 1Q 2013 Investor Presentation May 2013 Exhibit 99.1 |
 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. 2. |
 3. Argo Group at a Glance Exchange / Ticker: NASDAQ / “AGII” Share Price: $45.26 Primary Market Capitalization: $1.1 billion Annual Dividend / Yield: $0.60 per share / 1.3% Gross Written Premium: $1.8 billion Capital: $1.9 billion Analyst Coverage: Macquarie (Outperform) - Amit Kumar Raymond James (Outperform) - Greg Peters William Blair (Outperform) - Adam Klauber Dowling & Partners (Neutral) - Kyle LaBarre Compass Point (Neutral) - Ken Billingsley Atlanta Barcelona Bermuda Boston Brussels Chicago Dallas Denver Dubai Houston London Los Angeles Malta New York Paris Portland Richmond Rio de Janeiro Rockwood San Antonio San Francisco Sao Paulo Scottsdale Seattle Zurich Note: Market information as of May 14, 2013 and annual performance figures as of TTM March 31, 2013. |
 4. Strong & Focused Specialty Franchise Global underwriter of specialty P&C insurance and reinsurance through four segments Broad footprint strategically located in major insurance centers U.S., Bermuda, London and Brazil Focused on specialty insurance & casualty lines Leader in U.S. Excess & Surplus Lines Top quartile Lloyd’s Syndicate by stamp Deep relationships with retailers, wholesalers and Lloyd’s brokers A.M. Best rating of “A” (excellent financial strength) Proven track record of active capital management 1Q 2013 TTM GWP Casualty ~60% Property ~40% Insurance 84% Reinsurance 16% |
 Strategy Aligned Toward Shareholder Value Sustain competitive advantage through superior customer service, product innovation and underwriting knowledge Opportunistically grow organically and/or through strategic acquisitions throughout the underwriting cycle Manage capital and risk appropriately / maintain strong ratings Proven ability to attract talent 5. Maximize shareholder value through growth in book value per share |
 6. Evolution of Growth and Diversification 2001 • Acquired Colony and Rockwood • Founded Trident (Public Entity) 2005 • Sold Risk Management business 2007 • Rebranded Argo Group • Completed merger into Bermuda • Formed Argo Re • Acquired Lloyd’s Syndicate 1200 2011 • Established local presence in Europe, Brazil & Dubai (part of Int’l Specialty) 6. *Excludes GWP recorded in runoff and corporate & other. 2008 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ’13/1Q TTM BVPS $27.22 $30.36 $33.50 $39.08 $45.15 $44.18 $52.36 $57.82 $55.60 $60.75 $62.67 Total Capital (Millions) $567 $717 $860 $992 $1,754 $1,782 $1,996 $1,986 $1,840 $1,915 $1,948 |
 7. Argo Group Business Mix ($1.8B in GWP) 7. GWP by Segment Excess & Surplus Lines Commercial Specialty Syndicate 1200 International Specialty 30% 16% 30% GWP by Product GWP by Business Type Primary Insurance Reinsurance GWP by Geography United States London Bermuda *Data is based on TTM as of March 31, 2013. Excludes GWP recorded in runoff and corporate & other. 24% 17% Excess & Surplus Lines 30% Other Commercial Specialty Property Public Entity 22% 7% 6% Marine & Aerospace Surety 2% Alteris 5% Mining 4% Emerging Mkts 7% Emerging Markets 7% 54% 9% 30% 16% 84% |
 Maximizing Shareholder Value – BVPS Growth * Book value per common share - outstanding, includes the impact of the Series A Mandatory Convertible Preferred Stock as if on a converted basis. Preferred stock had fully converted into common shares as of Dec. 31, 2007. 1 Price / book calculated at 52-week high and most recent book value per share. Stock price and book value adjusted for PXRE merger for 2006 and prior years. Note the book value amounts for 2011 and 2010 reflect the effect of the Company’s adoption of new guidance related to accounting for costs associated with acquiring or renewing insurance contracts. 2009 and prior periods have not been restated. $45.15 $44.18 $52.36 $57.82 $60.75 $39.08 $23.39 $27.22 $30.36 $33.50 1.1x 1.1x 1.2x 1.6x 1.7x 1.2x 0.9x 0.8x 0.7x 0.6x = Price/Book 1 8. 0.7x $55.60 $62.67 0.7x 2008 2009 2010 2011 2006 2007 2005 2004 2003 2002 1Q ‘13 2012 - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 |
 9. Substantial Growth and Financial Strength Scale 2000 2006 TTM 1Q'13 '00-1Q'13 Factor Gross Written Premiums $186.1 $1,155.6 $1,787.6 9.6x Net Written Premiums 163.9 847.0 1,282.3 7.8x Net Earned Premiums 124.6 813.0 1,213.4 9.7x Financial Strength 2000 2006 TTM 1Q'13 '00-1Q'13 Factor Total Assets $1,565.8 $3,721.5 $6,602.5 4.2x Total Investments 1,085.6 2,514.1 4,133.2 3.8x Shareholder's Equity 501.1 847.7 1,546.6 3.1x Total Capital 501.1 992.0 1,948.1 3.9x Debt / Total Capital 0.0% 14.5% 20.6% A.M. Best Rating A A A |
 10. Consolidated GWP up 10.6% in 1Q 2013 vs. 1Q 2012 1Q YoY Premium Growth in 3 out of 4 Segments Reflects impact of strategic initiatives taken, rate increases and improved retention 10. |
 11. About Us • Leader in U.S. Excess & Surplus Lines • Strong relationships with national, local and regional wholesale brokers • Seasoned U/W expertise is a competitive advantage • Target all sizes of non-standard (hard-to- place) risks underwritten on both an admitted and non-admitted basis GWP by Business Unit (TTM 3/31/13) Casualty 32% Transportation 16% Environmental 4% Allied Medical 5% Management Liability Property 10% Contract 23% Errors & Omissions 7% Excess & Surplus Lines Segment (30% of TTM GWP) 11. Combined Ratio PTOI 99.6% 97.8% 95.5% 91.9% 93.3% 89.3% ’13/1Q* ‘11 ‘10 ‘09 ‘08 ‘07 ‘12 95.6% Gross Written Premium Pre-Tax Operating Income & Combined Ratio ’13/1Q* ‘11 ‘10 ‘09 ‘08 ‘07 ‘12 *Data is based on TTM as of March 31, 2013. *Data is based on YTD as of March 31, 2013. 3% |
 12. Outperformed E&S Peers in 2012 New segment management team is formed. Year of restructure and implementation of new strategy. Year of execution on the newly restructured platform. 97.8% 95.7% 91.9% 92.7% 98.6% 103.9% 84.4% 87.2% 92.5% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 105.0% 2010 2011 2012 Argo E&S Peer Average Top Quartile Peer Average Peers include: WR Berkley Specialty Segment, Alterra US Segment, American Safety E&S Segment, Aspen Insurance Segment, Axis Insurance Segment, Endurance Insurance Segment, HCC US P&C Segment, Markel E&S Segment, Navigators Insurance Segment, RLI P&C Segments, Arch Insurance Segment, United National Insurance Segment. Top quartile peers include the above mentioned segments from WR Berkley, RLI, and HCC. |
 13. Commercial Specialty (24% of GWP) About Us • Argo Insurance – Designs customized commercial insurance programs for grocers, dry cleaners restaurants and other specialty retail clients • Trident – 2 nd largest provider of commercial insurance to small and midsize U.S. public entities • Rockwood – 2 nd largest provider of commercial insurance to coal mining industry • Distributes products directly through wholesalers and independent agents GWP by Business Unit (TTM 3/31/13) Argo Insurance (U.S. Retail) 21% Restaurants 5% Grocery 9% Dry Cleaners 5% Other Industries 2% Rockwood (Mining) 18% Commercial 10% Programs (1) ...… Argo Surety 9% Trident (2) 28% 96.5% 99.0% 108.3% 115.1% 96.5% 88.7% 98.6% Gross Written Premium Pre-Tax Operating Income & Combined Ratio Combined Ratio PTOI ’13/1Q* ‘11 ‘10 ‘09 ‘08 ‘07 ‘12 ’13/1Q* ‘11 ‘10 ‘09 ‘08 ‘07 ‘12 *Data is based on TTM as of March 31, 2013. *Data is based on YTD as of March 31, 2013. AARS / Corporate Accounts (2) 14% (1) Includes GWP from programs which were previously shown in Alteris’ results (2) GWP previously included in Alteris’ results |
 14. General Liability 13% Prof. Indemnity 13% Directors & Officers 2% Int’l Casualty Treaty 2% Other 2% Syndicate 1200 (30% of GWP) About Us • Well-established multi-class platform at Lloyd’s of London • Ranks among the largest Syndicates at Lloyd’s by Stamp Capacity • Lloyd’s market ratings: • ‘A’ (Excellent) by A.M. Best • ‘A+’ (Strong) by S&P GWP by Business Unit (TTM 3/31/13) Property 46% Liability 33% Specialty 16% Aerospace 5% Property FAC 18% NA & Int’l Binders 10% Personal Accident 10% Int’l Property Treaty 2% Other 6% 14. Gross Written Premium Pre-Tax Operating Income & Combined Ratio 115.3% 131.7% 95.8% 112.3% ‘12 ‘10 ‘09 ‘08 ‘11 96.2% ‘12 ‘10 ‘09 ‘08 ‘11 93.3% ’13/1Q* ’13/1Q* *Data is based on TTM as of March 31, 2013. *Data is based on YTD as of March 31, 2013. |
 15. International Specialty (16% of GWP) About Us • Bermuda team underwrites property CAT, short tail per risk and proportional treaty reinsurance worldwide, excess casualty and professional liability • Building diversity through international expansion: • Established primary operations in Brazil • Established operations in Euro zone • Established regional office in Dubai • Distributes through brokers 15. Gross Written Premium Pre-Tax Operating Income & Combined Ratio GWP by Business Unit (TTM 3/31/13) Property CAT 35% Casualty 20% Professional 10% Other 6% Property Pro Rata 6% Property Risk XS 3% Brazil 20% Cargo Marine 6% Property & Engineering 5% Motor 5% Financial Lines 4% ‘12 ‘10 ‘09 ‘08 ‘11 ’13/1Q* ‘12 ‘10 ‘09 ‘08 ‘11 ’13/1Q* 72.8% 177.5% 52.3% 77.9% 97.1% 89.6% Combined Ratio PTOI *Data is based on TTM as of March 31, 2013. *Data is based on YTD as of March 31, 2013. |
 16. 1Q Operating Results 16. 1Q 2013 1Q 2012 Gross Written Premiums $438.2 $396.3 Net Written Premiums 279.0 241.2 Earned Premiums 304.2 277.3 Losses and LAE 170.5 165.8 Other Reinsurance-Related Expenses 5.1 6.9 Underwriting, Acquisition and Insurance Expenses 126.7 113.7 Underwriting Income / (Loss) $1.9 ($9.1) Net Investment Income 27.9 31.4 Fee Income, net 0.0 1.3 Interest Expense 4.9 5.7 Operating Income / (Loss) $24.9 $17.9 Foreign Currency Exchange Gain / (Loss) 3.1 (2.9) Net Realized Investment Gains 9.5 13.1 Pre-Tax Income / (Loss) $37.5 $28.1 Income Tax Provision 4.8 8.5 Net Income / (Loss) $32.7 $19.6 Operating Income (Loss) per Common Share (Diluted) 1 $0.78 $0.54 Net Income (Loss) per Common Share (Diluted) $1.28 $0.74 Loss Ratio 2 57.0% 61.3% Expense Ratio 3 42.4% 42.1% Combined Ratio 99.4% 103.4% All data in millions except for per share data and ratio calculations. (1) At an assumed tax rate of 20%. (2) Defined as Losses & LAE / (Earned Premiums less Other Reinsurance-Related Expenses). (3) Defined as Underwriting, Acquisition and Insurance Expenses / (Earned Premiums less Other Reinsurance-Related Expenses) |
 17. 17% 17. As of March 31, 2013 • Duration of 3.3 years • Average rating of ‘AA-’ • Book yield of 3.4% • Very liquid • Conservatively managed Portfolio Characteristics Equity Investments by Sector 10% Healthcare Energy 23% 4% Industrials 14% Funds 5% Financials 11% Info Tech 3% Materials 6% Consumer Discretionary Consumer Staples 24% Asset Allocation 8% Other Fixed 72% Maturities. 6% Short Term 14% Equities Total: $4.1B Total: $0.6B Fixed Maturities by Type 7% Short Term Corporate 35%. 19% Gov. 18% Structured State/Muni 21%. Total: $3.2B* *$2.97b in fixed maturities, $0.23b in short term Conservative Investment Strategy |
 18. Active Capital Management Through share repurchases and dividends, we have returned >$250 million of capital and repurchased 22% of shares outstanding from 2009 through Q1 2013 2009 2010 2011 2012 Q1 13 2009-Q1 13 Total Shares O/S 30,982,839 31,206,796 31,285,469 31,384,271 31,463,460 Less: Treasury Shares 145,999 3,363,560 4,971,305 6,459,613 6,785,438 Net Shares 30,836,840 27,843,236 26,314,164 24,924,658 24,678,022 Shares Repurchased 145,999 3,217,561 1,607,745 1,488,308 325,825 6,785,438 As % of Beg. Net Shares 0% 10% 6% 6% 1% 22% Avg. Repurchase Price/sh $35.23 $33.08 $30.72 $29.92 $37.71 Total Repurchased ($mm) $5.1 $106.4 $49.4 $44.5 $12.3 $217.8 Dividends/sh $0.48 $0.48 $0.48 $0.15 Dividend Payments ($mm) $14.3 $13.1 $12.3 $3.7 $43.4 Repurchases + Dividends ($mm) $5.1 $120.7 $62.5 $56.8 $16.0 $261.1 |
 19. Stock Price Performance – Last 12 Months Source: Thomson. Peer Group consists of: Allied World, Alterra, American Financial, American Safety, Arch Capital, Aspen, AXIS Capital, Endurance, Global Indemnity, HCC, Markel, OneBeacon, RLI Corp, Selective Group, Navigators, Tower Group, W.R. Berkley -10% 0% 10% 20% 30% 40% 50% 60% 70% Argo Group Peer Group S&P 500 +58% +25% +23% |
 20. Price/Book Jan-00 May-13 Argo 0.70x 0.72x Peer Avg. 1.17x 1.16x Difference 0.47x 0.44x - 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Argo Peer Group Compelling Valuation vs. Peer Group 0.72x 1.16x 0.44x Difference Note: Price to book is average price/book across all peer companies. Peers include: Arch, AmTrust, W.R. Berkley, Axis, Markel, HCC, American Financial, Allied World, Aspen, Endurance, RLI, OneBeacon, Selective, Navigators, Tower, Global Indemnity. Source: Thomson, SNL, internal analysis. |
 21. Well Positioned for Value Creation in 2013 and Beyond • Compelling investment case • Stock trading at a discount to book value and below peers • Upside potential as past and ongoing efforts continue • Significant changes to premium composition completed • Results of re-underwriting and efficiency efforts are emerging in financials • Modest pricing increases expected to favorably impact growth and loss ratios • Continue to employ and attract some of the best talent in the industry • Brazil has traction and is beginning to scale • Building more revenue from non-risk bearing MGA strategy • Incremental yield improvements can have a favorable impact on ROE • Moderate financial leverage • Strong balance sheet with adequate reserves and excellent asset quality We believe that Argo Group has potential to generate substantial value for new and existing investors. |