“Net loss attributable to common shareholders in the third quarter of 2022 included net realized investment before tax and other losses of $44.7 million, compared to net realized investment before tax and other losses of $5.3 million. losses in the third quarter of the prior year,” noted the insurance group, which reported a decline in catastrophic losses in the quarter despite high catastrophic losses in the industry.
“The increase is primarily due to $34.2 million of pre-tax realized losses related to the impairment of assets that will be transferred upon closing of the Company’s previously announced loss portfolio transfer transaction with a subsidiary in wholly owned by Enstar Group Limited.”
Argo went on to explain, “The net loss attributable to common shareholders in the third quarter of 2022 also included a $28.5 million impairment of goodwill and intangible assets related to the announced sale of Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200.”
The offloading of Argo Underwriting Agency was part of the group’s streamlining efforts.
Meanwhile, Q3 and 9M operating profit were $15.5 million and $89.8 million, respectively. The corresponding figures in 2021 were higher. In terms of underwriting during the quarter, the company’s US operations benefited from underwriting income while international operations recorded an underwriting loss.
In releasing the financial results, Executive Chairman and Chief Executive Officer Thomas A. Bradley noted, “Over the past two years, we have transformed Argo, better positioning the company to advance our business strategies. In September, we announced the sale of our Lloyd’s operations, marking an important step in Argo’s transformation into a specialty specialty insurer in the United States.
“Importantly, this transaction further simplifies our corporate structure, allows for greater focus on our diverse portfolio of profitable and scalable specialty U.S. businesses, and better positions us to explore additional strategic alternatives to maximize value. for the shareholders.”