Argo Group International Holdings Ltd., (Nasdaq GS: AGII), an international underwriter of specialty insurance and reinsurance products in niche areas of the property and casualty market, today announced formation of Argo Surety, a unit that will conduct surety business. Argo Surety will be part of Argo Group’s existing Commercial Specialty segment. Concurrently, Argo Group announced the appointment of Robert F. Thomas as president of Argo Surety. The business will be based in Houston, TX with planned branches in California and on the East Coast by 2009.
“With over 21 years of experience in both the insurance and reinsurance markets, Bob has extensive expertise and industry knowledge in this industry segment,” said Mike Arledge, president of Argo Group’s Commercial Specialty segment, to whom Mr. Thomas will report. “We have every confidence that under his guidance, our new surety business unit will realize not only top line growth, but more importantly, contribute to the Group’s bottom line."
Prior to joining Argo Group, Mr. Thomas held several executive level positions simultaneously at HCC Insurance Holdings, including president and CEO of its Surety Group, CEO of its Credit Group, and president of HCC Risk Management, the organization’s ceded reinsurance administration arm. Prior to his work with HCC Insurance Holdings, Mr. Thomas held the position of president and CEO of American Contractors Indemnity Company, a California mono-line surety that was acquired by HCC in 2004. Earlier in his career, Mr. Thomas was a senior reinsurance broker, responsible for the development and servicing of property, casualty and surety business.
“We see real growth potential for Argo Group in the surety business,” said Mark E. Watson III, president and CEO of Argo Group. “Despite a downturn in housing and commercial construction, our focus for contract surety will be opportunistic undertakings that are fairly robust yet considerably less vulnerable than the general marketplace. Surety bonds are always going to be a necessity for completion of commercial projects, such as construction of schools, hospitals, community roads and other types of infrastructure. Additionally, Argo Surety will pursue a diverse commercial surety portfolio serving many industries and forms of business commerce. With the dislocations in the credit and financial markets, we see an opportunity for surety to immediately contribute to Argo Group’s expansion and growth plans of our specialty products and we are excited about expanding into this class of business with a pro like Bob at the helm.”
About Argo Group International Holdings, Ltd.
Headquartered in Hamilton, Bermuda, Argo Group International Holdings, Ltd. (Nasdaq GS: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of high-quality products and services designed to meet the unique coverage and claims handling needs of businesses in three primary segments: Excess and Surplus Lines, Select Markets, and International Specialty. Information on Argo Group and its subsidiaries is available at www.argolimited.com. Argo Group is the combined international holding company resulting from the Aug. 7, 2007 merger of Argonaut Group, Inc. and PXRE Group, Ltd.
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 materially differ 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.
Contacts:
Emily Rudd, 210-321-8538
erudd@argogroupus.com
