ARGO - Argo Group Q4 results to be hit by prior year reserve development non-operating charges

Argo Group International (NYSE:ARGO) said its Q4 results will be negatively affected by adverse prior year reserve development and non-operating charges. Argo expects net adverse prior year reserve development to be $130M-$140M for Q4, which was the result of the recently concluded Q4 reserve review. The largest reserve increases were related to construction defect claims within Argo’s U.S. operations and reserve increases in the run-off segment. As part of an ongoing strategic review and recent operating results, goodwill and intangible assets charge is expected to be $40M-$45M in Q4 related to Argo’s Syndicate 1200 business unit. Non-operating expense charges are expected to be $20M-25M primarily related to the reduction in Argo’s real estate footprint in the UK and the impairment of certain IT assets.

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Argo Group Q4 results to be hit by prior year reserve development, non-operating charges