Filed Under:Markets, E&S/Specialty

Argo Q4 Income Drops 89%; Arch Down 40%

NU Online News Service, Feb. 15, 12:59 p.m. EST

Argo Group International Holdings says 2011 fourth-quarter net income was down 89 percent while fellow Bermuda-based insurer and reinsurer Arch Capital Group says net income fell 40 percent during the last quarter.

An estimate pre-tax catastrophe loss of $36.1 million cut into profits for Argo, which reports net income of $1.4 million for the fourth quarter compared to net income of $12.8 million during the same time the prior year.

The quarter’s catastrophe loss total includes $27.5 million of losses related to flooding in Thailand, Argo says.

The flooding also affected Arch’s fourth-quarter earnings, which finished at $136.8 million compared to $227.7 million during the fourth quarter in 2010.

Of the $70.8 million in catastrophe losses recorded by Arch in the fourth quarter, $60.6 million can be attributed to Thailand. Losses also included $5.4 million an Australian hailstorm during the fourth quarter and increases in losses from events throughout 2011, which was a historic year for industry catastrophe losses.

Arch’s yearly net earnings were halved in 2011 compared to 2010—$410.5 million compared to $816.7 million.

Argo reports a net loss of $82.4 million in 2011 compared to a gain of $82.6 in 2010.

The combined ratio at Argo for the year was 119.9 compared to 103.2 in 2010.

Arch posts a combined ratio of 98.3 for the year, compared to 92.5 the prior year.

Featured Video

Most Recent Videos

Video Library ››

Top Story

How construction cons steal workers’ comp premiums: It's a shell game

Shell schemes in construction to avoid workers' comp premiums and taxes have risen to new levels of scope and sophistication in the last 10 years.

Top Story

Highlights from the first full day at RIMS 2017

The first full day of RIMS 2017 kicked off on April 24 at the Philadelphia Convention Center with the General Session and Awards Luncheon.

More Resources

Comments

eNewsletter Sign Up

Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.