Argo stung by more than 120{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} dive in year-on-year net income

Specialist insurer Argo Group International Holdings, Ltd. has been dealt a blow in the first quarter of 2020.

In the three months ended March 31, the Bermuda-headquartered group posted a net loss of US$18.8 million (around SG$26.5 million) – a more than 120{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} dive from last year’s US$91.2 million (around SG$128.8 million) net income.

While Argo enjoyed a higher net investment income, at US$35.5 million (around SG$50.15 million), the international underwriter suffered a US$13.9 million (around SG$19.63 million) underwriting loss in the period. The figure represents a 162{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} plunge from the company’s underwriting result in Q1 2019.

Meanwhile operating income stood at US$12.6 million (around SG$17.79 million), from US$41.5 million (around SG$58.6 million) previously. Catastrophe losses related to the coronavirus pandemic amounted to US$26.2 million (around SG$37.0 million).

Commenting on the numbers, Argo chief executive Kevin J. Rehnberg stated: “While we expect the premium and loss impact of COVID-19 to be challenging in 2020, we are committed to maintaining financial strength and implementing our strategy to drive long-term shareholder value – a focussed review of our businesses; investment where there is significant opportunity; and a focus on maximising underwriting profitability.

“I appreciate the dedication of the Argo team during these unprecedented times as they work tirelessly to serve our clients.”