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Syndicate 1200 an ‘ongoing business’: Argo’s Rehnberg


Argo CEO Kevin Rehnberg told analysts during a third-quarter earnings call that the carrier’s primary Lloyd's insurance business Syndicate 1200 was an ongoing business.

“Absolutely,” the executive replied when analysts asked if that was the current status of Syndicate 1200.

“We are in three places now, effectively. We're in the US, we are in Bermuda, and we're in Syndicate 1200,” he said.

However, the executive declined to comment further about reports of the sale of the Lloyd’s franchise.

“I'm not going to comment on the market rumors, because we don't do that,” said Rehnberg, who has been working to revamp the carrier since taking over the job two years ago, following the departure of long-standing CEO Mark Watson III.

In early September, this publication reported that Morgan Stanley was advising Argo on the sale of Syndicate 1200 after the carrier resisted the move for some time during the earlier stages of its turnaround.

Weeks later, this publication revealed that Argo was withdrawing from the property direct and facultative business in London.

Argo’s turnaround has also included its agreement to sell its Brazilian operations, Argo Seguros, and its exit from European underwriting outside Lloyd’s.

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But the insurer’s CEO said there are still opportunities to grow and make a profit in places where the company operates.

“We are in a position where every business where we remain in is in no different position than the others have been. . . since I was running the US” business, he said.

Argo has been reducing its exposure in some areas over the last one and a half years, particularly in its property segment.

The firm’s strategy resulted in a better-than-expected performance during Q3 2021 as the company narrowed its underwriting loss to $1.3mn from $48mn a year earlier.

“What's happening is we're focusing on what we're good at, and we're really good at casualty lines,” the executive said, adding that “and so we're putting all our resources there.”

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