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

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for 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). In addition, AM Best has maintained the under review with developing implications status for the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of its operating subsidiaries. At the same time, AM Best has maintained the under review with developing implications status for 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 ratings were initially placed under review with developing implications on Feb. 10, 2023. These ratings were reviewed in response to the recently announced completion of the acquisition of Argo Group and its subsidiaries by Brookfield Reinsurance Limited. AM Best expects to meet with management in the near term to complete its assessment of Argo Group’s post-acquisition rating fundamentals.

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

• Argo Re Ltd.
• Argonaut Great Central Insurance Company
• Argonaut Insurance Company
• Argonaut-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 remain 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 remains 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.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.