A.M. Best Affirms Ratings Of Argo Group
A.M. Best Co. has affirmed the financial strength ratings (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Argo Re Ltd. (Argo Re) (Hamilton, Bermuda) and its subsidiaries.
A.M. Best also has affirmed the ICR of “bbb” and debt ratings of the parent holding company, Argo Group International Holdings, Ltd. (Argo Group) (Hamilton, Bermuda) (NASDAQ: AGII). The outlook for all ratings is stable.
The rating affirmations reflect Argo Re management’s product expertise in niche focus areas, historically strong operating performance and solid reserving practices. Argo Re also remains very well capitalized despite incurring over $200 million in catastrophe losses in 2011. The ratings also consider Argo Group’s first quarter 2012 earnings, its conservative financial leverage (total debt-to-total capital) and the financial flexibility that Argo Re derives from Argo Group.
Over the near term, A.M. Best expects that Argo Re’s underwriting and operating performance will be positively influenced by actions that its management has undertaken to reduce its worldwide property exposure and improve overall operational efficiencies.
