Argonaut Posts Improved First-Quarter Profit
NU Online News Service, May 9, 2:42 p.m. EDT?Argonaut Group Inc.'s first-quarter net income improved to $33.6 million, or $1.55 per share, compared to one year ago, thanks to better underwriting performances and also sales of some real estate holdings.
In the same period in 2002, the specialty insurer based in San Antonio, Texas, had a net income of $7.5 million, or 34 cents per diluted share.
Argonaut's 2003 first-quarter net income also represents a return to profitability after a $105 million fourth-quarter loss last year related to an asbestos-reserve strengthening and the recording of a deferred tax allowance.
The company's excess & surplus lines segment–which made up nearly half of Argonaut's total gross written premium–did especially well. The segment recorded a 107 percent increase in gross written premium and a 172 percent boost in pre-tax income compared to the 2002 first quarter.
Overall, Argonaut's total gross written premium jumped 42 percent to $173.9 million from one year ago. Sales of select real estate holdings generated a one-time gain of $34.2 million in the 2003 first quarter, the company said.
Commenting on the company's quarterly results, Mark E. Watson III, chief executive officer at Argonaut, said the focus on insurer's core competencies continues to help build a solid foundation. "Our diversification and focus on underwriting discipline has positioned us to take advantage of favorable market conditions in the coming quarters," Mr. Watson said.
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