AM Best Removes Under Review With Developing Implications; Affirms Credit Ratings of Argo Group International Holdings, Inc. and Its Subsidiaries
26 Abril 2024 - 10:10AM
Business Wire
AM Best has removed from under review with developing
implications and affirmed 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,
Inc. (Argo Group) (headquartered in New York, NY). In addition, AM
Best has removed from under review with developing implications and
affirmed 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 removed from under
review with developing implications and affirmed the Long-Term ICR
of “bbb-” (Good) and the Long-Term IRs of Argo Group US, Inc.
(headquartered in New York, NY). The outlook assigned to these
Credit Ratings (ratings) is positive. (See below for a detailed
listing of the companies and ratings.)
The ratings reflect Argo Group’s balance sheet strength, which
AM Best assesses as very strong, as well as its marginal operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
The ERM assessment reflects Argo Group’s improved risk
management practices, governance and culture and fully remediated
financial reporting concerns. The revision of the operating
performance assessment to marginal reflects challenges tied to
operating profitability reported as Argo Group works through
various underwriting actions and works to reduce volatility across
core lines of business. Despite these challenges, Argo Group is
committed to implementing additional controls and is taking a
disciplined approach to writing new business. Although this has
tempered premiums written, it should lead to a return to
profitability and ensure future capital growth. The positive
outlooks reflect the belief that these operating results should
improve within the intermediate term. Furthermore, the balance
sheet and holding company assessments are supported by the strong
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), and appropriate leverage and
coverage ratios.
The FSR has been removed from under review with developing
implications and affirmed at A- (Excellent) and the Long-Term ICRs
have been removed from under review with developing implications
and affirmed at “a-” (Excellent), each with an assigned outlook of
positive for Argo Group International Holdings, Inc.’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 have been removed from under review with
developing implications, affirmed and assigned positive
outlooks:
Argo Group International Holdings, Inc.
— -- “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 removed from under review
with developing implications affirmed and assigned positive
outlooks:
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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Christopher Lewis Financial Analyst +1 908 882 2014
christopher.lewis@ambest.com Kate Steffanelli Associate Director
+1 908 882 2337 kate.steffanelli@ambest.com Christopher
Sharkey Associate Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public Relations
Specialist +1 908 882 2318 al.slavin@ambest.com