 Investor Presentation Raymond James 32 Annual Institutional Investors Conference March 8, 2011 nd 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. The Argo Group Story The Company Argo Group is an international specialty underwriter of property/casualty insurance and reinsurance focused in niche markets. The Objective To maintain our profitable growth record while maximizing on the opportunities afforded us through our international platform. The Strategy Apply our proven business model to deploy capital in attractive niche markets that offer opportunities for maximum return. |
 4. Argo Group Today Major business segment locations Bermuda Headquarters Multinational specialty P&C underwriter of insurance and reinsurance Headquarters: Bermuda – Operate internationally in all 50 states – 1,300+ employees across six countries Total capitalization of $2.0 billion Operations conducted through four business segments – Excess & Surplus Lines – U.S. wholesale distribution – Commercial Specialty – U.S. niche retail distribution – International Specialty – Lloyd’s syndicate – Reinsurance – Event-driven businesses A.M. Best Rating of A XII (excellent) Brussels London Paris Zurich |
 5. Our Strategy Deploy capital in the international specialty market for maximum return Provide our clients with insurance solutions by continuously focusing on new business development and organic growth Strategically grow our platform and gain access to new markets through acquisitions Dedicated to attracting top tier talent to leverage our platform Manage balance sheet risk by maintaining relatively low financial leverage and a prudent investment portfolio Maximize shareholder value through growth in book value per share |
 6. A Recap of Our Successful Strategic Business Plan 1. Target attractive niche markets 2. Develop leading, differentiated positions 3. Expand position – organically – geographically – selective acquisitions 4. Results: growth in premiums, earnings and book value |
 7. ATTRACTIVE NICHE MARKETS A Different Type of Approach Key Criteria In Selecting Niche Markets Higher margin and return Market leadership in a reasonable time frame Disciplined underwriting Sustained, profitable organic growth |
 We have successfully diversified our portfolio and become a global specialty insurance underwriter 2004 2010 NEP Split 2000 2001 – Acquires Colony and Rockwood. Founds Trident 2007 – Completes merger with PXRE; Forms Argo Re 2008 – Rebranded Argo Group; Acquired Heritage and its Lloyd’s syndicate 2009 – Introduces Casualty and Professional Risks Division Timeline Notes 1 Book value per share share includes impact of the Series A Mandatory Convertible Preferred Stock on an as if converted basis. Financial Highlights ($mm, except per share data) 2000 2004 (1) 2010 Book Value per Share 23.03 30.36 58.41 Total Capital 501.1 716.8 2,002.6 Excess and Surplus Lines, 40.4% Commercial Specialty, 27.4% Reinsurance, 8.3% International Specialty, 23.9% 8. Excess & Suprlus Lines, 48.1% Risk Management, 18.3% Specialty Commercial, 23.8% Public Entity, 9.7% Specialty Commercial, 23.9% Specialty Workers' Compensation , 75.9% Public Entity, 0.2% |
 9. Earned Premiums Gross Written Premiums 11.9% CAGR 15.7% CAGR RESULTS: GROWTH An Impressive Growth Record… |
 10. 12.3% CAGR Net Income Net Investment Income 51.3% CAGR RESULTS: GROWTH Improved Bottom Line Results… |
 11. Growth of Book Value BVPS Growth Since 2002 12.1% 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. |
 12. Excess & Surplus Lines International Specialty • 2010 GWP $390M • Lloyd’s platform • 2010 GWP $523M Excess & Surplus Lines Reinsurance • 2010 GWP $189M • Bermuda platform • Includes Casualty & Professional Risks Unit Commercial Specialty • 2010 GWP $428M Four Growth Platforms |
 13. EXCESS & SURPLUS LINES: Largest and Most Profitable Segment Status Standard market expanding risk appetite New entrants building market share Argo maintaining underwriting discipline Competitive advantages Colony Specialty & Argo Pro Excellent infrastructure – broad geography Underwriting expertise Broad product portfolio for small acct U/Ws (restaurants, day care, contractors) Controlled distribution – Wholesale agents Benefits from a category XII ‘A’ (Excellent) rating by A.M. Best Pre-Tax Operating Income ($M) Combined ratio * Includes $12.7M of losses from 2008 hurricanes. 88.9% 89.3% 93.3% $102 $113 $98 $65 99.6% $63 97.8% 2006 2007 2008* 2009 2010 |
 14. COMMERCIAL SPECIALITY: Specialty Niche Segment Status Historical combined ratio in low 90% range Performing well given competition Primarily admitted, retail-driven Competitive advantages Expertise in niche markets – grocery stores – mining operations – laundry & dry cleaners – small/medium-size public entities Benefits from a category XII ‘A’ (Excellent) rating by A.M. Best Pre-Tax Operating Income ($M) Combined ratio * Includes $2.8M of losses from 2008 hurricanes. 89.4% 88.7% 96.5% $50 $61 $43 $46 95.6% $29 99.0% 2006 2007 2008* 2009 2010 |
 15. $24 $50 Status Underwriting on $1.2 billion of capital Has achieved desired diversification Event-driven businesses Added Casualty and Professional Risks business in 2009 Competitive advantages Utilizes established infrastructure Built diversified book of business Proven record of leadership Benefits from a category XII ‘A’ (Excellent) rating by A.M. Best REINSURANCE: Argo Re – Well Established Pre-Tax Operating Income ($M) 77.9% 52.3% 2008 2009 Combined ratio *Includes $30.1M of catastrophe losses (net of reinstatement premium). 2010* $32 72.8% |
 16. Status Acquired Heritage in 2008; rebranded to Argo International Carrier named head of U/W Jan 2011 Worldwide property – Direct and Facultative – North American and International Binding Authority Non-U.S. liability – Professional indemnity – General liability Competitive advantages Specialist knowledge Carries the Lloyd’s market ratings of ‘A’ (Excellent) rating by A.M. Best, and ‘A+’ by S&P INTERNATIONAL SPECIALTY: Argo International (Lloyd’s) Gross Written Premiums ($M) $424 $706 $390 2008 2009 2010 Pre-tax Operating Income 2010: ($31.2M)* 2009: $24.1M *Includes $24.8M of 2010 catastrophe losses. |
 Combined Business Mix – Established platform to write business worldwide and penetrate niche markets Reinsurance Quota share reinsurance of business partners Property reinsurance 62% 9% 29% Based on 2010 gross written premiums Worldwide property insurance Non-US Liability Excess casualty and professional liability insurance Excess & Surplus Lines Commercial Specialty Specialty Insurance 17. |
 18. Diversified Business Model Reinsurance Insurance 91% 14% As of Dec. 31, 2010 Note: Based on gross written premiums (GWP) Casualty ~70% ~30% Property 9% |
 19. Argo Group 2010 Results 2009 2010 Change Gross Written Premium 23% Net Earned Premium 14% Total Revenue 11% Net Operating Income Per Share 53% Net Income Per Share 28% ** Impacted by $54.9M of losses (net of reinstatement premiums) from catastrophes in 2010. Net Investment Income 8% YTD Growth in Book Value Per Share $ 2.0B $ 1.4B $ 1.5B $ 4.28 $ 3.81 $ 146M 18.5% $ 1.5B $ 1.2B $ 1.4B $ 2.00** $ 2.76 $ 134M 12.5% |
 Dec 31, 2009 3,203 19.1% 1,996 1,615 6,897 $4,334 381 $52.36 Dec 31, 2008 2,997 24.1% 1,782 1,353 6,382 $3,995 429 $44.18 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 $311mm of Junior Subordinated Debentures Dec 31, 2010 3,152 1,626 6,482 $4,215 $58.41 377 2,003 18.8% 20. |
 Conservative Investment Portfolio Fixed income (92%) Equities (8%) Total: $3.7bn Total: $0.3bn • Internally and externally managed • Conservative focus on large cap • Average Rating of AA • Duration of 3.0 years 28% 18% 18% 27% 10% Governments State / Muni Corporate Structured Short Term Financials Industrial & Other 6% 94% Invested Assets ($mm) $1,181 $1,553 $1,784 $2,173 $2,514 $3,556 $3,995 $4,334 $4,215 2002 2003 2004 2005 2006 2007 2008 2009 2010 21. |
 22. Capital Deployment Strategy Support balance sheet, mainly loss reserves Growth of core business – Deploy capital opportunistically across all four 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 – New $150M authorized stock repurchase program announced Feb. 2011 – Repurchased $106.5M or 3.2M shares of common stock in 2010 – Paid 48 cents per share in cash dividends in 2010 |
 23. Key Areas of Focus Today Improve expense structure – Implementing shared services model for our back office, non-core functions – Evaluating outsourcing opportunities Capital management – Constantly evaluating capital structure – Ensure we are adequately and efficiently capitalized Investment portfolio – Analyzing risk-return threshold – Allocating investments accordingly to increase yield New business development – Prudently evaluating new specialty products and new geographies that will be accretive to ROE over time |
 24. I N S U M M A R Y Argo Group: A Strong and Well-Positioned Specialty Underwriter Powerful competitive force in specialty lines market – International platform with U.S., Bermuda and London advantages – Broadly diversified insurance and reinsurance businesses – Deep expertise in small- to mid-size niche markets – Growth though geographic and product diversification Proven and successful strategic business plan – Track record of growth and profitability through insurance cycle – Prudent risk management and controls – Strong, expanded and proven leadership team Focus on profitable growth – Effective capital deployment + high-margin emphasis = ROE-driven focus – Achieved 12.1% CAGR since 2002 in book value per share |
 Thank you |