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Argo Group International Holdings, a Bermuda-based underwriter of specialty insurance and reinsurance product that has a large San Antonio presence, reported net income fell by 20 percent on higher losses and expenses in the three months ended Dec. 31.
Argo earned $32.9 million, or $1.07 a share, on $405.4 million in revenue in the last quarter of 2016. That compares with net income of $41.2 million, or $1.31 a share, on $373.4 million in revenue in the same period in 2015.
The company reported $16.1 million in catastrophe losses in the latest quarter, compared with no losses in the same period in 2015. It previously blamed the catastrophe losses on claims it received as a result of Hurricane Matthew and a New Zealand earthquake, as well as on late reporting from catastrophes in prior quarters.
Gross written premiums were $499 million in the fourth quarter, up almost 12 percent from the same period in 2015.
Argo CEO Mark E. Watson III said in a prepared statement that the recently completed acquisition of Ariel Re provides Argo “with additional presence and scale in both our Bermuda and London based operations.” The deal has been valued at $235 million. Argo reported in a Securities and Exchange Commission filing that it borrowed $125 million under its $175 million credit agreement to fund the purchase.
pdanner@express-news.net
Twitter: @AlamoPD
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