Coming off the rollercoaster: Argo Group International Holdings, Ltd. (NYSE: ARGO)

Argo Group International Holdings, Ltd. (NYSE: ARGO) changed 1.12% to recent value of $68.54. The stock transacted 108914 shares during most recent day however it has an average volume of 201.28K shares. It spotted trading -12.77% off 52-week high price. On the other end, the stock has been noted 13.55% away from the low price over the last 52-weeks.

Argo Group International Holdings, Ltd. (ARGO) recently reported financial results for the three and nine months ended September 30, 2019.

U.S. Operations

Gross written premiums in the 2019 third quarter of $529.9M increased $47.3M or 9.8% contrast to the 2018 third quarter. Growth was achieved across all major lines of business contrast to the 2018 third quarter. The overall increase in gross written premiums reflected an improving rate environment, continued focus on execution of planned growth plans and digital initiatives, while still executing on appropriate risk selection and exposure management actions.

Net retained premiums (net written premiums as a percentage of gross written premiums) for the 2019 third quarter were 68.0% contrast to 70.3% for the 2018 third quarter. The overall current quarter decrease in the percent of net premiums retained was due in large part to a raise in the ongoing planned use of reinsurance programs as part of overall risk management initiatives.

Net earned premiums in the 2019 third quarter of $290.8M were up $12.5M or 4.5% from the 2018 third quarter, driven by the growth in gross written premiums partially offset by the increased use of reinsurance. All major lines of business, not including Liability lines, stated growth in net earned premiums contrast to the 2018 third quarter. The decline in Liability lines reflects the increased use of reinsurance.

The loss ratio for the 2019 third quarter was 61.4%, contrast to 56.1% for the 2018 third quarter, a raise of 5.3 points. The increase in the 2019 third quarter ratio was driven by a 1.6 point increase in the current accident year ex-CAT loss ratio, a raise of 3.6 points Because of a decline in favorable net previous accident year reserve development, and a modest increase in catastrophe losses which resulted in a 0.1 point deterioration to the overall U.S. loss ratio.

The current accident year ex-CAT loss ratio for the 2019 third quarter was 59.5%, contrast to 57.9% for the 2018 third quarter. The 1.6-point increase in the current accident year ex-CAT loss ratio was driven by a modest increase in the Liability and Professional lines loss ratios.

Net favorable previous accident year reserve development for the 2019 third quarter was $0.7M, contrast to $10.7M in the 2018 third quarter. The current quarter favorable previous accident year reserve development related primarily to Specialty and Liability lines, partially offset by unfavorable development in Professional lines and a number of discrete claims in before discontinued businesses.

Catastrophe losses for the 2019 third quarter were $6.1M contrast to catastrophe losses of $5.6M in the 2018 third quarter. The 2019 third quarter losses related to Hurricane Dorian and other U.S. weather-related events.

The expense ratio for the 2019 third quarter was 31.9%, a 0.6-point decrease contrast to the 2018 third quarter (32.5%). The 2019 third quarter expense ratio reflected the benefits of scale and lower acquisition costs, as a result of increased ceding commissions on certain reinsurance programs. The lower acquisition costs were partially offset by continued planned investments in people and technology, including digital initiatives in support of continued growth in gross written premium.

Underwriting income for the 2019 third quarter of $19.4M reduced 39%, contrast to $31.8M for the 2018 third quarter. The $12.4M decrease in underwriting income is primarily related to a decrease in the net favorable previous accident year development, a raise in the current accident year ex-CAT loss ratio, a modest increase in catastrophe losses, partially offset by a decrease in the expense ratio.

The company has 34.19M of outstanding shares and 33.21M shares were floated in the market. The price moved ahead of 3.45% from the mean of 20 days, 6.08% from mean of 50 days SMA and performed -1.04% from mean of 200 days price. Company’s performance for the week was 2.36%, 6.61% for month and YTD performance remained 4.24%.