Argo Group International (ARGO-PA) 8-K Pxre Reports First Quarter Results Net Loss of $7.2 Million

Exhibit 99.2

PXRE	Consolidated Balance Sheets
Group Ltd.	(Dollars in thousands, except par value per share)
		March 31,			December 31,
		2007			2006
		(Unaudited)
Assets	Investments:
	Fixed maturities, at fair value:
	Available-for-sale (amortized cost $484,908 and $502,307, respectively)	$	486,601		$	502,254
	Trading (cost $14,794 and $14,794, respectively)		15,540			15,497
	Short-term investments, at fair value		570,230			671,197
	Hedge funds, at fair value (cost $4,630 and $11,583, respectively)		5,579			12,766
	Other invested assets, at fair value (cost $1,335 and $1,717, respectively)		2,112			2,427
	Total investments		1,080,062			1,204,141
	Cash		9,490			12,251
	Accrued investment income		4,188			3,830
	Premiums receivable, net		64,569			93,325
	Other receivables		6,720			7,321
	Reinsurance recoverable on paid losses		3,678			3,324
	Reinsurance recoverable on unpaid losses		34,168			35,327
	Ceded unearned premiums		11,251			—
	Deferred acquisition costs		—			8
	Other assets		39,196			41,816
	Total assets	$	1,253,322		$	1,401,343
Liabilities	Losses and loss expenses	$	469,982		$	603,241
	Unearned premiums		20			113
	Subordinated debt		167,091			167,089
	Reinsurance balances payable		33,973			34,649
	Deposit liabilities		53,463			54,425
	Income tax payable		507			597
	Other liabilities		37,989			44,462
	Total liabilities		763,025			904,576
Shareholders' Equity	Serial convertible preferred shares, $1.00 par value, $10,000 stated value — 30 million shares authorized, 0.01 million and 0.01 million shares issued and outstanding, respectively		58,132			58,132
	Common shares, $1.00 par value — 350 million shares authorized, 72.6 million and 72.4 million shares issued and outstanding, respectively		72,588			72,351
	Additional paid-in capital		873,929			873,142
	Accumulated other comprehensive income (loss)		1,413			(100	)
	Accumulated deficit		(512,071	)		(503,711	)
	Restricted shares at cost (0.5 million and 0.4 million shares, respectively)		(3,694	)		(3,047	)
	Total shareholders’ equity		490,297			496,767
	Total liabilities and shareholders’ equity	$	1,253,322		$	1,401,343

PXRE Group Ltd.	Consolidated Statements of Operations and Comprehensive Operations
	(Dollars in thousands, except per share amounts)
		Three Months Ended
		March 31,
		2007			2006
		(Unaudited)
Revenues	Net premiums earned	$	(5,194	)	$	77,087
	Net investment income		13,680			17,912
	Net realized investment losses		(2,272	)		(4,659	)
	Fee income		63			191
			6,277			90,531
Losses and	Losses and loss expenses incurred		(3,182	)		17,800
Expenses	Commission and brokerage		(393	)		11,895
	Other reinsurance related expense		1,773			3,721
	Operating expenses		11,841			10,965
	Foreign exchange (gains) losses		(178	)		927
	Interest expense		3,612			3,611
			13,473			48,919
	(Loss) income before income taxes and convertible preferred share dividends		(7,196	)		41,612
	Income tax provision		1			—
	Net (loss) income before convertible preferred share dividends	$	(7,197	)	$	41,612
	Convertible preferred share dividends		1,163			1,163
	Net (loss) income to common shareholders	$	(8,360	)	$	40,449
Comprehensive	Net (loss) income before convertible preferred share dividends	$	(7,197	)	$	41,612
Operations, Net	Net change in unrealized depreciation on investments		(759	)		(7,628	)
of Tax	Reclassification adjustments for losses included in net (loss) income		2,272			4,659
	Minimum additional pension liability		—			123
	Comprehensive (loss) income	$	(5,684	)	$	38,766
Per Share	Basic:
	(Loss) income before convertible preferred share dividends	$	(0.10	)	$	0.58
	Net (loss) income to common shareholders	$	(0.12	)	$	0.56
	Average shares outstanding (000’s)		72,049			71,889
	Diluted:
	Net (loss) income	$	(0.12	)	$	0.54
	Average shares outstanding (000’s)		72,049			76,975

PXRE	Consolidated Statements of Shareholders’ Equity
Group Ltd.	(Dollars in thousands)
		Three Months Ended
		March 31,
		2007			2006
		(Unaudited)
Convertible Preferred Shares	Balance at beginning and end of period	$	58,132		$	58,132
Common Shares	Balance at beginning of period	$	72,351		$	72,281
	Issuance of common shares, net		237			129
	Balance at end of period	$	72,588		$	72,410
Additional	Balance at beginning of period	$	873,142		$	875,224
Paid-in Capital	Issuance of common shares, net		787			4
	Balance at end of period	$	873,929		$	875,228
Accumulated	Balance at beginning of period	$	(100	)	$	(5,468	)
Other Comprehensive	Change in unrealized gains (losses) on investments		1,513			(2,969	)
Operations	Change in minimum additional pension liability		—			123
	Balance at end of period	$	1,413		$	(8,314	)
(Accumulated Deficit)	Balance at beginning of period	$	(503,711	)	$	(527,349	)
	Net (loss) income before convertible preferred share dividends		(7,197	)		41,612
	Dividends to convertible preferred shareholders		(1,163	)		(1,163	)
	Balance at end of period	$	(512,071	)	$	(486,900	)
Restricted Shares	Balance at beginning of period	$	(3,047	)	$	(7,502	)
	Issuance of restricted shares, net		(1,029	)		(140	)
	Amortization of restricted shares		382			796
	Balance at end of period	$	(3,694	)	$	(6,846	)
Total	Balance at beginning of period	$	496,767		$	465,318
Shareholders'	Issuance of common shares, net		1,024			133
Equity	Restricted shares, net		(647	)		656
	Unrealized appreciation (depreciation) on investments		1,513			(2,969	)
	Minimum additional pension liability		—			123
	Net (loss) income before convertible preferred share dividends		(7,197	)		41,612
	Dividends to convertible preferred shareholders		(1,163	)		(1,163	)
	Balance at end of period	$	490,297		$	503,710

PXRE	Consolidated Statements of Cash Flows
Group Ltd.	(Dollars in thousands)
		Three Months Ended
		March 31,
		2007			2006
		(Unaudited)
Cash Flows	Premiums collected, net of reinsurance	$	11,542		$	142,658
from Operating	Losses and loss adjustment expenses paid, net of reinsurance		(129,272	)		(263,321	)
Activities	Commission and brokerage received (paid), net of fee income		288			(8,995	)
	Operating expenses paid		(12,260	)		(13,141	)
	Net investment income received		12,116			17,928
	Interest paid		(5,794	)		(5,794	)
	Income taxes (paid) recovered		(91	)		214
	Trading portfolio purchased		—			(49,539	)
	Trading portfolio disposed		—			40,121
	Deposit liabilities paid		(962	)		(3,537	)
	Other		(3,009	)		(2,881	)
	Net cash used by operating activities		(127,442	)		(146,287	)
Cash Flows	Fixed maturities available for sale purchased		(149	)		(66,991	)
from Investing	Fixed maturities available for sale disposed or matured		15,833			569,533
Activities	Hedge funds purchased		—			(4,000	)
	Hedge funds disposed		7,280			13,116
	Other invested assets disposed		756			573
	Net change in short-term investments		100,967			(362,038	)
	Net cash provided by investing activities		124,687			150,193
Cash Flows	Proceeds from issuance of common shares		93			257
from Financing	Cash dividends paid to preferred shareholders		—			(1,163	)
Activities	Cost of shares repurchased		(99	)		(263	)
	Net cash used by financing activities		(6	)		(1,169	)
	Net change in cash		(2,761	)		2,737
	Cash, beginning of period		12,251			14,504
	Cash, end of period	$	9,490		$	17,241
	Reconciliation of net (loss) income to net cash used by operating activities:
	Net (loss) income before convertible preferred share dividends	$	(7,197	)	$	41,612
	Adjustments to reconcile net (loss) income to net cash used by operating activities:
	Losses and loss expenses		(133,259	)		(310,086	)
	Unearned premiums		(11,344	)		1,807
	Deferred acquisition costs		8			(4,719	)
	Receivables		29,357			77,259
	Reinsurance balances payable		(676	)		(5,551	)
	Reinsurance recoverable		805			29,414
	Income taxes		(90	)		214
	Equity in earnings of limited partnerships		(534	)		(5,872	)
	Trading portfolio purchased		—			(49,539	)
	Trading portfolio disposed		—			40,121
	Deposit liability		(962	)		(3,537	)
	Receivable on commutation		—			35,154
	Other		(3,550	)		7,436
	Net cash used by operating activities	$	(127,442	)	$	(146,287	)