Argo Group Reports $27.6 Million Net Income in Q1 2025, Revenue Declines to $278.8 Million

Argo Group International Holdings, Inc. reported a net income attributable to common stockholders of $27.6 million for the first quarter of 2025, an increase from $23.0 million in the same period of 2024. Total revenue for the quarter was $278.8 million, down from $378.7 million year-over-year, primarily due to a significant decline in net earned premiums, which fell to $210.0 million from $313.7 million. This decrease was largely attributed to the transfer of the Argo Pro portfolio and the strategic decision to place certain business lines into run-off during 2024.

The company's total assets decreased to $8.73 billion as of March 31, 2025, compared to $8.88 billion at the end of 2024. Total liabilities also declined to $7.10 billion from $7.28 billion, reflecting a reduction in reserves for losses and loss adjustment expenses, which fell to $5.68 billion from $5.80 billion. Stockholders' equity increased slightly to $1.64 billion, up from $1.60 billion, driven by net income and other comprehensive income adjustments.

In terms of operational changes, Argo Group underwent a significant merger with Brookfield Wealth Solutions Ltd. in November 2023, which prompted a restructuring of its reporting segments into Casualty Lines, Specialty Lines, and Run-off Lines. This strategic shift aims to enhance operational efficiency and align with market demands. The company also entered into a Business Transfer Agreement in January 2025, selling renewal rights and related unearned premium reserves of its professional lines businesses to Core Specialty Insurance Holdings, Inc. and Westfield Insurance Companies.

The company reported a loss ratio of 70.5% for the first quarter of 2025, slightly higher than the 70.1% recorded in the same quarter of 2024. Catastrophe losses for the quarter were $7.2 million, primarily due to U.S. storms, compared to $6.4 million in the prior year. The net unfavorable prior-year reserve development was $1.0 million, a significant decrease from $24.8 million in the previous year, indicating improved reserve management.

Looking ahead, Argo Group anticipates continued challenges in the insurance market, particularly in light of the strategic decisions made regarding its business lines. The company is focused on optimizing its investment portfolio and enhancing operational efficiencies to navigate the evolving market landscape. Management remains committed to maintaining adequate capital levels and ensuring liquidity to support ongoing operations and strategic initiatives.