ARGO’S NET LOSS WIDENS ON ADVERSE RESERVE DEVELOPMENT

Bermudian specialty re/insurer Argo Group’s fourth-quarter net loss ballooned to $103.3m from $43.6m after posting adverse prior-year reserve development of $25.5m in its US operations and $40.9m in its international business. Results also reflected $25.9m in “other corporate expenses” that included costs associated with its response to a US Securities and Exchange Commission subpoena and a separation agreement with former chief executive Mark Watson. The group’s combined ratio added 27.2 points to 126.7%, reflecting a swing to a $113.6m underwriting loss from income of $2.1m. Gross written premiums grew 1.5% to $712.8m. For the full year, Argo swung to a net loss of $8.4m from income of $63.6m as it swung to an underwriting loss of $157.0m. The combined ratio added 11.2 points to 109.1%, while gross written premiums increased 5.9% to $3.13bn.