Bermuda re/insurer Argo Group International Holdings Ltd saw third-quarter profits rise on improved underwriting results.

Argo posted net income of $44.7 million compared to $31 million in the corresponding quarter of last year.

Chief executive officer Mark Watson described it as a “solid” quarter. “Our underwriting margins continue to steadily improve. Top-line growth was modest as we continue to focus on our higher-margin businesses while reducing in areas where we do not see sufficiently attractive returns.”

Argo’s operating income of $23.5 million, or 89 cents per share, beat the 86 cents per share forecast of analysts tracked by Yahoo Finance. It compared to operating income of $22.1 million, or 80 cents per share, in the third quarter of 2013.

The company wrote slightly more business as gross premiums written climbed to $497.2 million from $495.1 million in the July through September period last year.

The combined ratio — the percentage of premium dollars spent on claims and expenses — improved to 96.4 percent from 97.5 percent last year, as estimated pre-tax catastrophe losses fell to $5.5 million, compared to $11.3 million in the same quarter of last year.

Argo said book value per share increased to $62.99, up 0.3 percent from $62.80 at June 30, 2014, and up 6.8 percent from $58.96 at December 31, 2013.

During the quarter, Argo repurchased $10.8 million or 206,710 shares of its common stock at an average price of $52.12, which represents 0.8 percent of net shares outstanding at June 30, 2014.

Profitability for the first nine months of the year compared well with last year as net income was $123.5 million, compared to $95.4 million, while operating income was $72.3 million, compared to $62.7 million for the first nine months of 2013.

Gross premiums written were flat for January through September at $1.48 billion.