Argo Group International Holdings, Inc. reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024, following its merger with Brookfield Wealth Solutions Ltd. on November 16, 2023. The company transitioned to a new accounting basis, making comparisons with prior periods complex.
For the three months ended September 30, 2024, Argo Group recorded a total revenue of $296.4 million, a decrease from $378.4 million in the same period of 2023. Net earned premiums also fell to $234.3 million from $342.7 million year-over-year. The company experienced a net loss of $132.3 million in Q3 2024, compared to a loss of $46.9 million in Q3 2023. The loss ratio surged to 148.0%, up from 82.0% in the prior year, indicating increased claims relative to earned premiums.
For the nine months ended September 30, 2024, total revenue was $1,055.8 million, down from $1,144.4 million in the same period of 2023. Net earned premiums decreased to $837.9 million from $1,062.5 million. The net loss for this nine-month period was $94.0 million, compared to a loss of $78.5 million in the previous year. The combined ratio, a key measure of underwriting profitability, worsened to 135.9% from 110.2%.
The company’s financial position showed total assets of $8,816.6 million as of September 30, 2024, an increase from $8,503.1 million at the end of 2023. Total stockholders' equity decreased to $1,397.1 million from $1,297.5 million, reflecting the impact of the merger and subsequent financial performance.
Strategically, Argo Group undertook several significant actions, including a merger with AGIH Merger Sub, Inc. on September 25, 2024, aimed at reducing franchise taxes in Delaware. The merger resulted in a bargain purchase of $33.6 million, impacting additional paid-in capital. The company also completed the sale of Argo Underwriting Agency Limited in February 2023 for $161.3 million, which resulted in a loss of $20.3 million in Q1 2023.
Investment performance showed mixed results, with net investment income for Q3 2024 rising to $62.3 million from $40.4 million in Q3 2023. However, net investment and other losses were recorded at $0.2 million for Q3 2024, compared to losses of $4.7 million in the prior year.
Overall, Argo Group's financial results reflect the challenges of integrating operations post-merger, alongside a notable decline in premium income and increased loss ratios, which have significantly impacted profitability.
About Argo Group International Holdings, Inc.
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