AM Best Places Credit Ratings of Argo Group International Holdings, Ltd. and Its Subsidiaries Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” (Good) and the associated Long-Term Issue Credit Ratings (Long-Term IR) of Argo Group International Holdings, Ltd. (Argo Group) (Pembroke, Bermuda). Concurrently, AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of its operating subsidiaries. At the same time, AM Best has placed under review with developing implications the Long-Term ICR of “bbb-” (Good) and the Long-Term IRs of Argo Group US, Inc. (headquartered in San Antonio, TX). (See below for a detailed listing of the companies and Credit Ratings [ratings].)

The rating actions follow the announcement that Argo Group and Brookfield Reinsurance Ltd. have entered into a definitive merger agreement whereby Brookfield Reinsurance Ltd. will acquire Argo Group in an all-cash transaction valued at approximately $1.1 billion. The sale has been approved by Argo Group’s board of directors, is subject to shareholder and regulatory approvals, and is expected to be completed in the second half of 2023.

The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition on Argo Group’s rating fundamentals. The ratings will remain under review pending completion of the acquisition, and until AM Best can complete its assessment of Argo Group’s post-acquisition rating fundamentals.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been placed under review with developing implications for Argo Group International Holdings, Ltd.’s operating subsidiaries:

• Argo Re Ltd.
• Agronaut Great Central Insurance Company
• Agronaut Insurance Company
• Agronaut-Midwest Insurance Company
• ARIS Title Insurance Corporation
• Colony Insurance Company
• Peleus Insurance Company
• Colony Specialty Insurance Company
• Rockwood Casualty Insurance Company
• Somerset Casualty Insurance Company

The following indicative Long-Term IRs available under various shelf registrations have been placed under review with developing implications:

Argo Group International Holdings, Ltd. —
-- “bbb-” (Good) on senior unsecured debt
-- “bb+” (Fair) on subordinated debt
-- “bb” (Fair) on preferred stock

Argo Group US, Inc. —
-- “bbb-” (Good) on senior unsecured debt
-- “bb+” (Fair) on subordinated debt

Argo Group Statutory Trust —
-- “bb” (Fair) on preferred stock

The following Long-Term IR has been placed under review with developing implications:

Argo Group US, Inc. —
-- “bbb-” (Good) on $143.75 million 6.5% senior unsecured notes, due 2042

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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