Argo Group International Holdings Limited has reported a 270.4 per cent jump in profit for the first three months of the year.

The Bermuda-based insurer reported net incomes of $91.2 million, or $2.63 per share, which compares with $24.8 million for the same period in 2018.

Gross written premiums were $760.8 million, a rise of 7.1 per cent year-on-year, while the combined ratio improved to 94.8 per cent, from 95.8 per cent.

Adjusted operating income was $41.1 million, or $1.18 per share, beating the $1.07 expectation of a consensus of analysts.

Mark Watson, chief executive officer, said: “Our strong first quarter 2019 results demonstrate our focus on delivering value to shareholders.

“Our annualised ROE [return on equity] of 20.1 per cent in the first quarter is an outstanding achievement.

“The 9.1 per cent annualised operating ROE for the quarter, a 100 basis point improvement year-over-year, reflects strong momentum towards our run rate objective of 10 per cent. In addition, book value per share increased 8 per cent from the beginning of the year.”

He added: “These results were enabled by a 7.1 per cent increase in gross written premiums, with a 10.2 per cent rise in the US operations, an improvement in our expense ratio, and a 26.6 per cent increase in our underwriting income. We expect our strategy to continue to deliver superior and sustainable returns to shareholders.”

The first quarter net income included pre-tax gains related to changes in the fair value of equity securities of $54.2 million, compared to a corresponding pre-tax net loss of $30.9 million in the same period during 2018.

Argo Group’s book value per share has increased 8 per cent since the start of the year, and was $55.23 at the end of March.

Argo will hold its annual meeting on May 24. The company is involved in a proxy battle with activist shareholder Voce Capital Management LLC, which has questioned the use of Argo’s assets, such as corporate jets, housing, and has proposed changes to the board of directors.

Argo’s shares closed at $74.61, down 34 cents, on the New York Stock Exchange, ahead of the earnings report.