Argo net income improves

Bermudian reinsurer's third quarter net income improves by around $30m.

Argo, the Bermudian (re)insurer, said that net income was $27.6m for the third quarter of 2009. By comparison, the third quarter of 2008 produced a net loss of $8.8m.

The group's result wa hit by an after-tax charge pertaining to its run-off unit that was subjected to binding arbitration, which resulted in a net charge after-tax of $3.8m.

Net earned premiums rose to $347.2m, up from $322.8m this time last year.

The Group combined ratio for the nine months ended Sept. 30, 2009, was 96.9% versus 101.1% for the same period in 2008.

Argo Group’s CEO Mark E. Watson III, said: “Despite the difficult, competitive environment in our underwriting businesses and the equally challenging investment landscape, I’m pleased we have continued to deliver solid value creation for our shareholders. This is evidenced by our growth in book value per share, which is up more than 15% since the beginning of the year and stands at a record $51.04 per share. This follows a year when our book value per share experienced a very modest decline, which was much less pronounced than others in our industry. During this period we have invested in Argo Group’s underlying business infrastructure and broadened the expertise of our senior management team. Our prudent underwriting and reserving policies have resulted in continued favorable development of business written in prior years. I believe Argo Group, therefore, is well positioned to manage through the current environment and poised to take advantage of opportunities as they become available.”