Argonaut Group Returns To Quarterly Profit
NU Online News Service, Feb. 4, 4:01 p.m. EST?Argonaut Group Inc. returned to profitability for its 2003 fourth quarter, reporting net income of $31 million compared to a net loss of $105.3 million for the 2002 fourth quarter.[@@]
The San Antonio, Texas-based insurer's quarterly figures were helped by a $20.9 million net income boost from a reduction in the value of the deferred tax asset. In contrast, during the 2002 fourth quarter, Argonaut earnings were hurt by a $52.8 million reserve charge related to asbestos in its run-off lines as well as a $71.9 million write-down for the value of a deferred tax asset.
For the full-year 2003, Argonaut reported net income of $109.0 million, in contrast to a net loss of $87.0 million reported for 2002.
Argonaut also pointed out that its continuing business segments produced a combined ratio of 96.7 percent during the 2003 fourth quarter, marking the second consecutive quarter that the insurer's continuing business segments have reported an underwriting profit.
"We are very pleased with Argonaut Group's progress and overall performance during 2003," said Argonaut Chief Executive Mark E. Watson III. "Our continuing improvement can be attributed to our team's dedication to business fundamentals, underwriting discipline and superior customer service," Mr. Watson continued.
"All of this positions our Company to continue focusing on the business we are underwriting today."
For all segments, the insurer's net written premiums for the fourth quarter came in at $143.2 million, improving from $135.1 million reported during the year-ago period. For the full-year 2003, overall net written premiums were $592.5 million, up from $484.0 million for 2002.
The insurer's net investment income improved marginally, both for the fourth quarter and for the full year. The investment income for the fourth quarter was $13.5 million, slightly higher than $12.9 million reported for the 2002 fourth quarter. For the full year, the investment came in at $53.6 million, slightly better than $52.9 million reported for 2002.
Looking into Argonaut's major business units, the insurer's specialty-excess-and-surplus lines had gross written premiums of $99.9 million for the quarter, generating operating income of $10.5 million, an improvement over the year-ago period when these lines posted gross written premiums of $84.2 million and operating income of $6.5 million.
Argonaut's risk management segment also improved, with gross written premiums of $46.1 million and generating operating income of $2.2 million for the 2003 fourth quarter, compared to gross written premiums of $40.2 million and an operating loss of $7.7 million one year ago.
Additionally, gross written premiums for the specialty commercial segment came in at $34.1 million, which generated operating income of $4.3 million. In comparison, this segment reported gross written premiums of $33.4 million and operating income of $3.0 million for the same quarter in 2002.
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