Argo Group reports Q2 operating EPS (2c), consensus 57c

Reports Q2 gross written premiums of $561.9M decreased $170.2M or 23.2%, primarily due to businesses the company has sold and exited. “Our Q2 performance further reflects the proactive steps we are taking to prioritize improving profitability,” said Argo Executive Chairman and CEO, Thomas A. Bradley. “Our top line results reflect our deliberate and disciplined actions in certain lines of business. However, we continue to achieve growth across the rest of the portfolio, notably in our environmental, inland marine and casualty segments. This is a testament to the importance of a diversified book of specialty businesses. We have remained focused on lowering expenses and reducing earnings volatility. The success of these efforts was demonstrated in the second quarter by further improvement in the expense ratio, and a low level of catastrophe losses, despite elevated industry catastrophe losses during the period. We also continue to collaborate closely with Brookfield Reinsurance on integration planning as we wait for the required regulatory approvals on the pending merger, and anticipate an orderly transition for our customers and business partners once the transaction is completed.”