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.
|
99.1
|
Press Release issued by Argo Group International Holdings, Ltd. dated August 7, 2017.
|
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
|||
|
|
|
|
|
|
By:
|
/s/ Jay S. Bullock
|
|
|
Dated: August 7, 2017
|
|
Name:
|
Jay S. Bullock
|
|
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
Gross Written
Premiums
$687.2M
↑ 22.6%
from 2Q 2016
|
Net Investment
Income
$43.6M
↑ 22.1%
from 2Q 2016
|
Net Income
Per Diluted Share
$1.48
↑ 48.0%
From 2Q 2016
|
Adjusted Operating
Income Per Diluted
Share
(1)
$1.31
↑ 9.2%
from 2Q 2016
|
Book Value
Per Common Share
$62.65
↑ 4.9%
from Dec. 31, 2016
|
“Argo Group’s results for the first six months of 2017 reflect strong investment returns and profitable growth in our U.S., Bermuda, and Latin America operations,” said Argo Group CEO Mark E. Watson III. “Book value per share grew 8.2% over the past 12 months and the annualized return on average shareholders equity was 9% at June 30, 2017. These results demonstrate continued value creation for our shareholders through our focus on specialized products and distribution globally.”
|
HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2017: | HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2017: | ||
● | Gross written premiums were up 22.6% to $687.2 million compared to $560.6 million for the 2016 second quarter. | ● | Gross written premiums were up 19.0% to $1.286 billion compared to $1.080 billion for the 2016 first half. |
● | Net income was $46.0 million or $1.48 per diluted share, compared to $30.9 million or $1.00 per diluted share for the 2016 second quarter. | ● | Net income was $82.7 million or $2.67 per diluted share, compared to $58.6 million or $1.89 per diluted share for the 2016 first half. |
● | Adjusted operating income was $40.7 million or $1.31 per diluted share, compared to $37.0 million or $1.20 per diluted share for the 2016 second quarter. | ● | Adjusted operating income was $62.6 million or $2.02 per diluted share, compared to $66.9 million or $2.16 per diluted share for the 2016 first half. |
● | Combined ratio was 96.6% compared to 95.6% for the 2016 second quarter. The loss and expense ratios for the quarter were 57.8% and 38.8%, respectively, compared to 57.0% and 38.6% for the 2016 second quarter. | ● | Combined ratio was 97.8% compared to 94.8% for the 2016 first half. The loss and expense ratios were 58.2% and 39.6%, respectively compared to 56.3% and 38.5% for the 2016 first half. |
·
|
Second quarter 2017 gross written premiums growth of 13.4% was driven by executing on strategic growth initiatives across Liability, Professional, and Specialty lines and planned reductions within Property lines due to continued pricing competition. Gross written premiums for the first six months of 2017 were up 14.9% from the 2016 period and reflect growth in all four business lines
.
|
·
|
The loss ratio for the 2017 second quarter was 53.6% compared to 55.6% for the 2016 second quarter. For the six-month period in 2017 the loss ratio was 54.6% compared to 55.8% in the 2016 period.
|
·
|
The loss ratio excluding catastrophe losses and reserve development for the 2017 second quarter was 57.4%, compared to 57.7% for the 2016 second quarter, and 57.5% compared to 57.0% for the six month comparison to 2016.
|
●
|
Gross written premiums were up 35.0% in the second quarter and 24.4% for the six-month period of 2017 versus 2016. Growth was driven by reinsurance business at Syndicate 1910, and by business in Bermuda and Brazil.
|
●
|
The current quarter loss ratio was 62.4% compared to 55.6% in the 2016 quarter. For the six months of 2017 the loss ratio was 61.9% compared to 54.8% for the same period of 2016. The increase in the current year loss ratio relates to Syndicate 1200 due to higher property and aviation losses and an increase to reserves for prior year business in Liability, Specialty, and Property lines
.
|
●
|
The loss ratio for the second quarter of 2017, excluding catastrophe losses and reserve development, was 56.3%, compared to 48.1% for the 2016 second quarter. For the six month 2017 period the loss ratio excluding catastrophe losses and reserve development was 55.5% compared to 51.4%.
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in millions, except per share amounts)
|
||||||||
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Total investments
|
$
|
4,624.1
|
$
|
4,324.3
|
||||
Cash
|
214.5
|
86.0
|
||||||
Accrued investment income
|
23.0
|
20.7
|
||||||
Receivables
|
2,192.2
|
1,849.4
|
||||||
Goodwill and intangible assets
|
261.1
|
219.9
|
||||||
Deferred acquisition costs, net
|
162.8
|
139.1
|
||||||
Ceded unearned premiums
|
436.6
|
302.8
|
||||||
Other assets
|
326.4
|
262.8
|
||||||
Total assets
|
$
|
8,240.7
|
$
|
7,205.0
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
3,632.8
|
$
|
3,350.8
|
||||
Unearned premiums
|
1,176.2
|
970.0
|
||||||
Ceded reinsurance payable, net
|
704.7
|
466.6
|
||||||
Senior unsecured fixed rate notes
|
139.5
|
139.5
|
||||||
Other indebtedness
|
182.5
|
55.4
|
||||||
Junior subordinated debentures
|
256.4
|
172.7
|
||||||
Other liabilities
|
257.3
|
257.3
|
||||||
Total liabilities
|
6,349.4
|
5,412.3
|
||||||
Total shareholders' equity
|
1,891.3
|
1,792.7
|
||||||
Total liabilities and shareholders' equity
|
$
|
8,240.7
|
$
|
7,205.0
|
||||
Book value per common share
|
$
|
62.65
|
$
|
59.73
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
FINANCIAL HIGHLIGHTS
|
||||||||||||||||
ALL SEGMENTS
|
||||||||||||||||
(in millions, except per share amounts)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Gross written premiums
|
$
|
687.2
|
$
|
560.6
|
$
|
1,285.8
|
$
|
1,080.4
|
||||||||
Net written premiums
|
447.1
|
388.0
|
790.5
|
691.4
|
||||||||||||
Earned premiums
|
399.1
|
344.9
|
778.5
|
689.8
|
||||||||||||
Net investment income
|
43.6
|
35.7
|
74.1
|
56.9
|
||||||||||||
Fee and other income
|
3.8
|
5.8
|
7.4
|
12.6
|
||||||||||||
Net realized investment and other gains (losses)
|
4.5
|
(2.1
|
)
|
19.1
|
(4.9
|
)
|
||||||||||
Total revenue
|
451.0
|
384.3
|
879.1
|
754.4
|
||||||||||||
Losses and loss adjustment expenses
|
230.6
|
196.6
|
453.1
|
388.2
|
||||||||||||
Underwriting, acquisition and insurance expenses
|
154.7
|
133.0
|
308.3
|
265.6
|
||||||||||||
Interest expense
|
7.0
|
4.9
|
12.9
|
9.7
|
||||||||||||
Fee and other expense, net
|
3.3
|
5.7
|
7.4
|
12.2
|
||||||||||||
Foreign currency exchange losses
|
4.6
|
4.5
|
3.9
|
6.0
|
||||||||||||
Total expenses
|
400.2
|
344.7
|
785.6
|
681.7
|
||||||||||||
Income before taxes
|
50.8
|
39.6
|
93.5
|
72.7
|
||||||||||||
Income tax provision
|
4.8
|
8.7
|
10.8
|
14.1
|
||||||||||||
Net income
|
$
|
46.0
|
$
|
30.9
|
$
|
82.7
|
$
|
58.6
|
||||||||
Net income per common share (basic)
|
$
|
1.52
|
$
|
1.03
|
$
|
2.75
|
$
|
1.93
|
||||||||
Net income per common share (diluted)
|
$
|
1.48
|
$
|
1.00
|
$
|
2.67
|
$
|
1.89
|
||||||||
Weighted average common shares:
|
||||||||||||||||
Basic
|
30.2
|
30.2
|
30.1
|
30.3
|
||||||||||||
Diluted
|
31.0
|
30.8
|
31.0
|
31.0
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
SEGMENT DATA
|
||||||||||||||||
(in millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
U.S. OPERATIONS
|
||||||||||||||||
Gross written premiums
|
$
|
365.0
|
$
|
321.8
|
$
|
700.0
|
$
|
609.4
|
||||||||
Net written premiums
|
261.5
|
223.5
|
478.5
|
412.9
|
||||||||||||
Earned premiums
|
229.1
|
206.8
|
450.3
|
413.4
|
||||||||||||
Underwriting income
|
29.3
|
27.2
|
50.1
|
51.4
|
||||||||||||
Net investment income
|
27.3
|
21.7
|
47.2
|
35.5
|
||||||||||||
Interest expense
|
(3.8
|
)
|
(2.4
|
)
|
(6.5
|
)
|
(4.6
|
)
|
||||||||
Fee income (expense), net
|
0.2
|
(1.1
|
)
|
(0.6
|
)
|
(2.0
|
)
|
|||||||||
Net income before taxes
|
$
|
53.0
|
$
|
45.4
|
$
|
90.2
|
$
|
80.3
|
||||||||
Loss ratio
|
53.6
|
%
|
55.6
|
%
|
54.6
|
%
|
55.8
|
%
|
||||||||
Expense ratio
|
33.6
|
%
|
31.2
|
%
|
34.3
|
%
|
31.8
|
%
|
||||||||
GAAP combined ratio
|
87.2
|
%
|
86.8
|
%
|
88.9
|
%
|
87.6
|
%
|
||||||||
INTERNATIONAL OPERATIONS
|
||||||||||||||||
Gross written premiums
|
$
|
322.1
|
$
|
238.6
|
$
|
585.7
|
$
|
470.8
|
||||||||
Net written premiums
|
185.5
|
164.3
|
311.9
|
278.3
|
||||||||||||
Earned premiums
|
169.9
|
137.9
|
328.1
|
276.2
|
||||||||||||
Underwriting income
|
1.0
|
6.3
|
4.6
|
18.1
|
||||||||||||
Net investment income
|
10.1
|
9.1
|
16.7
|
15.2
|
||||||||||||
Interest expense
|
(2.3
|
)
|
(1.3
|
)
|
(4.3
|
)
|
(2.6
|
)
|
||||||||
Fee income, net
|
0.3
|
1.2
|
0.4
|
2.3
|
||||||||||||
Net income before taxes
|
$
|
9.1
|
$
|
15.3
|
$
|
17.4
|
$
|
33.0
|
||||||||
Loss ratio
|
62.4
|
%
|
55.6
|
%
|
61.9
|
%
|
54.8
|
%
|
||||||||
Expense ratio
|
37.0
|
%
|
39.8
|
%
|
36.7
|
%
|
38.6
|
%
|
||||||||
GAAP combined ratio
|
99.4
|
%
|
95.4
|
%
|
98.6
|
%
|
93.4
|
%
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
(in millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
Net Prior Year Development
|
June 30,
|
June 30,
|
||||||||||||||
(Favorable)/Unfavorable
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
(unaudited)
|
||||||||||||||||
U.S. Operations
|
$
|
(12.8
|
)
|
$
|
(9.0
|
)
|
$
|
(18.0
|
)
|
$
|
(11.9
|
)
|
||||
International Operations
|
10.0
|
(8.5
|
)
|
19.6
|
(10.2
|
)
|
||||||||||
Run-off Lines
|
1.7
|
4.8
|
4.1
|
6.2
|
||||||||||||
Total
|
$
|
(1.1
|
)
|
$
|
(12.7
|
)
|
$
|
5.7
|
$
|
(15.9
|
)
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF UNDERWRITING INCOME TO NET INCOME
|
||||||||||||||||
(in millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net Income
|
$
|
46.0
|
$
|
30.9
|
$
|
82.7
|
$
|
58.6
|
||||||||
Add (deduct):
|
||||||||||||||||
Income tax provision
|
4.8
|
8.7
|
10.8
|
14.1
|
||||||||||||
Net investment income
|
(43.6
|
)
|
(35.7
|
)
|
(74.1
|
)
|
(56.9
|
)
|
||||||||
Net realized investment and other (gains) losses
|
(4.5
|
)
|
2.1
|
(19.1
|
)
|
4.9
|
||||||||||
Fee and other income
|
(3.8
|
)
|
(5.8
|
)
|
(7.4
|
)
|
(12.6
|
)
|
||||||||
Interest expense
|
7.0
|
4.9
|
12.9
|
9.7
|
||||||||||||
Fee and other expense
|
3.3
|
5.7
|
7.4
|
12.2
|
||||||||||||
Foreign currency exchange losses
|
4.6
|
4.5
|
3.9
|
6.0
|
||||||||||||
Underwriting income
|
$
|
13.8
|
$
|
15.3
|
$
|
17.1
|
$
|
36.0
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF ADJUSTED OPERATING INCOME TO NET INCOME
|
||||||||||||||||
(in millions, except per share amounts)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net income, as reported
|
$
|
46.0
|
$
|
30.9
|
$
|
82.7
|
$
|
58.6
|
||||||||
Provision for income taxes
|
4.8
|
8.7
|
10.8
|
14.1
|
||||||||||||
Net income, before taxes
|
50.8
|
39.6
|
93.5
|
72.7
|
||||||||||||
Add (deduct):
|
||||||||||||||||
Net realized investment and other (gains) losses
|
(4.5
|
)
|
2.1
|
(19.1
|
)
|
4.9
|
||||||||||
Foreign currency exchange losses
|
4.6
|
4.5
|
3.9
|
6.0
|
||||||||||||
Adjusted operating income before taxes
|
50.9
|
46.2
|
78.3
|
83.6
|
||||||||||||
Provision for income taxes, at assumed rate (a)
|
10.2
|
9.2
|
15.7
|
16.7
|
||||||||||||
Adjusted operating income
|
$
|
40.7
|
$
|
37.0
|
$
|
62.6
|
$
|
66.9
|
||||||||
Adjusted operating income per common share (diluted)
|
$
|
1.31
|
$
|
1.20
|
$
|
2.02
|
$
|
2.16
|
||||||||
Weighted average common shares, diluted
|
31.0
|
30.8
|
31.0
|
31.0
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF SEGMENT INCOME TO NET INCOME
|
||||||||||||||||
(in millions)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Segment income (loss) before income taxes
|
||||||||||||||||
U.S. Operations
|
53.0
|
45.4
|
90.2
|
80.3
|
||||||||||||
International Operations
|
9.1
|
15.3
|
17.4
|
33.0
|
||||||||||||
Run-off Lines
|
(1.2
|
)
|
(3.2
|
)
|
(3.7
|
)
|
(4.6
|
)
|
||||||||
Corporate and Other
|
(10.0
|
)
|
(11.3
|
)
|
(25.6
|
)
|
(25.1
|
)
|
||||||||
Realized investment and other gains (losses)
|
4.5
|
(2.1
|
)
|
19.1
|
(4.9
|
)
|
||||||||||
Foreign currency exchange losses
|
(4.6
|
)
|
(4.5
|
)
|
(3.9
|
)
|
(6.0
|
)
|
||||||||
Net income before income taxes
|
50.8
|
39.6
|
93.5
|
72.7
|
||||||||||||
Provision for taxes
|
4.8
|
8.7
|
10.8
|
14.1
|
||||||||||||
Net income
|
$
|
46.0
|
$
|
30.9
|
$
|
82.7
|
$
|
58.6
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||
RECONCILIATION OF LOSS RATIOS
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
53.6
|
%
|
55.6
|
%
|
54.6
|
%
|
55.8
|
%
|
||||||||
Prior accident year loss development
|
5.6
|
%
|
4.4
|
%
|
4.0
|
%
|
2.9
|
%
|
||||||||
Catastrophe losses
|
-1.8
|
%
|
-2.3
|
%
|
-1.1
|
%
|
-1.7
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
57.4
|
%
|
57.7
|
%
|
57.5
|
%
|
57.0
|
%
|
||||||||
International Operations
|
||||||||||||||||
Loss ratio
|
62.4
|
%
|
55.6
|
%
|
61.9
|
%
|
54.8
|
%
|
||||||||
Prior accident year loss development
|
-5.9
|
%
|
6.2
|
%
|
-6.0
|
%
|
3.8
|
%
|
||||||||
Catastrophe losses
|
-0.2
|
%
|
-13.7
|
%
|
-0.4
|
%
|
-7.2
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
56.3
|
%
|
48.1
|
%
|
55.5
|
%
|
51.4
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
57.8
|
%
|
57.0
|
%
|
58.2
|
%
|
56.3
|
%
|
||||||||
Prior accident year loss development
|
0.2
|
%
|
3.7
|
%
|
-0.7
|
%
|
2.3
|
%
|
||||||||
Catastrophe losses
|
-1.1
|
%
|
-6.8
|
%
|
-0.8
|
%
|
-3.9
|
%
|
||||||||
Current accident year ex-cats loss ratio
|
56.9
|
%
|
53.9
|
%
|
56.7
|
%
|
54.7
|
%
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||||||||||
GROSS WRITTEN PREMIUMS BY SEGMENT AND LINE OF BUSINESS
|
||||||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
U.S. Operations
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
69.4
|
$
|
44.4
|
$
|
30.0
|
$
|
75.7
|
$
|
40.5
|
$
|
31.6
|
||||||||||||
Liability
|
220.2
|
159.7
|
148.8
|
192.6
|
140.9
|
142.0
|
||||||||||||||||||
Professional
|
40.6
|
31.0
|
28.5
|
34.1
|
25.8
|
17.9
|
||||||||||||||||||
Specialty
|
34.8
|
26.4
|
21.8
|
19.4
|
16.3
|
15.3
|
||||||||||||||||||
Total
|
$
|
365.0
|
$
|
261.5
|
$
|
229.1
|
$
|
321.8
|
$
|
223.5
|
$
|
206.8
|
International Operations
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
117.2
|
$
|
62.0
|
$
|
55.2
|
$
|
99.5
|
$
|
70.0
|
$
|
48.9
|
||||||||||||
Liability
|
38.3
|
19.0
|
18.9
|
33.1
|
18.6
|
20.2
|
||||||||||||||||||
Professional
|
41.4
|
23.9
|
23.8
|
39.8
|
27.2
|
26.0
|
||||||||||||||||||
Specialty
|
125.2
|
80.6
|
72.0
|
66.2
|
48.5
|
42.8
|
||||||||||||||||||
Total
|
$
|
322.1
|
$
|
185.5
|
$
|
169.9
|
$
|
238.6
|
$
|
164.3
|
$
|
137.9
|
Consolidated
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
186.7
|
$
|
106.5
|
$
|
85.3
|
$
|
175.2
|
$
|
110.5
|
$
|
80.5
|
||||||||||||
Liability
|
258.5
|
178.7
|
167.7
|
225.9
|
159.7
|
162.4
|
||||||||||||||||||
Professional
|
82.0
|
54.9
|
52.3
|
73.9
|
53.0
|
43.9
|
||||||||||||||||||
Specialty
|
160.0
|
107.0
|
93.8
|
85.6
|
64.8
|
58.1
|
||||||||||||||||||
Total
|
$
|
687.2
|
$
|
447.1
|
$
|
399.1
|
$
|
560.6
|
$
|
388.0
|
$
|
344.9
|
U.S. Operations
|
Six months ended
|
Six months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
125.3
|
$
|
59.4
|
$
|
59.0
|
$
|
119.4
|
$
|
59.6
|
$
|
65.1
|
||||||||||||
Liability
|
438.2
|
314.4
|
294.6
|
386.5
|
276.6
|
282.8
|
||||||||||||||||||
Professional
|
73.7
|
57.2
|
54.7
|
63.6
|
43.1
|
35.5
|
||||||||||||||||||
Specialty
|
62.8
|
47.5
|
42.0
|
39.9
|
33.6
|
30.0
|
||||||||||||||||||
Total
|
$
|
700.0
|
$
|
478.5
|
$
|
450.3
|
$
|
609.4
|
$
|
412.9
|
$
|
413.4
|
International Operations
|
Six months ended
|
Six months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
210.0
|
$
|
96.0
|
$
|
115.8
|
$
|
196.5
|
$
|
112.1
|
$
|
100.6
|
||||||||||||
Liability
|
70.3
|
36.2
|
37.5
|
69.4
|
39.1
|
41.5
|
||||||||||||||||||
Professional
|
77.6
|
44.4
|
47.7
|
71.5
|
44.8
|
49.5
|
||||||||||||||||||
Specialty
|
227.8
|
135.3
|
127.1
|
133.4
|
82.3
|
84.6
|
||||||||||||||||||
Total
|
$
|
585.7
|
$
|
311.9
|
$
|
328.1
|
$
|
470.8
|
$
|
278.3
|
$
|
276.2
|
Consolidated
|
Six months ended
|
Six months ended
|
||||||||||||||||||||||
June 30, 2017
|
June 30, 2016
|
|||||||||||||||||||||||
Gross Written
|
Net Written
|
Net Earned
|
Gross Written
|
Net Written
|
Net Earned
|
|||||||||||||||||||
Property
|
$
|
335.4
|
$
|
155.5
|
$
|
174.9
|
$
|
315.9
|
$
|
171.7
|
$
|
165.7
|
||||||||||||
Liability
|
508.5
|
350.6
|
332.1
|
456.1
|
315.9
|
324.5
|
||||||||||||||||||
Professional
|
151.3
|
101.6
|
102.4
|
135.1
|
87.9
|
85.0
|
||||||||||||||||||
Specialty
|
290.6
|
182.8
|
169.1
|
173.3
|
115.9
|
114.6
|
||||||||||||||||||
Total
|
$
|
1,285.8
|
$
|
790.5
|
$
|
778.5
|
$
|
1,080.4
|
$
|
691.4
|
$
|
689.8
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||||||||||
COMPONENTS OF NET INVESTMENT INCOME
|
||||||||||||||||||||
ALL SEGMENTS
|
||||||||||||||||||||
(in millions)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Three months ended
|
||||||||||||||||||||
June 30
|
March 31
|
December 31
|
September 30
|
June 30
|
||||||||||||||||
2017
|
2017
|
2016
|
2016
|
2016
|
||||||||||||||||
Net investment income, excluding alternatives
|
$
|
23.0
|
$
|
22.2
|
$
|
22.4
|
$
|
22.9
|
$
|
23.2
|
||||||||||
Alternative investments
|
20.6
|
8.3
|
3.1
|
9.8
|
12.5
|
|||||||||||||||
Total net investment income
|
$
|
43.6
|
$
|
30.5
|
$
|
25.5
|
$
|
32.7
|
$
|
35.7
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
||||||||||||
SHAREHOLDER RETURN ANALYSIS
|
||||||||||||
(in millions)
|
||||||||||||
(unaudited)
|
||||||||||||
For the six months ended June 30,
|
||||||||||||
2017
|
2016
|
% Change
|
||||||||||
Net income
|
$
|
82.7
|
$
|
58.6
|
41.1
|
%
|
||||||
Adjusted operating income
(a)
|
62.6
|
66.9
|
(6.4
|
%)
|
||||||||
Shareholders' Equity - Beginning of the period
|
$
|
1,792.7
|
$
|
1,668.1
|
7.5
|
%
|
||||||
Shareholders' Equity - End of current period
|
1,891.3
|
1,740.3
|
8.7
|
%
|
||||||||
Average Shareholders' Equity
|
$
|
1,842.0
|
$
|
1,704.2
|
8.1
|
%
|
||||||
Annualized return on average shareholders' equity
|
9.0
|
%
|
6.9
|
%
|
||||||||
Annualized adjusted operating return on average shareholders' equity
|
6.8
|
%
|
7.9
|
%
|