Argo Group International (ARGO-PA) 8-K Pxre Reports Fourth Quarter Results

Exhibit 99.2

PXRE	Consolidated Balance Sheets
Group Ltd.	(Dollars in thousands, except par value per share)

		December 31,
			2005			2004
			(Unaudited)
Assets	Investments:
	Fixed maturities, at fair value:
	Available-for-sale (amortized cost $1,212,299 and $705,204, respectively)	$	1,208,248		$	701,798
	Trading (cost $28,225 and $13,725, respectively)		25,796			15,483
	Short-term investments, at fair value		261,076			296,318
	Hedge funds, at fair value (cost $132,690 and $86,549, respectively)		148,230			129,118
	Other invested assets, at fair value (cost $2,806 and $5,663, respectively)		3,142			6,823
	Total investments		1,646,492			1,149,540
	Cash		14,504			15,668
	Accrued investment income		10,809			8,054
	Premiums receivable, net		217,446			93,116
	Other receivables		17,000			35,315
	Reinsurance recoverable on paid losses		4,223			8,003
	Reinsurance recoverable on unpaid losses		107,655			61,215
	Ceded unearned premiums		1,379			3,500
	Deferred acquisition costs		5,487			1,745
	Income tax recoverable		6,295			31,594
	Other assets		84,757			46,666
	Total assets	$	2,116,047		$	1,454,416
Liabilities	Losses and loss expenses	$	1,320,126		$	460,084
	Unearned premiums		32,512			15,952
	Subordinated debt		167,081			167,075
	Reinsurance balances payable		30,244			10,937
	Deposit liabilities		68,270			72,143
	Other liabilities		32,496			31,670
	Total liabilities		1,650,729			757,861
Shareholders’ Equity	Serial convertible preferred shares, $1.00 par value, $10,000 stated value – 30 million shares authorized, 0.01 million and 0.02 million shares issued and outstanding, respectively		58,132			163,871
	Common shares, $1.00 par value – 350 million shares authorized, 72.3 million and 20.5 million shares issued and outstanding, respectively		72,281			20,469
	Additional paid-in capital		875,224			329,730
	Accumulated other comprehensive loss net of deferred income tax benefit of $0 and $1,616, respectively		(5,468	)		(4,855	)
	(Accumulated deficit)/retained earnings		(527,349	)		194,081
	Restricted shares at cost (0.5 million and 0.4 million shares, respectively)		(7,502	)		(6,741	)
	Total shareholders' equity		465,318			696,555
	Total liabilities and shareholders' equity	$	2,116,047		$	1,454,416

PXRE	Consolidated Statements of Operations and Comprehensive Operations
Group Ltd.	(Dollars in thousands, except per share amounts)

		Three Months Ended December 31,						Twelve Months Ended December 31,
			2005			2004			2005			2004
			(Unaudited)			(Unaudited)			(Unaudited)
Revenues	Net premiums earned	$	156,653		$	79,756		$	388,324		$	308,072
	Net investment income		14,643			9,237			45,292			26,178
	Net realized investment losses		(14,370	)		(161	)		(14,736	)		(150	)
	Fee income		171			229			941			1,785
			157,097			89,061			419,821			335,885
Losses and	Losses and loss expenses incurred		533,002			33,796			1,011,523			226,347
Expenses	Commission and brokerage		17,888			7,825			49,900			36,111
	Other reinsurance related expense		936			—			936			—
	Operating expenses		9,105			10,533			36,208			41,293
	Foreign exchange (gains) losses		(494	)		102			(1,547	)		80
	Interest expense		3,615			3,442			14,452			14,389
			564,052			55,698			1,111,472			318,220
	(Loss) income before income taxes, cumulative effect of accounting change and convertible preferred share dividends		(406,955	)		33,363			(691,651	)		17,665
	Income tax provision (benefit)		39,510			610			5,907			(6,234	)
	(Loss) income before cumulative effect of accounting change and convertible preferred share dividends		(446,465	)		32,753			(697,558	)		23,899
	Cumulative effect of accounting change, net of $0.2 million tax benefit		—			—			—			(1,053	)
	Net (loss) income before convertible preferred share dividends	$	(446,465	)	$	32,753		$	(697,558	)	$	22,846
	Convertible preferred share dividends		1,162			3,478			7,040			14,018
	Net (loss) income to common shareholders	$	(447,627	)	$	29,275		$	(704,598	)	$	8,828
Comprehensive Operations, Net of Tax	Net (loss) income before convertible preferred share dividends	$	(446,465	)	$	32,753		$	(697,558	)	$	22,846
	Net change in unrealized depreciation on investments		7,481			(2,513	)		(145	)		(5,465	)
	Reclassification adjustments for losses included in net (loss) gain		36			104			248			247
	Minimum additional pension liability		(716	)		(1,329	)		(716	)		(1,329	)
	Comprehensive (loss) income	$	(439,664	)	$	29,015		$	(698,171	)	$	16,299
Per Share	Basic:
	(Loss) income before cumulative effect of accounting change and convertible preferred share dividends	$	(8.43	)	$	1.99		$	(21.43	)	$	1.65
	Cumulative effect of accounting change		—			—			—			(0.07	)
	Convertible preferred share dividends		(0.02	)		(0.21	)		(0.22	)		(0.97	)
	Net (loss) income to common shareholders	$	(8.45	)	$	1.78		$	(21.65	)	$	0.61
	Average shares outstanding (000's)		52,987			16,444			32,541			14,433
	Diluted:
	Net (loss) income before cumulative effect of accounting change	$	(8.45	)	$	1.09		$	(21.65	)	$	0.86
	Cumulative effect of accounting change		—			—			—			(0.04	)
	Net (loss) income	$	(8.45	)	$	1.09		$	(21.65	)	$	0.82
	Average shares outstanding (000's)		52,987			29,938			32,541			27,745