Argo Group International Holdings Ltd made good on their initiative to expand margins with reported profits of $40.2 million for the first quarter ended March 31 — an increase of more than $7 million over the same period last year, and after-tax operating income was $25.1 million or $0.93 per diluted share compared to $20.1 million or $0.71 per diluted share in the first quarter of 2013..

Argo also reported a combined ratio of 95.5 percent, also an improved performance over 2013’s number of 99.4. The re/insurer stated: “Net favourable prior-year reserve development was $8.9 million (benefiting the combined ratio by 2.7 points), compared with $4.5 million (benefiting the combined ratio by 1.5 points) in the first quarter of 2013.”

The current accident year loss ratio, excluding catastrophes, was 57.5 percent compared to 57.9 percent in the first quarter of 2013.

However, Argo stated: “Estimated pre-tax catastrophe losses were $4.2 million or 1.3 points on the combined ratio compared to $1.9 million or 0.6 points in the first quarter of 2013.”

Net income was $1.49 per share compared to $32.7 million, or $1.16 per share, in the first quarter of 2013.

They also reported that book value per share increased 2.3 percent to $60.29 from $58.96 at December 31.

CEO Mark Watson said: “Argo’s first-quarter results demonstrate continued progress on our initiatives to expand margins and grow our platform.

“We remain focused on underwriting excellence and finding ways to expand our more profitable business lines while confronting a more challenging market environment.”

The excess and surplus lines segment reported gross written premiums of $140 million in the first quarter, up $12.4 million or 9.7 percent from the first quarter of 2013, while commercial specialty reported gross written premiums of $105.9 million in the first quarter, down slightly from $106.1 million in the first quarter of 2013.

International specialty gross written premiums were $83.2 million in the first quarter, up $ million or 6.4 percent from the first quarter of 2013. “Growth was driven by our casualty and professional lines business in Bermuda and our operation in Brazil,” Argo stated.

Lloyd’s Syndicate 1200 reported gross written premiums of $133.6 million in the first quarter, up $7.5 million or six percent from the first quarter of 2013.

Argo repurchased $7.5 million or 165,184 shares of its common stock at an average price of $45.37, which represents 0.6 percent of net shares outstanding at December 31, during the quarter.