Bermudian-based Argo Group International Holdings Ltd has reported net income for the second quarter of $28.8 million, compared with $41.8 million for the same period a year ago.

The second-quarter net income included pre-tax charges of $32.3 million related to an increase in current and prior accident year losses of $10 million and $22.3 million, respectively.

In addition, the quarter included approximately $7.5 million of expenses associated with proxy solicitation and related activities.

The speciality re/insurer said that given the unique and non-recurring nature of the events that gave rise to those expenses, they are not included in the its definition of adjusted operating income and, as such, not included in the calculation of the combined ratio. There were no comparable costs incurred during the 2018 second quarter.

The expenses relate to a proxy battle between the company and activist shareholders Voce Capital Management LLC.

Mark Watson, chief executive officer, said: “For the first half of the year, Argo’s book value per share growth plus dividends paid was 10.6 per cent and our annualised return on shareholders’ equity was 13.1 per cent, which reflects strong contributions from our investment portfolio.”

He added: “We continue to deliver strong shareholder value creation despite some isolated claims volatility impacting the second quarter of 2019. Our focus on increasing efficiency through digital enhancements and growing profitable business lines continues to yield positive results, with 10 per cent gross written premium growth in the quarter.”

Gross written premiums grew were $772.9 million, compared to $702.8 million for the same period last year.

Combined ratio increased to 103.4 per cent, compared with 96.3 per cent in the second quarter of 2018.

Net investment income for the quarter was up 28.9 per cent at $42.8 million, while book value per share was $56.28, up by 10.6 per cent from December 31.