Argo Group International (ARGO-PA) 8-K Regulation FD Disclosure

The

Association

of

Insurance

and

Financial

Analysts

35

th

Annual

Conference

March 2010

Exhibit 99.1

2.

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.

Argo Group Today

Major business segment locations

Bermuda Headquarters

An international specialty underwriter of property/casualty

insurance and reinsurance products

Headquartered in Bermuda

Operations in 50 states and worldwide

Total capitalization of $2.0 billion

Operations conducted through four business segments

Our Strategy

Deploy

capital

in

the

international

specialty

market

for

maximum

return

Continuous focus on new business development and organic growth

Grow strategically through acquisitions

Prudent management of our balance sheet and investment portfolio

Brussels

London

Maximize shareholder value through our focus on Return on Capital

4.

Building a Specialty Platform

Goal

Execution

Status

•

Expand US Excess and Surplus

franchise and broaden US

specialty platform

•

Acquired Colony and Rockwood in 2001

•

Acquired the assets of Interstate and

Grocers in 2005 and 2003

•

Launched Public Entity business in 2001

•

Acquired Massamont and Insight in 2008

•

Completed 9 acquisitions of companies

and asset purchases over eight years

•

PXRE transaction in 2007

•

Launched Argo Re in 2008

•

Establish Bermuda Platform

•

Establish Lloyd’s Platform

•

Heritage acquisition in 2008

•

Enhance Argo’s risk profile

•

Significantly managed down legacy exposures

•

Sold PXRE’s legacy casualty exposure in 2008

•

Hired CFO in 2008

•

Hired Andrew Carrier as Argo Re President and

Nigel Mortimer as head of Excess Casualty in 2008

•

Recently Added:

•

International CEO: Julian Enoizi

•

Chief Actuary: Mike Fusco

•

Chief Risk Officer: Bernhard Scheifele

•

Chief Accounting Officer: James Tees

•

Chief Investment Officer: Rip Reeves

•

Bolster management ranks

5.

Argo Today –

A Diversified Business Model

US        International

For the FY 2009

Note: Based on gross written premiums (GWP)

Insurance       Reinsurance

Property         Casualty

~70%

~30%

8%

92%

27%

73%

6.

What We Do

Combined

Ratio*

Insureds

Segment Profile

Excess and

Surplus Lines

•Commercial Property and

Casualty on a non-admitted basis

•Distribution through wholesale

agents and brokers

Commercial

Specialty

Argo

International

•Argo Managing Agency plc

•Short-tail risks with an emphasis

on commercial specialty, and

non-US professional indemnity

insurance

95.6%

52.3%

Reinsurance

•Insureds include US regional

carriers and international multi-

line carriers

•Casualty clients are

predominately US Fortune 1000

companies written on a primary

basis

•Argo Re (class 4 specialty

reinsurance platform)

•Provides property CAT

reinsurance, excess casualty

95.8%

*

GWP and Combined Ratio for FY 2009

%

GWP*

32.3%

23.9%

8.2%

35.5%

99.6%

•Representative insureds include

restaurants, contractors, day

care centers, apartment

complexes, and others

•Commercial Property and

Casualty on an admitted basis

•Distribution through select

independent agents, brokers,

wholesalers and program

managers

•Food and hospitality, specialty

retail, grocery stores, mining

industry and public entities

•Insureds include US and

international small/medium

commercial businesses,

transportation, fine arts and

specie, financial institutions and

others

7.

Pre-Tax Operating Income

($mm)

Excess & Surplus Lines

Largest and Most Profitable Segment

Status

•

Historical combined ratio in low 90% range

•

Colony, Argonaut Specialty & Argo Pro

Competitive advantages

•

Excellent

infrastructure

–

broad

geography

•

Underwriting expertise

•

Broad product portfolio for small account

underwriters

•

Controlled distribution

–

Wholesale agents

•

Benefits from a category XII ‘A’

(Excellent)

rating by A.M. Best

88.9%

89.3%

93.3%

99.6%

Combined Ratio

2006

2007

2008

2009

$102

$113

$98

$65

8.

Pre-Tax Operating Income

($mm)

Commercial Specialty

Specialty Niche Segment

Status

•

Historical combined ratio in low 90% range

•

Primarily admitted, retail-driven

Competitive advantages

•

Expertise in niche markets

–

grocery stores

–

mining operations

–

laundry & dry cleaners

–

small/medium-size public entities

•

Benefits from a category XII ‘A’

(Excellent)

rating by A.M. Best

89.4%

88.7%

96.5%

95.6%

$50

$61

$43

$46

2006

2007

2008

2009

Combined Ratio

9.

Status

Underwriting on $1.2 billion of capital today

Achieved desired diversification in second

year

Appointed Andrew Carrier as Argo Re

President and Nigel Mortimer as head of

Excess Casualty

–

New casualty underwriting team in place

Competitive advantages

Utilize established infrastructure

Built diversified book of business

Proven record of leadership

Benefits from a category XII ‘A’

(Excellent)

rating by A.M. Best

Reinsurance

Argo Re –

Well Established

52.3%

77.9%

Pre-Tax Operating Income

($mm)

Combined Ratio

$24

$50

2008

2009

10.

Status

Acquired Heritage in May 2008

Appointed Julian Enoizi as CEO in

June 2009

Worldwide property

–

Direct and Facultative

–

North American and International

Binding Authority

Non-U.S. liability

–

Professional indemnity

–

General liability

Competitive advantages

Specialist knowledge

Access to decision makers

Carries the Lloyd’s market ratings of

‘A’

(Excellent) rating by A.M. Best,

and ‘A+’

by S&P

Argo International

Lloyd’s Underwriting Agency

96%

102%

Pre-Tax Operating Income

($mm)

Note:   Data is for the full year ending Dec. 31, 2008

Combined Ratio

$11

$24

2008¹

2009

1

11.

Combined Business Mix

Established platform to write business

worldwide and penetrate niche markets

Specialty Insurance

Excess & Surplus Lines

Commercial Specialty

Reinsurance/Insurance

Quota share reinsurance

of business partners

Property reinsurance

Excess casualty and

professional liability insurance

Argo International (Lloyd’s)

Worldwide property insurance

Non-U.S. liability

56%

8%

36%

As of December 31, 2009

12.

Growth in Key Profit Drivers

Net Premium Earned

Gross Written Premium

Investment Income

$622

$1,989

2002

2009

18%

CAGR

$378

$1,415

2002

2009

21%

CAGR

$53

$146

2002

2009

16%

CAGR

($mm)

13.

$39.08

$33.52

$30.36

$27.22

$23.40

$45.15

$44.18

$52.36

2002

2003

2004

2005

2006

2007

2008

2009

Growth of Book Value

BVPS Growth Since 2002

12.2%

CAGR

* Book value per common share - outstanding, includes the impact of the Series A Mandatory Convertible Preferred Stock

on an as if converted basis.  Preferred stock had fully converted into common shares as of Dec. 31, 2007.

14.

Significant Increases in Capital Relative to Operating Metrics

$1,996

$1,624

$1,816

$2,203

$2,558

$3,598

$4,001

$4,352

$1,415

$992

$1,782

$1,754

$860

$717

$567

$1,127

$860

$813

$699

$634

$563

2.2x

0.7x

2.6x

2.9x

2.5x

2.2x

2.1x

2.6x

0.6x

0.5x

0.8x

0.8x

0.9x

1.0x

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2003

2004

2005

2006

2007

2008

2009

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

Total Capitalization

Earning Assets

Net Premiums Earned

EA Multiple

EP Multiple

($mm)

$ 

1.5B

$   3.81

86%

15.

Argo Group 2009 Financial Highlights

2008

2009

Change

** Impacted by $17.4mm of pre-tax losses from U.S. storms in Q2 and $74.0mm from hurricanes Gustav and Ike in Q3.

Gross Written Premium

$  1.60B

$ 

2.0B

24%

Net Earned Premium

$  1.13B

$ 

1.4B

26%

Total Revenue

$  1.25B

24%

Net Operating Income Per Share

$ 

3.17

$   4.28

35%

Net Income Per Share

$    2.05**

Net Investment Income

$   150M

$

146M

3%

YTD Growth in Book Value Per Share

(2.1%)

18.5%

16.

Dec 31, 2008

2,997

24.1%

1,782

1,353

6,382

$4,001

429

$44.18

Dec 31, 2007

2,425

21.0%

1,754

1,385

5,124

$3,598

369

$45.15

Strong Balance Sheet and Capital Base

Reserves

Total Leverage*

Total Capital

Shareholders’

Equity

Total Assets

Investment Portfolio

Indebtedness*

Book Value Per Share

In millions, except for book value and leverage data

*Includes $311.4 mm of Junior Subordinated Debentures

Dec 31, 2009

3,203

19.1%

1,996

1,615

6,897

$4,352

381

$52.36

17.

Consolidated Investment Portfolio

Fixed income (94%)

Equities (6%)

Total: $4.0bn

Total: $0.3bn

•

Average Rating of AA+

•

Duration of 3.0 years

•

Internally and externally managed

•

Conservative focus on large cap

33%

15%

18%

13%

11%

U.S. Government

State / Muni

Corporate

Structured

Short Term

Other

10%

Financials

Industrial & Other

15%

85%

2009 Consolidated Portfolio Allocation

Investment Leverage / Yields

Levers to Drive a Profitable Organization

External

Internal

18.

Focus Areas for the Coming Year

Investments in people

Investment in IT

Expense savings

Controlled expansion in the US and

London

Focus on clients

Focus on distribution partners

Focus on the competitive environment

Premiums / Risk Selection

Financial Leverage / Capital Structure

Infrastructure Cost

19.

Why Argo?

•

Broadly diversified insurance and reinsurance platform

•

Deep product expertise in niche focus areas

•

Proven track record of growth and profitability

•

Proven ability to manage through insurance cycle

•

Prudent risk management and controls

•

Strong leadership

•

Significant room for future growth

•

ROE driven focus

Thank you

Q&A