|
|
|
|
||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
|
P.O. Box HM 1282
Hamilton HM FX Bermuda |
(Address, Including Zip Code,
of Principal Executive Offices) |
(Mailing Address)
|
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
|
||||
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 8.01.
|
Other Events
|
Item 9.01.
|
Financial Statements and Exhibits.
|
No.
|
|
Exhibit
|
|
||
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
Dated: February 27, 2023
|
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
|
By:
|
/s/ Scott Kirk
|
|
Name: Scott Kirk
|
||
Title: Chief Financial Officer
|
•
|
Simplified Business Model: Completed sale of Argo Underwriting Agency Limited and its Lloyd's Syndicate 1200 on February 2, 2023, transforming Argo into a focused, pure-play U.S. specialty insurer
|
•
|
Further Strengthened and De-Risked Balance Sheet: Completed U.S. loss portfolio transfer. In the fourth quarter 2022, recognized an after-tax charge of approximately $100.0 million in connection with the transaction
|
•
|
Reduced Catastrophe Exposure: Total catastrophe losses were $9.4 million in the fourth quarter 2022. Full year 2022 total catastrophe losses of $44.0 million were more than 50% lower compared to the prior year
|
($ in millions, except per share data)
|
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Net income (loss) attributable to common shareholders
|
$
|
(111.8
|
)
|
$
|
(117.8
|
)
|
5.1
|
%
|
$
|
(185.7
|
)
|
$
|
(3.8
|
)
|
NM
|
|||||||||
Per diluted common share
|
$
|
(3.19
|
)
|
$
|
(3.38
|
)
|
5.6
|
%
|
$
|
(5.31
|
)
|
$
|
(0.11
|
)
|
NM
|
|||||||||
Operating earnings
|
$
|
(94.5
|
)
|
$
|
(61.8
|
)
|
-52.9
|
%
|
$
|
(4.7
|
)
|
$
|
41.5
|
-111.3
|
%
|
|||||||||
Per diluted common share
|
$
|
(2.69
|
)
|
$
|
(1.77
|
)
|
-52.0
|
%
|
$
|
(0.13
|
)
|
$
|
1.19
|
-110.9
|
%
|
|||||||||
Annualized return on average common shareholders' equity
|
(39.4
|
)%
|
(28.3
|
)%
|
-11.1 pts
|
(13.9
|
)%
|
(0.2
|
)%
|
-13.7 pts
|
||||||||||||||
Annualized operating return on average common shareholders' equity
|
(33.3
|
)%
|
(14.8
|
)%
|
-18.5 pts
|
(0.4
|
)%
|
2.5
|
%
|
-2.9 pts
|
||||||||||||||
($ in millions)
|
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
644.5
|
$
|
733.8
|
-12.2
|
%
|
$
|
2,848.1
|
$
|
3,181.2
|
-10.5
|
%
|
||||||||||||
Net written premiums
|
326.7
|
479.0
|
-31.8
|
%
|
1,741.5
|
1,977.3
|
-11.9
|
%
|
||||||||||||||||
Earned premiums
|
$
|
350.5
|
$
|
486.2
|
-27.9
|
%
|
$
|
1,740.4
|
$
|
1,910.1
|
-8.9
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
308.5
|
423.7
|
-27.2
|
%
|
1,166.9
|
1,314.6
|
-11.2
|
%
|
||||||||||||||||
Acquisition expenses
|
90.7
|
73.6
|
23.2
|
%
|
328.3
|
317.8
|
3.3
|
%
|
||||||||||||||||
General and administrative expenses
|
85.1
|
97.9
|
-13.1
|
%
|
342.4
|
384.5
|
-10.9
|
%
|
||||||||||||||||
Underwriting income (loss)
|
$
|
(133.8
|
)
|
$
|
(109.0
|
)
|
-22.8
|
%
|
$
|
(97.2
|
)
|
$
|
(106.8
|
)
|
9.0
|
%
|
||||||||
Net investment income
|
$
|
28.9
|
$
|
44.4
|
-34.9
|
%
|
$
|
129.8
|
$
|
187.6
|
-30.8
|
%
|
||||||||||||
Loss ratio
|
88.0
|
%
|
87.1
|
%
|
0.9 pts
|
67.0
|
%
|
68.8
|
%
|
-1.8 pts
|
||||||||||||||
Acquisition expense ratio
|
25.9
|
%
|
15.1
|
%
|
10.8 pts
|
18.9
|
%
|
16.6
|
%
|
2.3 pts
|
||||||||||||||
General and administrative expense ratio
|
24.3
|
%
|
20.2
|
%
|
4.1 pts
|
19.7
|
%
|
20.2
|
%
|
-0.5 pts
|
||||||||||||||
Expense ratio
|
50.2
|
%
|
35.3
|
%
|
14.9 pts
|
38.6
|
%
|
36.8
|
%
|
1.8 pts
|
||||||||||||||
Combined ratio
|
138.2
|
%
|
122.4
|
%
|
15.8 pts
|
105.6
|
%
|
105.6
|
%
|
0.0 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
75.9
|
%
|
58.5
|
%
|
17.4 pts
|
60.8
|
%
|
56.8
|
%
|
4.0 pts
|
||||||||||||||
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
|||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Loss ratio
|
65.4
|
%
|
87.1
|
%
|
-21.7 pts
|
62.7
|
%
|
68.8
|
%
|
-6.1 pts
|
||||||||||||||
Acquisition expense ratio
|
17.0
|
%
|
15.1
|
%
|
1.9 pts
|
17.1
|
%
|
16.6
|
%
|
0.5 pts
|
||||||||||||||
General and administrative expense ratio
|
18.1
|
%
|
20.2
|
%
|
-2.1 pts
|
18.4
|
%
|
20.2
|
%
|
-1.8 pts
|
||||||||||||||
Expense ratio
|
35.1
|
%
|
35.3
|
%
|
-0.2 pts
|
35.5
|
%
|
36.8
|
%
|
-1.3 pts
|
||||||||||||||
Combined ratio
|
100.5
|
%
|
122.4
|
%
|
-21.9 pts
|
98.2
|
%
|
105.6
|
%
|
-7.4 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
56.4
|
%
|
58.5
|
%
|
-2.1 pts
|
56.8
|
%
|
56.8
|
%
|
0 pts
|
•
|
Gross written premiums within the company’s ongoing business1 were broadly in line with the prior year
fourth quarter.
|
•
|
Earned premiums increased approximately 11.5% within the company’s ongoing business reflecting business mix shift towards lines of business where the company
retains more risk.
|
•
|
The current accident year, excluding catastrophes ("CAY ex-CAT") loss ratio of 75.9% increased 17.4 percentage points. Excluding the cost of the LPT, the CAY
ex-CAT loss ratio for the fourth quarter 2022 was 56.4%, an improvement of 2.1 percentage points.
|
•
|
Total catastrophe losses were $9.4 million or 2.7 percentage points on the loss ratio. In comparison, catastrophe losses in the prior year fourth quarter were
$6.8 million or 1.4 percentage points on the loss ratio.
|
•
|
Net adverse prior year reserve development was $33.1 million, or 9.4 percentage points on the loss ratio. In comparison, net adverse prior year reserve
development in the fourth quarter 2021 was $132.3 million, or 27.2 percentage points on the loss ratio.
|
•
|
The net loss attributable to common shareholders in the fourth quarter 2022 included pre-tax net realized investment and other gains of $4.3 million, compared
to $0.2 million of pre-tax net realized investment and other gains in the prior year fourth quarter.
|
•
|
The net loss attributable to common shareholders in the fourth quarter 2022 also included $11.5 million in foreign currency exchange losses, compared to $2.8
million in foreign currency exchange gains in the fourth quarter of 2021
|
•
|
In addition, the net loss attributable to common shareholders in the fourth quarter 2022 included $17.6 million of non-operating expenses, which were mainly
attributable to non-operating advisory fees. In comparison, the prior year fourth quarter reported $22.8 million in non-operating expenses.
|
($ in millions)
|
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
463.9
|
$
|
504.5
|
-8.0
|
%
|
$
|
1,940.6
|
$
|
2,069.4
|
-6.2
|
%
|
||||||||||||
Net written premiums
|
197.4
|
319.6
|
-38.2
|
%
|
1,196.2
|
1,304.8
|
-8.3
|
%
|
||||||||||||||||
Earned premiums
|
$
|
210.5
|
$
|
331.3
|
-36.5
|
%
|
$
|
1,209.0
|
$
|
1,283.7
|
-5.8
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
244.4
|
325.1
|
-24.8
|
%
|
870.1
|
908.2
|
-4.2
|
%
|
||||||||||||||||
Acquisition expenses
|
64.9
|
48.1
|
34.9
|
%
|
229.6
|
197.7
|
16.1
|
%
|
||||||||||||||||
General and administrative expenses
|
55.1
|
53.0
|
4.0
|
%
|
203.2
|
221.6
|
-8.3
|
%
|
||||||||||||||||
Underwriting income (loss)
|
$
|
(153.9
|
)
|
$
|
(94.9
|
)
|
NM
|
$
|
(93.9
|
)
|
$
|
(43.8
|
)
|
NM
|
||||||||||
Loss ratio
|
116.1
|
%
|
98.1
|
%
|
18.0 pts
|
72.0
|
%
|
70.7
|
%
|
1.3 pts
|
||||||||||||||
Acquisition expense ratio
|
30.8
|
%
|
14.5
|
%
|
16.3 pts
|
19.0
|
%
|
15.4
|
%
|
3.6 pts
|
||||||||||||||
General and administrative expense ratio
|
26.2
|
%
|
16.0
|
%
|
10.2 pts
|
16.8
|
%
|
17.3
|
%
|
-0.5 pts
|
||||||||||||||
Expense ratio
|
57.0
|
%
|
30.5
|
%
|
26.5 pts
|
35.8
|
%
|
32.7
|
%
|
3.1 pts
|
||||||||||||||
Combined ratio
|
173.1
|
%
|
128.6
|
%
|
44.5 pts
|
107.8
|
%
|
103.4
|
%
|
4.4 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
96.8
|
%
|
60.4
|
%
|
36.4 pts
|
65.6
|
%
|
58.5
|
%
|
7.1 pts
|
||||||||||||||
($ in millions)
|
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Loss ratio
|
73.7
|
%
|
98.1
|
%
|
-24.4 pts
|
65.4
|
%
|
70.7
|
%
|
-5.3 pts
|
||||||||||||||
Acquisition expense ratio
|
16.4
|
%
|
14.5
|
%
|
1.9 pts
|
16.5
|
%
|
15.4
|
%
|
1.1 pts
|
||||||||||||||
General and administrative expense ratio
|
16.7
|
%
|
16.0
|
%
|
0.7 pts
|
15.3
|
%
|
17.3
|
%
|
-2.0 pts
|
||||||||||||||
Expense ratio
|
33.1
|
%
|
30.5
|
%
|
2.6 pts
|
31.8
|
%
|
32.7
|
%
|
-0.9 pts
|
||||||||||||||
Combined ratio
|
106.8
|
%
|
128.6
|
%
|
-21.8 pts
|
97.2
|
%
|
103.4
|
%
|
-6.2 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
61.5
|
%
|
60.4
|
%
|
1.1 pts
|
59.6
|
%
|
58.5
|
%
|
1.1 pts
|
•
|
Rates on average were up in the low-single digits for the fourth quarter 2022.
|
•
|
Gross written premiums within the U.S. ongoing business2 were in line with the prior year fourth
quarter.
|
•
|
Earned premiums increased approximately 12.2% within the company’s ongoing business reflecting business mix shift towards lines of business where the company
retains more risk.
|
•
|
The CAY ex-CAT loss ratio of 96.8% increased 36.4 percentage points. Excluding the cost of the LPT, the CAY ex-CAT loss ratio was for the fourth 2022 was 61.5%,
an increase of 1.1 percentage points from the fourth quarter 2021, reflecting the company's response to anticipated inflationary loss cost trends.
|
•
|
Catastrophe losses were $4.0 million, or 1.9 percentage points on the loss ratio, compared to $3.2 million or 1.0 percentage points on the loss ratio in the
prior year fourth quarter. Catastrophe losses in the fourth quarter 2022 were due to winter storm Elliot.
|
•
|
Net adverse prior year reserve development was $36.6 million or 17.4 percentage points on the loss ratio. In comparison, net adverse development in the prior
year fourth quarter was $121.6 million, or 36.7 percentage point on the loss ratio. The adverse development in the fourth quarter 2022 was primarily attributable to liability lines for accident years 2019 and prior in businesses the
company has exited.
|
•
|
Enstar's subsidiary is providing ground up cover of $746.0 million of reserves, and an additional $275.0 million of cover in excess of $821.0 million, up to a
policy limit of $1,096.0 million. The company retained a loss corridor of $75.0 million up to $821.0 million.
|
•
|
For the year ended December 31, 2022, the company exhausted the $75.0 million loss corridor.
|
($ in millions)
|
Three Months Ended
December 31,
|
Q/Q
|
|
Year Ended
December 31,
|
Y/Y
|
|
||||||||||||||||||
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
|||||||||||||||||||
Gross written premiums
|
$
|
180.4
|
$
|
229.1
|
-21.3
|
%
|
$
|
906.7
|
$
|
1,111.0
|
-18.4
|
%
|
||||||||||||
Net written premiums
|
129.2
|
159.2
|
-18.8
|
%
|
544.5
|
671.7
|
-18.9
|
%
|
||||||||||||||||
Earned premiums
|
$
|
139.8
|
$
|
154.7
|
-9.6
|
%
|
$
|
530.5
|
$
|
625.8
|
-15.2
|
%
|
||||||||||||
Loss and loss adjustment expenses
|
64.1
|
60.9
|
5.3
|
%
|
293.9
|
362.1
|
-18.8
|
%
|
||||||||||||||||
Acquisition expenses
|
25.7
|
25.1
|
2.4
|
%
|
97.6
|
119.6
|
-18.4
|
%
|
||||||||||||||||
General and administrative expenses
|
24.3
|
32.4
|
-25.0
|
%
|
107.7
|
126.7
|
-15.0
|
%
|
||||||||||||||||
Underwriting income
|
$
|
25.7
|
$
|
36.3
|
-29.2
|
%
|
$
|
31.3
|
$
|
17.4
|
79.9
|
%
|
||||||||||||
Loss ratio
|
45.9
|
%
|
39.4
|
%
|
6.5 pts
|
55.4
|
%
|
57.9
|
%
|
-2.5 pts
|
||||||||||||||
Acquisition expense ratio
|
18.4
|
%
|
16.2
|
%
|
2.2 pts
|
18.4
|
%
|
19.1
|
%
|
-0.7 pts
|
||||||||||||||
General and administrative expense ratio
|
17.3
|
%
|
20.9
|
%
|
-3.6 pts
|
20.3
|
%
|
20.2
|
%
|
0.1 pts
|
||||||||||||||
Expense Ratio
|
35.7
|
%
|
37.1
|
%
|
-1.4 pts
|
38.7
|
%
|
39.3
|
%
|
-0.6 pts
|
||||||||||||||
Combined ratio
|
81.6
|
%
|
76.5
|
%
|
5.1 pts
|
94.1
|
%
|
97.2
|
%
|
-3.1 pts
|
||||||||||||||
CAY ex-CAT loss ratio
|
44.5
|
%
|
54.5
|
%
|
-10.0 pts
|
50.1
|
%
|
53.1
|
%
|
-3.0 pts
|
||||||||||||||
•
|
Rates on average were up in the high-single digits for the fourth quarter 2022.
|
•
|
The CAY ex-CAT loss ratio was 44.5%, an improvement of 10.0 percentage points.
|
•
|
Catastrophe losses were $5.4 million, or 3.9 percentage points on the loss ratio, compared to $3.6 million, or 2.4 percentage points on the loss ratio in the
prior year fourth quarter.
|
•
|
Net favorable prior year reserve development was $3.5 million, which lowered the loss ratio by 2.5 percentage points. In comparison, the prior year fourth
quarter had $27.0 million of net favorable development, which lowered the loss ratio 17.5 percentage points.
|
|
December 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
(unaudited)
|
|||||||
Assets
|
||||||||
Total investments
|
$
|
3,651.9
|
$
|
5,322.6
|
||||
Cash
|
50.2
|
146.1
|
||||||
Accrued investment income
|
18.6
|
20.9
|
||||||
Receivables
|
3,321.1
|
3,615.0
|
||||||
Goodwill and intangible assets
|
118.6
|
164.6
|
||||||
Deferred acquisition costs, net
|
107.0
|
168.0
|
||||||
Ceded unearned premiums
|
375.5
|
506.7
|
||||||
Other assets
|
325.3
|
373.9
|
||||||
Assets held-for-sale
|
2,066.2
|
$
|
—
|
|||||
Total assets
|
$
|
10,034.4
|
$
|
10,317.8
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
5,051.6
|
$
|
5,595.0
|
||||
Unearned premiums
|
1,039.9
|
1,466.8
|
||||||
Ceded reinsurance payable, net
|
158.7
|
724.4
|
||||||
Senior unsecured fixed rate notes
|
140.5
|
140.3
|
||||||
Other indebtedness
|
—
|
57.0
|
||||||
Junior subordinated debentures
|
258.6
|
258.2
|
||||||
Other liabilities
|
237.7
|
340.9
|
||||||
Liabilities held-for-sale
|
1,914.5
|
—
|
||||||
Total liabilities
|
8,801.5
|
8,582.6
|
||||||
Preferred shares
|
144.0
|
144.0
|
||||||
Common shares
|
46.4
|
46.2
|
||||||
Additional paid-in capital
|
1,395.4
|
1,386.4
|
||||||
Treasury shares
|
(455.1
|
)
|
(455.1
|
)
|
||||
Retained earnings
|
407.3
|
636.4
|
||||||
Accumulated other comprehensive income, net of taxes
|
(305.1
|
)
|
(22.7
|
)
|
||||
Total shareholders' equity
|
1,232.9
|
1,735.2
|
||||||
Total liabilities and shareholders' equity
|
$
|
10,034.4
|
$
|
10,317.8
|
||||
Book value per common share
|
$
|
31.06
|
$
|
45.62
|
||||
Tangible book value per common share
|
$
|
27.67
|
$
|
40.90
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
39.76
|
$
|
46.27
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
36.38
|
$
|
41.55
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Gross written premiums
|
$
|
644.5
|
$
|
733.8
|
$
|
2,848.1
|
$
|
3,181.2
|
||||||||
Net written premiums
|
326.7
|
479.0
|
1,741.5
|
1,977.3
|
||||||||||||
Earned premiums
|
350.5
|
486.2
|
1,740.4
|
1,910.1
|
||||||||||||
Net investment income
|
28.9
|
44.4
|
129.8
|
187.6
|
||||||||||||
Net investment and other gains (losses):
|
||||||||||||||||
Net realized investment and other gains (losses)
|
3.3
|
69.3
|
(115.9
|
)
|
72.4
|
|||||||||||
Change in fair value recognized
|
0.6
|
(71.2
|
)
|
3.1
|
(40.4
|
)
|
||||||||||
Change in allowance for credit losses on fixed maturity securities
|
0.4
|
2.1
|
(2.5
|
)
|
0.6
|
|||||||||||
Net realized investment and other gains (losses)
|
4.3
|
0.2
|
(115.3
|
)
|
32.6
|
|||||||||||
Total revenue
|
383.7
|
530.8
|
1,754.9
|
2,130.3
|
||||||||||||
Losses and loss adjustment expenses
|
308.5
|
423.7
|
1,166.9
|
1,314.6
|
||||||||||||
Acquisition expenses
|
90.7
|
73.6
|
328.3
|
317.8
|
||||||||||||
General and administrative expenses
|
85.1
|
97.9
|
342.4
|
384.5
|
||||||||||||
Non-operating expenses
|
17.6
|
22.8
|
51.5
|
43.7
|
||||||||||||
Interest expense
|
8.1
|
5.3
|
26.8
|
21.6
|
||||||||||||
Fee and other (income) expense, net
|
0.5
|
(0.2
|
)
|
(1.3
|
)
|
(2.0
|
)
|
|||||||||
Foreign currency exchange (gains) losses
|
11.5
|
(2.8
|
)
|
(5.0
|
)
|
1.6
|
||||||||||
Impairment of goodwill
|
—
|
43.2
|
28.5
|
43.2
|
||||||||||||
Total expenses
|
522.0
|
663.5
|
1,938.1
|
2,125.0
|
||||||||||||
Income (loss) before income taxes
|
(138.3
|
)
|
(132.7
|
)
|
(183.2
|
)
|
5.3
|
|||||||||
Income tax provision (benefit)
|
(29.1
|
)
|
(17.5
|
)
|
(8.0
|
)
|
(1.4
|
)
|
||||||||
Net income (loss)
|
$
|
(109.2
|
)
|
$
|
(115.2
|
)
|
$
|
(175.2
|
)
|
$
|
6.7
|
|||||
Dividends on preferred shares
|
2.6
|
2.6
|
10.5
|
10.5
|
||||||||||||
Net income (loss) attributable to common shareholders
|
$
|
(111.8
|
)
|
$
|
(117.8
|
)
|
$
|
(185.7
|
)
|
$
|
(3.8
|
)
|
||||
Net income (loss) per common share (basic)
|
$
|
(3.19
|
)
|
$
|
(3.38
|
)
|
$
|
(5.31
|
)
|
$
|
(0.11
|
)
|
||||
Net income (loss) per common share (diluted)
|
$
|
(3.19
|
)
|
$
|
(3.38
|
)
|
$
|
(5.31
|
)
|
$
|
(0.11
|
)
|
||||
Weighted average common shares:
|
||||||||||||||||
Basic
|
35.1
|
34.9
|
35.0
|
34.8
|
||||||||||||
Diluted
|
35.1
|
34.9
|
35.0
|
34.8
|
||||||||||||
Loss ratio
|
88.0
|
%
|
87.1
|
%
|
67.0
|
%
|
68.8
|
%
|
||||||||
Acquisition expense ratio
|
25.9
|
%
|
15.1
|
%
|
18.9
|
%
|
16.6
|
%
|
||||||||
General and administrative expense ratio
|
24.3
|
%
|
20.2
|
%
|
19.7
|
%
|
20.2
|
%
|
||||||||
Expense ratio
|
50.2
|
%
|
35.3
|
%
|
38.6
|
%
|
36.8
|
%
|
||||||||
GAAP combined ratio
|
138.2
|
%
|
122.4
|
%
|
105.6
|
%
|
105.6
|
%
|
||||||||
CAY ex-CAT combined ratio
|
126.1
|
%
|
93.8
|
%
|
99.4
|
%
|
93.6
|
%
|
|
Three Months Ended
|
Year ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
U.S. Operations
|
||||||||||||||||
Gross written premiums
|
$
|
463.9
|
$
|
504.5
|
$
|
1,940.6
|
$
|
2,069.4
|
||||||||
Net written premiums
|
197.4
|
319.6
|
1,196.2
|
1,304.8
|
||||||||||||
Earned premiums
|
210.5
|
331.3
|
1,209.0
|
1,283.7
|
||||||||||||
Underwriting income
|
(153.9
|
)
|
(94.9
|
)
|
(93.9
|
)
|
(43.8
|
)
|
||||||||
Net investment income
|
19.7
|
27.7
|
88.4
|
119.4
|
||||||||||||
Interest expense
|
(4.7
|
)
|
(3.5
|
)
|
(17.5
|
)
|
(14.1
|
)
|
||||||||
Fee (expense), net
|
0.1
|
0.2
|
0.1
|
(0.4
|
)
|
|||||||||||
Operating (loss) income before taxes
|
$
|
(138.8
|
)
|
$
|
(70.5
|
)
|
$
|
(22.9
|
)
|
$
|
61.1
|
|||||
Loss ratio
|
116.1
|
%
|
98.1
|
%
|
72.0
|
%
|
70.7
|
%
|
||||||||
Acquisition expense ratio
|
30.8
|
%
|
14.5
|
%
|
19.0
|
%
|
15.4
|
%
|
||||||||
General and administrative expense ratio
|
26.2
|
%
|
16.0
|
%
|
16.8
|
%
|
17.3
|
%
|
||||||||
Expense Ratio
|
57.0
|
%
|
30.5
|
%
|
35.8
|
%
|
32.7
|
%
|
||||||||
GAAP combined ratio
|
173.1
|
%
|
128.6
|
%
|
107.8
|
%
|
103.4
|
%
|
||||||||
CAY ex-CAT combined ratio
|
153.8
|
%
|
90.9
|
%
|
101.4
|
%
|
91.2
|
%
|
||||||||
International Operations
|
||||||||||||||||
Gross written premiums
|
$
|
180.4
|
$
|
229.1
|
$
|
906.7
|
$
|
1,111.0
|
||||||||
Net written premiums
|
129.2
|
159.2
|
544.5
|
671.7
|
||||||||||||
Earned premiums
|
139.8
|
154.7
|
530.5
|
625.8
|
||||||||||||
Underwriting income (loss)
|
25.7
|
36.3
|
31.3
|
17.4
|
||||||||||||
Net investment income
|
8.7
|
12.4
|
39.1
|
50.6
|
||||||||||||
Interest expense
|
(2.1
|
)
|
(1.4
|
)
|
(7.8
|
)
|
(5.6
|
)
|
||||||||
Fee income, net
|
(0.6
|
)
|
0.2
|
1.2
|
1.7
|
|||||||||||
Operating income before taxes
|
$
|
31.7
|
$
|
47.5
|
$
|
63.8
|
$
|
64.1
|
||||||||
Loss ratio
|
45.9
|
%
|
39.4
|
%
|
55.4
|
%
|
57.9
|
%
|
||||||||
Acquisition expense ratio
|
18.4
|
%
|
16.2
|
%
|
18.4
|
%
|
19.1
|
%
|
||||||||
General and administrative expense ratio
|
17.3
|
%
|
20.9
|
%
|
20.3
|
%
|
20.2
|
%
|
||||||||
Expense Ratio
|
35.7
|
%
|
37.1
|
%
|
38.7
|
%
|
39.3
|
%
|
||||||||
GAAP combined ratio
|
81.6
|
%
|
76.5
|
%
|
94.1
|
%
|
97.2
|
%
|
||||||||
CAY ex-CAT combined ratio
|
80.2
|
%
|
91.6
|
%
|
88.8
|
%
|
92.4
|
%
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
116.1
|
%
|
98.1
|
%
|
72.0
|
%
|
70.7
|
%
|
||||||||
Prior accident year loss reserve development
|
(17.4
|
)%
|
(36.7
|
)%
|
(5.3
|
)%
|
(9.4
|
)%
|
||||||||
Catastrophe losses
|
(1.9
|
)%
|
(1.0
|
)%
|
(1.1
|
)%
|
(2.8
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
96.8
|
%
|
60.4
|
%
|
65.6
|
%
|
58.5
|
%
|
||||||||
International Operations
|
||||||||||||||||
Loss ratio
|
45.9
|
%
|
39.4
|
%
|
55.4
|
%
|
57.9
|
%
|
||||||||
Prior accident year loss reserve development
|
2.5
|
%
|
17.5
|
%
|
0.5
|
%
|
4.3
|
%
|
||||||||
Catastrophe losses
|
(3.9
|
)%
|
(2.4
|
)%
|
(5.8
|
)%
|
(9.1
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
44.5
|
%
|
54.5
|
%
|
50.1
|
%
|
53.1
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
88.0
|
%
|
87.1
|
%
|
67.0
|
%
|
68.8
|
%
|
||||||||
Prior accident year loss reserve development
|
(9.4
|
)%
|
(27.2
|
)%
|
(3.7
|
)%
|
(7.2
|
)%
|
||||||||
Catastrophe losses
|
(2.7
|
)%
|
(1.4
|
)%
|
(2.5
|
)%
|
(4.8
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
75.9
|
%
|
58.5
|
%
|
60.8
|
%
|
56.8
|
%
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Prior-Year Reserve Development
|
||||||||||||||||
(Favorable)/Unfavorable
|
||||||||||||||||
U.S. Operations
|
$
|
36.6
|
$
|
121.6
|
$
|
64.5
|
$
|
120.9
|
||||||||
International Operations
|
(3.5
|
)
|
(27.0
|
)
|
(2.7
|
)
|
(26.9
|
)
|
||||||||
Run-off Lines
|
—
|
37.7
|
2.9
|
44.3
|
||||||||||||
Total net prior-year reserve development
|
$
|
33.1
|
$
|
132.3
|
$
|
64.7
|
$
|
138.3
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Catastrophe & COVID-19 Losses
|
||||||||||||||||
Catastrophe losses
|
||||||||||||||||
U.S. Operations
|
$
|
4.0
|
$
|
3.2
|
$
|
13.2
|
$
|
36.1
|
||||||||
International Operations
|
5.4
|
3.2
|
30.8
|
44.2
|
||||||||||||
Total catastrophe losses
|
9.4
|
6.4
|
44.0
|
80.3
|
||||||||||||
COVID-19 losses
|
||||||||||||||||
U.S. Operations
|
—
|
—
|
—
|
—
|
||||||||||||
International Operations
|
—
|
0.4
|
—
|
12.4
|
||||||||||||
Total COVID-19 losses
|
—
|
0.4
|
—
|
12.4
|
||||||||||||
Catastrophe & COVID-19 losses
|
||||||||||||||||
U.S. Operations
|
4.0
|
3.2
|
13.2
|
36.1
|
||||||||||||
International Operations
|
5.4
|
3.6
|
30.8
|
56.6
|
||||||||||||
Total catastrophe & COVID-19 losses
|
$
|
9.4
|
$
|
6.8
|
$
|
44.0
|
$
|
92.7
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
U.S. Operations
|
||||||||||||||||
Loss ratio
|
116.1
|
%
|
98.1
|
%
|
72.0
|
%
|
70.7
|
%
|
||||||||
Prior accident year loss reserve development
|
(17.4
|
)%
|
(36.7
|
)%
|
(5.3
|
)%
|
(9.4
|
)%
|
||||||||
Catastrophe losses
|
(1.9
|
)%
|
(1.0
|
)%
|
(1.1
|
)%
|
(2.8
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
96.8
|
%
|
60.4
|
%
|
65.6
|
%
|
58.5
|
%
|
||||||||
Impact of U.S. LPT Cost
|
(35.3
|
)%
|
—
|
%
|
(6.0
|
)%
|
—
|
%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
61.5
|
%
|
60.4
|
%
|
59.6
|
%
|
58.5
|
%
|
||||||||
International Operations
|
||||||||||||||||
Loss ratio
|
45.9
|
%
|
39.4
|
%
|
55.4
|
%
|
57.9
|
%
|
||||||||
Prior accident year loss reserve development
|
2.5
|
%
|
17.5
|
%
|
0.5
|
%
|
4.3
|
%
|
||||||||
Catastrophe losses
|
(3.9
|
)%
|
(2.4
|
)%
|
(5.8
|
)%
|
(9.1
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
44.5
|
%
|
54.5
|
%
|
50.1
|
%
|
53.1
|
%
|
||||||||
Impact of U.S. LPT Cost
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
44.5
|
%
|
54.5
|
%
|
50.1
|
%
|
53.1
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Loss ratio
|
88.0
|
%
|
87.1
|
%
|
67.0
|
%
|
68.8
|
%
|
||||||||
Prior accident year loss reserve development
|
(9.4
|
)%
|
(27.2
|
)%
|
(3.7
|
)%
|
(7.2
|
)%
|
||||||||
Catastrophe losses
|
(2.7
|
)%
|
(1.4
|
)%
|
(2.5
|
)%
|
(4.8
|
)%
|
||||||||
CAY ex-CAT loss ratio
|
75.9
|
%
|
58.5
|
%
|
60.8
|
%
|
56.8
|
%
|
||||||||
Impact of U.S. LPT Cost
|
(19.5
|
)%
|
—
|
%
|
(4.0
|
)%
|
—
|
%
|
||||||||
CAY ex-CAT loss ratio (Adjusted)
|
56.4
|
%
|
58.5
|
%
|
56.8
|
%
|
56.8
|
%
|
||||||||
U.S. Operations
|
||||||||||||||||
Expense Ratio
|
57.0
|
%
|
30.5
|
%
|
35.8
|
%
|
32.7
|
%
|
||||||||
Impact of U.S. LPT Cost
|
(23.9
|
)%
|
—
|
%
|
(4.0
|
)%
|
—
|
%
|
||||||||
Expense ratio (Adjusted)
|
33.1
|
%
|
30.5
|
%
|
31.8
|
%
|
32.7
|
%
|
||||||||
International Operations
|
||||||||||||||||
Expense Ratio
|
35.7
|
%
|
37.1
|
%
|
38.7
|
%
|
39.3
|
%
|
||||||||
Impact of U.S. LPT Cost
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||
Expense ratio (Adjusted)
|
35.7
|
%
|
37.1
|
%
|
38.7
|
%
|
39.3
|
%
|
||||||||
Consolidated
|
||||||||||||||||
Expense Ratio
|
50.2
|
%
|
35.3
|
%
|
38.6
|
%
|
36.8
|
%
|
||||||||
Impact of U.S. LPT Cost
|
(15.1
|
)%
|
—
|
%
|
(3.1
|
)%
|
—
|
%
|
||||||||
Expense ratio (Adjusted)
|
35.1
|
%
|
35.3
|
%
|
35.5
|
%
|
36.8
|
%
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income (loss)
|
$
|
(109.2
|
)
|
$
|
(115.2
|
)
|
$
|
(175.2
|
)
|
$
|
6.7
|
|||||
Add (deduct):
|
||||||||||||||||
Income tax provision (benefit)
|
(29.1
|
)
|
(17.5
|
)
|
(8.0
|
)
|
(1.4
|
)
|
||||||||
Net investment income
|
(28.9
|
)
|
(44.4
|
)
|
(129.8
|
)
|
(187.6
|
)
|
||||||||
Net realized investment and other (gains) losses
|
(4.3
|
)
|
(0.2
|
)
|
115.3
|
(32.6
|
)
|
|||||||||
Interest expense
|
8.1
|
5.3
|
26.8
|
21.6
|
||||||||||||
Fee and other (income) expense, net
|
0.5
|
(0.2
|
)
|
(1.3
|
)
|
(2.0
|
)
|
|||||||||
Foreign currency exchange (gains) losses
|
11.5
|
(2.8
|
)
|
(5.0
|
)
|
1.6
|
||||||||||
Non-operating expenses
|
17.6
|
22.8
|
51.5
|
43.7
|
||||||||||||
Impairment of goodwill
|
—
|
43.2
|
28.5
|
43.2
|
||||||||||||
Underwriting income (loss)
|
$
|
(133.8
|
)
|
$
|
(109.0
|
)
|
$
|
(97.2
|
)
|
$
|
(106.8
|
)
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income (loss), as reported
|
$
|
(109.2
|
)
|
$
|
(115.2
|
)
|
$
|
(175.2
|
)
|
$
|
6.7
|
|||||
Income tax provision (benefit)
|
(29.1
|
)
|
(17.5
|
)
|
(8.0
|
)
|
(1.4
|
)
|
||||||||
Net income (loss), before taxes
|
(138.3
|
)
|
(132.7
|
)
|
(183.2
|
)
|
5.3
|
|||||||||
Add (deduct):
|
||||||||||||||||
Net realized investment and other (gains) losses
|
(4.3
|
)
|
(0.2
|
)
|
115.3
|
(32.6
|
)
|
|||||||||
Foreign currency exchange (gains) losses
|
11.5
|
(2.8
|
)
|
(5.0
|
)
|
1.6
|
||||||||||
Non-operating expenses
|
17.6
|
22.8
|
51.5
|
43.7
|
||||||||||||
Impairment of goodwill
|
—
|
43.2
|
28.5
|
43.2
|
||||||||||||
Operating income (loss) before taxes and preferred share dividends
|
(113.5
|
)
|
(69.7
|
)
|
7.1
|
61.2
|
||||||||||
Income tax provision (benefit), at assumed rate (1)
|
(21.6
|
)
|
(10.5
|
)
|
1.3
|
9.2
|
||||||||||
Preferred share dividends
|
2.6
|
2.6
|
10.5
|
10.5
|
||||||||||||
Operating (loss) income
|
$
|
(94.5
|
)
|
$
|
(61.8
|
)
|
$
|
(4.7
|
)
|
$
|
41.5
|
|||||
Operating income per common share (diluted)
|
$
|
(2.69
|
)
|
$
|
(1.77
|
)
|
$
|
(0.13
|
)
|
$
|
1.19
|
|||||
Weighted average common shares, diluted
|
35.1
|
34.9
|
35.0
|
34.8
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Operating income (loss) before income taxes:
|
||||||||||||||||
U.S. Operations
|
$
|
(138.8
|
)
|
$
|
(70.5
|
)
|
$
|
(22.9
|
)
|
$
|
61.1
|
|||||
International Operations
|
31.7
|
47.5
|
63.8
|
64.1
|
||||||||||||
Run-off Lines
|
0.1
|
(37.0
|
)
|
(1.8
|
)
|
(41.5
|
)
|
|||||||||
Corporate and Other
|
(6.5
|
)
|
(9.7
|
)
|
(32.0
|
)
|
(22.5
|
)
|
||||||||
Total operating income before income taxes
|
(113.5
|
)
|
(69.7
|
)
|
7.1
|
61.2
|
||||||||||
Net realized investment and other gains (losses)
|
4.3
|
0.2
|
(115.3
|
)
|
32.6
|
|||||||||||
Foreign currency exchange (losses) gains
|
(11.5
|
)
|
2.8
|
5.0
|
(1.6
|
)
|
||||||||||
Non-operating expenses
|
(17.6
|
)
|
(22.8
|
)
|
(51.5
|
)
|
(43.7
|
)
|
||||||||
Impairment of goodwill
|
—
|
(43.2
|
)
|
(28.5
|
)
|
(43.2
|
)
|
|||||||||
Income (loss) before income taxes
|
(138.3
|
)
|
(132.7
|
)
|
(183.2
|
)
|
5.3
|
|||||||||
Income tax provision (benefit)
|
(29.1
|
)
|
(17.5
|
)
|
(8.0
|
)
|
(1.4
|
)
|
||||||||
Net income (loss)
|
$
|
(109.2
|
)
|
$
|
(115.2
|
)
|
$
|
(175.2
|
)
|
$
|
6.7
|
U.S. Operations
|
Three months ended December 31, 2022
|
Three months ended December 31, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
54.8
|
$
|
34.4
|
$
|
35.7
|
$
|
49.8
|
$
|
30.9
|
$
|
33.4
|
||||||||||||
Liability
|
240.5
|
38.1
|
56.6
|
255.8
|
154.4
|
171.6
|
||||||||||||||||||
Professional
|
101.8
|
72.1
|
70.7
|
142.1
|
93.5
|
87.4
|
||||||||||||||||||
Specialty
|
66.8
|
52.8
|
47.5
|
56.8
|
40.8
|
38.9
|
||||||||||||||||||
Total
|
$
|
463.9
|
$
|
197.4
|
$
|
210.5
|
$
|
504.5
|
$
|
319.6
|
$
|
331.3
|
Year ended December 31, 2022
|
Year ended December 31, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
214.3
|
$
|
144.4
|
$
|
148.8
|
$
|
253.0
|
$
|
139.5
|
$
|
149.9
|
||||||||||||
Liability
|
1,073.7
|
575.7
|
576.7
|
1,093.6
|
669.1
|
672.8
|
||||||||||||||||||
Professional
|
410.5
|
290.3
|
310.0
|
504.1
|
336.2
|
315.1
|
||||||||||||||||||
Specialty
|
242.1
|
185.8
|
173.5
|
218.7
|
160.0
|
145.9
|
||||||||||||||||||
Total
|
$
|
1,940.6
|
$
|
1,196.2
|
$
|
1,209.0
|
$
|
2,069.4
|
$
|
1,304.8
|
$
|
1,283.7
|
International Operations
|
Three months ended December 31, 2022
|
Three months ended December 31, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
21.6
|
$
|
17.3
|
$
|
22.8
|
$
|
47.3
|
$
|
27.0
|
$
|
28.2
|
||||||||||||
Liability
|
56.6
|
35.1
|
29.6
|
64.8
|
39.5
|
31.5
|
||||||||||||||||||
Professional
|
51.3
|
41.2
|
36.2
|
57.3
|
40.7
|
35.0
|
||||||||||||||||||
Specialty
|
50.9
|
35.6
|
51.2
|
59.7
|
52.0
|
60.0
|
||||||||||||||||||
Total
|
$
|
180.4
|
$
|
129.2
|
$
|
139.8
|
$
|
229.1
|
$
|
159.2
|
$
|
154.7
|
Year ended December 31, 2022
|
Year ended December 31, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
190.7
|
$
|
62.3
|
$
|
82.8
|
$
|
295.1
|
$
|
120.5
|
$
|
132.4
|
||||||||||||
Liability
|
227.5
|
137.1
|
124.7
|
256.8
|
147.3
|
130.7
|
||||||||||||||||||
Professional
|
208.5
|
145.1
|
133.9
|
226.0
|
160.7
|
148.3
|
||||||||||||||||||
Specialty
|
280.0
|
200.0
|
189.1
|
333.1
|
243.2
|
214.4
|
||||||||||||||||||
Total
|
$
|
906.7
|
$
|
544.5
|
$
|
530.5
|
$
|
1,111.0
|
$
|
671.7
|
$
|
625.8
|
Consolidated
|
Three months ended December 31, 2022
|
Three months ended December 31, 2021
|
||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
76.4
|
$
|
51.7
|
$
|
58.5
|
$
|
97.1
|
$
|
57.9
|
$
|
61.6
|
||||||||||||
Liability
|
297.3
|
73.3
|
86.4
|
320.9
|
194.0
|
203.3
|
||||||||||||||||||
Professional
|
153.1
|
113.3
|
106.9
|
199.4
|
134.2
|
122.4
|
||||||||||||||||||
Specialty
|
117.7
|
88.4
|
98.7
|
116.4
|
92.9
|
98.9
|
||||||||||||||||||
Total
|
$
|
644.5
|
$
|
326.7
|
$
|
350.5
|
$
|
733.8
|
$
|
479.0
|
$
|
486.2
|
Year ended December 31, 2022
|
Year ended December 31, 2021
|
|||||||||||||||||||||||
Gross
Written
|
Net
Written
|
Net
Earned
|
Gross
Written
|
Net
Written
|
Net
Earned
|
|||||||||||||||||||
Property
|
$
|
405.0
|
$
|
206.7
|
$
|
231.6
|
$
|
548.1
|
$
|
260.0
|
$
|
282.3
|
||||||||||||
Liability
|
1,302.0
|
713.6
|
702.3
|
1,351.3
|
817.1
|
804.1
|
||||||||||||||||||
Professional
|
619.0
|
435.4
|
443.9
|
730.1
|
496.9
|
463.4
|
||||||||||||||||||
Specialty
|
522.1
|
385.8
|
362.6
|
551.7
|
403.3
|
360.3
|
||||||||||||||||||
Total
|
$
|
2,848.1
|
$
|
1,741.5
|
$
|
1,740.4
|
$
|
3,181.2
|
$
|
1,977.3
|
$
|
1,910.1
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net Investment Income
|
||||||||||||||||
Net investment income, excluding alternative investments
|
$
|
32.1
|
$
|
23.7
|
$
|
112.1
|
$
|
92.1
|
||||||||
Alternative investments
|
(3.2
|
)
|
20.7
|
17.7
|
95.5
|
|||||||||||
Total net investment income
|
$
|
28.9
|
$
|
44.4
|
$
|
129.8
|
$
|
187.6
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net Realized Investment and Other Gains (Losses)
|
||||||||||||||||
Net realized investment (losses) gains
|
$
|
3.3
|
$
|
69.3
|
$
|
(60.8
|
)
|
$
|
82.9
|
|||||||
Change in fair value recognized
|
0.6
|
(71.2
|
)
|
3.1
|
(40.4
|
)
|
||||||||||
Change in allowance for credit losses on fixed maturity securities
|
0.4
|
2.1
|
(2.5
|
)
|
0.6
|
|||||||||||
(Loss) on sale of Trident assets
|
—
|
—
|
—
|
(10.5
|
)
|
|||||||||||
Loss on the sale of business divestitures including the realization of foreign exchange translation losses
|
—
|
—
|
(55.1
|
)
|
—
|
|||||||||||
Total net realized investments and other gains (losses)
|
$
|
4.3
|
$
|
0.2
|
$
|
(115.3
|
)
|
$
|
32.6
|
|
December 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
U.S. Governments and government agencies
|
$
|
380.7
|
$
|
425.0
|
||||
States and political subdivisions
|
99.8
|
171.3
|
||||||
Foreign governments
|
28.4
|
232.8
|
||||||
Corporate – Financial
|
636.4
|
986.9
|
||||||
Corporate – Industrial
|
520.1
|
850.6
|
||||||
Corporate – Utilities
|
77.6
|
145.8
|
||||||
Asset-backed securities
|
139.2
|
173.6
|
||||||
Collateralized loan obligations
|
237.9
|
336.1
|
||||||
Mortgage-backed securities – Agency
|
259.1
|
457.2
|
||||||
Mortgage-backed securities – Commercial
|
285.4
|
418.7
|
||||||
Mortgage-backed securities – Residential
|
10.9
|
25.3
|
||||||
Total fixed maturities
|
2,675.5
|
4,223.3
|
||||||
Commercial Mortgage Loans
|
159.7
|
—
|
||||||
Common stocks
|
43.9
|
55.6
|
||||||
Preferred stocks
|
—
|
0.7
|
||||||
Total equity securities available for sale
|
43.9
|
56.3
|
||||||
Private equity
|
264.6
|
248.9
|
||||||
Hedge fund
|
54.0
|
58.6
|
||||||
Overseas deposits
|
—
|
74.9
|
||||||
Other
|
4.6
|
4.8
|
||||||
Total other investments
|
323.2
|
387.2
|
||||||
Short term investments and cash equivalents
|
449.6
|
655.8
|
||||||
Cash
|
50.2
|
146.1
|
||||||
Total cash and invested assets
|
$
|
3,702.1
|
$
|
5,468.7
|
|
December 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
U.S. Governments and government agencies
|
$
|
639.8
|
$
|
882.1
|
||||
AAA
|
364.6
|
788.6
|
||||||
AA
|
241.8
|
390.9
|
||||||
A
|
592.5
|
894.2
|
||||||
BBB
|
565.6
|
820.5
|
||||||
BB
|
64.1
|
174.2
|
||||||
B
|
60.6
|
71.3
|
||||||
Lower than B
|
14.9
|
22.5
|
||||||
Not rated
|
131.6
|
179.0
|
||||||
Total fixed maturities
|
$
|
2,675.5
|
$
|
4,223.3
|
December 31,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Common shareholders' equity
|
$
|
1,088.9
|
$
|
1,591.2
|
||||
Less: Accumulated other comprehensive income (AOCI), net of taxes
|
(305.1
|
)
|
(22.7
|
)
|
||||
Common shareholders' equity excluding AOCI, net of tax
|
$
|
1,394.0
|
$
|
1,613.9
|
||||
Common shareholders' equity
|
$
|
1,088.9
|
$
|
1,591.2
|
||||
Less: Goodwill and intangible assets
|
118.6
|
164.6
|
||||||
Tangible common shareholders' equity
|
970.3
|
1,426.6
|
||||||
Less: AOCI, net of tax
|
(305.1
|
)
|
(22.7
|
)
|
||||
Tangible common shareholders' equity excluding AOCI, net of tax
|
$
|
1,275.4
|
$
|
1,449.3
|
||||
Common shares outstanding - end of period
|
35.061
|
34.877
|
||||||
Book value per common share
|
$
|
31.06
|
$
|
45.62
|
||||
Tangible book value per common share
|
$
|
27.67
|
$
|
40.90
|
||||
Book value per common share excluding AOCI, net of tax
|
$
|
39.76
|
$
|
46.27
|
||||
Tangible book value per common share excluding AOCI, net of tax
|
$
|
36.38
|
$
|
41.55
|
|
Three Months Ended
|
Year Ended
|
||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income (loss) attributable to common shareholders
|
$
|
(111.8
|
)
|
$
|
(117.8
|
)
|
$
|
(185.7
|
)
|
$
|
(3.8
|
)
|
||||
Operating income (loss) (1)
|
(94.5
|
)
|
(61.8
|
)
|
(4.7
|
)
|
41.5
|
|||||||||
Common Shareholders' Equity - Beginning of period
|
$
|
1,180.9
|
$
|
1,743.6
|
$
|
1,591.2
|
$
|
1,713.8
|
||||||||
Common Shareholders' Equity - End of period
|
1,088.9
|
1,591.2
|
1,088.9
|
1,591.2
|
||||||||||||
Average Common Shareholders' Equity
|
$
|
1,134.9
|
$
|
1,667.4
|
$
|
1,340.1
|
$
|
1,652.5
|
||||||||
Common shares outstanding - End of period
|
35.061
|
34.877
|
35.061
|
34.877
|
||||||||||||
Book value per common share
|
$
|
31.06
|
$
|
45.62
|
$
|
31.06
|
$
|
45.62
|
||||||||
Cash dividends paid per common share during 2022
|
0.31
|
1.24
|
||||||||||||||
Book value per common share, December 31, 2022 - including cash dividends paid
|
$
|
31.37
|
$
|
32.30
|
||||||||||||
Book value per common share, prior period (2)
|
$
|
33.72
|
$
|
45.62
|
||||||||||||
Change in book value per common share during 2022
|
(7.9
|
)%
|
(31.9
|
)%
|
||||||||||||
Change in book value per common share including cash dividends paid, during 2022 (2)
|
(7.0
|
)%
|
(29.2
|
)%
|
||||||||||||
Annualized return on average common shareholders' equity
|
(39.4
|
)%
|
(28.3
|
)%
|
(13.9
|
)%
|
(0.2
|
)%
|
||||||||
Annualized operating return on average common shareholders' equity
|
(33.3
|
)%
|
(14.8
|
)%
|
(0.4
|
)%
|
2.5
|
%
|
Contact:
|
|
Andrew Hersom
|
David Snowden
|
Head of Investor Relations
|
Senior Vice President, Communications
|
860.970.5845
|
210.321.2104
|
andrew.hersom@argogroupus.com
|
david.snowden@argogroupus.com
|
|
|
Gregory Charpentier
|
|
AVP, Investor Relations and Corporate Finance
|
|
978.387.4150
|
|
gregory.charpentier@argogroupus.com |