Argo Group International Holdings, Ltd. (NasdaqGS: AGII) announced today that it expects to report in the third quarter its estimate for catastrophe losses and other severe weather activity, net of reinsurance and reinstatement premiums, of approximately $35 million to $40 million. This estimate includes approximately $20 million of losses related to Hurricane Irene and the Danish floods and approximately $10 million of loss from aggregate reinsurance covers relating to exposures in the Midwestern United States. The balance of the aforementioned estimate reflects an increase in loss estimates on other 2011 first half catastrophe events. In reaching these estimates, 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 these estimates, the ultimate cost to the Company from these events may differ materially from the foregoing estimates. The Company also completed its annual asbestos and environmental reserve review in the third quarter and as a result expects to increase its asbestos and environmental reserves by approximately $10 million on a pre-tax basis. The review entails a detailed analysis of our direct and assumed exposure and reflects management’s best estimate of the Company’s ultimate exposure. 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 products and services designed to meet the unique coverage and claims handling needs of businesses in four primary segments: Excess & Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. 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'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.
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