HAMILTON, Bermuda--(BUSINESS WIRE)-- Argo Group International Holdings, Ltd. (NASDAQ: AGII) today announced financial results for the three and nine months ended Sept. 30, 2017.

2017 Third Quarter Recap

Gross Written

Net Loss

Net Investment

Total YTD Return on

Book Value

Premiums

Per Diluted Share

Income

Average Investments(1)

Per Common Share

$805.1M

$2.04

$30.9M

4.4%

$60.96

↑ 37.5%

↓ 213.3%

↓ 5.5%

↑ 100 basis points

↑ 2.1%

from 3Q 2016

from 3Q 2016

from 3Q 2016

YTD 3Q 2016

from Dec. 31, 2016

“In a quarter dominated by natural catastrophe losses, Argo Group’s risk and capital management framework was effective, together with our underwriting expertise and global platforms, gives us the ability to react to the most attractive market opportunities as market pricing changes in reaction to these events,” said Argo Group CEO Mark E. Watson III. “In addition, we continue seeing growth in many of our business lines as we leverage the ongoing investments in technology and talent.”

HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPT. 30, 2017:   Gross written premiums were up 37.5% to $805.1 million compared to $585.4 million for the 2016 third quarter. Net loss of $61.3 million or $2.04 per diluted share, compared to net income of $55.2 million or $1.80 per diluted share for the 2016 third quarter. Adjusted operating loss(1)(2) was $57.4 million or $1.91 per diluted share, compared to adjusted operating income of $34.4 million or $1.12 per diluted share for the 2016 third quarter. The reported combined ratio was 126.5% compared to 96.2% for the 2016 third quarter. The loss and expense ratios for the quarter were 83.8% and 42.7%, respectively, compared to 57.9% and 38.3% for the 2016 third quarter. Estimated pre-tax catastrophe losses were $104.5 million inclusive of $14.5 million of catastrophe related premium charges. This compared to $13.0 million in the 2016 third quarter. The current accident year ex-CAT combined ratio, as adjusted(1) for certain other discreet catastrophe and risk management reinsurance purchases in the quarter and a one-time expense item was 97.2% The related loss and expense ratios for the quarter were 57.7% and 39.5%, respectively. This loss ratio includes a 3.7 point impact relating to the previously announced $15 million of current accident year losses recorded primarily in Syndicate 1200. There were no similar reinsurance purchases or one-time expenses in the comparable 2016 period. As such, the comparable 2016 third quarter current accident year ex-CAT combined ratio, as adjusted was 93.4% with underlying loss and expense ratios of 55.1% and 38.3%, respectively. Net Investment Income was $30.9 million, compared to $32.7 million for the 2016 third quarter. The result for the 2017 quarter reflects lower income from alternative investments of $5.7 million compared to $9.8 million in the 2016 third quarter. Total return on average investments for the 2017 third quarter was 1.3%, flat with same period in 2016. Net favorable prior-year reserve development was $1.3 million (benefiting the combined ratio by 0.3 points), compared with $2.9 million (benefiting the combined ratio by 0.8 points) for the 2016 third quarter. During the third quarter of 2017, the Company repurchased $33.8 million or 565,534 shares of its common stock.

HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPT. 30, 2017:   Gross written premiums were up 25.5% to $2.091 billion compared to $1.666 billion in the first nine months of 2016. Net income was $21.4 million or $0.69 per diluted share, compared to $113.8 million or $3.68 per diluted share in the first nine months of 2016. Adjusted operating income(1)(2) was $5.2 million or $0.17 per diluted share, compared to $101.3 million or $3.28 per diluted share in the first nine months of 2016. The reported combined ratio was 107.3% compared to 95.2% in the first nine months of 2016. The loss and expense ratios were 66.7% and 40.6%, respectively, compared to 56.8% and 38.4% in the first nine months of 2016. Estimated pre-tax catastrophe losses were $110.9 million inclusive of $14.5 million of catastrophe related premium charges. This compared to $38.9 million in the first nine months of 2016. The current accident year ex-CAT combined ratio, as adjusted(1) for certain discreet catastrophe and risk management reinsurance purchases in the third quarter of 2017 and one-time expenses was 96.0%. The related loss and expense ratios for the nine months ended September 30, 2017 were 57.0% and 39.0%. This loss ratio includes a 1.3 point impact relating to the previously announced $15 million of current accident year losses recorded primarily in Syndicate 1200. There were no similar reinsurance purchases or one-time expenses in the comparable 2016 period. As such, the comparable 2016 third quarter current accident year ex-CAT combined ratio, as adjusted was 93.4% in the first nine months of 2016 with underlying loss and expense ratios of 54.9% and 38.4%, respectively. Net Investment Income was $105.0 million, compared to $89.6 million in the first nine months of 2016. In the nine-month period alternative investments contributed $34.6 million to net investment income in 2017 and $20.8 million in 2016. Total return on average investments for the first nine months of 2017 was 4.4% compared to 4.3% in the first nine months of 2016. Net unfavorable prior-year reserve development was $4.4 million (adversely affecting the combined ratio by 0.4 points). Also included in the nine months of 2017 was an impact of approximately $10.0 million in the first quarter of 2017 from the Ogden rate change and claims from Hurricane Matthew. This compares to net favorable development of $18.8 million (benefiting the combined ratio by 1.8 points) in the first nine months of 2016. During the first nine months of 2017, the Company repurchased $36.6 million or 612,034 shares of its common stock. Book value per share increased to $60.96, up 2.1% from $59.73 at Dec. 31, 2016. Cash and investments at Sept. 30, 2017, totaled $5.0 billion with a net pre-tax unrealized gain of approximately $181.1 million.

Notes

• All references to catastrophe losses are pre-tax, net of reinsurance and estimated reinstatement premiums and inclusive of catastrophe related premium adjustments.
• Point impacts on the combined ratio are calculated as the difference between the reported combined ratio and the combined ratio excluding incurred catastrophe losses and associated reinstatement and other catastrophe related premium adjustments.

(1)		Refer to Non-GAAP Financial Measures below.
(2)		At assumed tax rate of 20%.

FINANCIAL HIGHLIGHTS BY SEGMENT

U.S. Operations

U.S. Operations include the Excess & Surplus Lines and Commercial Specialty businesses.

• Third quarter 2017 gross written premiums growth of 18.9% was driven by executing on strategic growth initiatives across Liability, Professional, and Specialty lines and planned reductions within Property lines due to continued pricing competition.
• Gross written premiums for the first nine months of 2017 were up 16.4% from the same 2016 period and reflect growth in all four business lines.
• The loss ratio for the 2017 third quarter was 61.2% compared to 54.3% for the 2016 third quarter. For the nine-month period in 2017 the loss ratio was 56.8% compared to 55.3% in the same 2016 period.
• Current accident year ex-CAT loss ratio, as adjusted for the 2017 third quarter was 57.3%, compared to 58.5% for the 2016 third quarter, and 57.4% compared to 57.5%, respectively, for the nine-month periods in 2017 and 2016.
• The expense ratio for the 2017 third quarter was 36.5% compared to 33.0% for the 2016 third quarter. For the first nine-months of 2017 the expense ratio was 35.1% compared to 32.2% in the first nine months of 2016.
• The third quarter 2017 expense ratio excluding catastrophe related premium adjustments, other third quarter 2017 catastrophe and risk management purchases and a one-time expense of $3.5 million relating to the final resolution of a premium tax dispute was 34.3%.
• For the 2017 third quarter, U.S. Operations reported underwriting income of $5.6 million, compared to underwriting income of $27.5 million for the 2016 third quarter. For the first nine months of 2017, underwriting income was $55.7 million compared to $78.9 million in the first nine months of 2016.
• For the 2017 third quarter, net favorable prior-year reserve development was $10.7 million, compared to net favorable prior-year reserve development of $13.7 million for the 2016 third quarter. For the nine-month period in 2017 net favorable prior-year reserve development was $28.7 million compared to net favorable prior-year reserve development of $25.6 million for the same period in 2016.
• Catastrophe losses for the 2017 third quarter were $21.0 million (and include $3.8 million of catastrophe related premium charges) compared to catastrophe losses of $4.5 million for the 2016 third quarter. Catastrophe losses for the first nine months of 2017 were $25.9 million (including $3.8 million of catastrophe related premium adjustments) compared to catastrophe losses of $11.5 million for the first nine months of 2016.
• During the third quarter of 2017, the Company received a fee of $8.5 million in connection with the transfer of certain fee based operations.

International Operations

International Operations comprise Syndicate 1200, International Specialty, and the Ariel Re businesses including Syndicate 1910. The Ariel Re transaction closed on February 6, 2017; therefore, Ariel Re results are included in the International Operations results since that date.

• Gross written premiums were up 67.6% in the third quarter and 38.4% for the nine-month period of 2017 versus the same periods in 2016. Growth was driven by acquisition of Ariel Re reinsurance business at Syndicate 1910, and by business in Bermuda and Brazil.
• The third quarter 2017 reported loss ratio was 113.0% compared to 55.4% in the 2016 third quarter. For the nine months of 2017 the loss ratio was 77.7% compared to 55.0% for the same period of 2016. The increase in the third quarter 2017 loss ratio relates to Syndicate 1200 due to approximately $15 million in higher current accident year property losses as was pre-announced in mid-October.
• Current accident year ex-CAT loss ratio, as adjusted for the third quarter of 2017, was 58.3%, compared to 49.9% for the 2016 third quarter. For the nine month 2017 period the current accident year ex-CAT loss ratio, as adjusted was 56.4% compared to 50.9% in the first nine months of 2016.
• The expense ratio for the 2017 third quarter was 43.3% compared to 35.8% for the 2016 third quarter. For the first nine-months of 2017 the expense ratio was 38.7% compared to 37.7% in the same 2016 period.
• The third quarter 2017 expense ratio excluding catastrophe related premium adjustments, other third quarter 2017 catastrophe and risk management purchases was 38.7% compared to 35.8% in the same 2016 period. The nine-month adjusted expense ratio was 37.3% compared to 37.7% in the same 2016 period.
• For the 2017 third quarter, International Operations reported an underwriting loss of $82.7 million compared to underwriting income of $12.5 million for the 2016 third quarter. In the first nine months of 2017 the underwriting loss was $78.1 million, compared to underwriting income of $30.6 million in the first nine months of 2016.
• For the 2017 third quarter, net favorable prior-year reserve development was $2.6 million compared to net favorable prior year reserve development of $0.6 million for the 2016 third quarter.
• Catastrophe losses for the 2017 third quarter were $83.5 million (and include $10.7 million of catastrophe related premium charges) compared to catastrophe losses of $8.5 million for the 2016 third quarter. Catastrophe losses for the first nine months of 2017 were $85.0 million compared to catastrophe losses of $27.4 million for the first nine months of 2016.

CONFERENCE CALL

Argo Group management will conduct an investor conference call starting at Noon EDT (1 p.m. ADT) tomorrow, Friday, Nov. 3, 2017. A live webcast of the conference call can be accessed by visiting https://services.choruscall.com/links/agii171103.html. Participants in the U.S. can access the call by dialing (877) 291-5203. Callers dialing from outside the U.S. can access the call by dialing (412) 902-6610. Please ask the operator to be connected to the Argo Group earnings call.

A webcast replay will be available shortly after the live conference call and can be accessed at https://services.choruscall.com/links/agii171103.html. A telephone replay of the conference call will be available through Nov. 10, 2017, to callers in the U.S. by dialing (877) 344-7529 (conference # 10113943). Callers dialing from outside the U.S. can access the telephone replay by dialing (412) 317-0088 (conference # 10113943).

ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

Argo Group International Holdings, Ltd. (NASDAQ: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses in two primary segments: U.S. Operations and International Operations. Argo Group's insurance subsidiaries are A. M. Best-rated 'A' (Excellent) (third highest rating out of 16 rating classifications) with a stable outlook, and Argo Group's U.S. insurance subsidiaries are Standard and Poor's-rated 'A-' (Strong) with a stable outlook. More information on Argo Group and its subsidiaries is available at www.argolimited.com.

FORWARD-LOOKING STATEMENTS

This press release may include forward-looking statements, both with respect to Argo Group and its industry, that reflect our current views with respect to future events and financial performance. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," “do not believe,” “aim,” "project," "anticipate," “seek,” "will," “likely,” “assume,” “estimate,” "may," “continue,” “guidance,” “objective,” “outlook,” “trends,” “future,” “could,” “would,” “should,” “target,” “on track” and similar expressions of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond Argo Group's control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. We believe that these factors include, but are not limited to, the following: 1) unpredictability and severity of catastrophic events; 2) rating agency actions; 3) adequacy of our risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance and reinsurance markets; 5) statutory or regulatory developments including tax policy, reinsurance and other regulatory matters; 6) our ability to implement our business strategy; 7) adequacy of our loss reserves; 8) continued availability of capital and financing; 9) retention of key personnel; 10) competition; 11) potential loss of business from one or more major insurance or reinsurance brokers; 12) our ability to implement, successfully and on a timely basis, complex infrastructure, distribution capabilities, systems, procedures and internal controls, and to develop accurate actuarial data to support the business and regulatory and reporting requirements; 13) general economic and market conditions (including inflation, volatility in the credit and capital markets, interest rates and foreign currency exchange rates); 14) the integration of Ariel Re and other businesses we may acquire or new business ventures we may start; 15) the effect on our investment portfolios of changing financial market conditions including inflation, interest rates, liquidity and other factors; 16) acts of terrorism or outbreak of war; and 17) availability of reinsurance and retrocessional coverage, as well as management's response to any of the aforementioned factors.

In addition, any estimates relating to loss events involve the exercise of considerable judgment and reflect a combination of ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports and other sources. The actuarial range of reserves and management’s best estimate is based on our then current state of knowledge including explicit and implicit assumptions relating to the pattern of claim development, the expected ultimate settlement amount, inflation and dependencies between lines of business. Our internal capital model is used to consider the distribution for reserving risk around this best estimate and predict the potential range of outcomes. However, due to the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates, there can be no assurance that Argo Group’s ultimate losses will remain within the stated amount.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors included in our most recent reports on Form 10-K and Form 10-Q and other documents of Argo Group on file with or furnished to the U.S. Securities and Exchange Commission (“SEC”). Any forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Argo Group will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Argo Group or its business or operations. Except as required by law, Argo Group undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

NON-GAAP FINANCIAL MEASURES

In presenting the Company's results, management has included and discussed in this press release certain non-generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP").

“Underwriting income” is an internal performance measure used in the management of the Company’s operations and represents net amount earned from underwriting activities (net premiums earned less underwriting expenses and claims incurred). Although this measure of profit (loss) does not replace net income (loss) computed in accordance with U.S. GAAP as a measure of profitability, management uses this measure of profit (loss) to focus our reporting segments on generating underwriting income. The Company presents Underwriting income as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

“Current accident year ex-CAT combined ratio, as adjusted” is an internal measure used by the management of the Company to evaluate the performance of its’ underwriting activity and represents the net amount of underwriting income excluding catastrophe related charges, the impact of changes to prior year loss reserves and other non-recurring items. Although this measure does not replace the combined ratio it provides management with a view of the quality of earnings generated by underwriting activity for the current accident year.

“Total return on average investments” is an internal measure used by management of the Company to evaluate the performance of its investment and asset management activities and represents the total of net investment income, net realized gains and losses, and the net change in unrealized gains and losses. These returns are analyzed as a percentage of the average investments excluding investments managed on behalf of trade capital providers who are third-parties that provide underwriting capital to our Syndicate operations. This measure does not replace net investment income as a measure of return on invested assets. However, it provides management with an overall view of investment performance.

“Adjusted operating income" is an internal performance measure used in the management of the Company's operations and represents after-tax (at an assumed effective tax rate of 20%) operational results excluding, as applicable, net realized investment gains or losses, net foreign exchange gain or loss, and other similar non-recurring items. The Company excludes net realized investment gains or losses, net foreign exchange gain or loss, and other similar non-recurring items from the calculation of adjusted operating income because these amounts are influenced by and fluctuate in part, by market conditions that are outside of management’s control. In addition to presenting net income determined in accordance with U.S. GAAP, the Company believes that showing adjusted operating income enables investors, analysts, rating agencies and other users of the Company's financial information to more easily analyze our results of operations and underlying business performance. Adjusted operating income should not be viewed as a substitute for U.S. GAAP net income.

"Annualized return on average shareholders’ equity" ("ROAE") is calculated using average shareholders' equity. In calculating ROAE, the net income available to shareholders for the period is multiplied by the number of periods in a calendar year to arrive at annualized net income available to shareholders. The Company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

"Annualized adjusted operating return on average shareholders' equity" is calculated using adjusted operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above) and average shareholders' equity. The assumed tax rate is 20%.

Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
			September 30,				December 31,
			2017				2016
			(unaudited)
Assets
Total investments			$	4,807.5			$	4,324.3
Cash				235.8				86.0
Accrued investment income				23.6				20.7
Receivables				2,780.7				1,849.4
Goodwill and intangible assets				260.5				219.9
Deferred acquisition costs, net				168.8				139.1
Ceded unearned premiums				461.4				302.8
Other assets				319.7				262.8
Total assets			$	9,058.0			$	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses			$	4,305.9			$	3,350.8
Unearned premiums				1,286.0				970.0
Ceded reinsurance payable, net				822.6				466.6
Senior unsecured fixed rate notes				139.6				139.5
Other indebtedness				184.7				55.4
Junior subordinated debentures				256.5				172.7
Other liabilities				254.7				257.3
Total liabilities				7,250.0				5,412.3
Total shareholders' equity				1,808.0				1,792.7
Total liabilities and shareholders' equity			$	9,058.0			$	7,205.0
Book value per common share			$	60.96			$	59.73

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
FINANCIAL HIGHLIGHTS
ALL SEGMENTS
(in millions, except per share amounts)
(unaudited)
			Three Months Ended										Nine months ended
			September 30,										September 30,
			2017					2016					2017				2016
Gross written premiums			$	805.1				$	585.4				$	2,090.9			$	1,665.8
Net written premiums				473.2					415.3					1,263.7				1,106.7
Earned premiums				389.3					358.7					1,167.8				1,048.5
Net investment income				30.9					32.7					105.0				89.6
Fee and other income				13.0					7.6					20.4				20.2
Net realized investment and other gains				6.0					17.7					25.1				12.8
Total revenue				439.2					416.7					1,318.3				1,171.1
Losses and loss adjustment expenses				326.4					207.8					779.5				596.0
Underwriting, acquisition and insurance expenses				166.1					137.4					474.4				403.0
Interest expense				7.5					4.9					20.4				14.6
Fee and other expense, net				5.0					5.9					12.4				18.1
Foreign currency exchange losses (gains)				0.1					(1.5	)				4.0				4.5
Total expenses				505.1					354.5					1,290.7				1,036.2
(Loss) income before taxes				(65.9	)				62.2					27.6				134.9
Income tax (benefit) provision				(4.6	)				7.0					6.2				21.1
Net (loss) income			$	(61.3	)			$	55.2				$	21.4			$	113.8
Net (loss) income per common share (basic)			$	(2.04	)			$	1.84				$	0.71			$	3.76
Net (loss) income per common share (diluted)			$	(2.04	)			$	1.80				$	0.69			$	3.68
Weighted average common shares:
Basic				30.0					30.0					30.1				30.2
Diluted				30.0					30.7					30.9				30.9

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
SEGMENT DATA
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,					September 30,					September 30,					September 30,
				2017					2016					2017					2016
U.S. OPERATIONS
Gross written premiums			$	428.9				$	360.8				$	1,128.9				$	970.2
Net written premiums				302.6					258.9					781.1					671.8
Earned premiums				242.6					216.3					692.9					629.7
Underwriting income				5.6					27.5					55.6					78.9
Net investment income				18.8					20.3					66.0					55.8
Interest expense				(3.8	)				(2.2	)				(10.3	)				(6.8	)
Fee income (expense), net				8.1					0.3					7.5					(1.7	)
Net income before taxes			$	28.7				$	45.9				$	118.8				$	126.2
Loss ratio				61.2	%				54.3	%				56.8	%				55.3	%
Expense ratio				36.5	%				33.0	%				35.1	%				32.2	%
GAAP combined ratio				97.7	%				87.3	%				91.9	%				87.5	%
INTERNATIONAL OPERATIONS
Gross written premiums			$	376.3				$	224.5				$	962.0				$	695.3
Net written premiums				170.7					156.3					482.6					434.6
Earned premiums				146.8					142.3					474.9					418.5
Underwriting (loss) income				(82.7	)				12.5					(78.1	)				30.6
Net investment income				7.7					7.5					24.4					22.7
Interest expense				(2.8	)				(1.4	)				(7.1	)				(4.0	)
Fee income, net				0.3					1.5					0.7					3.8
Net (loss) income before taxes			$	(77.5	)			$	20.1				$	(60.1	)			$	53.1
Loss ratio				113.0	%				55.4	%				77.7	%				55.0	%
Expense ratio				43.3	%				35.8	%				38.7	%				37.7	%
GAAP combined ratio				156.3	%				91.2	%				116.4	%				92.7	%

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
(in millions)
(unaudited)
			Three months ended										Nine months ended
Net Prior Year Development			September 30,										September 30,
(Favorable)/Unfavorable				2017					2016					2017					2016
US Operations			$	(10.7	)			$	(13.7	)			$	(28.7	)			$	(25.6	)
International Operations				(2.6	)				(0.6	)				17.0					(10.8	)
Run-off Lines				12.0					11.4					16.1					17.6
Total			$	(1.3	)			$	(2.9	)			$	4.4				$	(18.8	)
			Three months ended										Nine months ended
			September 30,										September 30,
				2017					2016					2017					2016
Catastrophe losses
US Operations			$	17.2				$	4.5				$	22.1				$	11.5
International Operations				72.8					8.5					74.3					27.4
Total catastrophe losses				90.0					13.0					96.4					38.9
CAT related premium adjustments
US Operations				3.8					-					3.8					-
International Operations				10.7					-					10.7					-
Total CAT related premium adjustments				14.5					-					14.5					-
Catastrophe losses, inclusive of CAT related premium adjustments			$	104.5				$	13.0				$	110.9				$	38.9

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF RATIOS
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
US Operations				2017					2016					2017					2016
Earned premiums, as reported			$	242.6				$	216.3				$	692.9				$	629.7
CAT related premiums adjustments				3.8					-					3.8					-
Net earned premiums, net of catastrophe adjustments				246.4					216.3					696.7					629.7
Other CAT and risk management purchases in Q3 2017				1.4					-					1.4					-
Net earned premiums, as adjusted			$	247.8				$	216.3				$	698.1				$	629.7
Losses and loss adjustment expenses, as reported			$	148.4				$	117.5				$	394.2				$	348.1
Catastrophe losses				(17.2	)				(4.5	)				(22.1	)				(11.5	)
Prior accident year reserve development				10.7					13.7					28.7					25.6
Current accident year losses excluding CATs, as adjusted			$	141.9				$	126.7				$	400.8				$	362.2
Underwriting, acquisition and insurance expenses, as reported			$	88.6				$	71.3				$	243.0				$	202.7
Final resolution of premium tax dispute				(3.5	)				-					(3.5	)				-
Underwriting, acquisition and insurance expenses, as adjusted			$	85.1				$	71.3				$	239.5				$	202.7
Loss ratio, as reported				61.2	%				54.3	%				56.8	%				55.3	%
Catastrophe losses (a)				-8.0	%				-2.1	%				-3.4	%				-1.8	%
Prior accident year loss development				4.3	%				6.3	%				4.1	%				4.0	%
Other CAT and risk management purchases in Q3 2017				-0.2	%				0.0	%				-0.1	%				0.0	%
Current accident year ex-CATs loss ratio, as adjusted				57.3	%				58.5	%				57.4	%				57.5	%
Expense ratio, as reported				36.5	%				33.0	%				35.1	%				32.2	%
Final resolution of premium tax dispute				-1.5	%				0.0	%				-0.5	%				0.0	%
Other CAT and risk management purchases in Q3 2017				-0.7	%				0.0	%				-0.3	%				0.0	%
Expense ratio, as adjusted				34.3	%				33.0	%				34.3	%				32.2	%
Combined ratio, as reported				97.7	%				87.3	%				91.9	%				87.5	%
CAY ex-CAT combined ratio, as adjusted				91.6	%				91.5	%				91.7	%				89.7	%
(a) Please refer to Notes for calculation of the point impacts of catastrophe losses on the ratios.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF RATIOS
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
International Operations				2017					2016					2017					2016
Earned premiums, as reported			$	146.8				$	142.3				$	474.9				$	418.5
CAT related premiums adjustments				10.7					-					10.7					-
Net earned premiums, net of catastrophe adjustments				157.5					142.3					485.6					418.5
Other CAT and risk management purchases in Q3 2017				6.7					-					6.7					-
Net earned premiums, as adjusted			$	164.2				$	142.3				$	492.3				$	418.5
Losses and loss adjustment expenses, as reported			$	166.0				$	78.9				$	369.2				$	230.3
Catastrophe losses				(72.8	)				(8.5	)				(74.3	)				(27.4	)
Prior accident year reserve development				2.6					0.6					(17.0	)				10.8
Current accident year losses excluding CATs, as adjusted			$	95.8				$	71.0				$	277.9				$	213.7
Underwriting, acquisition and insurance expenses, as reported			$	63.5				$	50.9				$	183.8				$	157.6
Underwriting, acquisition and insurance expenses, as adjusted			$	63.5				$	50.9				$	183.8				$	157.6
Loss ratio, as reported				113.0	%				55.4	%				77.7	%				55.0	%
Catastrophe losses (a)				-53.8	%				-5.9	%				-17.0	%				-6.7	%
Prior accident year loss development				1.7	%				0.4	%				-3.5	%				2.6	%
Other CAT and risk management purchases in Q3 2017				-2.6	%				0.0	%				-0.8	%				0.0	%
Current accident year ex-CATs loss ratio, as adjusted				58.3	%				49.9	%				56.4	%				50.9	%
Expense ratio, as reported				43.3	%				35.8	%				38.7	%				37.7	%
Other CAT and risk management purchases in Q3 2017				-4.6	%				0.0	%				-1.4	%				0.0	%
Expense ratio, as adjusted				38.7	%				35.8	%				37.3	%				37.7	%
Combined ratio, as reported				156.3	%				91.2	%				116.4	%				92.7	%
CAY ex-CAT combined ratio, as adjusted				97.0	%				85.7	%				93.8	%				88.6	%
(a) Please refer to Notes for calculation of the point impacts of catastrophe losses on the ratios.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF RATIOS
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
Consolidated				2017					2016					2017					2016
Earned premiums, as reported			$	389.3				$	358.7				$	1,167.8				$	1,048.5
CAT related premiums adjustments				14.5					-					14.5					-
Net earned premiums, net of catastrophe adjustments				403.8					358.7					1,182.3					1,048.5
Other CAT and risk management purchases in Q3 2017				8.1					-					8.1					-
Net earned premiums, as adjusted			$	411.9				$	358.7				$	1,190.4				$	1,048.5
Losses and loss adjustment expenses, as reported			$	326.4				$	207.8				$	779.5				$	596.0
Catastrophe losses				(90.0	)				(13.0	)				(96.4	)				(38.9	)
Prior accident year reserve development				1.3					2.9					(4.4	)				18.8
Current accident year losses excluding CATs, as adjusted			$	237.7				$	197.7				$	678.7				$	575.9
Underwriting, acquisition and insurance expenses, as reported			$	166.1				$	137.4				$	474.4				$	403.0
Final resolution of premium tax dispute				(3.5	)				-					(3.5	)				-
IT outsourcing costs - Q1				-					-					(4.0	)				-
Ariel Re transaction costs - Q1				-					-					(2.5	)				-
Underwriting, acquisition and insurance expenses, as adjusted			$	162.6				$	137.4				$	464.4				$	403.0
Loss ratio, as reported				83.8	%				57.9	%				66.7	%				56.8	%
Catastrophe losses (a)				-25.2	%				-3.6	%				-8.9	%				-3.7	%
Prior accident year loss development				0.3	%				0.8	%				-0.4	%				1.8	%
Other CAT and risk management purchases in Q3 2017				-1.2	%				0.0	%				-0.4	%				0.0	%
Current accident year ex-CATs loss ratio, as adjusted				57.7	%				55.1	%				57.0	%				54.9	%
Expense ratio, as reported				42.7	%				38.3	%				40.6	%				38.4	%
Final resolution of premium tax dispute				-0.8	%				0.0	%				-0.3	%				0.0	%
IT outsourcing costs - Q1				0.0	%				0.0	%				-0.4	%				0.0	%
Ariel Re transaction costs - Q1				0.0	%				0.0	%				-0.2	%				0.0	%
Other CAT and risk management purchases in Q3 2017				-2.4	%				0.0	%				-0.7	%				0.0	%
Expense ratio, as adjusted				39.5	%				38.3	%				39.0	%				38.4	%
Combined ratio, as reported				126.5	%				96.2	%				107.3	%				95.2	%
CAY ex-CAT combined ratio, as adjusted				97.2	%				93.4	%				96.0	%				93.3	%
(a) Please refer to Notes for calculation of the point impacts of catastrophe losses on the ratios.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF UNDERWRITING (LOSS) INCOME TO NET INCOME
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
				2017					2016					2017					2016
Net (loss) Income			$	(61.3	)			$	55.2				$	21.4				$	113.8
Add (deduct):
Income tax provision				(4.6	)				7.0					6.2					21.1
Net investment income				(30.9	)				(32.7	)				(105.0	)				(89.6	)
Net realized investment and other gains				(6.0	)				(17.7	)				(25.1	)				(12.8	)
Fee and other income				(13.0	)				(7.6	)				(20.4	)				(20.2	)
Interest expense				7.5					4.9					20.4					14.6
Fee and other expense				5.0					5.9					12.4					18.1
Foreign currency exchange (gains) losses				0.1					(1.5	)				4.0					4.5
Underwriting (loss) income			$	(103.2	)			$	13.5				$	(86.1	)			$	49.5

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF ADJUSTED OPERATING INCOME TO NET INCOME
(in millions, except per share amounts)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
				2017					2016					2017					2016
Net (loss) income, as reported			$	(61.3	)			$	55.2				$	21.4				$	113.8
(Benefit) provision for income taxes				(4.6	)				7.0					6.2					21.1
Net (loss) income, before taxes				(65.9	)				62.2					27.6					134.9
Add (deduct):
Net realized investment and other (gains) losses				(6.0	)				(17.7	)				(25.1	)				(12.8	)
Foreign currency exchange losses (gains)				0.1					(1.5	)				4.0					4.5
Adjusted operating (loss) income before taxes				(71.8	)				43.0					6.5					126.6
(Benefit) provision for income taxes, at assumed rate (1)				(14.4	)				8.6					1.3					25.3
Adjusted operating (loss) income			$	(57.4	)			$	34.4				$	5.2				$	101.3
Adjusted operating (loss) income per common share (diluted)			$	(1.91	)			$	1.12				$	0.17				$	3.28
Weighted average common shares, diluted				30.0					30.7					30.9					30.9
(1) At assumed tax rate of 20%.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF SEGMENT (LOSS) INCOME TO NET (LOSS) INCOME
(in millions)
(unaudited)
			Three months ended										Nine months ended
			September 30,										September 30,
				2017					2016					2017					2016
Segment income (loss) before income taxes
U.S. Operations				28.7					45.9					118.9					126.2
International Operations				(77.5	)				20.1					(60.1	)				53.1
Run-off Lines				(12.7	)				(10.0	)				(16.4	)				(14.6	)
Corporate and Other				(10.3	)				(13.0	)				(35.9	)				(38.1	)
Realized investment and other gains				6.0					17.7					25.1					12.8
Foreign currency exchange (losses) gains				(0.1	)				1.5					(4.0	)				(4.5	)
Net (loss) income before income taxes				(65.9	)				62.2					27.6					134.9
(Benefit) provision for taxes				(4.6	)				7.0					6.2					21.1
Net (loss) income			$	(61.3	)			$	55.2				$	21.4				$	113.8

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
GROSS WRITTEN PREMIUMS BY SEGMENT AND LINE OF BUSINESS
(in millions)
(unaudited)
U.S. Operations			Three months ended												Three months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	68.1			$	45.5			$	26.8			$	69.2			$	42.8			$	28.6
Liability				277.2				196.9				160.2				226.7				164.2				146.3
Professional				46.2				32.1				30.8				35.3				28.6				21.3
Specialty				37.4				28.1				24.8				29.6				23.3				20.1
Total			$	428.9			$	302.6			$	242.6			$	360.8			$	258.9			$	216.3
International Operations			Three months ended												Three months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	177.1			$	64.1			$	48.8			$	76.6			$	58.3			$	53.2
Liability				56.3				25.1				22.6				40.5				23.0				24.3
Professional				42.8				27.9				22.7				39.7				25.9				22.3
Specialty				100.1				53.6				52.7				67.7				49.1				42.5
Total			$	376.3			$	170.7			$	146.8			$	224.5			$	156.3			$	142.3
Consolidated			Three months ended												Three months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	245.1			$	109.5			$	75.5			$	145.8			$	101.1			$	81.8
Liability				333.5				222.0				182.8				267.3				187.3				170.7
Professional				89.0				60.0				53.5				75.0				54.5				43.6
Specialty				137.5				81.7				77.5				97.3				72.4				62.6
Total			$	805.1			$	473.2			$	389.3			$	585.4			$	415.3			$	358.7
U.S. Operations			Nine months ended												Nine months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	193.4			$	104.9			$	85.8			$	188.6			$	102.4			$	93.7
Liability				715.4				511.3				454.8				613.2				440.8				429.1
Professional				119.9				89.3				85.5				98.9				71.7				56.8
Specialty				100.2				75.6				66.8				69.5				56.9				50.1
Total			$	1,128.9			$	781.1			$	692.9			$	970.2			$	671.8			$	629.7
International Operations			Nine months ended												Nine months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	390.3			$	161.9			$	168.9			$	273.1			$	170.4			$	153.8
Liability				126.6				61.3				60.1				109.9				62.1				65.8
Professional				120.4				72.3				70.4				111.2				70.7				71.8
Specialty				324.7				187.1				175.5				201.1				131.4				127.1
Total			$	962.0			$	482.6			$	474.9			$	695.3			$	434.6			$	418.5
Consolidated			Nine months ended												Nine months ended
			September 30, 2017												September 30, 2016
			Gross Written				Net Written				Net Earned				Gross Written				Net Written				Net Earned
Property			$	583.7			$	266.8			$	254.7			$	461.7			$	272.8			$	247.5
Liability				842.0				572.6				514.9				723.4				503.2				495.2
Professional				240.3				161.6				155.9				210.1				142.4				128.6
Specialty				424.9				262.7				242.3				270.6				188.3				177.2
Total			$	2,090.9			$	1,263.7			$	1,167.8			$	1,665.8			$	1,106.7			$	1,048.5

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
COMPONENTS OF NET INVESTMENT INCOME
ALL SEGMENTS
(in millions)
(unaudited)
			Three months ended
			September 30				June 30				March 31				December 31				September 30
			2017				2017				2017				2016				2016
Net investment income, excluding alternatives			$	25.2			$	23.0			$	22.2			$	22.4			$	22.9
Alternative investments				5.7				20.6				8.3				3.1				9.8
Total net investment income			$	30.9			$	43.6			$	30.5			$	25.5			$	32.7

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
RECONCILIATION OF TOTAL RETURN TO NET INVESTMENT INCOME
(in millions)
(unaudited)
			Three months ended										Nine Months Ended
			September 30,										September 30,
				2017					2016					2017					2016
Net investment income			$	30.9				$	32.7				$	105.0				$	89.6
Add (deduct):
Net realized investment and other gains				6.0					17.7					25.1					12.8
Net unrealized gains				21.1					2.8					63.8					72.6
Total return			$	58.0				$	53.2				$	193.9				$	175.0
Average investments (1)			$	4,560.6				$	4,111.5				$	4,431.3				$	4,062.7
Total return on average investments				1.3	%				1.3	%				4.4	%				4.3	%
(1) excludes investments managed on behalf of syndicate's trade capital providers

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
SHAREHOLDER RETURN ANALYSIS
(in millions)
(unaudited)
			For the nine months ended September 30,
				2017					2016				% Change
Net income			$	21.4				$	113.8				(81.2	%)
Adjusted operating income (a)				5.2					101.3				(94.9	%)
Shareholders' Equity - Beginning of the period			$	1,792.7				$	1,668.1				7.5	%
Shareholders' Equity - End of current period				1,808.0					1,788.4				1.1	%
Average Shareholders' Equity			$	1,800.4				$	1,728.3				4.2	%
Annualized return on average shareholders' equity				1.6	%				8.8	%
Annualized adjusted operating return on average shareholders' equity				0.4	%				7.8	%
(a) at assumed 20% tax rate

View source version on businesswire.com: http://www.businesswire.com/news/home/20171102006762/en/

Argo Group International Holdings, Ltd.

Susan Spivak Bernstein, 212-607-8835

Senior Vice President, Investor Relations

Source: Argo Group International Holdings, Ltd.

Strong earnings, surplus growth and the largest dividend in company history reflect successful execution of company’s long-term strategy

NEW YORK--(BUSINESS WIRE)--
New York Life, America’s largest¹ mutual life insurer, today announced record financial results for 2025, reflecting the strength of its mutual structure, diversified business model, and disciplined capital management.

The company delivered $3.6 billion in earnings,² a four percent increase over the prior year, and grew surplus to $34.7 billion,³ up from $33.3 billion in 2024. Supported by this strong performance, New York Life declared a $2.8 billion dividend⁴ to eligible participating policy owners, the largest in company history, continuing its 172-year track record of paying dividends.

“In 2025, we grew earnings, strengthened our capital position, and declared the largest dividend in our history,” said Craig DeSanto, Chair, President & CEO of New York Life. “As a mutual company, we operate for our policy owners — not shareholders — which allows us to take a long-term view, share our success with those who rely on us, and focus on what matters most: helping our clients build financial security and peace of mind.”

Sustained Financial Strength

New York Life’s surplus growth continues to underpin its superior financial strength. In 2025, the company again earned the highest possible financial strength ratings currently awarded to U.S. life insurers from all four major rating agencies.⁵

The company’s consistent capital growth, diversified earnings, and prudent risk management are designed to ensure it can meet its obligations across economic cycles.

Diversified Business Model

New York Life’s performance was supported by its broad-based growth across its diversified businesses.

In 2025:

• Insurance sales increased 14 percent⁶
• Annuity sales increased 40 percent⁷
• Mutual fund sales increased 7 percent⁸

Collectively, New York Life policy owners now hold nearly $1.3 trillion in individual life insurance,⁹ reflecting the company’s long-standing focus on delivering protection-first financial security.

This diversified growth strengthens New York Life’s capital position and supports its ability to deliver long-term value to participating policy owners.

Investing to Deliver Enhanced Client and Advisor Experiences

“We continue to invest to make it easier to do business with New York Life,” said DeSanto. “That includes expanding digital capabilities, leveraging artificial intelligence, and strengthening the technology that supports our operations — all with a focus on enhancing service, security, and long-term value.”

Financial Performance Highlights for the Year Ended Dec. 31, 2025

• $3.6 billion in operating earnings²
• $34.7 billion in surplus (including the asset valuation reserve)³
• $2.8 billion dividend declared for payment in 2026⁴
• $18.1 billion in policy owner benefits and dividends¹⁰
• $892 billion in assets under management¹¹
• Nearly $1.3 trillion in individual life insurance protection in force⁹

ABOUT NEW YORK LIFE

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, disability income insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.⁵

“New York Life” or “the company,” as used throughout the press release, can refer either separately to the parent company, New York Life Insurance Company (NYLIC), or one of its subsidiaries, or collectively to all New York Life companies, which include NYLIC and its subsidiaries and affiliates, including New York Life Insurance and Annuity Corporation (NYLIAC), NYLIFE Insurance Company of Arizona (NYLAZ), Life Insurance Company of North America (LINA), and New York Life Group Insurance Company of NY (NYLGICNY). NYLAZ and LINA are not authorized in New York and do not conduct insurance business in New York. LINA and NYLGICNY are referred to as the New York Life Group Benefit Solutions business. Any discussion of ratings and safety throughout the press release applies only to the financial strength of New York Life, and not to the performance of any investment products issued by the company. Such products’ performances will fluctuate with market conditions.

¹Based on revenue as reported by "Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual)," Fortune magazine, 6/2/2025. For methodology, see https://fortune.com/company/new-york-life-insurance/.

²Operating earnings is the measure used for management purposes to track the company’s results from ongoing operations and the underlying profitability of the business. This chart is based on Statutory Accounting principles on insurance operations with certain adjustments we believe are more appropriate as a measurement approach.

The New York State Department of Financial Services recognizes only unadjusted statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the New York Insurance Law, and for determining whether its financial condition warrants the payment of a dividend to its policy owners. Policy owners can view a detailed reconciliation of our management performance measure by visiting our website, www.newyorklife.com, beginning in mid-March.


³Total surplus, which includes the AVR, is one of the key indicators of the company’s long-term financial strength and stability and is presented on a consolidated basis of the company. NYLIC’s statutory surplus was $27.6 billion and $26.4 billion at December 31, 2025 and 2024, respectively. Included in NYLIC’s statutory surplus is NYLIAC’s statutory surplus totaling $8.6 billion and $8.4 billion at December 31, 2025 and 2024, respectively, and LINA's statutory surplus of $2.3 billion and $2.2 billion at December 31, 2025 and 2024, respectively. AVR for NYLIC was $4.7 billion and $4.6 billion at December 31, 2025 and 2024, respectively. AVR for NYLIAC was $2.3 billion and $2.1 billion at December 31, 2025 and 2024, respectively. AVR for LINA was $0.2 billion and $0.2 billion at December 31, 2025 and 2024, respectively.

⁴Dividends are not guaranteed. New York Life Insurance Company is a mutual company that issues participating products that are eligible for dividends, but is also the parent of subsidiaries which issue non-participating products. The participating products are invested in separate and distinct portfolios and have their own dividend scales.

⁵Individual independent rating agency commentary as of 10/28/2025: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aa1), Standard & Poor’s (AA+).

⁶Insurance sales represent annualized first-year premiums on participating issued whole life insurance, term life insurance, universal life insurance, long-term care insurance, disability insurance, and other health insurance products. A sale is generally counted when the initial premium is paid and the policy is issued. Adjustments are made to normalize nonrecurring premiums to align with our annualized recurring premium methodology for insurance sales. Some examples are: single-premium individual and Corporate Owned Life Insurance products sold through our agents and third party distribution channels, which are counted in this metric at 10 percent of their premium. Sales are generated from both domestic and Mexican operations.

⁷Total annuity sales represent premiums on our deferred annuities (both fixed and variable) and on our guaranteed income annuities. Sales are generally recognized when premiums are received. Annuities are primarily issued by NYLIAC.

⁸Mutual fund sales represent total cash deposited primarily to new and existing accounts of the New York Life Investments (NYLI) Funds, New York Life’s proprietary mutual funds. NYLI Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, an indirect wholly owned subsidiary of NYLIC.

⁹Individual life insurance in force is the total face amount of individual life insurance contracts (term, whole, and universal life) outstanding for NYLIC and its domestic insurance subsidiaries at a given time. The company’s individual life insurance in force totaled $1,264.5 billion and $1,227.3 billion at December 31, 2025 and 2024, respectively (including $193.7 billion and $183.6 billion for NYLIAC at December 31, 2025 and 2024, respectively).

¹⁰Policy owner benefits primarily include death claims paid to beneficiaries and annuity payments. Dividends are payments made to eligible policy owners from divisible surplus. Divisible surplus is the portion of the company’s total surplus that is available, following each year’s operations, for distribution in the form of dividends. Dividends are not guaranteed. Each year the board of directors votes on the amount and allocation of the divisible surplus. Policy owner benefits and dividends reflect the consolidated results of NYLIC and its domestic insurance subsidiaries. Intercompany transactions have been eliminated in consolidation. NYLIC’s policy owner benefits and dividends were $9.5 billion and $9.1 billion for the years ended December 31, 2025 and 2024, respectively. NYLIAC’s policy owner benefits were $6.3 billion and $6.3 billion for the years ended December 31, 2025 and 2024, respectively. LINA’s policy owner benefits were $1.9 billion and $1.9 billion for the years ended December 31, 2025 and 2024, respectively. Benefits have been adjusted to exclude implications of a strategic reinsurance transaction.

¹¹Assets under management consist of cash and invested assets and separate account assets of the company’s domestic and international insurance operations, and assets the company manages for third-party investors, including mutual funds, separately managed accounts, retirement plans, and assets under administration.

The company’s general account investment portfolio totaled $371.6 billion at December 31, 2025 (including $140.3 billion invested assets for NYLIAC and $8.6 billion invested assets for LINA). At December 31, 2025, total assets equaled $463.5 billion (including $223.5 billion total assets for NYLIAC and $9.5 billion total assets for LINA). Total liabilities, excluding the Asset Valuation Reserve (AVR), equaled $428.8 billion (including $212.6 billion total liabilities for NYLIAC and $7.0 billion total liabilities for LINA). See Note 3 for total surplus.

Where applicable, prior period numbers have been restated to conform to the current-year definition. In addition, non-U.S.-denominated results are generally valued using applicable year-end exchange rates.

A copy of our statutory financial statements and reconciliation to our performance measure are also available by writing to the Secretary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260317861184/en/

Kevin Maher
New York Life

(212) 576-6955

[email protected]

Source: New York Life