The ratings agency also cited Argo’s settlement agreement with Voce as a positive development.Broken down, U.S. gross and net written premiums saw increases, but international operations declined on both fronts.At the same time, A.M. Best said Argo’s Q4 2019 results are troubling.Thank you! Investor Search. The ERGO Group’s financial stability and security is also endorsed by numerous ratings. Email Argo Group. AM Best also has placed under review with negative implications the Long-Term ICR of “bbb” and the Long-Term Issue Credit Ratings (Long-Term IR) of the parent, Argo Group International Holdings, Ltd.This action also highlights the importance of enterprise risk management (ERM), corporate governance and the role that management and the board play to ensure that a proper risk management framework is in place to protect against these types of issues, AM Best affirmed.Additionally, AM Best has placed under review with negative implications the Long-Term ICR of “bbb” and the Long-Term IR of San Antonio, Tex.-based Argo Group US Inc. Argo US’ senior unsecured notes are fully and unconditionally guaranteed by Argo Group, said the ratings agency.Get the insurance industry's trusted newsletter— “bb+” on preferred stockAM Best said it had affirmed Argo Group’s ratings on Oct. 9, 2019, but was unaware that the SEC subpoena had been issued to Argo some time before this date. It attributed international loss ratio increases partially to changes/updates in actuarial estimates.The Bermuda-based specialty insurer and reinsurer had its long-term issuer credit ratings downgraded for the main company and its U.S. operations (to “bbb-” from “bbb”). Internationally, Argo blamed its struggles on the ending of some programs and classes of business, though it said some of that was partially offset by rate increases and organic growth in other areas. Specifically, the ratings agency has removed from under review with negative implications and downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” from “a” of Argo Re and its subsidiaries. That review process is ongoing. The Bermuda-based specialty insurer and reinsurer had its long-term issuer credit ratings downgraded for the main company and its U.S. operations (to “bbb-” from “bbb”). Consolidated net written premiums surpassed $399 million, but that’s down from $424.5 million in the 2018 fourth quarter.Argo reported a $103.3 million net loss in Q4 2019, or negative $3.01 per common share. Entire IR Site Press Releases Only Filings Only ; Argo Group > Investors > News & Market Information > Credit Ratings. We are acting swiftly to address areas where the available return prospects are not achievable in the near term and do not fit our focused strategic direction.”On the U.S. side, Argo said it faced increases in liability, professional and property lines loss ratios. As well, Argo Re’s financial strength rating is now “A-,” downgraded from “A” (Excellent). Its international combined ratio was 149.1 versus 104.5 a year ago.“The board is fully supportive of Kevin’s vision for the company and impressed by all that has been achieved over the past few months,” Bradley said in prepared remarks.
Please tell us what we can do to improve this article.The AM Best ratings review includes the Financial Strength Rating (FSR) of “A” (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Argo Re Ltd. and its subsidiaries. All areas had been under review with negative implications, and there is also now a negative outlook for the credit ratings.Argo also gets some credit from A.M. Best for “proactively working” through its issues. Some of our businesses are performing very well today, while others are not meeting return expectations. “Once again, a portion of this fourth-quarter charge was related to its Lloyd’s operation, which over the years has had a number of challenges.
Best said its rating action is in response to the U.S. Securities and Exchange Commission’s decision last fall to subpoena Argo about executive compensation policies, including those for now-former CEO Mark Watson III.