Argo Group International (ARGO-PA) 8-K Pxre Reports First Quarter Results Net Income of $22.7 Million

Exhibit 99.2

PXRE	Consolidated Balance Sheets
Group Ltd.	(Dollars in thousands, except par value per share)
		March 31, 2005			December 31, 2004
		(Unaudited)
Assets	Investments:
	Fixed maturities:
	Available-for-sale (amortized cost $835,389 and $705,204, respectively)	$	822,853		$	701,798
	Trading (cost $28,134 and $13,725, respectively)		29,653			15,483
	Short-term investments		185,837			296,318
	Hedge funds (cost $126,314 and $86,549, respectively)		140,064			129,118
	Other invested assets (cost $4,755 and $5,663, respectively)		5,460			6,823
	Total investments		1,183,867			1,149,540
	Cash		26,011			15,668
	Accrued investment income		7,985			8,054
	Premiums receivable, net		100,796			93,116
	Other receivables		52,130			35,315
	Reinsurance recoverable on paid losses		11,803			8,003
	Reinsurance recoverable on unpaid losses		59,794			61,215
	Ceded unearned premiums		6,874			3,500
	Deferred acquisition costs		6,797			1,745
	Income tax recoverable		25,168			31,594
	Other assets		47,234			46,666
	Total assets	$	1,528,459		$	1,454,416
Liabilities	Losses and loss expenses	$	460,565		$	460,084
	Unearned premiums		53,498			15,952
	Subordinated debt		167,076			167,075
	Reinsurance balances payable		14,902			10,937
	Deposit liabilities		69,091			72,143
	Payable for securities		21,916			—
	Other liabilities		26,812			31,670
	Total liabilities		813,860			757,861
Shareholders'	Serial convertible preferred shares, $1.00 par value, $10,000 stated
Equity	value – 10 million shares authorized, 0.01 million and 0.02 million shares
	issued and outstanding, respectively		63,371			163,871
	Common shares, $1.00 par value -- 50 million shares
	authorized, 28.6 million and 20.5 million shares issued and
	outstanding, respectively		28,646			20,469
	Additional paid-in capital		433,811			329,730
	Accumulated other comprehensive income net of deferred income
	tax benefit of $(2,216) and $(1,616), respectively		(12,146	)		(4,855	)
	Retained earnings		212,221			194,081
	Restricted shares at cost (0.5 million and 0.4 million shares, respectively)		(11,304	)		(6,741	)
	Total shareholders' equity		714,599			696,555
	Total liabilities and shareholders' equity	$	1,528,459		$	1,454,416

PXRE	Consolidated Statements of Income and Comprehensive Income
Group Ltd.	(Dollars in thousands, except per share amounts)
		Three Months Ended March 31,
			2005			2004
		(Unaudited)
Revenues	Net premiums earned	$	79,434		$	68,952
	Net investment income		10,442			6,869
	Net realized investment (losses) gains		(107	)		89
	Fee income		211			599
			89,980			76,509
Losses and	Losses and loss expenses incurred		44,438			18,139
Expenses	Commissions and brokerage		9,278			9,172
	Operating expenses		9,377			12,620
	Foreign exchange losses		598			266
	Interest expense		3,610			3,675
			67,301			43,872
	Income before income taxes, cumulative effect of accounting
	change and convertible preferred share dividends		22,679			32,637
	Income tax (benefit) provision		(64	)		653
	Income before cumulative effect of accounting change and
	convertible preferred share dividends		22,743			31,984
	Cumulative effect of accounting change, net of $0.2 million tax benefit		—			(1,053	)
	Net income before convertible preferred share dividends	$	22,743		$	30,931
	Convertible preferred share dividends		3,369			3,444
	Net income available to common shareholders	$	19,374		$	27,487
Comprehensive	Net income before convertible preferred share dividends	$	22,743		$	30,931
Income, Net	Net unrealized (depreciation) appreciation on investments		(7,291	)		5,523
of Tax
	Comprehensive income	$	15,452		$	36,454
Per Share	Basic:
	Income before cumulative effect of accounting change and
	convertible preferred share dividends	$	1.13		$	2.38
	Cumulative effect of accounting change		—			(0.08	)
	Convertible preferred share dividends		(0.17	)		(0.26	)
	Net income available to common shareholders	$	0.96		$	2.04
	Average shares outstanding (000's)		20,200			13,417
	Diluted:
	Net income before cumulative effect of accounting change	$	0.69		$	1.22
	Cumulative effect of accounting change		—			(0.04	)
	Net income	$	0.69		$	1.18
	Average shares outstanding (000's)		32,980			26,282

PXRE	Consolidated Statements of Shareholders' Equity
Group Ltd.	(Dollars in thousands)
		Three Months Ended March 31,
			2005			2004
			(Unaudited)
Convertible	Balance at beginning of period	$	163,871		$	172,190
Preferred Shares	Conversion of convertible preferred shares		(103,869	)		—
	Dividends to convertible preferred shareholders		3,369			3,444
	Balance at end of period	$	63,371		$	175,634
Common Shares	Balance at beginning of period	$	20,469		$	13,277
	Issuance of common shares, net		8,177			824
	Balance at end of period	$	28,646		$	14,101
Additional	Balance at beginning of period	$	329,730		$	192,078
Paid-in Capital	Issuance of common shares, net		103,713			16,883
	Tax effect of stock options exercised		368			756
	Balance at end of period	$	433,811		$	209,717
Accumulated
Other Comprehensive	Balance at beginning of period Change in unrealized (losses) gains	$	(4,855 (7,291	) )	$	1,692 5,523
Income
	Balance at end of period	$	(12,146	)	$	7,215
Retained	Balance at beginning of period	$	194,081		$	188,670
Earnings	Net income before convertible preferred share dividends		22,743			30,931
	Dividends to convertible preferred shareholders		(3,369	)		(3,444	)
	Dividends to common shareholders		(1,234	)		(835	)
	Balance at end of period	$	212,221		$	215,322
Restricted Shares	Balance at beginning of period	$	(6,741	)	$	(3,391	)
	Issuance of restricted shares		(5,452	)		(6,966	)
	Amortization of restricted shares		889			1,350
	Balance at end of period	$	(11,304	)	$	(9,007	)
Total	Balance at beginning of period	$	696,555		$	564,516
Shareholders'	Conversion of convertible preferred shares		(103,869	)		—
Equity	Issuance of common shares, net		111,890			17,707
	Restricted shares, net		(4,563	)		(5,616	)
	Unrealized (depreciation) appreciation on investments, net of deferred
	income tax		(7,291	)		5,523
	Net income before convertible preferred share dividends		22,743			30,931
	Dividends to common shareholders		(1,234	)		(835	)
	Tax effect of stock options exercised		368			756
	Balance at end of period	$	714,599		$	612,982

PXRE	Consolidated Statements of Cash Flows
Group Ltd.	(Dollars in thousands)
		Three Months Ended March 31,
			2005			2004
		(Unaudited)
Cash Flow	Premiums collected, net of reinsurance	$	109,891		$	91,716
from Operating	Loss and loss adjustment expenses paid, net of reinsurance		(46,336	)		(20,505	)
Activities	Commission and brokerage paid, net of fee income		(13,819	)		(8,613	)
	Operating expenses paid		(10,945	)		(13,096	)
	Net investment income received		7,303			2,908
	Interest paid		(5,794	)		(5,796	)
	Income taxes recovered (paid)		7,186			(1,252	)
	Trading portfolio purchased		(14,396	)		—
	Deposit paid		(3,052	)		(4,775	)
	Other		(16,802	)		(11,317	)
	Net cash provided by operating activities		13,236			29,270
Cash Flow	Fixed maturities available for sale purchased		(187,990	)		(174,949	)
from Investing	Fixed maturities available for sale disposed or matured		56,546			102,470
Activities	Hedge funds purchased		(105,352	)		—
	Hedge funds disposed		98,805			5,028
	Other invested assets disposed		1,367			891
	Net change in short-term investments		110,481			(20,592	)
	Payable for securities		21,916			(18	)
	Net cash used by investing activities		(4,227	)		(87,170	)
Cash Flow	Proceeds from issuance of common shares		3,129			11,382
from Financing	Cash dividends paid to common shareholders		(1,234	)		(835	)
Activities	Cost of shares repurchased		(561	)		(643	)
	Net cash provided by financing activities		1,334			9,904
	Net change in cash		10,343			(47,996	)
	Cash, beginning of period		15,668			65,808
	Cash, end of period	$	26,011		$	17,812
	Reconciliation of net income to net cash provided by operating activities:
	Net income before convertible preferred share dividends	$	22,743		$	30,931
	Adjustments to reconcile net income to net cash provided by
	operating activities:
	Losses and loss expenses		481			(13,955	)
	Unearned premiums		34,172			20,572
	Deferred acquisition costs		(5,052	)		(34	)
	Receivables		(24,496	)		7,685
	Reinsurance balances payable		3,965			(4,900	)
	Reinsurance recoverable		(2,379	)		11,590
	Income taxes	��	7,121			(610	)
	Equity in earnings of limited partnerships		(4,403	)		(3,424	)
	Trading portfolio purchased		(14,396	)		—
	Deposit liability		(3,052	)		(4,775	)
	Other		(1,468	)		(13,810	)
	Net cash provided by operating activities	$	13,236		$	29,270

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