Argo Group reports Q4, full-year numbers
Argo Group International Holdings, which is being acquired by Brookfield Reinsurance subject to approvals, has published its financial results for the quarter and year ended December 31, 2022.
Here’s how the company performed during what was described by executive chair and chief executive Thomas A. Bradley as a “transformative” year:
Metric
Q4 2022
Q4 2021
FY22
FY21
Gross written premium (GWP)
$644.5 million
$733.8 million
$2.85 billion
$3.18 billion
Underwriting income / (loss)
$(133.8 million)
$(109 million)
$(97.2 million)
$(106.8 million)
Net investment income
$28.9 million
$44.4 million
$129.8 million
$187.6 million
Net income / (loss) attributable to common shareholders
$(111.8 million)
$(117.8 million)
$(185.7 million)
$(3.8 million)
Operating earnings
$(94.5 million)
$(61.8 million)
$(4.7 million)
$41.5 million
According to Argo, the decline in GWP was primarily due to businesses it has exited. Meanwhile, the net loss attributable to common shareholders in the fourth quarter included $11.5 million in foreign currency exchange losses and $17.6 million of non-operating expenses.
Moving forward, Argo is looking to leverage its simplified business model and strengthened balance sheet. Last month, the firm completed the sale of Argo Underwriting Agency Limited and Lloyd’s Syndicate 1200. The move was part of Argo’s push to become a pure-play US specialty insurer.
Bradley stated: “2022 was a transformative year for the company. The strategic actions we have taken strengthened Argo and better position it to deliver strong returns moving forward.
“The Argo of today is markedly different from the Argo of only two years ago. We have streamlined the company to focus on our most profitable business lines, achieved targeted expense reductions, and continued to de-risk the balance sheet. At the same time, we have remained nimble in the marketplace – responding to the needs of customers and business partners.”
Excited about “our next chapter as part of Brookfield Reinsurance,” the CEO also thanked both the leadership team and Argo employees for their dedication over the past year during the now completed strategic alternatives review of the business.
Argo’s merger with Brookfield Reinsurance is expected to close in the second half of the year.
