For the nine month period ended September 30th, 2020, Argo has reported a net loss of $56.8 million compared with net income of $94.9 million in 2019, alongside an operating loss of $4 million, against a gain of $43.1 million a year earlier.
In the third-quarter, gross written premiums increased slightly to $890.2 million, while net written premiums fell by almost 1% to $533.9 million, and earned premiums declined by more than 1% to $445.5 million. The re/insurer explains that pricing increases remained in the low double digits on average across the firm, with a wide range varying by line of business.
Overall, Argo has reported an underwriting loss of $47.7 million for the third-quarter of 2020 compared with a loss of $51.3 million for the same period in 2019.
The combined ratio for the quarter improved slightly year-on-year to 110.7%, and includes a loss ratio of 73.8% and an expense ratio of 36.9%. Argo notes that the slightly lower combined ratio was primarily a result of a better current accident year ex-CAT loss ratio and a lower level of net unfavourable reserve development, which reached $1.6 million in Q3 2020.
Partially offsetting these improvements, notes the firm, was a higher level of catastrophe losses of $71.2 million, which includes $16.9 million related to COVID-19, primarily resulting from contingency exposures in the company’s International Operations.
For Q3 2020, Argo has reported net investment income of $42 million, which represents an increase of 4.5% on the same period in 2019.
Turning to the company’s results for 9M 2020, and Argo has reported an underwriting loss of $62.8 million compared with a loss of $43.4 million in the same period in 2019. The combined ratio for 9M 2020 reached 104.8% and includes a loss ratio of 67.2% and an expense ratio of 37.6%.
Gross written premiums for the nine month period reached $2.5 billion in 2020 against $2.4 billion a year earlier, while net written premiums increased by 1.1% to $1.37 billion and earned premiums by 0.8% to $1.3 billion.
For 9M 2020, Argo has announced net investment income of $79 million, which represents a decline of more than 32% from the $116.9 million reported for the same period in 2019.
Kevin J. Rehnberg, Argo’s Chief Executive Officer (CEO), commented on the results: “We are pleased with the improved underlying margins of our business during the quarter, as well as the actions taken to simplify operations and exit lines that do not meet profitability expectations or are not aligned with our strategy. While the industry faced historic levels of catastrophe activity in the third quarter, we have continued to make progress on our strategic objectives.
“This progress combined with continued gross written premium growth within profitable lines of business, improvement in pricing and a plan to reduce expenses demonstrates our firm commitment to continuing on a path toward increased shareholder value.”