The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Argo Group Provides Preliminary Loss Estimate for the Christchurch, New Zealand Earthquake and Comments on Events in Japan

Friday, March 18, 2011

Argo Group Provides Preliminary Loss Estimate for the Christchurch, New Zealand Earthquake and Comments on Events in Japan09:14 EDT Friday, March 18, 2011 HAMILTON, Bermuda (Business Wire) -- Argo Group International Holdings, Ltd. (NasdaqGS: AGII) announced today its preliminary pre-tax loss estimate for the February 22, 2011, earthquake in Christchurch, New Zealand is in the range of $35 million to $45 million, net of reinsurance and reinstatement premiums. In reaching this estimate, the company has relied on information currently available from portfolio modeling and assessments of the exposures insured under individual policies and industry loss estimates. Due to the preliminary nature of the information used to determine this estimate, the ultimate cost to the company from this event may differ materially from the foregoing estimates. Additionally, Argo Group is in the process of assessing its exposure to the devastating earthquake and tsunami that struck the northeast coast of Japan on March 11, 2011. The company is reviewing exposures from in force contracts in both its insurance and reinsurance businesses, but believes based on the limited available information and the significant uncertainties regarding the extent and nature of the damages resulting from the events it is too early to issue an estimate at this time. Argo Group will update the market as appropriate. ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD. Argo Group International Holdings, Ltd. (NasdaqGS: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of high-quality products and services designed to meet the unique coverage and claims handling needs of businesses in four primary segments: Excess & Surplus Lines, Commercial Specialty, Reinsurance, and International Specialty. Argo's insurance subsidiaries are A. M. Best-rated 'A' (Excellent) (third highest rating out of 16 rating classifications) with a stable outlook, and Argo'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 contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. 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. 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. Argo Group International Holdings, Ltd.Jay Bullock, 441-278-3727Chief Financial Officer