ per-share loss. With the underwriting loss widening to $17.9m, the combined ratio deteriorated 0.6 points to 103.8%. Catastrophe losses for the period rose to $47.5m from $29.1m and included $43.1m in losses related to weather events, primarily US winter storm Uri, and $4.4m tied to the Covid-19 pandemic. Gross written premiums fell 8.4% to $756.5m as a 2.7% increase in the US was offset by a 23.6% decrease internationally. Adjusting for the sale of Ariel Re in November and planned or executed exits from businesses in Italy, Malta and the US, underlying premiums grew 6.5%.