A.M. Best Withdraws Ratings of PXRE Reinsurance Company

A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit rating (ICR) of “bbb-” of PXRE Reinsurance Company (PXRE) (Hartford, CT). The outlook for all ratings is stable. Subsequently, A.M. Best has withdrawn both ratings and assigned a category NR-3 (Rating Procedure Inapplicable) to PXRE as the company has effectively been in run off since fourth quarter 2006.

These rating actions reflect the recent announcement of the closing of the sale of PXRE to Tawa plc (Tawa) (LSE: TAW), a U.K.-listed non-life run-off consolidator, from Argo Group International Holdings, Ltd. (Bermuda) (NASDAQ: AGII), and PXRE’s capital position at the time of sale. A.M. Best’s current view of PXRE’s capitalization is based upon its year-end 2007 surplus, including a cash dividend payment of $75 million to PXRE’s direct parent, Argonaut Group, Inc., prior to the sale. However, the rating affirmations do not contemplate any planned changes to PXRE’s capital structure by Tawa.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.