Argo Group Provides Preliminary Estimate for Natural Catastrophe Losses During the 2018 Third Quarter

HAMILTON, Bermuda–(BUSINESS WIRE)–Argo Group International Holdings, Ltd. (NYSE: ARGO), an international
underwriter of specialty insurance and reinsurance products, today
announced a preliminary pre-tax catastrophe loss estimate for the
three-month period ended September 30, 2018 of approximately $25
million. Catastrophe losses are related primarily to Hurricane Florence,
Typhoon Jebi and other catastrophe and weather-related events in the
third quarter of 2018. Catastrophe loss estimates include claims costs
net of ceded reinsurance recoverables and reinstatement premiums, and
include losses related to certain aggregate excess of loss contracts.

CEO Mark E. Watson III commented: “As we indicated following the
catastrophe loss events in 2017, we restructured our reinsurance program
for 2018 to incorporate a single retention that combined the reinsurance
portfolios for Argo and the acquired Ariel Re, and we strategically
increased our use of third-party capital. Our loss results for the third
quarter of 2018 reflect these actions.”

ABOUT LOSS ESTIMATES

Argo Group’s estimates of catastrophe losses are based on claims
received to date, policy-level reviews, discussions with distribution
partners, the company’s internal and external modeling resources, and
publicly available industry loss estimates. Argo Group’s estimates are
preliminary and dependent on broad assumptions about coverage,
liability, reinsurance and potential changes to both known and unknown
claims. Accordingly, the actual ultimate net impact attributable to
catastrophes may differ materially from Argo Group’s preliminary
estimates.

ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

Argo Group International Holdings, Ltd. (NYSE: ARGO) 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 positive
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. Such statements are
qualified by the inherent risks and uncertainties surrounding future
expectations generally and also may differ materially from actual future
experience involving any one or more of such statements. 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.
For a more detailed discussion of such risks and uncertainties, see Argo
Group’s filings with the SEC. The inclusion of a forward-looking
statement herein should not be regarded as a representation by Argo
Group that Argo Group’s objectives will be achieved. Argo Group
undertakes no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.

Contacts

Argo Group International Holdings, Ltd.
Investors:
Susan
Spivak Bernstein, 212-607-8835
Senior Vice President, Investor
Relations
susan.spivak@argolimited.com
or
Media:
David
Snowden, 210-321-2104
Senior Vice President, Group Communications
david.snowden@argogroupus.com

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