Bermuda
|
1-15259
|
98-0214719
|
||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
110 Pitts Bay Road
Pembroke HM 08 Bermuda |
P.O. Box HM 1282
Hamilton HM FX Bermuda |
(Address, Including Zip Code,
of Principal Executive Offices) |
(Mailing Address)
|
ITEM 2.02.
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
|
ITEM 9.01.
|
FINANCIAL STATEMENTS AND EXHIBITS.
|
(d)
|
Exhibits:
|
|
|
|
|
|
99.1
|
Press Release issued by Argo Group International Holdings, Ltd. dated November 1, 2016.
|
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
|||
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Jay S. Bullock
|
||
Dated: November 1, 2016
|
|
Name:
|
Jay S. Bullock
|
|
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
Gross Written
Premiums
$585.4M
↑ 10.2%
from 3Q 2015
|
Net Investment
Income
$32.7M
↑ 77.8%
from 3Q 2015
|
Net Income
Per Diluted Share
$1.80
↑ 59.3%
from 3Q 2015
|
After-tax Operating
Income Per
Diluted Share
$1.12
↑ 57.7%
from 3Q 2015
|
Book Value of
Equity Per Share
$59.65
↑ 9.8%
from Dec. 31, 2015
|
“Continued improvement in our underwriting results combined with strong alternative investment returns contributed to growth in book value per share, delivering real value to our shareholders,” said CEO Mark E. Watson III. “By almost all measures, our business continues to show year over year improvement.”
|
●
|
Gross written premiums
were up 10.2% to $585.4 million from $531.4 million in the 2015 third quarter.
|
●
|
Net income
was $55.2 million or $1.80 per diluted share, compared to $35.3 million or $1.13 per diluted share for the 2015 third quarter.
|
●
|
After-tax operating income
was $34.4 million or $1.12 per diluted share, compared to $22.2 million or $0.71 per diluted share for the 2015 third quarter.
|
●
|
Pre-tax underwriting income
was $13.5 million compared to $13.2 million for the 2015 third quarter.
|
●
|
Gross written premiums
were up 6.4% to $1.67 billion from $1.57 billion in the first nine months of 2015.
|
●
|
Net income
was $113.8 million or $3.68 per diluted share, compared to $122.0 million or $3.89 per diluted share for the first nine months of 2015.
|
●
|
After-tax operating
income was $101.3 million or $3.28 per diluted share, compared to $83.6 million or $2.66 per diluted share for the first nine months of 2015.
|
●
|
Pre-tax underwriting income
was $49.5 million compared to $50.4 million for the first nine months of 2015.
|
●
|
Combined ratio
was 96.2% compared to 96.2% for the 2015 third quarter. The loss and expense ratios for the quarter were 57.9% and 38.3%, respectively, compared to 57.8% and 38.4% for the 2015 third quarter.
|
●
|
Net Investment Income
was $32.7 million, compared to $18.4 million for the 2015 third quarter.
|
●
|
Net favorable prior-year reserve development
was $2.9 million (benefiting the combined ratio by 0.8 points), compared with $6.6 million (benefiting the combined ratio by 1.9 points) for the 2015 third quarter.
|
●
|
Estimated pre-tax catastrophe losses
were $12.9 million or 3.6 points on the combined ratio, compared to $13.1 million or 3.9 points on the combined ratio for the 2015 third quarter.
|
●
|
Loss ratio
excluding catastrophes and reserve development was 55.1%, compared to 55.8% for the 2015 third quarter.
|
●
|
During the third quarter, the Company repurchased
$5.4 million or 96,601 shares of its common stock.
|
●
|
Combined ratio
was 95.2% compared to 95.0% for the first nine months of 2015. The loss and expense ratios were 56.8% and 38.4%, respectively compared to 55.9% and 39.1% in the first nine months of 2015.
|
●
|
Net Investment Income
was $89.6 million, compared to $68.5 million for the first nine months of 2015.
|
●
|
Net favorable prior-year reserve development
was $18.8 million (benefiting the combined ratio by 1.8 points), compared with $15.3 million (benefiting the combined ratio by 1.5 points) for the first nine months of 2015.
|
●
|
Estimated pre-tax catastrophe losses
were $38.9 million or 3.7 points on the combined ratio, compared to $18.5 million or 1.8 points on the combined ratio for the first nine months of 2015.
|
●
|
Loss ratio
excluding catastrophes and reserve development was 54.9%, compared to 55.6% in the first nine months of 2015.
|
●
|
During the first nine months of 2016, the Company repurchased
$45.3 million or 815,196 shares of its common stock.
|
●
|
Book value per share
increased to $59.65, up 9.8% from $54.31 at Dec. 31, 2015.
|
●
|
Cash and investments
at Sept. 30, 2016, totaled $4.4 billion with a net pre-tax unrealized gain of approximately $151.3 million.
|
●
|
All per share amounts, except for number of shares repurchased, are adjusted for the 10% stock dividend that was paid on June 15, 2016, to stockholders of record on June 1, 2016.
|
●
|
The following changes were made to the reporting structure effective Jan. 1, 2016:
(1) reclassification of Argo Pro results and identifiable assets from Excess and Surplus lines to the Commercial Specialty segment which more appropriately matches segment distribution strategy; and (2) alternative investment income was moved from realized gains and losses to net investment income.
|
●
|
All references to catastrophe losses are pre-tax and net of reinsurance and estimated reinstatement premiums. Point impacts on the combined ratio are calculated as the difference between the reported combined ratio and the combined ratio excluding incurred catastrophe losses and associated reinstatement premiums.
|
●
|
After-tax operating income is defined as net income before taxes excluding net realized investment gains/losses and foreign currency exchange gains/losses at an assumed 20% effective tax rate.
|
●
|
Gross written premium was up 6% in the third quarter and 4% in the first nine months of 2016 primarily driven by casualty, environmental, and transportation lines.
|
●
|
The loss ratio for the 2016 third quarter, excluding catastrophe losses and reserve development, was 59.9
%
compared to 60.7
%
for the 2015 third quarter.
|
●
|
Gross written premium was up 24% in the third quarter and 20% in the first nine months of 2016
,
driven by program, surety, and professional lines businesses.
|
●
|
The loss ratio for the 2016 third quarter, excluding catastrophe losses and reserve development, was 56.8
%,
compared to 56.7
%
for the 2015 third quarter.
|
●
|
Gross premiums written were up modestly in the third quarter and first nine months of 2016 reflecting continued challenging market conditions and a 5% reduction in our participation on the syndicate for 2016.
|
●
|
The loss ratio for the 2016 third quarter, excluding catastrophe losses and reserve development, was 52.0
%,
compared to 51.2
%
in the 2015 third quarter.
|
●
|
Gross premiums written were up modestly in the third quarter but down in the first nine months of 2016 reflecting more competitive market conditions that exist in nearly all of the segment’s business lines.
|
●
|
The loss ratio for the first nine months of 2016, excluding catastrophe losses and reserve development, was 47.0
%
, compared to 49.6
%
in the first nine months of 2015.
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in millions, except per share amounts
|
||||||||
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Total investments
|
$
|
4,313.6
|
$
|
4,115.7
|
||||
Cash
|
123.6
|
121.7
|
||||||
Accrued investment income
|
21.9
|
21.6
|
||||||
Receivables
|
1,786.5
|
1,525.6
|
||||||
Goodwill and intangible assets
|
221.1
|
225.5
|
||||||
Deferred acquisition costs, net
|
147.7
|
132.4
|
||||||
Ceded unearned premiums
|
311.6
|
250.8
|
||||||
Other assets
|
255.1
|
232.3
|
||||||
Total assets
|
$
|
7,181.1
|
$
|
6,625.6
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
3,284.8
|
$
|
3,123.6
|
||||
Unearned premiums
|
1,010.2
|
886.7
|
||||||
Ceded reinsurance payable, net
|
452.8
|
312.4
|
||||||
Senior unsecured fixed rate notes
|
139.4
|
139.3
|
||||||
Other indebtedness
|
57.3
|
55.2
|
||||||
Junior subordinated debentures
|
172.7
|
172.7
|
||||||
Other liabilities
|
275.5
|
267.6
|
||||||
Total liabilities
|
5,392.7
|
4,957.5
|
||||||
Total shareholders' equity
|
1,788.4
|
1,668.1
|
||||||
Total liabilities and shareholders' equity
|
$
|
7,181.1
|
$
|
6,625.6
|
||||
Book value per common share
|
$
|
59.65
|
$
|
54.31
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
FINANCIAL HIGHLIGHTS
|
||||||||||||||||
ALL SEGMENTS
|
||||||||||||||||
(in millions, except per share amounts)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Gross written premiums
|
$
|
585.4
|
$
|
531.4
|
$
|
1,665.8
|
$
|
1,565.9
|
||||||||
Net written premiums
|
415.3
|
386.2
|
1,106.7
|
1,093.8
|
||||||||||||
Earned premiums
|
358.7
|
346.0
|
1,048.5
|
1,026.6
|
||||||||||||
Net investment income
|
32.7
|
18.4
|
89.6
|
68.5
|
||||||||||||
Fee and other income
|
7.6
|
9.2
|
20.2
|
17.9
|
||||||||||||
Net realized investment and other gains
|
17.7
|
6.6
|
12.8
|
20.4
|
||||||||||||
Total revenue
|
416.7
|
380.2
|
1,171.1
|
1,133.4
|
||||||||||||
Losses and loss adjustment expenses
|
207.8
|
200.0
|
596.0
|
574.3
|
||||||||||||
Underwriting, acquisition and insurance expenses
|
137.4
|
132.8
|
403.0
|
401.9
|
||||||||||||
Interest expense
|
4.9
|
4.8
|
14.6
|
14.3
|
||||||||||||
Fee and other expense, net
|
5.9
|
8.2
|
18.1
|
18.0
|
||||||||||||
Foreign currency exchange (gain) loss
|
(1.5
|
)
|
(1.8
|
)
|
4.5
|
(8.4
|
)
|
|||||||||
Total expenses
|
354.5
|
344.0
|
1,036.2
|
1,000.1
|
||||||||||||
Income before taxes
|
62.2
|
36.2
|
134.9
|
133.3
|
||||||||||||
Income tax provision
|
7.0
|
0.9
|
21.1
|
11.3
|
||||||||||||
Net income
|
$
|
55.2
|
$
|
35.3
|
$
|
113.8
|
$
|
122.0
|
||||||||
Net income per common share (basic)
|
$
|
1.84
|
$
|
1.15
|
$
|
3.76
|
$
|
3.96
|
||||||||
Net income per common share (diluted)
|
$
|
1.80
|
$
|
1.13
|
$
|
3.68
|
$
|
3.89
|
||||||||
Weighted average common shares:
|
||||||||||||||||
Basic
|
30.0
|
30.7
|
30.2
|
30.8
|
||||||||||||
Diluted
|
30.7
|
31.3
|
30.9
|
31.4
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
SEGMENT DATA
|
||||||||||||||||
(in millions)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Excess & Surplus Lines
|
||||||||||||||||
Gross written premiums
|
$
|
141.7
|
$
|
133.6
|
$
|
456.0
|
$
|
440.0
|
||||||||
Net written premiums
|
119.4
|
116.4
|
379.4
|
378.6
|
||||||||||||
Earned premiums
|
122.3
|
121.5
|
363.4
|
351.8
|
||||||||||||
Underwriting income
|
11.5
|
16.3
|
38.2
|
43.8
|
||||||||||||
Net investment income
|
12.7
|
7.2
|
35.1
|
24.6
|
||||||||||||
Interest expense
|
(1.4
|
)
|
(1.5
|
)
|
(4.3
|
)
|
(4.3
|
)
|
||||||||
Net income before taxes
|
$
|
22.8
|
$
|
22.0
|
$
|
69.0
|
$
|
64.1
|
||||||||
Loss ratio
|
58.4
|
55.7
|
58.2
|
55.9
|
||||||||||||
Expense ratio
|
32.2
|
30.9
|
31.3
|
31.7
|
||||||||||||
GAAP combined ratio
|
90.6
|
%
|
86.6
|
%
|
89.5
|
%
|
87.6
|
%
|
||||||||
Commercial Specialty
|
||||||||||||||||
Gross written premiums
|
$
|
219.1
|
$
|
176.6
|
$
|
514.2
|
$
|
428.5
|
||||||||
Net written premiums
|
139.5
|
113.6
|
292.4
|
262.9
|
||||||||||||
Earned premiums
|
94.0
|
87.5
|
266.3
|
255.7
|
||||||||||||
Underwriting income
|
16.0
|
11.0
|
40.7
|
21.2
|
||||||||||||
Net investment income
|
7.6
|
4.4
|
20.7
|
15.1
|
||||||||||||
Interest expense
|
(0.8
|
)
|
(0.8
|
)
|
(2.5
|
)
|
(2.6
|
)
|
||||||||
Fee income (expense), net
|
0.3
|
0.5
|
(1.7
|
)
|
(2.0
|
)
|
||||||||||
Net income before taxes
|
$
|
23.1
|
$
|
15.1
|
$
|
57.2
|
$
|
31.7
|
||||||||
Loss ratio
|
49.0
|
54.3
|
51.2
|
59.2
|
||||||||||||
Expense ratio
|
34.0
|
33.1
|
33.5
|
32.5
|
||||||||||||
GAAP combined ratio
|
83.0
|
%
|
87.4
|
%
|
84.7
|
%
|
91.7
|
%
|
||||||||
Syndicate 1200
|
||||||||||||||||
Gross written premiums
|
$
|
162.6
|
$
|
160.2
|
$
|
480.2
|
$
|
473.2
|
||||||||
Net written premiums
|
115.8
|
115.9
|
303.5
|
320.4
|
||||||||||||
Earned premiums
|
102.4
|
100.3
|
301.1
|
308.9
|
||||||||||||
Underwriting income
|
1.3
|
4.2
|
9.1
|
20.9
|
||||||||||||
Net investment income
|
2.8
|
1.9
|
9.7
|
6.7
|
||||||||||||
Interest expense
|
(0.7
|
)
|
(0.7
|
)
|
(1.9
|
)
|
(2.0
|
)
|
||||||||
Fee income, net
|
1.5
|
1.1
|
3.8
|
2.4
|
||||||||||||
Net income before taxes
|
$
|
4.9
|
$
|
6.5
|
$
|
20.7
|
$
|
28.0
|
||||||||
Loss ratio
|
60.6
|
55.0
|
56.2
|
52.4
|
%
|
|||||||||||
Expense ratio
|
38.1
|
40.8
|
40.8
|
40.8
|
||||||||||||
GAAP combined ratio
|
98.7
|
%
|
95.8
|
%
|
97.0
|
%
|
93.2
|
%
|
||||||||
International Specialty
|
||||||||||||||||
Gross written premiums
|
$
|
61.9
|
$
|
60.7
|
$
|
215.1
|
$
|
223.8
|
||||||||
Net written premiums
|
40.5
|
40.0
|
131.1
|
131.5
|
||||||||||||
Earned premiums
|
39.9
|
36.4
|
117.4
|
109.8
|
||||||||||||
Underwriting income
|
11.2
|
1.3
|
21.5
|
14.6
|
||||||||||||
Net investment income
|
4.7
|
2.5
|
13.0
|
8.7
|
||||||||||||
Interest expense
|
(0.7
|
)
|
(0.7
|
)
|
(2.1
|
)
|
(2.2
|
)
|
||||||||
Net income before taxes
|
$
|
15.2
|
$
|
3.1
|
$
|
32.4
|
$
|
21.1
|
||||||||
Loss ratio
|
42.4
|
62.2
|
52.0
|
51.2
|
||||||||||||
Expense ratio
|
29.8
|
34.6
|
29.8
|
35.6
|
||||||||||||
GAAP combined ratio
|
72.2
|
%
|
96.8
|
%
|
81.8
|
%
|
86.8
|
%
|
ARGO GROUP INTERNATIONAL HOLDINGS LTD
|
||||||||||||||||
(in millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
Net Prior Year Development
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
(Favorable)/Unfavorable
|
||||||||||||||||
E&S
|
$
|
(5.7
|
)
|
$
|
(8.7
|
)
|
$
|
(12.0
|
)
|
$
|
(18.4
|
)
|
||||
Commercial Specialty
|
(8.0
|
)
|
(2.6
|
)
|
(13.6
|
)
|
3.7
|
|||||||||
Syndicate 1200
|
1.9
|
(0.3
|
)
|
(2.5
|
)
|
(2.8
|
)
|
|||||||||
International Specialty
|
(2.5
|
)
|
(2.1
|
)
|
(8.3
|
)
|
(5.8
|
)
|
||||||||
Run-off
|
11.4
|
7.1
|
17.6
|
8.0
|
||||||||||||
Total
|
$
|
(2.9
|
)
|
$
|
(6.6
|
)
|
$
|
(18.8
|
)
|
$
|
(15.3
|
)
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF UNDERWRITING INCOME TO NET INCOME
|
||||||||||||||||
(in millions)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Earned premiums
|
$
|
358.7
|
$
|
346.0
|
$ |
1,048.5
|
$ |
1,026.6
|
||||||||
Losses and loss adjustment expenses
|
207.8
|
200.0
|
596.0
|
574.3
|
||||||||||||
Underwriting, acquisition and insurance expenses
|
137.4
|
132.8
|
403.0
|
401.9
|
||||||||||||
Underwriting income
|
13.5
|
13.2
|
49.5
|
50.4
|
||||||||||||
Net investment income
|
32.7
|
18.4
|
89.6
|
68.5
|
||||||||||||
Net realized investment and other gains
|
17.7
|
6.6
|
12.8
|
20.4
|
||||||||||||
Fee and other income
|
7.6
|
9.2
|
20.2
|
17.9
|
||||||||||||
Interest expense
|
(4.9
|
)
|
(4.8
|
)
|
(14.6
|
)
|
(14.3
|
)
|
||||||||
Fee and other expense
|
(5.9
|
)
|
(8.2
|
)
|
(18.1
|
)
|
(18.0
|
)
|
||||||||
Foreign currency exchange gains (losses)
|
1.5
|
1.8
|
(4.5
|
)
|
8.4
|
|||||||||||
Income before taxes
|
62.2
|
36.2
|
134.9
|
133.3
|
||||||||||||
Income tax provision
|
7.0
|
0.9
|
21.1
|
11.3
|
||||||||||||
Net Income
|
$
|
55.2
|
$
|
35.3
|
$
|
113.8
|
$
|
122.0
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF SEGMENT INCOME TO NET INCOME
|
||||||||||||||||
(in millions)
|
||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Segment income (loss) before income taxes
|
||||||||||||||||
Excess and Surplus Lines
|
$
|
22.8
|
$
|
22.0
|
$
|
69.0
|
$
|
64.1
|
||||||||
Commercial Specialty
|
23.1
|
15.1
|
57.2
|
31.7
|
||||||||||||
Syndicate 1200
|
4.9
|
6.5
|
20.7
|
28.0
|
||||||||||||
International Specialty
|
15.2
|
3.1
|
32.4
|
21.1
|
||||||||||||
Run-off Lines
|
(10.0
|
)
|
(6.9
|
)
|
(14.6
|
)
|
(6.6
|
)
|
||||||||
Corporate and Other
|
(13.0
|
)
|
(12.0
|
)
|
(38.1
|
)
|
(33.8
|
)
|
||||||||
Realized investment and other gains
|
17.7
|
6.6
|
12.8
|
20.4
|
||||||||||||
Foreign currency exchange gains (losses)
|
1.5
|
1.8
|
(4.5
|
)
|
8.4
|
|||||||||||
Net income before income taxes
|
62.2
|
36.2
|
134.9
|
133.3
|
||||||||||||
Provision for taxes
|
7.0
|
0.9
|
21.1
|
11.3
|
||||||||||||
Net income
|
$
|
55.2
|
$
|
35.3
|
$
|
113.8
|
$
|
122.0
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF LOSS RATIOS
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Excess and Surplus lines
|
||||||||||||||||
Loss ratio
|
58.4
|
%
|
55.7
|
%
|
58.2
|
%
|
55.9
|
%
|
||||||||
Prior accident year loss development
|
4.6
|
%
|
7.2
|
%
|
3.3
|
%
|
5.2
|
%
|
||||||||
Catastrophe losses
|
-3.1
|
%
|
-2.2
|
%
|
-2.6
|
%
|
-1.3
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
59.9
|
%
|
60.7
|
%
|
58.9
|
%
|
59.8
|
%
|
||||||||
Commercial Specialty
|
||||||||||||||||
Loss ratio
|
49.0
|
%
|
54.3
|
%
|
51.2
|
%
|
59.2
|
%
|
||||||||
Prior accident year loss development
|
8.6
|
%
|
3.0
|
%
|
5.1
|
%
|
-1.5
|
%
|
||||||||
Catastrophe losses
|
-0.8
|
%
|
-0.6
|
%
|
-0.7
|
%
|
-0.7
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
56.8
|
%
|
56.7
|
%
|
55.6
|
%
|
57.0
|
%
|
||||||||
Syndicate 1200
|
||||||||||||||||
Loss ratio
|
60.6
|
%
|
55.0
|
%
|
56.2
|
%
|
52.4
|
%
|
||||||||
Prior accident year loss development
|
-1.8
|
%
|
0.2
|
%
|
0.8
|
%
|
0.9
|
%
|
||||||||
Catastrophe losses
|
-6.8
|
%
|
-4.0
|
%
|
-4.6
|
%
|
-1.5
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
52.0
|
%
|
51.2
|
%
|
52.4
|
%
|
51.8
|
%
|
||||||||
International Specialty
|
||||||||||||||||
Loss ratio
|
42.4
|
%
|
62.2
|
%
|
52.0
|
%
|
51.2
|
%
|
||||||||
Prior accident year loss development
|
6.1
|
%
|
6.0
|
%
|
7.2
|
%
|
5.3
|
%
|
||||||||
Catastrophe losses
|
-3.7
|
%
|
-18.2
|
%
|
-12.2
|
%
|
-6.9
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
44.8
|
%
|
50.0
|
%
|
47.0
|
%
|
49.6
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
57.9
|
%
|
57.8
|
%
|
56.8
|
%
|
55.9
|
%
|
||||||||
Prior accident year loss development
|
0.8
|
%
|
1.9
|
%
|
1.8
|
%
|
1.5
|
%
|
||||||||
Catastrophe losses
|
-3.6
|
%
|
-3.9
|
%
|
-3.7
|
%
|
-1.8
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
55.1
|
%
|
55.8
|
%
|
54.9
|
%
|
55.6
|
%
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||||||
COMPONENTS OF INVESTMENT INCOME
|
||||||||||||||||||||
ALL SEGMENTS
|
||||||||||||||||||||
(in millions)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30
|
December 31
|
March 31
|
June 30
|
September 30
|
||||||||||||||||
2015
|
2015
|
2016
|
2016
|
2016
|
||||||||||||||||
Net Investment Income
|
$
|
21.3
|
$
|
21.7
|
$
|
22.7
|
$
|
23.2
|
$
|
22.9
|
||||||||||
Alternative Investments
|
(2.9
|
)
|
(1.6
|
)
|
(1.5
|
)
|
12.5
|
9.8
|
||||||||||||
Total
|
$
|
18.4
|
$
|
20.1
|
$
|
21.2
|
$
|
35.7
|
$
|
32.7
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||
SHAREHOLDER RETURN ANALYSIS
|
||||||||||||
(in millions)
|
||||||||||||
Nine Months Ended September 30
|
||||||||||||
2016
|
2015
|
% Change
|
||||||||||
Net income
|
$
|
113.8
|
$
|
122.0
|
(6.7
|
%)
|
||||||
Operating income
(a)
|
101.3
|
83.6
|
21.1
|
%
|
||||||||
Shareholders' Equity - Beginning of the period
|
$
|
1,668.1
|
$
|
1,646.7
|
1.3
|
%
|
||||||
Shareholders' Equity - End of current period
|
1,788.4
|
1,641.5
|
8.9
|
%
|
||||||||
Average Shareholders' Equity
|
$
|
1,728.3
|
$
|
1,644.1
|
5.1
|
%
|
||||||
Annualized return on average shareholders' equity
|
8.8
|
%
|
9.9
|
%
|
||||||||
Annualized operating return on average shareholders' equity
|
7.8
|
%
|
6.8
|
%
|
||||||||
(a)
at assumed 20% tax rate
|
||||||||||||
# # #
|