Argo Group Comments on Results for First Quarter 2021

Rhea-AI Summary

Argo Group International Holdings (NYSE: ARGO) announced that its first-quarter results will reflect significant losses estimated at $47 million due to catastrophes. Of this, $43 million is related to natural catastrophes, primarily Winter Storm Uri, with about half of these losses originating from International Operations. Additionally, the company expects a net loss of $4 million linked to COVID-19 pandemic impacts on its International Operations. These estimates are pre-tax and may differ from actual results.

Positive

• None.

Negative

• Estimated catastrophe losses of $47 million for Q1 2021.
• Natural catastrophe losses of $43 million primarily from Winter Storm Uri.
• Net losses of approximately $4 million due to COVID-19 impacts.

Argo Group International Holdings, Ltd. (“Argo” or the “company”) (NYSE: ARGO), announced today that its results for the first quarter of 2021 will be adversely affected by estimated catastrophes losses of approximately $47 million.

Argo expects to report natural catastrophe losses of approximately $43 million in the first quarter, primarily related to Winter Storm Uri. Approximately half of natural catastrophe losses are attributable to International Operations, which includes losses related to Ariel Re that was sold during 2020. Argo further expects to report net losses of approximately $4 million due to the ongoing COVID-19 pandemic, primarily related to contingency exposures in Argo’s International Operations.

Argo’s loss estimates are pre-tax and net of reinsurance recoveries. The company’s actual losses may ultimately differ materially from estimated losses due to the nature of the risks assumed, the complexity of the assessment of damages and the number of reported claims received to date.

ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

Argo Group International Holdings, Ltd. (NYSE: ARGO) is an underwriter of specialty insurance products in the property and casualty market. Argo offers a full line of products and services designed to meet the unique coverage and claims-handling needs of businesses in two primary segments: U.S. Operations and International Operations. Argo and its insurance subsidiaries are rated “A-” by Standard & Poor’s. Argo’s insurance subsidiaries are rated “A-” by A.M. Best. More information on Argo and its subsidiaries is available at argogroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210421005951/en/

FAQ

What are Argo's estimated losses for Q1 2021?

Argo Group estimates losses of approximately $47 million for Q1 2021, primarily from catastrophes.

How much of Argo's losses are related to Winter Storm Uri?

Approximately $43 million of Argo's losses are related to Winter Storm Uri.

What is the expected impact of COVID-19 on Argo's financial results?

Argo expects net losses of about $4 million due to the ongoing COVID-19 pandemic.

What percentage of natural catastrophe losses comes from International Operations?

About half of the natural catastrophe losses are attributable to International Operations.