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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Argo Group International Holdings Ltd | NYSE:ARGO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 29.99 | 0 | 01:00:00 |
|
|
|
|
||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
|
P.O. Box HM 1282
Hamilton HM FX Bermuda |
(Address, Including Zip Code,
of Principal Executive Offices) |
(Mailing Address)
|
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
|
||||
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
No.
|
Exhibit
|
|
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ARGO GROUP INTERNATIONAL HOLDINGS, LTD. | |||
Date: August 7, 2023
|
By:
|
/s/ Scott Kirk | |
Name: Scott Kirk | |||
Title: Chief Financial Officer |
•
|
Pending merger with Brookfield Reinsurance: We continue to expect the merger to close the second half of 2023, subject to customary closing conditions, including receipt of required regulatory approvals
|
•
|
Low Catastrophe Losses: Total catastrophe losses were $3.1 million for second quarter 2023; catastrophe losses for the first six months of 2023 were 40% lower than the same period in 2022.
|
•
|
Improved Efficiency: Expense ratio of 33.6% improved 1.8 percentage points from the prior year second quarter
|
($ in millions, except per share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net loss attributable to common shareholders
|
$
|
(0.5
|
)
|
$
|
(18.9
|
)
|
$
|
(36.9
|
)
|
$
|
(22.5
|
)
|
||||
Per diluted common share
|
$
|
(0.01
|
)
|
$
|
(0.54
|
)
|
$
|
(1.05
|
)
|
$
|
(0.64
|
)
|
||||
Operating (loss) income earnings
|
$
|
(0.8
|
)
|
$
|
31.0
|
$
|
(11.6
|
)
|
$
|
74.4
|
||||||
Per diluted common share
|
$
|
(0.02
|
)
|
$
|
0.89
|
$
|
(0.33
|
)
|
$
|
2.13
|
||||||
Annualized return on average common shareholders' equity
|
(0.2
|
)%
|
(5.4
|
)%
|
(6.8
|
)%
|
(3.1
|
)%
|
||||||||
Annualized operating return on average common shareholders' equity
|
(0.3
|
%
|
8.9
|
%
|
(2.1
|
)%
|
10.2
|
%
|
||||||||
($ in millions)
|
Three Months Ended
June 30,
|
Q/Q
|
|
Six Months Ended
June 30,
|
Y/Y
|
|||||||||||||||||||
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
561.9
|
$
|
732.1
|
-23.2
|
%
|
$
|
1,158.6
|
$
|
1,452.7
|
-20.2
|
%
|
||||||||||||
Net written premiums
|
348.9
|
469.1
|
-25.6
|
%
|
684.8
|
909.6
|
-24.7
|
%
|
||||||||||||||||
Earned premiums
|
$
|
329.9
|
$
|
454.3
|
-27.4
|
%
|
$
|
719.8
|
$
|
934.9
|
-23.0
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
241.4
|
276.0
|
-12.5
|
%
|
526.0
|
559.6
|
-6.0
|
%
|
||||||||||||||||
Acquisition expenses
|
51.2
|
77.8
|
-34.2
|
%
|
112.9
|
160.4
|
-29.6
|
%
|
||||||||||||||||
General and administrative expenses
|
59.7
|
83.2
|
-28.2
|
%
|
135.0
|
173.5
|
-22.2
|
%
|
||||||||||||||||
Underwriting income (loss)
|
$
|
(22.4
|
)
|
$
|
17.3
|
NM
|
$
|
(54.1
|
)
|
$
|
41.4
|
NM
|
||||||||||||
Net investment income
|
$
|
32.8
|
$
|
29.3
|
11.9
|
%
|
$
|
62.5
|
$
|
67.0
|
-6.7
|
%
|
||||||||||||
Loss ratio
|
73.2
|
%
|
60.8
|
%
|
12.4 pts
|
73.1
|
%
|
59.9
|
%
|
13.2 pts
|
||||||||||||||
Acquisition expense ratio
|
15.5
|
%
|
17.1
|
%
|
-1.6 pts
|
15.7
|
%
|
17.2
|
%
|
-1.5 pts
|
||||||||||||||
General and administrative expense ratio
|
18.1
|
%
|
18.3
|
%
|
-0.2 pts
|
18.7
|
%
|
18.5
|
%
|
0.2 pts
|
||||||||||||||
Expense ratio
|
33.6
|
%
|
35.4
|
%
|
-1.8 pts
|
34.4
|
%
|
35.7
|
%
|
-1.3 pts
|
||||||||||||||
Combined ratio
|
106.8
|
%
|
96.2
|
%
|
10.6 pts
|
107.5
|
%
|
95.6
|
%
|
11.9 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
64.3
|
%
|
56.6
|
%
|
7.7 pts
|
61.8
|
%
|
56.6
|
%
|
5.2 pts
|
||||||||||||||
•
|
Gross written premiums within the company’s ongoing business1 decreased approximately 0.8% from the
prior year second quarter
|
•
|
Earned premiums increased approximately 0.9% within the company’s ongoing business reflecting business mix shift towards lines of business where the company
retains more risk.
|
•
|
The current accident year, excluding catastrophes ("CAY ex-CAT") loss ratio of 64.3% increased 7.7 percentage points.
|
•
|
Total catastrophe losses were $3.1 million or 0.9 percentage points on the loss ratio. In comparison, catastrophe losses in the prior year second quarter were
$2.5 million or 0.6 percentage points on the loss ratio
|
•
|
Net adverse prior year reserve development was $26.4 million, or 8.0 percentage points on the loss ratio. In comparison, net adverse prior year reserve
development in the second quarter 2022 was $16.3 million, or 3.6 percentage points on the loss ratio
|
•
|
The net loss attributable to common shareholders in the second quarter 2023 included pre-tax net realized investment and other gains of $1.6 million. In comparison, the prior year second quarter included
pre-tax net realized investment and other losses of $40.4 million, of which $21.3 million was attributable to a loss on sale of the company's Malta operations.
|
•
|
In addition, the net loss attributable to common shareholders in the second quarter 2023 included $6.8 million of non-operating expenses, which were mainly
attributable to non-operating legal fees for the company's pending merger with Brookfield Reinsurance. In comparison, the prior year second quarter reported $15.6 million in non-operating expenses which were mainly driven by non-operating
advisory fees and severance.
|
($ in millions)
|
Three Months Ended
June 30,
|
Q/Q
|
|
Six Months Ended
June 30,
|
Y/Y
|
|
||||||||||||||||||
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
456.1
|
$
|
501.1
|
-9.0
|
%
|
$
|
893.3
|
$
|
976.3
|
-8.5
|
%
|
||||||||||||
Net written premiums
|
299.7
|
331.9
|
-9.7
|
%
|
586.2
|
644.8
|
-9.1
|
%
|
||||||||||||||||
Earned premiums
|
$
|
311.2
|
$
|
332.8
|
-6.5
|
%
|
$
|
636.8
|
$
|
669.2
|
-4.8
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
229.2
|
202.5
|
13.2
|
%
|
469.1
|
408.7
|
14.8
|
%
|
||||||||||||||||
Acquisition expenses
|
56.6
|
51.4
|
10.1
|
%
|
110.9
|
108.9
|
1.8
|
%
|
||||||||||||||||
General and administrative expenses
|
50.7
|
50.7
|
—
|
%
|
103.1
|
100.9
|
2.2
|
%
|
||||||||||||||||
Underwriting income (loss)
|
$
|
(25.3
|
)
|
$
|
28.2
|
NM
|
$
|
(46.3
|
)
|
$
|
50.7
|
NM
|
||||||||||||
Loss ratio
|
73.7
|
%
|
60.8
|
%
|
12.9 pts
|
73.7
|
%
|
61.1
|
%
|
12.6 pts
|
||||||||||||||
Acquisition expense ratio
|
18.2
|
%
|
15.4
|
%
|
2.8 pts
|
17.4
|
%
|
16.3
|
%
|
1.1 pts
|
||||||||||||||
General and administrative expense ratio
|
16.2
|
%
|
15.3
|
%
|
0.9 pts
|
16.2
|
%
|
15.0
|
%
|
1.2 pts
|
||||||||||||||
Expense ratio
|
34.4
|
%
|
30.7
|
%
|
3.7 pts
|
33.6
|
%
|
31.3
|
%
|
2.3 pts
|
||||||||||||||
Combined ratio
|
108.1
|
%
|
91.5
|
%
|
16.6 pts
|
107.3
|
%
|
92.4
|
%
|
14.9 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
64.5
|
%
|
58.5
|
%
|
6.0 pts
|
62.5
|
%
|
58.7
|
%
|
3.8 pts
|
||||||||||||||
•
|
While the company experienced low-double digit rate decreases in its commercial D&O business, the remaining portfolio achieved rate increases in the
mid-single digits.
|
•
|
Gross written premiums within the U.S. ongoing business2 decreased 5.8% from the prior year second
quarter. The decrease was driven by deliberate and disciplined actions in certain lines of business, partially offset by continued growth across the rest of the portfolio.
|
•
|
Earned premiums increased approximately 1.2% within the company’s U.S. ongoing business, reflecting business mix shift towards lines of business where the
company retains more risk.
|
•
|
The CAY ex-CAT loss ratio of 64.5% increased 6.0 percentage points mainly due to the anticipated impact of claims inflation, evolving loss trends, and the rate
environment in some management liability classes.
|
•
|
Catastrophe losses were $3.1 million, or 1.0 percentage point on the loss ratio, compared to $1.0 million or 0.3 percentage points on the loss ratio in the
prior year second quarter.
|
•
|
Net adverse prior year reserve development was $25.4 million or 8.2 percentage points on the loss ratio. In comparison, net adverse development in the prior
year second quarter was $6.7 million, or 2.0 percentage points on the loss ratio. The adverse development in the second quarter 2023 was primarily attributable to businesses the company has exited.
|
($ in millions)
|
Three Months Ended
June 30,
|
Q/Q
|
|
Six Months Ended
June 30,
|
Y/Y
|
|
||||||||||||||||||
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
105.8
|
$
|
230.8
|
-54.2
|
%
|
$
|
265.3
|
$
|
476.2
|
-44.3
|
%
|
||||||||||||
Net written premiums
|
49.2
|
137.0
|
-64.1
|
%
|
98.6
|
264.6
|
-62.7
|
%
|
||||||||||||||||
Earned premiums
|
$
|
18.6
|
$
|
121.3
|
-84.7
|
%
|
$
|
82.9
|
$
|
265.5
|
-68.8
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
11.6
|
72.1
|
-83.9
|
%
|
55.2
|
148.1
|
-62.7
|
%
|
||||||||||||||||
Acquisition expenses
|
(5.4
|
)
|
25.6
|
NM
|
1.9
|
50.7
|
-96.3
|
%
|
||||||||||||||||
General and administrative expenses
|
6.4
|
27.8
|
-77.0
|
%
|
20.5
|
57.6
|
-64.4
|
%
|
||||||||||||||||
Underwriting income (loss)
|
$
|
6.0
|
$
|
(4.2
|
)
|
NM
|
$
|
5.3
|
$
|
9.1
|
-41.8
|
%
|
||||||||||||
Loss ratio
|
62.4
|
%
|
59.4
|
%
|
3.0 pts
|
66.6
|
%
|
55.8
|
%
|
10.8 pts
|
||||||||||||||
Acquisition expense ratio
|
-29.0
|
%
|
21.1
|
%
|
-50.1 pts
|
2.3
|
%
|
19.1
|
%
|
-16.8 pts
|
||||||||||||||
General and administrative expense ratio
|
34.3
|
%
|
23.0
|
%
|
11.3 pts
|
24.7
|
%
|
21.7
|
%
|
3.0 pts
|
||||||||||||||
Expense Ratio
|
5.3
|
%
|
44.1
|
%
|
-38.8 pts
|
27.0
|
%
|
40.8
|
%
|
-13.8 pts
|
||||||||||||||
Combined ratio
|
67.7
|
%
|
103.5
|
%
|
-35.8 pts
|
93.6
|
%
|
96.6
|
%
|
-3.0 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
60.2
|
%
|
51.4
|
%
|
8.8 pts
|
56.1
|
%
|
51.5
|
%
|
4.6 pts
|
||||||||||||||
•
|
Rates on average were up in the low-double digits in the second quarter 2023.
|
•
|
The CAY ex-CAT loss ratio was 60.2%, an increase of 8.8 percentage points. The second quarter 2023 includes a different mix of business from 2022 due to
businesses the company has sold and exited.
|
•
|
The segment did not incur any catastrophe losses in the second quarter 2023. In comparison, the prior year second quarter had $1.5 million in catastrophe
losses, or 1.2 percentage points on the loss ratio.
|
•
|
Net adverse prior year reserve development was $0.4 million, which increased the loss ratio by 2.2 percentage points. In comparison, the prior year second
quarter had $8.2 million of net adverse prior year reserve development, which decreased the loss ratio 6.8 percentage points.
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(unaudited)
|
|||||||
Assets
|
||||||||
Total investments
|
$
|
3,960.7
|
$
|
3,651.9
|
||||
Cash
|
29.3
|
50.2
|
||||||
Accrued investment income
|
19.0
|
18.6
|
||||||
Receivables
|
3,220.1
|
3,321.1
|
||||||
Goodwill and intangible assets
|
118.6
|
118.6
|
||||||
Deferred acquisition costs, net
|
103.9
|
107.0
|
||||||
Ceded unearned premiums
|
358.3
|
375.5
|
||||||
Other assets
|
377.2
|
325.3
|
||||||
Assets held-for-sale
|
—
|
2,066.2
|
||||||
Total assets
|
$
|
8,187.1
|
$
|
10,034.4
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
5,204.7
|
$
|
5,051.6
|
||||
Unearned premiums
|
1,003.2
|
1,039.9
|
||||||
Ceded reinsurance payable, net
|
182.9
|
158.7
|
||||||
Senior unsecured fixed rate notes
|
140.6
|
140.5
|
||||||
Junior subordinated debentures
|
258.8
|
258.6
|
||||||
Other liabilities
|
162.1
|
237.7
|
||||||
Liabilities held-for-sale
|
—
|
1,914.5
|
||||||
Total liabilities
|
6,952.3
|
8,801.5
|
||||||
Preferred shares
|
144.0
|
144.0
|
||||||
Common shares
|
46.5
|
46.4
|
||||||
Additional paid-in capital
|
1,395.1
|
1,395.4
|
||||||
Treasury shares
|
(455.1
|
)
|
(455.1
|
)
|
||||
Retained earnings
|
370.6
|
407.3
|
||||||
Accumulated other comprehensive income, net of taxes
|
(266.3
|
)
|
(305.1
|
)
|
||||
Total shareholders' equity
|
1,234.8
|
1,232.9
|
||||||
Total liabilities and shareholders' equity
|
$
|
8,187.1
|
$
|
10,034.4
|
||||
Book value per common share
|
$
|
31.00
|
$
|
31.06
|
||||
Tangible book value per common share
|
$
|
27.63
|
$
|
27.67
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
38.57
|
$
|
39.76
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
35.20
|
$
|
36.38
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Gross written premiums
|
$
|
561.9
|
$
|
732.1
|
$
|
1,158.6
|
$
|
1,452.7
|
||||||||
Net written premiums
|
348.9
|
469.1
|
684.8
|
909.6
|
||||||||||||
Earned premiums
|
329.9
|
454.3
|
719.8
|
934.9
|
||||||||||||
Net investment income
|
32.8
|
29.3
|
62.5
|
67.0
|
||||||||||||
Net investment and other gains (losses):
|
||||||||||||||||
Net realized investment and other gains (losses)
|
(4.4
|
)
|
(36.9
|
)
|
(28.4
|
)
|
(77.0
|
)
|
||||||||
Change in fair value recognized
|
6.0
|
(3.0
|
)
|
12.2
|
3.7
|
|||||||||||
Change in allowance for credit losses on fixed maturity securities
|
—
|
(0.5
|
)
|
(0.1
|
)
|
(1.6
|
)
|
|||||||||
Net realized investment and other gains (losses)
|
1.6
|
(40.4
|
)
|
(16.3
|
)
|
(74.9
|
)
|
|||||||||
Total revenue
|
364.3
|
443.2
|
766.0
|
927.0
|
||||||||||||
Losses and loss adjustment expenses
|
241.4
|
276.0
|
526.0
|
559.6
|
||||||||||||
Acquisition expenses
|
51.2
|
77.8
|
112.9
|
160.4
|
||||||||||||
General and administrative expenses
|
59.7
|
83.2
|
135.0
|
173.5
|
||||||||||||
Non-operating expenses
|
6.8
|
15.6
|
18.4
|
23.0
|
||||||||||||
Interest expense
|
8.2
|
6.1
|
16.7
|
11.9
|
||||||||||||
Fee and other (income) expense, net
|
(0.1
|
)
|
(1.1
|
)
|
(0.5
|
)
|
(1.9
|
)
|
||||||||
Foreign currency exchange (gains) losses
|
0.7
|
(10.3
|
)
|
3.4
|
(7.4
|
)
|
||||||||||
Total expenses
|
367.9
|
447.3
|
811.9
|
919.1
|
||||||||||||
Income (loss) before income taxes
|
(3.6
|
)
|
(4.1
|
)
|
(45.9
|
)
|
7.9
|
|||||||||
Income tax provision (benefit)
|
(5.8
|
)
|
12.1
|
(14.3
|
)
|
25.1
|
||||||||||
Net income (loss)
|
$
|
2.2
|
$
|
(16.2
|
)
|
$
|
(31.6
|
)
|
$
|
(17.2
|
)
|
|||||
Dividends on preferred shares
|
2.7
|
2.7
|
5.3
|
5.3
|
||||||||||||
Net loss attributable to common shareholders
|
$
|
(0.5
|
)
|
$
|
(18.9
|
)
|
$
|
(36.9
|
)
|
$
|
(22.5
|
)
|
||||
Net income (loss) per common share (basic)
|
$
|
(0.01
|
)
|
$
|
(0.54
|
)
|
$
|
(1.05
|
)
|
$
|
(0.64
|
)
|
||||
Net income (loss) per common share (diluted)
|
$
|
(0.01
|
)
|
$
|
(0.54
|
)
|
$
|
(1.05
|
)
|
$
|
(0.64
|
)
|
||||
Weighted average common shares:
|
||||||||||||||||
Basic
|
35.2
|
35.0
|
35.1
|
34.9
|
||||||||||||
Diluted
|
35.2
|
35.0
|
35.1
|
34.9
|
||||||||||||
Loss ratio
|
73.2
|
%
|
60.8
|
%
|
73.1
|
%
|
59.9
|
%
|
||||||||
Acquisition expense ratio
|
15.5
|
%
|
17.1
|
%
|
15.7
|
%
|
17.2
|
%
|
||||||||
General and administrative expense ratio
|
18.1
|
%
|
18.3
|
%
|
18.7
|
%
|
18.5
|
%
|
||||||||
Expense ratio
|
33.6
|
%
|
35.4
|
%
|
34.4
|
%
|
35.7
|
%
|
||||||||
GAAP combined ratio
|
106.8
|
%
|
96.2
|
%
|
107.5
|
%
|
95.6
|
%
|
||||||||
CAY ex-CAT combined ratio
|
97.9
|
%
|
92.0
|
%
|
96.2
|
%
|
92.3
|
%
|
|
Three Months Ended
|
Six months ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
U.S. Operations
|
||||||||||||||||
Gross written premiums
|
$
|
456.1
|
$
|
501.1
|
$
|
893.3
|
$
|
976.3
|
||||||||
Net written premiums
|
299.7
|
331.9
|
586.2
|
644.8
|
||||||||||||
Earned premiums
|
311.2
|
332.8
|
636.8
|
669.2
|
||||||||||||
Underwriting income
|
(25.3
|
)
|
28.2
|
(46.3
|
)
|
50.7
|
||||||||||
Net investment income
|
27.1
|
20.0
|
51.5
|
45.6
|
||||||||||||
Interest expense
|
(6.7
|
)
|
(4.2
|
)
|
(13.7
|
)
|
(8.1
|
)
|
||||||||
Fee (expense), net
|
—
|
(0.1
|
)
|
0.3
|
(0.1
|
)
|
||||||||||
Operating (loss) income before taxes
|
$
|
(4.9
|
)
|
$
|
43.9
|
$
|
(8.2
|
)
|
$
|
88.1
|
||||||
Loss ratio
|
73.7
|
%
|
60.8
|
%
|
73.7
|
%
|
61.1
|
%
|
||||||||
Acquisition expense ratio
|
18.2
|
%
|
15.4
|
%
|
17.4
|
%
|
16.3
|
%
|
||||||||
General and administrative expense ratio
|
16.2
|
%
|
15.3
|
%
|
16.2
|
%
|
15.0
|
%
|
||||||||
Expense Ratio
|
34.4
|
%
|
30.7
|
%
|
33.6
|
%
|
31.3
|
%
|
||||||||
GAAP combined ratio
|
108.1
|
%
|
91.5
|
%
|
107.3
|
%
|
92.4
|
%
|
||||||||
CAY ex-CAT combined ratio
|
98.9
|
%
|
89.2
|
%
|
96.1
|
%
|
90.0
|
%
|
||||||||
International Operations
|
||||||||||||||||
Gross written premiums
|
$
|
105.8
|
$
|
230.8
|
$
|
265.3
|
$
|
476.2
|
||||||||
Net written premiums
|
49.2
|
137.0
|
98.6
|
264.6
|
||||||||||||
Earned premiums
|
18.6
|
121.3
|
82.9
|
265.5
|
||||||||||||
Underwriting income (loss)
|
6.0
|
(4.2
|
)
|
5.3
|
9.1
|
|||||||||||
Net investment income
|
5.0
|
8.7
|
9.6
|
20.1
|
||||||||||||
Interest expense
|
(1.3
|
)
|
(1.9
|
)
|
(2.6
|
)
|
(3.6
|
)
|
||||||||
Fee income, net
|
0.1
|
1.2
|
0.2
|
2.0
|
||||||||||||
Operating income before taxes
|
$
|
9.8
|
$
|
3.8
|
$
|
12.5
|
$
|
27.6
|
||||||||
Loss ratio
|
62.4
|
%
|
59.4
|
%
|
66.6
|
%
|
55.8
|
%
|
||||||||
Acquisition expense ratio
|
(29.0
|
)%
|
21.1
|
%
|
2.3
|
%
|
19.1
|
%
|
||||||||
General and administrative expense ratio
|
34.3
|
%
|
23.0
|
%
|
24.7
|
%
|
21.7
|
%
|
||||||||
Expense Ratio
|
5.3
|
%
|
44.1
|
%
|
27.0
|
%
|
40.8
|
%
|
||||||||
GAAP combined ratio
|
67.7
|
%
|
103.5
|
%
|
93.6
|
%
|
96.6
|
%
|
||||||||
CAY ex-CAT combined ratio
|
65.5
|
%
|
95.5
|
%
|
83.1
|
%
|
92.3
|
%
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
73.7
|
%
|
60.8
|
%
|
73.7
|
%
|
61.1
|
%
|
||||||||
Prior accident year loss reserve development
|
(8.2
|
)%
|
(2.0
|
)%
|
(10.2
|
)%
|
(1.7
|
)%
|
||||||||
Catastrophe losses
|
(1.0
|
)%
|
(0.3
|
)%
|
(1.0
|
)%
|
(0.7
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
64.5
|
%
|
58.5
|
%
|
62.5
|
%
|
58.7
|
%
|
||||||||
International Operations
|
||||||||||||||||
Loss ratio
|
62.4
|
%
|
59.4
|
%
|
66.6
|
%
|
55.8
|
%
|
||||||||
Prior accident year loss reserve development
|
(2.2
|
)%
|
(6.8
|
)%
|
(9.9
|
)%
|
(2.0
|
)%
|
||||||||
Catastrophe losses
|
—
|
%
|
(1.2
|
)%
|
(0.6
|
)%
|
(2.3
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
60.2
|
%
|
51.4
|
%
|
56.1
|
%
|
51.5
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
73.2
|
%
|
60.8
|
%
|
73.1
|
%
|
59.9
|
%
|
||||||||
Prior accident year loss reserve development
|
(8.0
|
)%
|
(3.6
|
)%
|
(10.4
|
)%
|
(2.1
|
)%
|
||||||||
Catastrophe losses
|
(0.9
|
)%
|
(0.6
|
)%
|
(0.9
|
)%
|
(1.2
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
64.3
|
%
|
56.6
|
%
|
61.8
|
%
|
56.6
|
%
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
||||||||||||||
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net Prior-Year Reserve Development
|
|||||||||||||||
(Favorable)/Unfavorable
|
|||||||||||||||
U.S. Operations
|
$
|
25.4
|
$
|
6.7
|
$
|
65.1
|
$
|
11.7
|
|||||||
International Operations
|
0.4
|
8.2
|
8.2
|
5.2
|
|||||||||||
Run-off Lines
|
0.6
|
1.4
|
1.7
|
2.8
|
|||||||||||
Total net prior-year reserve development
|
$
|
26.4
|
$
|
16.3
|
$
|
75.0
|
$
|
19.7
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
||||||||||||||
2023
|
2022
|
2023
|
2022
|
||||||||||||
Catastrophe Losses
|
|||||||||||||||
Catastrophe losses
|
|||||||||||||||
U.S. Operations
|
$
|
3.1
|
$
|
1.0
|
$
|
6.2
|
$
|
5.0
|
|||||||
International Operations
|
—
|
1.5
|
0.5
|
6.2
|
|||||||||||
Total catastrophe losses
|
3.1
|
2.5
|
6.7
|
11.2
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net income (loss)
|
$
|
2.2
|
$
|
(16.2
|
)
|
$
|
(31.6
|
)
|
$
|
(17.2
|
)
|
|||||
Add (deduct):
|
||||||||||||||||
Income tax provision (benefit)
|
(5.8
|
)
|
12.1
|
(14.3
|
)
|
25.1
|
||||||||||
Net investment income
|
(32.8
|
)
|
(29.3
|
)
|
(62.5
|
)
|
(67.0
|
)
|
||||||||
Net realized investment and other (gains) losses
|
(1.6
|
)
|
40.4
|
16.3
|
74.9
|
|||||||||||
Interest expense
|
8.2
|
6.1
|
16.7
|
11.9
|
||||||||||||
Fee and other (income) expense, net
|
(0.1
|
)
|
(1.1
|
)
|
(0.5
|
)
|
(1.9
|
)
|
||||||||
Foreign currency exchange (gains) losses
|
0.7
|
(10.3
|
)
|
3.4
|
(7.4
|
)
|
||||||||||
Non-operating expenses
|
6.8
|
15.6
|
18.4
|
23.0
|
||||||||||||
Underwriting income (loss)
|
$
|
(22.4
|
)
|
$
|
17.3
|
$
|
(54.1
|
)
|
$
|
41.4
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net income (loss), as reported
|
$
|
2.2
|
$
|
(16.2
|
)
|
$
|
(31.6
|
)
|
$
|
(17.2
|
)
|
|||||
Income tax provision (benefit)
|
(5.8
|
)
|
12.1
|
(14.3
|
)
|
25.1
|
||||||||||
Net income (loss), before taxes
|
(3.6
|
)
|
(4.1
|
)
|
(45.9
|
)
|
7.9
|
|||||||||
Add (deduct):
|
||||||||||||||||
Net realized investment and other (gains) losses
|
(1.6
|
)
|
40.4
|
16.3
|
74.9
|
|||||||||||
Foreign currency exchange (gains) losses
|
0.7
|
(10.3
|
)
|
3.4
|
(7.4
|
)
|
||||||||||
Non-operating expenses
|
6.8
|
15.6
|
18.4
|
23.0
|
||||||||||||
Operating income (loss) before taxes and preferred share dividends
|
2.3
|
41.6
|
(7.8
|
)
|
98.4
|
|||||||||||
Income tax provision (benefit), at assumed rate (1)
|
0.4
|
7.9
|
(1.5
|
)
|
18.7
|
|||||||||||
Preferred share dividends
|
2.7
|
2.7
|
5.3
|
5.3
|
||||||||||||
Operating (loss) income
|
$
|
(0.8
|
)
|
$
|
31.0
|
$
|
(11.6
|
)
|
$
|
74.4
|
||||||
Operating (loss) income per common share (diluted)
|
$
|
(0.02
|
)
|
$
|
0.89
|
$
|
(0.33
|
)
|
$
|
2.13
|
||||||
Weighted average common shares, diluted
|
35.2
|
35.0
|
35.1
|
34.9
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Operating income (loss) before income taxes:
|
||||||||||||||||
U.S. Operations
|
$
|
(4.9
|
)
|
$
|
43.9
|
$
|
(8.2
|
)
|
$
|
88.1
|
||||||
International Operations
|
9.8
|
3.8
|
12.5
|
27.6
|
||||||||||||
Run-off Lines
|
(0.3
|
)
|
(1.5
|
)
|
(1.0
|
)
|
(2.5
|
)
|
||||||||
Corporate and Other
|
(2.3
|
)
|
(4.6
|
)
|
(11.1
|
)
|
(14.8
|
)
|
||||||||
Total operating income (loss) before income taxes
|
2.3
|
41.6
|
(7.8
|
)
|
98.4
|
|||||||||||
Net realized investment and other gains (losses)
|
1.6
|
(40.4
|
)
|
(16.3
|
)
|
(74.9
|
)
|
|||||||||
Foreign currency exchange (losses) gains
|
(0.7
|
)
|
10.3
|
(3.4
|
)
|
7.4
|
||||||||||
Non-operating expenses
|
(6.8
|
)
|
(15.6
|
)
|
(18.4
|
)
|
(23.0
|
)
|
||||||||
Impairment of goodwill
|
—
|
—
|
—
|
—
|
||||||||||||
Income (loss) before income taxes
|
(3.6
|
)
|
(4.1
|
)
|
(45.9
|
)
|
7.9
|
|||||||||
Income tax provision (benefit)
|
(5.8
|
)
|
12.1
|
(14.3
|
)
|
25.1
|
||||||||||
Net income (loss)
|
$
|
2.2
|
$
|
(16.2
|
)
|
$
|
(31.6
|
)
|
$
|
(17.2
|
)
|
U.S. Operations
|
Three months ended June 30, 2023
|
Three months ended June 30, 2022
|
|||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
65.7
|
$
|
39.4
|
$
|
36.7
|
$
|
57.5
|
$
|
39.8
|
$
|
39.1
|
|||||||||||
Liability
|
244.7
|
157.9
|
168.1
|
274.5
|
171.5
|
171.7
|
|||||||||||||||||
Professional
|
78.5
|
57.5
|
65.3
|
109.7
|
76.7
|
80.0
|
|||||||||||||||||
Specialty
|
67.2
|
44.9
|
41.1
|
59.4
|
43.9
|
42.0
|
|||||||||||||||||
Total
|
$
|
456.1
|
$
|
299.7
|
$
|
311.2
|
$
|
501.1
|
$
|
331.9
|
$
|
332.8
|
Six months ended June 30, 2023
|
Six months ended June 30, 2022
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
121.7
|
$
|
68.4
|
$
|
73.6
|
$
|
101.9
|
$
|
66.6
|
$
|
79.6
|
|||||||||||
Liability
|
492.8
|
317.7
|
343.4
|
545.1
|
341.5
|
342.1
|
|||||||||||||||||
Professional
|
153.7
|
112.6
|
133.6
|
211.0
|
146.1
|
164.5
|
|||||||||||||||||
Specialty
|
125.1
|
87.5
|
86.2
|
118.3
|
90.6
|
83.0
|
|||||||||||||||||
Total
|
$
|
893.3
|
$
|
586.2
|
$
|
636.8
|
$
|
976.3
|
$
|
644.8
|
$
|
669.2
|
International Operations
|
Three months ended June 30, 2023
|
Three months ended June 30, 2022
|
|||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
67.1
|
$
|
40.2
|
$
|
8.7
|
$
|
60.9
|
$
|
21.6
|
$
|
18.8
|
|||||||||||
Liability
|
29.1
|
7.0
|
5.7
|
57.9
|
37.8
|
29.1
|
|||||||||||||||||
Professional
|
12.6
|
5.0
|
5.0
|
54.4
|
31.2
|
30.4
|
|||||||||||||||||
Specialty
|
(3.0
|
)
|
(3.0
|
)
|
(0.8
|
)
|
57.6
|
46.4
|
43.0
|
||||||||||||||
Total
|
$
|
105.8
|
$
|
49.2
|
$
|
18.6
|
$
|
230.8
|
$
|
137.0
|
$
|
121.3
|
Six months ended June 30, 2023
|
Six months ended June 30, 2022
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
93.4
|
$
|
28.1
|
$
|
14.5
|
$
|
113.0
|
$
|
31.6
|
$
|
48.2
|
|||||||||||
Liability
|
57.8
|
18.0
|
21.9
|
107.3
|
66.0
|
64.7
|
|||||||||||||||||
Professional
|
47.1
|
16.0
|
23.8
|
102.5
|
59.2
|
62.2
|
|||||||||||||||||
Specialty
|
67.0
|
36.5
|
22.7
|
153.4
|
107.8
|
90.4
|
|||||||||||||||||
Total
|
$
|
265.3
|
$
|
98.6
|
$
|
82.9
|
$
|
476.2
|
$
|
264.6
|
$
|
265.5
|
Consolidated
|
Three months ended June 30, 2023
|
Three months ended June 30, 2022
|
|||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
132.8
|
$
|
79.6
|
$
|
45.4
|
$
|
118.4
|
$
|
61.4
|
$
|
57.9
|
|||||||||||
Liability
|
273.8
|
164.9
|
173.9
|
332.6
|
209.5
|
201.0
|
|||||||||||||||||
Professional
|
91.1
|
62.5
|
70.3
|
164.1
|
107.9
|
110.4
|
|||||||||||||||||
Specialty
|
64.2
|
41.9
|
40.3
|
117.0
|
90.3
|
85.0
|
|||||||||||||||||
Total
|
$
|
561.9
|
$
|
348.9
|
$
|
329.9
|
$
|
732.1
|
$
|
469.1
|
$
|
454.3
|
Six months ended June 30, 2023
|
Six months ended June 30, 2022
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
||||||||||||||||||
Property
|
$
|
215.1
|
$
|
96.5
|
$
|
88.1
|
$
|
214.9
|
$
|
98.2
|
$
|
127.8
|
|||||||||||
Liability
|
550.6
|
335.7
|
365.4
|
652.6
|
407.7
|
407.0
|
|||||||||||||||||
Professional
|
200.8
|
128.6
|
157.4
|
313.5
|
205.3
|
226.7
|
|||||||||||||||||
Specialty
|
192.1
|
124.0
|
108.9
|
271.7
|
198.4
|
173.4
|
|||||||||||||||||
Total
|
$
|
1,158.6
|
$
|
684.8
|
$
|
719.8
|
$
|
1,452.7
|
$
|
909.6
|
$
|
934.9
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net Investment Income
|
||||||||||||||||
Net investment income, excluding alternative investments
|
$
|
29.6
|
$
|
25.2
|
$
|
59.5
|
$
|
49.3
|
||||||||
Alternative investments
|
3.2
|
4.1
|
3.0
|
17.7
|
||||||||||||
Total net investment income
|
$
|
32.8
|
$
|
29.3
|
$
|
62.5
|
$
|
67.0
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net Realized Investment and Other Gains (Losses)
|
||||||||||||||||
Net realized investment (losses) gains
|
$
|
(4.4
|
)
|
$
|
(11.7
|
)
|
$
|
(28.4
|
)
|
$
|
(23.3
|
)
|
||||
Change in fair value recognized
|
6.0
|
(3.0
|
)
|
12.2
|
3.7
|
|||||||||||
Change in allowance for credit losses on fixed maturity securities
|
—
|
(0.5
|
)
|
(0.1
|
)
|
(1.6
|
)
|
|||||||||
Loss on the sale of business divestitures including the realization of foreign exchange translation losses
|
—
|
(25.2
|
)
|
—
|
(53.7
|
)
|
||||||||||
Total net realized investments and other gains (losses)
|
$
|
1.6
|
$
|
(40.4
|
)
|
$
|
(16.3
|
)
|
$
|
(74.9
|
)
|
|
June 30,
|
December 31,
|
|||||
|
2023
|
2022
|
|||||
U.S. Governments and government agencies
|
$
|
364.5
|
$
|
380.7
|
|||
States and political subdivisions
|
96.7
|
99.8
|
|||||
Foreign governments
|
29.2
|
28.4
|
|||||
Corporate – Financial
|
610.6
|
636.4
|
|||||
Corporate – Industrial
|
507.1
|
520.1
|
|||||
Corporate – Utilities
|
76.2
|
77.6
|
|||||
Asset-backed securities
|
133.6
|
139.2
|
|||||
Collateralized loan obligations
|
233.6
|
237.9
|
|||||
Mortgage-backed securities – Agency
|
248.5
|
259.1
|
|||||
Mortgage-backed securities – Commercial
|
280.0
|
285.4
|
|||||
Mortgage-backed securities – Residential
|
10.2
|
10.9
|
|||||
Total fixed maturities
|
2,590.2
|
2,675.5
|
|||||
Commercial Mortgage Loans
|
159.7
|
159.7
|
|||||
Common stocks
|
43.2
|
43.9
|
|||||
Preferred stocks
|
—
|
—
|
|||||
Total equity securities available for sale
|
43.2
|
43.9
|
|||||
Private equity
|
267.0
|
264.6
|
|||||
Hedge fund
|
54.8
|
54.0
|
|||||
Overseas deposits
|
—
|
—
|
|||||
Other
|
4.8
|
4.6
|
|||||
Total other investments
|
326.6
|
323.2
|
|||||
Short term investments and cash equivalents
|
841.0
|
449.6
|
|||||
Cash
|
29.3
|
50.2
|
|||||
Total cash and invested assets
|
$
|
3,990.0
|
$
|
3,702.1
|
|
June 30,
|
December 31,
|
|||||
|
2023
|
2022
|
|||||
U.S. Governments and government agencies
|
$
|
364.5
|
$
|
639.8
|
|||
AAA
|
605.8
|
364.6
|
|||||
AA
|
236.2
|
241.8
|
|||||
A
|
606.1
|
592.5
|
|||||
BBB
|
632.5
|
565.6
|
|||||
BB
|
67.0
|
64.1
|
|||||
B
|
54.2
|
60.6
|
|||||
Lower than B
|
17.1
|
14.9
|
|||||
Not rated
|
6.8
|
131.6
|
|||||
Total fixed maturities
|
$
|
2,590.2
|
$
|
2,675.5
|
June 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Common shareholders' equity
|
$
|
1,090.8
|
$
|
1,088.9
|
||||
Less: Accumulated other comprehensive income (AOCI), net of taxes
|
(266.3
|
)
|
(305.1
|
)
|
||||
Common shareholders' equity excluding AOCI, net of tax
|
$
|
1,357.1
|
$
|
1,394.0
|
||||
Common shareholders' equity
|
$
|
1,090.8
|
$
|
1,088.9
|
||||
Less: Goodwill and intangible assets
|
118.6
|
118.6
|
||||||
Tangible common shareholders' equity
|
972.2
|
970.3
|
||||||
Less: AOCI, net of tax
|
(266.3
|
)
|
(305.1
|
)
|
||||
Tangible common shareholders' equity excluding AOCI, net of tax
|
$
|
1,238.5
|
$
|
1,275.4
|
||||
Common shares outstanding - end of period
|
35.182
|
35.061
|
||||||
Book value per common share
|
$
|
31.00
|
$
|
31.06
|
||||
Tangible book value per common share
|
$
|
27.63
|
$
|
27.67
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
38.57
|
$
|
39.76
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
35.20
|
$
|
36.38
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net loss attributable to common shareholders
|
$
|
(0.5
|
)
|
$
|
(18.9
|
)
|
$
|
(36.9
|
)
|
$
|
(22.5
|
)
|
||||
Operating income (loss) (1)
|
(0.8
|
)
|
31.0
|
(11.6
|
)
|
74.4
|
||||||||||
Common Shareholders' Equity - Beginning of period
|
$
|
1,100.5
|
$
|
1,466.8
|
$
|
1,088.9
|
$
|
1,591.2
|
||||||||
Common Shareholders' Equity - End of period
|
1,090.8
|
1,316.7
|
1,090.8
|
1,316.7
|
||||||||||||
Average Common Shareholders' Equity
|
$
|
1,095.7
|
$
|
1,391.8
|
$
|
1,089.9
|
$
|
1,454.0
|
||||||||
Common shares outstanding - End of period
|
35.182
|
34.976
|
35.182
|
34.976
|
||||||||||||
Book value per common share
|
$
|
31.00
|
$
|
37.65
|
$
|
31.00
|
$
|
37.65
|
||||||||
Book value per common share, prior period
|
$
|
31.31
|
$
|
31.06
|
||||||||||||
Change in book value per common share during 2023
|
(1.0
|
)%
|
(0.2
|
)%
|
||||||||||||
Annualized return on average common shareholders' equity
|
(0.2
|
)%
|
(5.4
|
)%
|
(6.8
|
)%
|
(3.1
|
)%
|
||||||||
Annualized operating return on average common shareholders' equity
|
(0.3
|
)%
|
8.9
|
%
|
(2.1
|
)%
|
10.2
|
%
|
|
Contact:
|
|
|
Andrew Hersom
|
David Snowden
|
|
Head of Investor Relations
|
Senior Vice President, Communications
|
|
860.970.5845
|
210.321.2104
|
|
andrew.hersom@argogroupus.com
|
david.snowden@argogroupus.com
|
1 Year Argo Chart |
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