 AIFA 2008 Mid-Winter Conference March 3, 2008 Exhibit 99.1 |
 2 Forward-Looking Statements Forward-Looking Statements This presentation contains “forward-looking statements” which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non- receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements as a result of events or developments subsequent to the presentation. |
 3 The Argo Group Story The Argo Group Story The Company Argo Group is an international specialty underwriter of property/casualty insurance focused on niche markets The Objective To maintain our profitable growth record as we execute upon our largest business combination to date The Strategy Apply our proven business model in deploying capital in selected areas for maximum return |
    4 Focus: Specialty underwriter in niche markets Three Business Units Three Business Units Successful Business Model Successful Business Model A G E N D A Growing an International Specialty Underwriter A G E N D A Growing an International Specialty Underwriter Growth and Profitability Three Business Units Three Business Units |
 5 Argo Group Today Argo Group Today Specialty underwriter in attractive niche areas of property, casualty insurance and reinsurance Headquarters: Bermuda – operates in 50 states and internationally Market Cap over $1B Three ongoing business segments – Excess and Surplus Lines (E&S) – Select Markets – International Specialty Major business segment locations Headquarters Brussels |
 6 A Recap of Our Successful Business Model A Recap of Our Successful Business Model 1. Target attractive niche markets 2. Develop leading, differentiated positions 3. Expand position – organically – selective acquisitions 4. Results: Growth in premiums and earnings |
 7 Key Criteria In Selecting Niche Markets Higher margin, return Market leadership in a reasonable time frame Disciplined underwriting Sustained, profitable organic growth 7 1. A T T R A C T I V E N I C H E M A R K E T S A Different Type of Approach |
 8 2. D E V E L O P L E A D E R S H I P P O S I T I O N S Examples of Leadership Positions 2. D E V E L O P L E A D E R S H I P P O S I T I O N S Examples of Leadership Positions E&S market position Commercial insurance for small / medium public entities Insurance for retail fabricare industry Workers’ compensation for coal mines in Pennsylvania and Maryland P/C insurance for independent grocery stores 8 Leader Leader Leader Leader Leader |
 9 3. E X P A N D P O S I T I O N A Solid Record of Disciplined Growth 3. E X P A N D P O S I T I O N A Solid Record of Disciplined Growth 2007 Revenues 90%+ 90%+ New Businesses Last Seven Years Businesses acquired: PXRE Rockwood Interstate Grocers Coregis Fulcrum Public Entity Argonaut Specialty Assets acquired: New businesses launched: Organic Growth Strategies Cross Selling Increased Product Offerings Colony Peleus |
 10 4. R E S U L T S : G R O W T H An Impressive Growth Record… 4. R E S U L T S : G R O W T H An Impressive Growth Record… $1.9B $5.1B 2001 2007 Total Assets 18% CAGR $1.2B $272M 2001 2007 Gross Written Premiums 28% CAGR 10 |
 11 4. R E S U L T S : G R O W T H … With Solid Segment Underwriting Performance Combined Ratio for Ongoing Segments 90% or less 92.1%** 92.7% 94.0%* 94.3%* 2004 2005 2006 2007 Target 11 * Exclusive of losses from hurricane activity ** Exclusive of merger-related expenses |
    12 Focus: Specialty underwriter in niche markets Successful Business Model Successful Business Model A G E N D A Growing an International Specialty Underwriter A G E N D A Growing an International Specialty Underwriter Three Business Units Three Business Units Growth and Profitability |
 13 Three Growth Platforms Three Growth Platforms Excess & Surplus Lines Select Markets International Specialty GWP $726M Operating Income up 11% GWP $421M Operating Income up 22% New Bermuda- based platform |
 14 Three Growth Platforms Three Growth Platforms Select Markets International Specialty GWP $421M Operating Income up 22% New Bermuda- based platform GWP $726M Operating Income up 11% Excess & Surplus Lines |
 15 Pre-Tax Operating Income ($M) Excess & Surplus Lines: Largest and Most Profitable Segment Excess & Surplus Lines: Largest and Most Profitable Segment Status Combined ratio of 89.3% Colony & Argonaut Specialty Competitive advantages Excellent infrastructure Underwriting expertise Controlled distribution Rated ‘A’ (Excellent) by A.M. Best 92.6% 88.9% 89.3% Combined ratio * Includes hurricane losses $58* $102 $113 2005 2006 2007 |
 16 Excess & Surplus Lines GWP $726M Operating Income up 11% Three Growth Platforms Three Growth Platforms International Specialty Select Markets GWP $421M Operating Income up 22% New Bermuda- based platform |
 17 Pre-Tax Operating Income ($M) Select Markets: Consistently Profitable Segment Select Markets: Consistently Profitable Segment Status Combined ratio of 88.7 Primarily retail-driven Competitive advantages Expertise in niche markets – grocery stores – mining operations – laundry & dry cleaners – small/medium-size public entities 92.6% 89.4% 88.7% Combined ratio * Includes hurricane losses $38* $50 $61 2005 2006 2007 |
 18 Three Growth Platforms Three Growth Platforms Excess & Surplus Lines* Select Markets GWP $726M Operating Income up 11% GWP $421M Operating Income up 22% New Bermuda- based platform International Specialty |
 19 Peleus – Positioned Well At Outset Peleus – Positioned Well At Outset Immediate Strengths A rating by A.M. Best Began 2008 with approx. $1.3B in capital Appointed Andrew Carrier as Peleus president – New underwriting team in place – Proven record of leadership – Built diversified books of business Utilize established infrastructure Launched business with January 1, 2008 renewals 19 |
 20 Combined Business Mix Combined Business Mix 20 Specialty Insurance Excess & Surplus Lines Select Markets International Specialty Quota share reinsurance of business partners Property reinsurance Prospective insurance opportunities ~85% ~15% |
 21 Group’s 2007 Results Group’s 2007 Results 2006 2007 Change Gross Written Premium $ 1.15B $ 1.18B 2% Net Earned Premium $ 813M $ 860M 6% Total Revenue $ 939M $ 1.0B 6% Net Investment Income $ 105M $ 134M 28% Net Income Per Share $ 4.82 $ 5.58 16% |
    22 Dec 31, 2007 2,425 21.0% 1,754 1,385 5,124 $3,598 369 $45.15 Dec 31, 2006 2,029 14.5% 992 848 3,722 $2,558 144 $39.08 Strong Balance Sheet and Capital Base Strong Balance Sheet and Capital Base Reserves Total Leverage Total Capital Shareholders’ Equity Total Assets Investment Portfolio 22 Indebtedness Book Value Per Share In millions except for book value and leverage data |
 23 Minimal Sub-prime Exposure Minimal Sub-prime Exposure Total Argo Group Investment Portfolio - $3.6 billion Sub-prime/Alt-A Exposure only 1.0% of total portfolio – Total exposure approximately $40M – 33% Alt-A / 67% Sub-prime – 99% are AAA or AA rated – Only 20% are 2005-2006 Vintage • All are AAA rated Portfolio has no derivative investments 23 |
    24 A G E N D A Growing an International Specialty Underwriter A G E N D A Growing an International Specialty Underwriter Focus: Specialty underwriter in niche markets Successful Business Model Successful Business Model Three Business Units Three Business Units Growth and Profitability |
 25 Continue to Execute Successful Business Model Continue to Execute Successful Business Model 1. Target attractive niche markets 2. Develop leading, differentiated positions 3. Expand position – organically – selective acquisitions 4. Results: Growth in premiums and earnings |
 26 Capital Deployment Strategy 12-18 Months Capital Deployment Strategy 12-18 Months Support loss reserves and balance sheet Growth of core business – Deploy capital opportunistically across all three segments – Reduce reliance on third-party reinsurance Pursue attractive market opportunities – Selective acquisitions that complement existing business lines – Books of business and companies Repatriate capital depending on capital position and stock price – $150M stock repurchase program authorized – Dividend |
 27 Our Focus: Continuing to Improve ROE Our Focus: Continuing to Improve ROE 13.3% 14.8% 13.4% 15% 2005 2006 2007* Goal 27 * Calculated using average equity, includes extraordinary gain of $66.3M |
 28 I N S U M M A R Y A Stronger and Better Positioned Specialty Underwriter I N S U M M A R Y A Stronger and Better Positioned Specialty Underwriter Proven and successful business model – Impressive growth record, profitability and strong cash flow Acquisition of PXRE creates powerful competitive force in specialty lines market – Unique international specialty platform – Bermuda presence advantages – Diversified business mix – Growth via geographic reach / expansion ROE-driven focus – Effective capital deployment + high-margin focus = ROE improvement |
 Thank you! AIFA 2008 Mid-Winter Conference |