Argo Group International Holdings, has reported a fourth quarter net loss attributable to common shareholders of $118.8 million, compared with a net loss attributable to common shareholders of $3.5 million for the 2020 fourth quarter.

For the 2021 year, Argo had a net loss of $4.7 million, compared with a net loss of $58.7 million.

The operating loss in the fourth quarter of 2021 was $61.8 million ($8.9 million 2020 for Q4).

Operating income in 2021 was $41.5 million, compared with an operating loss of $10 million for 2020.

The company said their results reflected a continued progression of their strategic plan.

•Continued Strategic Growth: net earned premium increased 4.2 per cent in the fourth quarter of 2021; strong net earned premium growth in our ongoing business of approximately 19.6 per cent, supported by favourable market conditions

• Expense Ratio Improvement: expense ratio of 35.3 per cent for the fourth quarter of 2021 improved 2.9 points from the fourth quarter of 2020 and full year 2021 expense ratio of 36.8 per cent improved 0.7 points compared with the same period in 2020

• Reduced Catastrophe Losses: total catastrophe losses of $6.8 million for the fourth quarter of 2021, down from $51 million in the fourth quarter of 2020 and full year 2021 catastrophe losses of $92.7 million, down from $179.2 million in 2020

• Improved Results in International Operations: combined ratio improved 40.9 points to 76.5 per cent for the fourth quarter of 2021 from the fourth quarter of 2020 and full-year 2021 combined ratio of 97.2 per cent improved 19.9 points compared with the same period in 2020

Argo Group chief executive officer Kevin Rehnberg said: "Our strategic priorities of pursuing profitable growth, reducing volatility, and disciplined expense management are evident in our 2021 current accident year underwriting results.

"We remain encouraged by the continued growth and underlying strength of our ongoing business."

Gross written premium decreased 1.6 per cent to $3.2 billion in 2021, when compared with 2020. The decrease in gross written premium is primarily attributable to businesses the company has exited, plans to exit or has sold. In the ongoing business, premiums grew approximately 15.4 per cent during 2021 when compared with 2020.

Total catastrophe losses in 2021 were $92.7 million or 4.8 points on the loss ratio. Natural catastrophes accounted for $80.3 million of losses with $12.4 million of losses relating to the Covid-19 pandemic. Catastrophe losses in 2020 were $179.2 million or 10.1 points on the loss ratio and included $73.2 million related to the Covid-19 pandemic.

The CAY ex-CAT combined ratio was 93.6 per cent in 2021, an improvement of 1.3 points when compared with the previous year. The improvement in the CAY ex-CAT combined ratio was driven by both an improved expense ratio as well as an improved CAY ex-CAT loss ratio.

Results for the full year 2021 included $33.2 million of pre-tax net realised investment gains, while the previous year included $3.6 million of pre-tax net realised investment losses. The 2021 full year results included $43.7 million of non-operating expenses compared with $21.1 million in the previous year with the increase due to costs associated with the reduction in the company's real estate footprint and the impairment of certain information technology assets. The 2021 full year also included an impairment of goodwill and intangible assets of $43.2 million related to Argo's Syndicate 1200 business unit.

Net loss attributable to common shareholders in 2021 was $4.7 million, or $0.13 per diluted share, compared with a net loss attributable to common shareholders of $58.7 million, or $1.70 per diluted share, in the previous year. Annualised return on average common shareholders' equity was 0.3 per cent in 2021 compared with 3.4 per cent in 2020.

Operating income was $41.5 million or $1.19 per diluted share in 2021, compared with an operating loss of $10 million or $0.29 per diluted share in the previous year. Annualised operating return on average common shareholders' equity was 2.5 per cent in 2021 compared with 0.6 per cent in the previous year.