|
Bermuda
|
001-15259
|
98-0214719
|
||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
90 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)
|
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Common Stock, par value of $1.00 per share |
ARGO |
New York Stock Exchange |
||
6.500% Senior Notes due 2042 issued by Argo Group U.S., Inc. and the Guarantee with respect thereto |
ARGD |
New York Stock Exchange |
||
Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00% Resettable Fixed Rate Preference Share, Series A, Par Value $1.00 Per Share |
ARGOPrA |
New York Stock Exchange |
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
No.
|
|
Exhibit
|
|
||
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
Dated: November 7, 2022
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
|
By:
|
/s/ Scott Kirk
|
|
Name: Scott Kirk
|
||
Title: Chief Financial Officer
|
•
|
Simplified Business Model: As announced in September the company entered into a definitive agreement for the sale of Argo Underwriting Agency Limited and its Lloyd's Syndicate 1200.
|
•
|
Continued Growth in Ongoing Business: U.S. Operations earned premiums increased approximately 2% from the prior year third quarter, while earned premiums from U.S. ongoing business1 grew
approximately 14%, primarily attributable to business lines where the company retains more of the risk on a net basis.
|
•
|
Reduced Catastrophe Losses: Total catastrophe losses of $23.4 million were 14% lower than the third quarter 2021 despite elevated industry catastrophe losses; reflects strategy to reduce catastrophe exposure.
|
•
|
Delivered Expense Reductions: Expense ratio of 35.4% improved 0.9 percentage points from the prior year third quarter, driven by ongoing cost reduction efforts.
|
($ in millions, except per share data)
|
Three Months Ended
September 30,
|
Q/Q
|
|
Nine Months Ended
September 30,
|
Y/Y
|
|
||||||||||||||||
2022
|
2021
|
Change |
2022
|
2021
|
Change | |||||||||||||||||
Net income (loss) attributable to common shareholders
|
$
|
(51.4
|
)
|
$
|
19.8
|
NM $
|
(73.9
|
)
|
$
|
114.1
|
NM
|
|||||||||||
Per diluted common share
|
$
|
(1.47
|
)
|
$
|
0.56
|
NM $
|
(2.11
|
)
|
$
|
3.26
|
NM
|
|||||||||||
Operating earnings
|
$
|
15.5
|
$
|
31.7
|
-51.1
|
%$
|
89.8
|
$
|
103.4
|
-13.2
|
%
|
|||||||||||
Per diluted common share
|
$
|
0.44
|
$
|
0.91
|
-51.6
|
%$
|
2.57
|
$
|
2.95
|
-12.9
|
%
|
|||||||||||
Annualized return on average common shareholders' equity
|
(16.5
|
)%
|
4.5
|
%
|
-21.0 pts
|
(7.1
|
)%
|
8.8
|
%
|
-15.9 pts
|
||||||||||||
Annualized operating return on average common shareholders' equity
|
5.0
|
%
|
7.3
|
%
|
-2.3 pts
|
8.6
|
%
|
8.0
|
%
|
0.6 pts
|
($ in millions)
|
Three Months Ended
September 30,
|
Q/Q
|
|
Nine Months Ended
September 30,
|
Y/Y
|
|||||||||||||||||
2022 | 2021 | Change | 2022 |
2021 | Change | |||||||||||||||||
Gross written premiums |
$ |
750.9 | $ |
875.6 | -14.2 | %
|
$ |
2,203.6 | $ |
2,447.4 |
-10.0 | % |
||||||||||
Net written premiums
|
$
|
505.2
|
$
|
583.7
|
-13.4
|
%
|
|
1,414.8
|
$
|
1,498.3
|
-5.6
|
%
|
||||||||||
Earned premiums
|
$
|
455.0
|
$
|
487.5
|
-6.7
|
%
|
$
|
1,389.9
|
$
|
1,423.9
|
-2.4
|
%
|
||||||||||
Loss and loss adjustment expenses
|
298.8
|
311.7
|
-4.1
|
%
|
858.4
|
890.9
|
-3.6
|
%
|
||||||||||||||
Acquisition expenses
|
77.2
|
83.4
|
-7.4
|
%
|
237.6
|
244.3
|
-2.7
|
%
|
||||||||||||||
General and administrative expenses
|
83.8
|
93.7
|
-10.6
|
%
|
257.3
|
286.5
|
-10.2
|
%
|
||||||||||||||
Underwriting income
|
$
|
(4.8
|
)
|
$
|
(1.3
|
)
|
NM
|
$
|
36.6
|
$
|
2.2
|
NM
|
||||||||||
Net investment income
|
$
|
34.0
|
$
|
46.1
|
-26.2
|
%
|
$
|
100.9
|
$
|
143.2
|
-29.5
|
%
|
||||||||||
Loss ratio
|
65.7
|
%
|
64.0
|
%
|
1.7 pts
|
61.8
|
%
|
62.5
|
%
|
-0.7 pts
|
||||||||||||
Acquisition expense ratio
|
17.0
|
%
|
17.1
|
%
|
-0.1 pts
|
17.1
|
%
|
17.2
|
%
|
-0.1 pts
|
||||||||||||
General and administrative expense ratio
|
18.4
|
%
|
19.2
|
%
|
-0.8 pts
|
18.5
|
%
|
20.1
|
%
|
-1.6 pts
|
||||||||||||
Expense ratio
|
35.4
|
%
|
36.3
|
%
|
-0.9 pts
|
35.6
|
%
|
37.3
|
%
|
-1.7 pts
|
||||||||||||
Combined ratio
|
101.1
|
%
|
100.3
|
%
|
0.8 pts
|
97.4
|
%
|
99.8
|
%
|
-2.4 pts
|
||||||||||||
CAY ex-CAT loss ratio
|
58.0
|
%
|
57.1
|
%
|
0.9 pts
|
57.0
|
%
|
56.1
|
%
|
0.9 pts
|
•
|
Gross written premiums within the company’s ongoing business2 were in line with the prior year third quarter.
|
•
|
Earned premiums increased approximately 13.1% within the company’s ongoing business reflecting business mix shift towards lines of business where the company retains more risk.
|
•
|
The current accident year, excluding catastrophes ("CAY ex-CAT") loss ratio of 58.0% increased 0.9 percentage points. Adjusting for reinstatement premiums, the CAY ex-CAT loss ratio for
the third quarter 2022 was 56.4%, which is in line with the prior year third quarter.
|
•
|
Total catastrophe losses were $23.4 million or 5.1 percentage points on the loss ratio. In comparison, catastrophe losses in the prior year third quarter were $27.3 million or 5.6
percentage points on the loss ratio.
|
•
|
Net adverse prior year reserve development was $11.9 million, or 2.6 percentage points on the loss ratio. In comparison, net adverse prior year reserve development in the third quarter
2021 was $6.2 million, or 1.3 percentage points on the loss ratio.
|
•
|
Adjusting for reinstatement premiums, the expense ratio for the third quarter 2022 was 34.4%, an improvement of 1.5 percentage points year-over-year.
|
•
|
The lower expense ratio is primarily driven by a $9.9 million decrease in general and administrative expenses and reflects continued execution of the company's cost reduction
initiatives.
|
•
|
The net loss attributable to common shareholders in the third quarter 2022 included pre-tax net realized investment and other losses of $44.7 million, compared to $5.3 million of pre-tax
net realized investment and other losses in the prior year third quarter. The increase was primarily driven by $34.2 million of pre-tax realized losses related to the impairment of assets that will be transferred upon the close of
the company's previously announced loss portfolio transfer (LPT) transaction with a wholly owned subsidiary of Enstar Group Limited.
|
•
|
The net loss attributable to common shareholders in the third quarter 2022 also included a $28.5 million impairment of goodwill and intangible assets related to the announced sale of
Argo Underwriting Agency Limited and its Lloyd's Syndicate 1200.
|
•
|
In addition, the net loss attributable to common shareholders in the third quarter 2022 included $11.0 million of non-operating expenses, which were mainly attributable to non-operating
advisory fees. In comparison, the prior year third quarter reported $8.2 million in non-operating expenses, which were primarily driven by costs associated with the reduction in the company's real estate footprint.
|
•
|
AOCI was ($332.9) million as of September 30, 2022, compared to ($256.0) million on June 30, 2022. The change in AOCI was driven by the movement in unrealized investment losses in the
third quarter of $75.9 million, or $2.17 per common share.
|
Three Months Ended
September 30,
|
Q/Q
|
|
Nine Months Ended
September 30,
|
Y/Y
|
|
|||||||||||||||||
($ in millions)
|
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||
Gross written premiums |
$ |
500.4 | $ |
562.5 | -11.0 | % |
$ |
1,476.7 | $ |
1,564.9 | -5.6 | % |
||||||||||
Net written premiums |
354.0 | 375.0 | -5.6 | % |
998.8 | 985.2 | 1.4 | % |
||||||||||||||
Earned premiums
|
$
|
329.3
|
$
|
323.5
|
1.8
|
%
|
$
|
998.5
|
$
|
952.4
|
4.8
|
%
|
||||||||||
Loss and loss adjustment expenses
|
217.0
|
203.9
|
6.4
|
%
|
625.7
|
583.1
|
7.3
|
%
|
||||||||||||||
Acquisition expenses
|
55.8
|
49.0
|
13.9
|
%
|
164.7
|
149.6
|
10.1
|
%
|
||||||||||||||
General and administrative expenses
|
47.2
|
55.7
|
-15.3
|
%
|
148.1
|
168.6
|
-12.2
|
%
|
||||||||||||||
Underwriting income
|
$
|
9.3
|
$
|
14.9
|
-37.6
|
%
|
$
|
60.0
|
$
|
51.1
|
17.4
|
%
|
||||||||||
Loss ratio
|
65.9
|
%
|
63.0
|
%
|
2.9 pts
|
62.7
|
%
|
61.2
|
%
|
1.5 pts
|
||||||||||||
Acquisition expense ratio
|
16.9
|
%
|
15.2
|
%
|
1.7 pts
|
16.5
|
%
|
15.7
|
%
|
0.8 pts
|
||||||||||||
General and administrative expense ratio
|
14.4
|
%
|
17.2
|
%
|
-2.8 pts
|
14.8
|
%
|
17.7
|
%
|
-2.9 pts
|
||||||||||||
Expense ratio
|
31.3
|
%
|
32.4
|
%
|
-1.1 pts
|
31.3
|
%
|
33.4
|
%
|
-2.1 pts
|
||||||||||||
Combined ratio
|
97.2
|
%
|
95.4
|
%
|
1.8 pts
|
94.0
|
%
|
94.6
|
%
|
-0.6 pts
|
||||||||||||
CAY ex-CAT loss ratio
|
59.7
|
%
|
59.8
|
%
|
-0.1 pts
|
59.0
|
%
|
57.8
|
%
|
1.2 pts
|
•
|
Rates on average were up in the low-single digits for the third quarter 2022.
|
•
|
Gross written premiums within the U.S. ongoing business were in line with the prior year third quarter.
|
•
|
Earned premiums increased approximately 13.6% within the company’s U.S. ongoing business, reflecting business mix shift towards lines of business where
the company retains more risk.
|
•
|
The CAY ex-CAT loss ratio of 59.7% was broadly in line with the third quarter 2021.
|
•
|
Catastrophe losses were $4.2 million, or 1.3 percentage points on the loss ratio, compared to $10.0 million or 3.1 percentage points on the loss ratio in
the prior year third quarter. Catastrophe losses in the third quarter 2022 were due to Hurricane Ian.
|
•
|
Net adverse prior year reserve development was $16.2 million or 4.9 percentage points on the loss ratio. In comparison, net adverse development in the
prior year third quarter was $0.2 million, or 0.1 percentage point on the loss ratio. The adverse development in the third quarter 2022 was primarily attributable to losses from businesses the company has exited.
|
•
|
The 2.8 percentage point reduction in the general and administrative expense ratio was driven by a $8.5 million decrease in general and
administrative expenses combined with higher earned premiums in the third quarter 2022.
|
•
|
The company also anticipates recognizing an after-tax charge of approximately $100 million in connection with the transaction in the fourth
quarter 2022.
|
($ in millions)
|
Three Months Ended
September 30,
|
Q/Q
|
|
Nine Months Ended
September 30,
|
Y/Y
|
|
||||||||||||||||
|
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||
Gross written premiums | $ |
250.1 | $ |
312.9 | -20.1 | %
|
$ |
726.3 | $ |
881.9 | -17.6 | % |
||||||||||
Net written premiums |
150.7 | 208.5 | -27.7 | %
|
415.3 | 512.5 | -19.0 | % |
||||||||||||||
Earned premiums
|
$
|
125.2
|
$
|
163.9
|
-23.6
|
%
|
$
|
390.7
|
$
|
471.1
|
-17.1
|
%
|
||||||||||
Loss and loss adjustment expenses
|
81.7
|
103.8
|
-21.3
|
%
|
229.8
|
301.2
|
-23.7
|
%
|
||||||||||||||
Acquisition expenses
|
21.2
|
34.2
|
-38.0
|
%
|
71.9
|
94.5
|
-23.9
|
%
|
||||||||||||||
General and administrative expenses
|
25.8
|
30.5
|
-15.4
|
%
|
83.4
|
94.3
|
-11.6
|
%
|
||||||||||||||
Underwriting income (loss)
|
$
|
(3.5
|
)
|
$
|
(4.6
|
)
|
NM
|
$
|
5.6
|
$
|
(18.9
|
)
|
NM
|
|||||||||
Loss ratio
|
65.3
|
%
|
63.3
|
%
|
2.0 pts
|
58.8
|
%
|
63.9
|
%
|
-5.1 pts
|
||||||||||||
Acquisition expense ratio
|
16.9
|
%
|
20.9
|
%
|
-4.0 pts
|
18.4
|
%
|
20.1
|
%
|
-1.7 pts
|
||||||||||||
General and administrative expense ratio
|
20.6
|
%
|
18.6
|
%
|
2.0 pts
|
21.4
|
%
|
20.0
|
%
|
1.4 pts
|
||||||||||||
Expense Ratio
|
37.5
|
%
|
39.5
|
%
|
-2.0 pts
|
39.8
|
%
|
40.1
|
%
|
-0.3 pts
|
||||||||||||
Combined ratio
|
102.8
|
%
|
102.8
|
%
|
0.0 pts
|
98.6
|
%
|
104.0
|
%
|
-5.4 pts
|
||||||||||||
CAY ex-CAT loss ratio
|
53.5
|
%
|
51.6
|
%
|
1.9 pts
|
52.1
|
%
|
52.7
|
%
|
-0.6 pts
|
||||||||||||
•
|
Rates on average were up in the high-single digits for the third quarter 2022.
|
•
|
The CAY ex-CAT loss ratio was 53.5%, an increase of 1.9 percentage points. Adjusting for reinstatement premiums, the CAY ex-CAT loss ratio for the third quarter 2022 was 48.9%, an
improvement 1.1 percentage points from the prior year third quarter.
|
•
|
Catastrophe losses were $19.2 million, or 15.3 percentage points on the loss ratio, compared to $17.3 million, or 10.5 percentage points on the loss ratio in the prior year third
quarter. Catastrophe losses in the third quarter 2022 were due to Hurricane Ian.
|
•
|
Net favorable prior year reserve development was $4.4 million, which lowered the loss ratio by 3.5 percentage points. In comparison, the prior year third quarter had $2.0 million of net
adverse development, which increased the loss ratio 1.2 percentage points.
|
•
|
Adjusting for reinstatement premiums, the expense ratio was 34.4% in the third quarter 2022, an improvement of 3.9 percentage points from the prior year third quarter.
|
•
|
The sale is subject to closing conditions and regulatory approvals, including Lloyd’s of London, UK Prudential Regulation Authority and UK Financial Conduct Authority.
|
September 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Total investments
|
$
|
4,905.1
|
$
|
5,322.6
|
||||
Cash
|
99.4
|
146.1
|
||||||
Accrued investment income
|
23.1
|
20.9
|
||||||
Receivables
|
3,672.3
|
3,615.0
|
||||||
Goodwill and intangible assets
|
136.1
|
164.6
|
||||||
Deferred acquisition costs, net
|
183.4
|
168.0
|
||||||
Ceded unearned premiums
|
450.8
|
506.7
|
||||||
Other assets
|
388.5
|
373.9
|
||||||
Total assets
|
$
|
9,858.7
|
$
|
10,317.8
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
5,731.4
|
$
|
5,595.0
|
||||
Unearned premiums
|
1,404.9
|
1,466.8
|
||||||
Ceded reinsurance payable, net
|
503.1
|
724.4
|
||||||
Senior unsecured fixed rate notes
|
140.5
|
140.3
|
||||||
Other indebtedness
|
52.5
|
57.0
|
||||||
Junior subordinated debentures
|
258.5
|
258.2
|
||||||
Other liabilities
|
442.9
|
340.9
|
||||||
Total liabilities
|
8,533.8
|
8,582.6
|
||||||
Preferred shares
|
144.0
|
144.0
|
||||||
Common shares
|
46.3
|
46.2
|
||||||
Additional paid-in capital
|
1,392.6
|
1,386.4
|
||||||
Treasury shares
|
(455.1
|
)
|
(455.1
|
)
|
||||
Retained earnings
|
530.0
|
636.4
|
||||||
Accumulated other comprehensive income, net of taxes
|
(332.9
|
)
|
(22.7
|
)
|
||||
Total shareholders' equity
|
1,324.9
|
1,735.2
|
||||||
Total liabilities and shareholders' equity
|
$
|
9,858.7
|
$
|
10,317.8
|
||||
Book value per common share
|
$
|
33.72
|
$
|
45.63
|
||||
Tangible book value per common share
|
$
|
29.83
|
$
|
40.91
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
43.23
|
$
|
46.28
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
39.34
|
$
|
41.56
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Gross written premiums
|
$
|
750.9
|
$
|
875.6
|
$
|
2,203.6
|
$
|
2,447.4
|
||||||||
Net written premiums
|
505.2
|
583.7
|
1,414.8
|
1,498.3
|
||||||||||||
Earned premiums
|
455.0
|
487.5
|
1,389.9
|
1,423.9
|
||||||||||||
Net investment income
|
34.0
|
46.1
|
100.9
|
143.2
|
||||||||||||
Net investment and other gains (losses):
|
||||||||||||||||
Net realized investment and other gains (losses)
|
(42.3
|
)
|
0.6
|
(119.2
|
)
|
3.3
|
||||||||||
Change in fair value recognized
Change in allowance for credit losses on fixed
|
(1.1
|
)
|
(5.1
|
)
|
2.5
|
30.7
|
||||||||||
maturity securities
|
(1.3
|
)
|
(0.8
|
)
|
(2.9
|
)
|
(1.5
|
)
|
||||||||
Net realized investment and other gains (losses)
|
(44.7
|
)
|
(5.3
|
)
|
(119.6
|
)
|
32.5
|
|||||||||
Total revenue
|
444.3
|
528.3
|
1,371.2
|
1,599.6
|
||||||||||||
Losses and loss adjustment expenses
|
298.8
|
311.7
|
858.4
|
890.9
|
||||||||||||
Acquisition expenses
|
77.2
|
83.4
|
237.6
|
244.3
|
||||||||||||
General and administrative expenses
|
83.8
|
93.7
|
257.3
|
286.5
|
||||||||||||
Non-operating expenses
|
11.0
|
8.2
|
33.9
|
20.9
|
||||||||||||
Interest expense
|
6.8
|
5.5
|
18.7
|
16.3
|
||||||||||||
Fee and other (income) expense, net
|
0.1
|
(1.1
|
)
|
(1.8
|
)
|
(1.8
|
)
|
|||||||||
Foreign currency exchange (gains) losses
|
(9.1
|
)
|
(1.3
|
)
|
(16.5
|
)
|
4.4
|
|||||||||
Impairment of goodwill
|
28.5
|
—
|
28.5
|
—
|
||||||||||||
Total expenses
|
497.1
|
500.1
|
1,416.1
|
1,461.5
|
||||||||||||
Income before income taxes
|
(52.8
|
)
|
28.2
|
(44.9
|
)
|
138.1
|
||||||||||
Income tax provision (benefit)
|
(4.0
|
)
|
5.8
|
21.1
|
16.1
|
|||||||||||
Net income (loss)
|
$
|
(48.8
|
)
|
$
|
22.4
|
$
|
(66.0
|
)
|
$
|
122.0
|
||||||
Dividends on preferred shares
Net income (loss) attributable to common
|
2.6
|
2.6
|
7.9
|
7.9
|
||||||||||||
shareholders
|
$
|
(51.4
|
)
|
$
|
19.8
|
$
|
(73.9
|
)
|
$
|
114.1
|
||||||
Net income (loss) per common share (basic)
|
$
|
(1.47
|
)
|
$
|
0.57
|
$
|
(2.11
|
)
|
$
|
3.28
|
||||||
Net income (loss) per common share (diluted)
|
$
|
(1.47
|
)
|
$
|
0.56
|
$
|
(2.11
|
)
|
$
|
3.26
|
||||||
Weighted average common shares:
|
||||||||||||||||
Basic
|
35.0
|
34.9
|
35.0
|
34.8
|
||||||||||||
Diluted
|
35.0
|
35.0
|
35.0
|
35.1
|
||||||||||||
Loss ratio
|
65.7
|
%
|
64.0
|
%
|
61.8
|
%
|
62.5
|
%
|
||||||||
Acquisition expense ratio
|
17.0
|
%
|
17.1
|
%
|
17.1
|
%
|
17.2
|
%
|
||||||||
General and administrative expense ratio
|
18.4
|
%
|
19.2
|
%
|
18.5
|
%
|
20.1
|
%
|
||||||||
Expense ratio
|
35.4
|
%
|
36.3
|
%
|
35.6
|
%
|
37.3
|
%
|
||||||||
GAAP combined ratio
|
101.1
|
%
|
100.3
|
%
|
97.4
|
%
|
99.8
|
%
|
||||||||
CAY ex-CAT combined ratio
|
93.4
|
%
|
93.4
|
%
|
92.6
|
%
|
93.4
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
U.S. Operations
|
||||||||||||||||
Gross written premiums
|
$
|
500.4
|
$
|
562.5
|
$
|
1,476.7
|
$
|
1,564.9
|
||||||||
Net written premiums
|
354.0
|
375.0
|
998.8
|
985.2
|
||||||||||||
Earned premiums
|
329.3
|
323.5
|
998.5
|
952.4
|
||||||||||||
Underwriting income
|
9.3
|
14.9
|
60.0
|
51.1
|
||||||||||||
Net investment income
|
23.1
|
29.2
|
68.7
|
91.7
|
||||||||||||
Interest expense
|
(4.7
|
)
|
(3.5
|
)
|
(12.8
|
)
|
(10.6
|
)
|
||||||||
Fee (expense), net
|
0.1
|
(0.1
|
)
|
—
|
(0.6
|
)
|
||||||||||
Operating income before taxes
|
$
|
27.8
|
$
|
40.5
|
$
|
115.9
|
$
|
131.6
|
||||||||
Loss ratio
|
65.9
|
%
|
63.0
|
%
|
62.7
|
%
|
61.2
|
%
|
||||||||
Acquisition expense ratio
|
16.9
|
%
|
15.2
|
%
|
16.5
|
%
|
15.7
|
%
|
||||||||
General and administrative expense ratio
|
14.4
|
%
|
17.2
|
%
|
14.8
|
%
|
17.7
|
%
|
||||||||
Expense Ratio
|
31.3
|
%
|
32.4
|
%
|
31.3
|
%
|
33.4
|
%
|
||||||||
GAAP combined ratio
|
97.2
|
%
|
95.4
|
%
|
94.0
|
%
|
94.6
|
%
|
||||||||
CAY ex-CAT combined ratio
|
91.0
|
%
|
92.2
|
%
|
90.3
|
%
|
91.2
|
%
|
International Operations
|
||||||||||||||||
Gross written premiums
|
$
|
250.1
|
$
|
312.9
|
$
|
726.3
|
$
|
881.9
|
||||||||
Net written premiums
|
150.7
|
208.5
|
415.3
|
512.5
|
||||||||||||
Earned premiums
|
125.2
|
163.9
|
390.7
|
471.1
|
||||||||||||
Underwriting income (loss)
|
(3.5
|
)
|
(4.6
|
)
|
5.6
|
(18.9
|
)
|
|||||||||
Net investment income
|
10.3
|
12.3
|
30.4
|
38.2
|
||||||||||||
Interest expense
|
(2.1
|
)
|
(1.3
|
)
|
(5.7
|
)
|
(4.2
|
)
|
||||||||
Fee income, net
|
(0.2
|
)
|
1.0
|
1.8
|
1.5
|
|||||||||||
Operating income before taxes
|
$
|
4.5
|
$
|
7.4
|
$
|
32.1
|
$
|
16.6
|
||||||||
Loss ratio
|
65.3
|
%
|
63.3
|
%
|
58.8
|
%
|
63.9
|
%
|
||||||||
Acquisition expense ratio
|
16.9
|
%
|
20.9
|
%
|
18.4
|
%
|
20.1
|
%
|
||||||||
General and administrative expense ratio
|
20.6
|
%
|
18.6
|
%
|
21.4
|
%
|
20.0
|
%
|
||||||||
Expense Ratio
|
37.5
|
%
|
39.5
|
%
|
39.8
|
%
|
40.1
|
%
|
||||||||
GAAP combined ratio
|
102.8
|
%
|
102.8
|
%
|
98.6
|
%
|
104.0
|
%
|
||||||||
CAY ex-CAT combined ratio
|
91.0
|
%
|
91.1
|
%
|
91.9
|
%
|
92.8
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
65.9
|
%
|
63.0
|
%
|
62.7
|
%
|
61.2
|
%
|
||||||||
Prior accident year loss reserve development
|
(4.9
|
)%
|
(0.1
|
)%
|
(2.8
|
)%
|
0.1
|
%
|
||||||||
Catastrophe losses
|
(1.3
|
)%
|
(3.1
|
)%
|
(0.9
|
)%
|
(3.5
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
59.7
|
%
|
59.8
|
%
|
59.0
|
%
|
57.8
|
%
|
International Operations
|
||||||||||||||||
Loss ratio
|
65.3
|
%
|
63.3
|
%
|
58.8
|
%
|
63.9
|
%
|
||||||||
Prior accident year loss reserve development
|
3.5
|
%
|
(1.2
|
)%
|
(0.2
|
)%
|
—
|
%
|
||||||||
Catastrophe losses
|
(15.3
|
)%
|
(10.5
|
)%
|
(6.5
|
)%
|
(11.2
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
53.5
|
%
|
51.6
|
%
|
52.1
|
%
|
52.7
|
%
|
Consolidated
|
||||||||||||||||
Loss ratio
|
65.7
|
%
|
64.0
|
%
|
61.8
|
%
|
62.5
|
%
|
||||||||
Prior accident year loss reserve development
|
(2.6
|
)%
|
(1.3
|
)%
|
(2.3
|
)%
|
(0.4
|
)%
|
||||||||
Catastrophe losses
|
(5.1
|
)%
|
(5.6
|
)%
|
(2.5
|
)%
|
(6.0
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
58.0
|
%
|
57.1
|
%
|
57.0
|
%
|
56.1
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Prior-Year Reserve Development
|
||||||||||||||||
(Favorable)/Unfavorable
|
||||||||||||||||
U.S. Operations
|
$
|
16.2
|
$
|
0.2
|
$
|
27.9
|
$
|
(0.7
|
)
|
|||||||
International Operations
|
(4.4
|
)
|
2.0
|
0.8
|
0.1
|
|||||||||||
Run-off Lines
|
0.1
|
4.0
|
2.9
|
6.6
|
||||||||||||
Total net prior-year reserve development
|
$
|
11.9
|
$
|
6.2
|
$
|
31.6
|
$
|
6.0
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Catastrophe & COVID-19 Losses
|
||||||||||||||||
Catastrophe losses
|
||||||||||||||||
U.S. Operations
|
$
|
4.2
|
$
|
10.0
|
$
|
9.2
|
$
|
32.9
|
||||||||
International Operations
|
19.2
|
14.3
|
25.4
|
41.0
|
||||||||||||
Total catastrophe losses
|
23.4
|
24.3
|
34.6
|
73.9
|
COVID-19 losses
|
||||||||||||||||
U.S. Operations
|
—
|
— |
—
|
— | ||||||||||||
International Operations
|
—
|
3.0 |
—
|
12.0 |
||||||||||||
Total COVID-19 losses
|
—
|
3.0 |
—
|
12.0 | ||||||||||||
Catastrophe & COVID-19 losses
|
||||||||||||||||
U.S. Operations
|
4.2
|
10.0
|
9.2
|
32.9
|
||||||||||||
International Operations
|
19.2
|
17.3
|
25.4
|
53.0
|
||||||||||||
Total catastrophe & COVID-19 losses
|
$
|
23.4
|
$
|
27.3
|
$
|
34.6
|
$
|
85.9
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
65.9
|
%
|
63.0
|
%
|
62.7
|
%
|
61.2
|
%
|
||||||||
Prior accident year loss reserve development
|
(4.9
|
)%
|
(0.1
|
)%
|
(2.8
|
)%
|
0.1
|
%
|
||||||||
Catastrophe losses
|
(1.3
|
)%
|
(3.1
|
)%
|
(0.9
|
)%
|
(3.5
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
59.7
|
%
|
59.8
|
%
|
59.0
|
%
|
57.8
|
%
|
||||||||
Reinstatement premiums
|
(0.2
|
)%
|
—
|
%
|
—
|
%
|
(0.3
|
)%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
59.5
|
%
|
59.8
|
%
|
59.0
|
%
|
57.5
|
%
|
International Operations
|
||||||||||||||||
Loss ratio
|
65.3
|
%
|
63.3
|
%
|
58.8
|
%
|
63.9
|
%
|
||||||||
Prior accident year loss reserve development
|
3.5
|
%
|
(1.2
|
)%
|
(0.2
|
)%
|
—
|
%
|
||||||||
Catastrophe losses
|
(15.3
|
)%
|
(10.5
|
)%
|
(6.5
|
)%
|
(11.2
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
53.5
|
%
|
51.6
|
%
|
52.1
|
%
|
52.7
|
%
|
||||||||
Reinstatement premiums
|
(4.6
|
)%
|
(1.6
|
)%
|
(1.6
|
)%
|
(0.6
|
)%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
48.9
|
%
|
50.0
|
%
|
50.5
|
%
|
52.1
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
65.7
|
%
|
64.0
|
%
|
61.8
|
%
|
62.5
|
%
|
||||||||
Prior accident year loss reserve development
|
(2.6
|
)%
|
(1.3
|
)%
|
(2.3
|
)%
|
(0.4
|
)%
|
||||||||
Catastrophe losses
|
(5.1
|
)%
|
(5.6
|
)%
|
(2.5
|
)%
|
(6.0
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
58.0
|
%
|
57.1
|
%
|
57.0
|
%
|
56.1
|
%
|
||||||||
Reinstatement premiums
|
(1.6
|
)%
|
(0.7
|
)%
|
(0.5
|
)%
|
(0.4
|
)%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
56.4
|
%
|
56.4
|
%
|
56.5
|
%
|
55.7
|
%
|
U.S. Operations
|
||||||||||||||||
Expense Ratio
|
31.3
|
%
|
32.4
|
%
|
31.3
|
%
|
33.4
|
%
|
||||||||
Reinstatement premiums
|
(0.1
|
)%
|
(0.1
|
)%
|
—
|
%
|
(0.2
|
)%
|
||||||||
Expense ratio (Adjusted)
|
31.2
|
%
|
32.3
|
%
|
31.3
|
%
|
33.2
|
%
|
International Operations
|
||||||||||||||||
Expense Ratio
|
37.5
|
%
|
39.5
|
%
|
39.8
|
%
|
40.1
|
%
|
||||||||
Reinstatement premiums
|
(3.1
|
)%
|
(1.2
|
)%
|
(1.3
|
)%
|
(0.5
|
)%
|
||||||||
Expense ratio (Adjusted)
|
34.4
|
%
|
38.3
|
%
|
38.5
|
%
|
39.6
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Expense Ratio
|
35.4
|
%
|
36.3
|
%
|
35.6
|
%
|
37.3
|
%
|
||||||||
Reinstatement premiums
|
(1.0
|
)%
|
(0.4
|
)%
|
(0.3
|
)%
|
(0.3
|
)%
|
||||||||
Expense ratio (Adjusted)
|
34.4
|
%
|
35.9
|
%
|
35.3
|
%
|
37.0
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income (loss)
|
$
|
(48.8
|
)
|
$
|
22.4
|
$
|
(66.0
|
)
|
$
|
122.0
|
||||||
Add (deduct):
|
||||||||||||||||
Income tax provision (benefit)
|
(4.0
|
)
|
5.8
|
21.1
|
16.1
|
|||||||||||
Net investment income
|
(34.0
|
)
|
(46.1
|
)
|
(100.9
|
)
|
(143.2
|
)
|
||||||||
Net realized investment and other (gains) losses
|
44.7
|
5.3
|
119.6
|
(32.5
|
)
|
|||||||||||
Interest expense
|
6.8
|
5.5
|
18.7
|
16.3
|
||||||||||||
Fee and other (income) expense, net
|
0.1
|
(1.1
|
)
|
(1.8
|
)
|
(1.8
|
)
|
|||||||||
Foreign currency exchange (gains) losses
|
(9.1
|
)
|
(1.3
|
)
|
(16.5
|
)
|
4.4
|
|||||||||
Non-operating expenses
|
11.0
|
8.2
|
33.9
|
20.9
|
||||||||||||
Impairment of goodwill
|
28.5
|
—
|
28.5
|
—
|
||||||||||||
Underwriting income
|
$
|
(4.8
|
)
|
$
|
(1.3
|
)
|
$
|
36.6
|
$
|
2.2
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income (loss), as reported
|
$
|
(48.8
|
)
|
$
|
22.4
|
$
|
(66.0
|
)
|
$
|
122.0
|
||||||
Income tax provision (benefit)
|
(4.0
|
)
|
5.8
|
21.1
|
16.1
|
|||||||||||
Net income (loss), before taxes
|
(52.8
|
)
|
28.2
|
(44.9
|
)
|
138.1
|
||||||||||
Add (deduct):
|
||||||||||||||||
Net realized investment and other (gains) losses
|
44.7
|
5.3
|
119.6
|
(32.5
|
)
|
|||||||||||
Foreign currency exchange (gains) losses
|
(9.1
|
)
|
(1.3
|
)
|
(16.5
|
)
|
4.4
|
|||||||||
Non-operating expenses
|
11.0
|
8.2
|
33.9
|
20.9
|
||||||||||||
Impairment of goodwill
Operating income before taxes and preferred share
|
28.5
|
—
|
28.5
|
—
|
||||||||||||
dividends
|
22.3
|
40.4
|
120.6
|
130.9
|
||||||||||||
Income tax provision, at assumed rate (1)
|
4.2
|
6.1
|
22.9
|
19.6
|
||||||||||||
Preferred share dividends
|
2.6
|
2.6
|
7.9
|
7.9
|
||||||||||||
Operating income
|
$
|
15.5
|
$
|
31.7
|
$
|
89.8
|
$
|
103.4
|
||||||||
Operating income per common share (diluted)
|
$
|
0.44
|
$
|
0.91
|
$
|
2.57
|
$
|
2.95
|
||||||||
Weighted average common shares, diluted
|
35.0
|
35.0
|
35.0
|
35.1
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Operating income (loss) before income taxes:
|
||||||||||||||||
U.S. Operations
|
$
|
27.8
|
$
|
40.5
|
$
|
115.9
|
$
|
131.6
|
||||||||
International Operations
|
4.5
|
7.4
|
32.1
|
16.6
|
||||||||||||
Run-off Lines
|
0.7
|
(3.6
|
)
|
(1.9
|
)
|
(4.5
|
)
|
|||||||||
Corporate and Other
|
(10.7
|
)
|
(3.9
|
)
|
(25.5
|
)
|
(12.8
|
)
|
||||||||
Total operating income before income taxes
|
22.3
|
40.4
|
120.6
|
130.9
|
||||||||||||
Net realized investment and other gains (losses)
|
(44.7
|
)
|
(5.3
|
)
|
(119.6
|
)
|
32.5
|
|||||||||
Foreign currency exchange (losses) gains
|
9.1
|
1.3
|
16.5
|
(4.4
|
)
|
|||||||||||
Non-operating expenses
|
(11.0
|
)
|
(8.2
|
)
|
(33.9
|
)
|
(20.9
|
)
|
||||||||
Impairment of goodwill
|
(28.5
|
)
|
—
|
(28.5
|
)
|
—
|
||||||||||
Income before income taxes
|
(52.8
|
)
|
28.2
|
(44.9
|
)
|
138.1
|
||||||||||
Income tax provision (benefit)
|
(4.0
|
)
|
5.8
|
21.1
|
16.1
|
|||||||||||
Net income (loss)
|
$
|
(48.8
|
)
|
$
|
22.4
|
$
|
(66.0
|
)
|
$
|
122.0
|
U.S. Operations
|
Three months ended September 30, 2022
|
Three months ended September 30, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
57.6
|
$
|
43.4
|
$
|
33.5
|
$
|
73.5
|
$
|
54.2
|
$
|
35.7
|
||||||||||||
Liability
|
288.1
|
196.1
|
178.0
|
306.3
|
192.4
|
170.1
|
||||||||||||||||||
Professional
|
97.7
|
72.1
|
74.8
|
129.8
|
89.4
|
81.3
|
||||||||||||||||||
Specialty
|
57.0
|
42.4
|
43.0
|
52.9
|
39.0
|
36.4
|
||||||||||||||||||
Total
|
$
|
500.4
|
$
|
354.0
|
$
|
329.3
|
$
|
562.5
|
$
|
375.0
|
$
|
323.5
|
Nine months ended September 30, 2022
|
Nine months ended September 30, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned |
|||||||||||||||||||
Property
|
$
|
159.5
|
$
|
110.0
|
$
|
113.1
|
$
|
203.2
|
$
|
108.6
|
$
|
116.5
|
||||||||||||
Liability
|
833.2
|
537.6
|
520.1
|
837.8
|
514.7
|
501.2
|
||||||||||||||||||
Professional
|
308.7
|
218.2
|
239.3
|
362.0
|
242.7
|
227.7
|
||||||||||||||||||
Specialty
|
175.3
|
133.0
|
126.0
|
161.9
|
119.2
|
107.0
|
||||||||||||||||||
Total
|
$
|
1,476.7
|
$
|
998.8
|
$
|
998.5
|
$
|
1,564.9
|
$
|
985.2
|
$
|
952.4
|
International Operations
|
Three months ended September 30, 2022
|
Three months ended September 30, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written |
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
56.1
|
$
|
13.4
|
$
|
11.8
|
$
|
87.3
|
$
|
45.0
|
$
|
28.3
|
||||||||||||
Liability
|
63.6
|
36.0
|
30.4
|
69.2
|
38.8
|
33.5
|
||||||||||||||||||
Professional
|
54.7
|
44.7
|
35.5
|
62.5
|
52.4
|
43.8
|
||||||||||||||||||
Specialty
|
75.7
|
56.6
|
47.5
|
93.9
|
72.3
|
58.3
|
||||||||||||||||||
Total
|
$
|
250.1
|
$
|
150.7
|
$
|
125.2
|
$
|
312.9
|
$
|
208.5
|
$
|
163.9
|
Nine months ended September 30, 2022
|
Nine months ended September 30, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
169.1
|
$
|
45.0
|
$
|
60.0
|
$
|
247.8
|
$
|
93.5
|
$
|
104.2
|
||||||||||||
Liability
|
170.9
|
102.0
|
95.1
|
192.0
|
107.8
|
99.2
|
||||||||||||||||||
Professional
|
157.2
|
103.9
|
97.7
|
168.7
|
120.0
|
113.3
|
||||||||||||||||||
Specialty
|
229.1
|
164.4
|
137.9
|
273.4
|
191.2
|
154.4
|
||||||||||||||||||
Total
|
$
|
726.3
|
$
|
415.3
|
$
|
390.7
|
$
|
881.9
|
$
|
512.5
|
$
|
471.1
|
Consolidated
|
Three months ended September 30, 2022
|
Three months ended September 30, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
113.7
|
$
|
56.8
|
$
|
45.3
|
$
|
160.8
|
$
|
99.2
|
$
|
64.0
|
||||||||||||
Liability
|
352.1
|
232.6
|
208.9
|
375.7
|
231.4
|
203.7
|
||||||||||||||||||
Professional
|
152.4
|
116.8
|
110.3
|
192.3
|
141.8
|
125.1
|
||||||||||||||||||
Specialty
|
132.7
|
99.0
|
90.5
|
146.8
|
111.3
|
94.7
|
||||||||||||||||||
Total
|
$
|
750.9
|
$
|
505.2
|
$
|
455.0
|
$
|
875.6
|
$
|
583.7
|
$
|
487.5
|
Nine months ended September 30, 2022
|
Nine months ended September 30, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
328.6
|
$
|
155.0
|
$
|
173.1
|
$
|
451.0
|
$
|
202.1
|
$
|
220.7
|
||||||||||||
Liability
|
1,004.7
|
640.3
|
615.9
|
1,030.4
|
623.1
|
600.8
|
||||||||||||||||||
Professional
|
465.9
|
322.1
|
337.0
|
530.7
|
362.7
|
341.0
|
||||||||||||||||||
Specialty
|
404.4
|
297.4
|
263.9
|
435.3
|
310.4
|
261.4
|
||||||||||||||||||
Total
|
$
|
2,203.6
|
$
|
1,414.8
|
$
|
1,389.9
|
$
|
2,447.4
|
$
|
1,498.3
|
$
|
1,423.9
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Investment Income
|
||||||||||||||||
Net investment income, excluding alternative
|
||||||||||||||||
investments
|
$
|
30.8
|
$
|
21.9
|
$
|
80.0
|
$
|
68.4
|
||||||||
Alternative investments
|
3.2
|
24.2
|
20.9
|
74.8
|
||||||||||||
Total net investment income
|
$
|
34.0
|
$
|
46.1
|
$
|
100.9
|
$
|
143.2
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Realized Investment and Other Gains (Losses)
|
||||||||||||||||
Net realized investment (losses) gains
|
$ | (40.9 | ) | $ | 0.6 | $ | (64.1 | ) | $ | 14.8 | ||||||
Change in fair value recognized
|
(1.1 | ) | (5.1 | ) | 2.5 | 30.7 | ||||||||||
Change in allowance for credit losses on fixed
|
||||||||||||||||
maturity securities
|
(1.3
|
)
|
(0.8
|
)
|
(2.9
|
)
|
(1.5
|
)
|
||||||||
(Loss) on sale of Trident assets
|
—
|
—
|
—
|
(11.5
|
)
|
|||||||||||
Loss on the sale of business divestitures including the
|
||||||||||||||||
realization of foreign exchange translation losses
|
(1.4
|
)
|
—
|
(55.1
|
)
|
—
|
||||||||||
Total net realized investments and other gains
|
||||||||||||||||
(losses)
|
$
|
(44.7
|
)
|
$
|
(5.3
|
)
|
$
|
(119.6
|
)
|
$
|
32.5
|
September 30,
2022
|
December 31,
2021
|
|||||||
U.S. Governments and government agencies
|
$
|
511.8
|
$
|
425.0
|
||||
States and political subdivisions
|
161.0
|
171.3
|
||||||
Foreign governments
|
198.3
|
232.8
|
||||||
Corporate – Financial
|
848.5
|
986.9
|
||||||
Corporate – Industrial
|
716.5
|
850.6
|
||||||
Corporate – Utilities
|
111.9
|
145.8
|
||||||
Asset-backed securities
|
182.4
|
173.6
|
||||||
Collateralized loan obligations
|
291.2
|
336.1
|
||||||
Mortgage-backed securities – Agency
|
347.3
|
457.2
|
||||||
Mortgage-backed securities – Commercial
|
345.8
|
418.7
|
||||||
Mortgage-backed securities – Residential
|
15.6
|
25.3
|
||||||
Total fixed maturities
|
3,730.3
|
4,223.3
|
||||||
Commercial Mortgage Loans
|
158.6
|
—
|
||||||
Common stocks
|
43.8
|
55.6
|
||||||
Preferred stocks
|
0.1
|
0.7
|
||||||
Total equity securities available for sale
|
43.9
|
56.3
|
||||||
Private equity
|
263.0
|
248.9
|
||||||
Hedge fund
|
55.0
|
58.6
|
||||||
Overseas deposits
|
78.9
|
74.9
|
||||||
Other
|
4.7
|
4.8
|
||||||
Total other investments
|
401.6
|
387.2
|
||||||
Short term investments and cash equivalents
|
570.7
|
655.8
|
||||||
Cash
|
99.4
|
146.1
|
||||||
Total cash and invested assets
|
$
|
5,004.5
|
$
|
5,468.7
|
||||
September 30,
2022
|
December 31,
2021
|
|||||||
U.S. Governments and government agencies
|
$
|
859.0
|
$
|
882.1
|
||||
AAA
|
654.4
|
788.6
|
||||||
AA
|
350.4
|
390.9
|
||||||
A
|
813.3
|
894.2
|
||||||
BBB
|
718.4
|
820.5
|
||||||
BB
|
95.0
|
174.2
|
||||||
B
|
61.5
|
71.3
|
||||||
Lower than B
|
13.8
|
22.5
|
||||||
Not rated
|
164.5
|
179.0
|
||||||
Total fixed maturities
|
$
|
3,730.3
|
$
|
4,223.3
|
September 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Common shareholders' equity
|
$
|
1,180.9
|
$
|
1,591.2
|
||||
Less: Accumulated other comprehensive income (AOCI), net of taxes
|
(332.9
|
)
|
(22.7
|
)
|
||||
Common shareholders' equity excluding AOCI, net of tax
|
$
|
1,513.8
|
$
|
1,613.9
|
||||
Common shareholders' equity
|
$
|
1,180.9
|
$
|
1,591.2
|
||||
Less: Goodwill and intangible assets
|
136.1
|
164.6
|
||||||
Tangible common shareholders' equity
|
1,044.8
|
1,426.6
|
||||||
Less: AOCI, net of tax
|
(332.9
|
)
|
(22.7
|
)
|
||||
Tangible common shareholders' equity excluding AOCI, net of tax
|
$
|
1,377.7
|
$
|
1,449.3
|
||||
Common shares outstanding - end of period
|
35.021
|
34.875
|
||||||
Book value per common share
|
$
|
33.72
|
$
|
45.63
|
||||
Tangible book value per common share
|
$
|
29.83
|
$
|
40.91
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
43.23
|
$
|
46.28
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
39.34
|
$
|
41.56
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income (loss) attributable to common
shareholders
|
$ |
(51.4
|
)
|
$ |
19.8
|
$ |
(73.9
|
)
|
$ |
114.1
|
||||||
Operating income (loss) (1)
|
15.5
|
31.7
|
89.8
|
103.4
|
||||||||||||
Common Shareholders' Equity - Beginning of period
|
$ |
1,316.7
|
$ |
1,753.9
|
$ |
1,591.2
|
$ |
1,713.8
|
||||||||
Common Shareholders' Equity - End of period
|
1,180.9
|
1,743.6
|
1,180.9
|
1,743.6
|
||||||||||||
Average Common Shareholders' Equity
|
$ |
1,248.8
|
$ |
1,748.8
|
$ |
1,386.1
|
$ |
1,728.7
|
||||||||
Common shares outstanding - End of period
|
35.021
|
34.863
|
35.021
|
34.863
|
||||||||||||
Book value per common share
|
$ |
33.72
|
$ |
50.01
|
$ |
33.72
|
$ |
50.01
|
||||||||
Cash dividends paid per common share during 2022
|
0.31
|
0.93
|
||||||||||||||
Book value per common share, June 30, 2022 -
including cash dividends paid
|
$ |
34.03
|
34.65
|
|||||||||||||
Book value per common share, prior period (2)
|
$ |
37.65
|
45.62
|
|||||||||||||
Change in book value per common share during
2022
|
(10.4
|
)%
|
(26.1
|
)%
|
||||||||||||
Change in book value per common share including
cash dividends paid, during 2022 (2)
|
(9.6
|
)%
|
(24.0
|
)%
|
||||||||||||
Annualized return on average common shareholders'
equity
|
(16.5
|
)%
|
4.5
|
%
|
(7.1
|
)%
|
8.8
|
%
|
||||||||
Annualized operating return on average common
shareholders' equity
|
5.0
|
%
|
7.3
|
%
|
8.6
|
%
|
8.0
|
%
|
Contact:
|
|
Andrew Hersom
|
David Snowden
|
Head of Investor Relations
|
Senior Vice President, Communications
|
860.970.5845
|
210.321.2104
|
andrew.hersom@argogroupus.com
|
david.snowden@argogroupus.com
|
Gregory Charpentier
|
|
AVP, Investor Relations and Corporate Finance
|
|
978.387.4150
|
|
gregory.charpentier@argogroupus.com
|