Argo Group International Holdings. (AGIIL) has reported 32.49 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $36.70 million, or $1.19 a share in the quarter, compared with $27.70 million, or $0.89 a share for the same period last year. On an adjusted basis, earnings per share were at $0.71 for the quarter compared with $0.96 in the same period last year.
Revenue during the quarter grew 15.67 percent to $428.10 million from $370.10 million in the previous year period. Net premium earned for the quarter increased 10 percent or $34.50 million to $379.40 million.
Total expenses move upOperating income for the quarter was $42 million, compared with $34.60 million in the previous year period. However, the adjusted operating income for the quarter stood at $21.90 million compared to $29.90 million in the prior year period. At the same time, adjusted operating margin contracted 296 basis points in the quarter to 5.12 percent from 8.08 percent in the last year period.
Meanwhile, income from fees and commission for the quarter plunged 47.06 percent or $3.20 million to $3.60 million. The company has recorded a gain on investments of $14.60 million in the quarter compared with a loss of $2.80 million for the previous year period.
"First quarter 2017 net income per share grew 33.7% to $1.19 per share benefiting from strong results in our investment portfolio, our U.S. Operations, and within our International Segment, the inclusion of Ariel Re," said Argo Group chief executive officer Mark E. Watson III. "Despite challenges in the Lloyd’s market and pre-announced charges related to claims for Hurricane Matthew and the Ogden rate change, our book value per share grew 8.4% from March 31, 2016."
Liabilities outpace assets growthTotal assets increased 17.59 percent or $1,199.80 million to $8,019.50 million on Mar. 31, 2017. On the other hand, total liabilities were at $6,184.90 million as on Mar. 31, 2017, up 20.93 percent or $1,070.60 million from year-ago. Return on assets stood at 0.61 percent in the quarter, up 0.13 from 0.48 percent in the last year period. At the same time, return on equity was at 2 percent in the quarter, up 0.38 from 1.62 percent in the last year period.
Investments move upInvestments stood at $4,565.60 million as on Mar. 31, 2017, up 10.62 percent or $438.50 million from year-ago. Meanwhile, reinsurance recoverables moved down 69.94 percent or $1,020.50 million over the year to $438.60 million on Mar. 31, 2017.
Total debt was at $576.10 million as on Mar. 31, 2017, up 56.34 percent or $207.60 million from year-ago. Shareholders equity stood at $1,834.60 million as on Mar. 31, 2017, up 7.58 percent or $129.20 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.31 percent in the quarter from 0.22 percent in the last year period.
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