 Investor Presentation November 2011 Exhibit 99.1 Jay S. Bullock, CFO |
 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. |
 Argo Group – About Us International Specialty Underwriter of P&C Insurance and Reinsurance Risks • Business platform is comprised of four distinct businesses; Each fully accountable • International platform supports corporate objectives of growth, profitability and diversification. First and Foremost an Underwriting Company • Five-year (2006-10) average combined ratio of 98.7% vs. 99.4% (industry) Solid Financial Strength (Balance Sheet) • Rated ‘A’ (Excellent) by A.M. Best (Class Size XII)¹ • Conservatively capitalized/modest use of financial leverage 1 Argo P/C Insurance & reinsurance operations 3. |
 Argo Group - A Compelling Valuation Current stock price doesn’t reflect strength of balance sheet • AGII’s stock price trading at approximately 60% of book value (11/15/11) Balance sheet characteristics: • Adequately reserved • Excellent asset quality • Average rating of fixed maturity portfolio is ‘AA’. • Exposure to questionable sovereigns is immaterial • Average rating of reinsurance recoverable balances is ‘A’ • Intangibles and goodwill less than 4% of total assets. • Use of financial leverage is modest at 20.5% (9/30/11) Management an active buyer of the stock 4. |
 Our Strategy • Become a recognized worldwide leader of custom insurance and reinsurance solutions for our clients • Create a competitive advantage through superior customer service, product innovation and underwriting knowledge • Achieve profitable growth organically and/or through opportunistic acquisitions throughout the cycle • Manage capital and risk appropriately / maintain strong ratings • Hire top tier talent to support our strategy 5. Maximize shareholder value through growth in book value per share |
 BVPS Growth Since 2002 Our Track Record: 6. $23.40 $27.22 $30.36 $33.52 $39.08 $45.15 $44.18 $52.36 $58.41 $54.85 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011- Q3 *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. 10.2% CAGR Maximizing Shareholder Value |
 Commercial Specialty Segment Pre-Tax Operating Income and Combined Ratio 7. About Us • Designs customized commercial insurance programs for grocers, fabricare, restaurants and other specialty retail clients • 2 nd largest provider of commercial insurance to small and midsize U.S. public entities • 2 nd largest provider of commercial insurance to the coal mine industry • Distributes products direct, through wholesalers and independent agents NWP by Business Unit $10.8 $12.7 $19.3 $35.9 $50.4 $61.3 $43.0 $45.8 $29.0 $17.7 ($8.1) 104.0% 98.4% 96.8% 92.5% 89.4% 88.6% 96.5% 95.6% 99.0% 100.9% 111.0% 80.0% 90.0% 100.0% 110.0% 120.0% ($10.0) $10.0 $30.0 $50.0 $70.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 9 Months 2010 9 Months 2011 Argo Insurance US Retail 27% Alteris 41% Rockwood 20% Argo Surety 5% Commercial Programs 5% Involuntary 2% ($mm) |
 NWP By Business Unit About Us Excess & Surplus Lines Segment 8. Pre-Tax Operating Income and Combined Ratio • A leader in the U.S. Excess & Surplus lines market • Strong relationships with national, local and regional wholesale brokers • Target market is non-standard (hard-to-place) risks • U/W expertise is a competitive advantage $18.5 $41.1 $36.9 $57.7 $101.4 $112.7 $98.3 $64.7 $62.7 $43.5 $40.8 94.7% 91.1% 94.8% 92.6% 88.9% 89.3% 93.3% 99.6% 97.8% 98.7% 98.6% 80.0% 90.0% 100.0% 110.0% 120.0% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 9 Months 2010 9 Months 2011 Casualty 26% Transportation 21% Property 4% Contract 28% Environmental 3% Allied Medical 6% E&O 4% Professinoal 7% ($mm) |
 Syndicate 1200 About Us 9. NWP by Line of Business Established multi-class platform at Lloyds of London Primary classes of business include: • Property (Facultative, Binders) • Specialty (Energy, Yachts & Hull) • Liability (Professional Indemnity, GL) • Aerospace (Aviation, Space) Lloyd’s market ratings: • ‘A’ (Excellent) by A.M. Best • ‘A+’ (Strong) by S&P GWP ($mm) and Combined Ratio Energy, 11.4% Prop FAC, 27.0% GL, 6.8% D&O, 1.8% PA, 11.3% Property Binders, 18.0% REO & MI, 2.3% Transportation, 2.4% Marine Cargo, 2.8% Int'l Prop Treaty, 4.2% Aerospace, 2.0% Other Liability, 10.1% $282.9 $706.0 $389.9 $329.6 $335.7 112.3% 95.8% 115.3% 109.5% 132.0% 0.0% 40.0% 80.0% 120.0% 160.0% $0.0 $200.0 $400.0 $600.0 $800.0 2008 2009 2010 9 Months 9 Months 2010 2011 |
 International Specialty About Us Gross Written Premium ($mm) 10. NWP by Line of Business Operating Income ($mm) and Combined Ratio • Underwrites property CAT, property per risk and proportional property treaty reinsurance worldwide & excess casualty • A platform for international expansion: • Established regional office in Dubai • Establishing operations in Brazil • Establishing operations in Euro zone • Distributes through brokers Property CAT 68% Property XOL 22% Casualty 7% Professional 3% $0.8 $8.1 $23.6 $50.3 $32.0 $23.0 ($64.6) 82.1% 86.1% 77.9% 52.3% 72.8% 74.1% 192.6% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% ($80.0) ($60.0) ($40.0) ($20.0) $0.0 $20.0 $40.0 $60.0 2006 2007 2008 2009 2010 9 Months Months 2010 9 2011 $11.1 $34.3 $126.4 $162.9 $188.9 $168.0 $176.0 $0.0 $50.0 $100.0 $150.0 $200.0 2006 2007 2008 2009 2010 9 Months 2010 9 Months 2011 |
 Argo Group Q3 2011 Financial Highlights CONSOLIDATED GAAP VIEW Gross written premium up 12.6% in the quarter • Reflects new product initiatives at our Lloyds (Syndicate 1200) platform • Pushing hard for rate increases with mixed results; market still competitive Modest pre-tax loss of $6.1 million in the quarter; Reflects • CATS, net of reinstatement premium of $26.7 million • Losses on aggregate reinsurance covers of approximately $10 million • A&E reserves were strengthened by $9.7 million Repurchased $17 million of AGII shares in the quarter. • Year-to-date share repurchase activity was $36.9 million • Year to date, paid $10 million of dividends to shareholders 11. |
 Q3’2011 Financial Highlights CONSOLIDATED GAAP VIEW 12. ($ in millions) Operating Income Q3'11 Q3'10 Adjusted Operating Income Before Taxes 1,2 $20.2 $35.5 - CATs, Net of Estimated Reinstatement Premium (26.7) (12.8) (10.0) 0.0 - Prior Year Reserve Development Favorable / (Unfavorable) 4.6 3.0 Operating Income (Loss) Before Taxes ² ($11.9) $25.7 Combined Ratio Q3'11 Q3'10 Adjusted Loss Ratio ¹ 62.5% 57.8% Expense Ratio 39.6% 40.1% Adjusted Combined Ratio ¹ 102.1% 97.9% - CATs, Net of Estimated Reinstatement Premium 10.0% 4.4% 3.7% 0.0% - Prior Year Reserve Development (Favorable) / Unfavorable -1.7% (1.0%) Total Combined Ratio 114.1% 101.3% 1 Results presented before CATs, losses on aggregate reinsurance covers and prior year development. 2 Excludes realized capital gains/losses and foreign exchange gains/losses. - Estimated Losses on Aggregate Reinsurance Covers - Estimated Losses on Aggregate Reinsurance Covers |
 YTD’2011 Financial Highlights CONSOLIDATED GAAP VIEW 13. ($ in millions) Operating Income YTD Q3'11 YTD Q3'10 Adjusted Operating Income Before Taxes 1,2 $82.9 $86.8 - CATs, Net of Estimated Reinstatement Premium (171.6) (56.6) - Estimated Losses on Aggregate Reinsurance Covers (10.0) 0.0 - Prior Year Reserve Development Favorable / (Unfavorable) 0.9 26.3 Operating Income (Loss) Before Taxes ($97.8) $56.5 Combined Ratio YTD Q3'11 YTD Q3'10 Adjusted Loss Ratio 1 60.4% 61.2% Expense Ratio 39.4% 38.5% Adjusted Combined Ratio 1 99.8% 99.7% - CATs, Net of Estimated Reinstatement Premium 21.4% 6.2% - Estimated Losses on Aggregate Reinsurance Covers 1.3% 0.0% - Prior Year Reserve Development (Favorable) / Unfavorable (0.1%) (2.8%) Total Combined Ratio 122.4% 103.1% 1 2 Excludes realized capital gains/losses and foreign exchange gains/losses. 2 Results presented before CATs, losses on aggregate reinsurance covers and prior year development. |
  Balance Sheet CONSOLIDATED GAAP VIEW 14. ($ millions) September 30, December 31, % 2011 2010 Variance (unaudited) Total investments 4,180.3 $ 4,215.4 $ -0.8% Cash and cash equivalents 119.8 83.5 43.5% Accrued investment income 31.5 33.5 (6.0%) Receivables 1,450.9 1,505.7 (3.6%) Goodwill and intangible assets 246.1 249.1 (1.2%) Deferred acquisition costs 136.2 139.7 (2.5%) Ceded unearned premiums 227.7 164.0 38.8% Other assets 110.2 97.6 12.9% 6,502.7 $ 6,488.5 $ 0.2% Reserves for losses and loss adjustment expenses 3,349.6 $ 3,152.2 $ 6.3% Unearned premiums 723.4 654.1 10.6% Ceded reinsurance payable 429.6 524.3 (18.1%) Debt 66.9 65.0 2.9% Junior subordinated debentures 311.5 311.5 0.0% Other liabilities 155.4 155.3 0.1% 5,036.4 4,862.4 3.6% Total shareholders' equity 1,466.3 1,626.1 (9.8%) 6,502.7 $ 6,488.5 $ 0.2% Book value per common share 54.85 $ 58.41 $ (6.1%) Assets Total assets Liabilities and Shareholders' Equity Total liabilities Total liabilities and shareholders' equity |
 Investment Portfolio CONSOLIDATED GAAP VIEW 15. ($ millions) Sep. 30, 2011 Jun. 30, 2011 Total cash and investments Fair Value % of Total Fair Value % of Total USD DENOMINATED: Fixed maturities U.S. Governments $516.9 12.0% $440.7 10.2% Non-U.S. Governments 43.2 1.0% 35.9 0.8% Obligations of states and political subdivisions 625.3 14.5% 617.4 14.4% Corporate securities 980.2 22.8% 1,031.8 24.0% Structured securities CMO/MBS-agency 558.7 13.0% 562.4 13.1% CMO/MBS-non agency 20.7 0.5% 34.7 0.8% CMBS 113.4 2.6% 184.1 4.3% ABS-residential 14.5 0.3% 15.5 0.4% ABS-non residential 71.4 1.7% 81.7 1.9% FOREIGN DENOMINATED: Governments 220.4 5.1% 208.0 4.8% Credit 94.3 2.2% 100.7 2.3% Total Fixed maturities $3,259.0 75.8% $3,312.9 77.0% Equity securities $353.1 8.2% $375.9 8.7% Other investments 214.1 5.0% 226.1 5.3% Short-term investments 354.1 8.2% 384.0 8.9% Total investments $4,180.3 97.2% $4,298.9 100.0% Cash and cash equivalents 119.8 2.8% 49.0 1.1% Total cash and investments $4,300.1 100.0% $4,347.9 101.1% |
 Argo Group - Recap of Major Highlights • International platform supports diversification & future growth strategy • Underwriting focus & talent are key competitive advantages Management committed to maximizing shareholder value • Achieved double digit book value per share growth since 2002 • Quality of capital and balance sheet is excellent • Will continue to repatriate capital as appropriate 16. • U.S. and international platforms well-positioned to take advantage of a Argo is an established carrier in the international specialty insurance and reinsurance markets. hardening market |
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