Argo Group Highlights Successful Transformation into a Focused, Pure-Play U.S. Specialty Insurer; Reiterates Commitment to Evaluating Alternatives to Maximize Shareholder Value
Files Definitive Proxy Materials and Mails Letter to Shareholders
Urges Shareholders to Vote the Enclosed BLUE Proxy Card “FOR” All
Argo’s Highly Qualified Director Nominees
HAMILTON, BERMUDA — October 31, 2022 — Argo Group International Holdings, Ltd. (NYSE: ARGO) (“Argo” or “the Company”), an underwriter of specialty insurance products, today announced that it has filed definitive proxy materials with the Securities and Exchange Commission (“SEC”) in connection with its upcoming annual general meeting of shareholders scheduled for December 15, 2022. Shareholders of record as of October 26, 2022, will be entitled to vote at the meeting.
In conjunction with the filing of the definitive proxy statement, Argo is mailing a letter to Company shareholders. Highlights from the letter include:
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Over the past two years, Argo has streamlined its portfolio to focus on its most profitable business lines.
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Argo has achieved a compounded annual growth rate of 10.9% between 2019 and 2021 for its ongoing businesses.
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The Company has also reduced catastrophe and liability exposure, with catastrophe losses of $2.5 million in the second quarter of fiscal 2022, marking the fifth consecutive quarter of year-over-year improvement and Argo’s lowest level since 2019.
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In the last three months, Argo has announced two major transactions that will result in the transfer of approximately $9541 million in net reserves.
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Argo entered into a Loss Portfolio Transfer with Enstar Group Limited for approximately $746 million.
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The Company entered into an agreement to sell Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200 to Westfield Ltd. for total cash proceeds of approximately $125 million or 1.16x price to tangible book value, subject to closing-related adjustments.
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Argo has successfully re-underwritten its core U.S. specialty business and reduced costs.
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Through Argo’s re-underwriting actions, the core U.S. specialty business has achieved an average combined ratio for ongoing business of 93.0%2, compared to an average combined ratio of 127.9% 3 in its exited businesses.
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Over the last three years, the Company has significantly reduced its expense ratio by 280 basis points to 35.7%.4
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Argo has successfully refreshed its Board and management team.
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Six of Argo’s nine directors have joined the Board since the Company undertook its proactive refreshment program.
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Most recently, Argo appointed to the Board J. Daniel Plants, Chief Investment Officer of Voce Capital Management LLC, Argo’s largest active shareholder at approximately 9.5% of the Company’s outstanding common shares.
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Over the last four years, Argo has added five best-in-class C-suite executives. Together, these highly experienced, industry-respected executives are successfully overseeing the Company’s transformation.