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

2Q 2013 Investor Presentation

August 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:

$45.11

Market Capitalization:

$1.2 billion

Annual Dividend / Yield:

$0.60 per share / 1.3%

Gross Written Premium:

$1.9 billion

Capital:

$1.9 billion

Analyst Coverage:

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 August 01, 2013 and annual performance figures as of TTM June 30, 2013.

Atlanta

Barcelona

Bermuda

Boston

Brussels

Chicago

Dallas

Denver

Dubai

Houston

London

Macquarie

(Outperform)

-

Amit

Kumar

Raymond James

(Outperform)

-

Greg

Peters

William Blair

(Outperform)

-

Adam

Klauber

Dowling

&

Partners

(Neutral)

-

Kyle

LaBarre

Compass

Point

(Neutral)

-

Ken

Billingsley

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

2Q 2013 TTM GWP

Reinsurance

~10%

Insurance

~90%

Property

~40%

Casualty

~60%

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.

$272

$622

$788

$903

$1,056

$1,153

$1,182

$1,605

$1,987

$1,530

$1,544

$1,744

$1,855

Total

Risk Management (sold renewal rights in 2005)

International Specialty

Syndicate 1200

Commercial Specialty

Excess & Surplus Lines

16%

31%

30%

23%

Evolution of Growth and Diversification

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

’13/2Q

TTM

BVPS

$24.75

$27.60

$30.45

$35.53

$41.05

$39.62

$47.00

$52.56

$50.55

$55.22

$55.73

Total Capital (Millions)

$567

$717

$860

$992

$1,754

$1,763

$1,975

$1,986

$1,840

$1,915

$1,892

2001

•

Acquired Colony

and Rockwood

•

Founded Trident

(Public Entity)

2005

•

Sold Risk

Management

business

2007

•

Rebranded Argo Group

•

Completed acquisition

in Bermuda

•

Formed Argo Re

2008

•

Acquired Lloyd’s

Syndicate 1200

2011

•

Established  local

presence in Brazil

6.

*Excludes GWP recorded in runoff and corporate & other.

400

800

1,200

1,600

2,000

7.

Argo Group Business Mix ($1.9B in GWP)

7.

GWP by Segment

Excess &

Surplus Lines

Commercial

Specialty

Syndicate

1200

International

Specialty

31%

16%

30%

GWP by Product

GWP by Geography

United

States

London

Bermuda

*Data

is

based

on

TTM

as

of

June

30,

2013.

Excludes

GWP

recorded

in

runoff

and

corporate

&

other.

23%

18%

Excess &

Surplus Lines

31%

Other

Commercial

Specialty

Property

Public Entity

22%

6%

6%

Marine &

Aerospace

Surety 2%

Alteris 3%

Mining 4%

Emerging Mkts 8%

Emerging Markets 4%

54%

12%

31%

GWP by Business Type

Primary

Insurance

Reinsurance

~10%

~90%

8.

Multi-Channel Distribution Strategy

General

Agency

Retail Broker / 

Agent

Wholesale

Broker

Lloyd’s

Market

Reinsurance

Broker

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Rockwood

Argo Insurance

Trident

Surety

Commercial Programs

Alteris

Contract

Transportation

Casualty

E&O

D&O

Environmental

Allied Medical

Specialty Property

Liability

Property

Aviation

Marine

Excess Casualty

Professional Liability

Emerging Markets

Reinsurance

Maximizing Shareholder Value –

BVPS Growth

* Book value per common share –

outstanding:

-

Adjusted for June 2013 stock dividend

-

2008-2011

restated

to

reflect

adoption

of

ASU

2010-26

(related

to

accounting

for

costs

associated

with

acquiring

or

renewing

insurance contracts); 2007 and prior not restated

-

2006 and prior years adjusted for PXRE merger

-

2003-2006

includes impact of Series A Mandatory Convertible Preferred on an as-if converted basis in.  Preferred stock 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 adjusted for PXRE merger for 2006 and prior years.

1.1x

1.1x

1.2x

1.6x

1.7x

1.2x

0.9x

0.8x

0.7x

0.6x

=

Price/Book

1

9.

0.7x

0.8x

2008

2009

2010

2011

2006

2007

2005

2004

2003

2002

2Q ‘13

2012

70.00

60.00

50.00

40.00

30.00

20.00

10.00

-

$21.26

$24.75

$27.60

$30.45

$35.53

$41.05

$39.62

$47.00

$52.56

$50.55

$55.22

$55.73

10.

Substantial Growth and Financial Strength

Scale

2000

2006

TTM 2Q'13

'00-1Q'13 Factor

Gross Written Premiums

$186.1

$1,155.6

$1,855.6

10.0x

Net Written Premiums

163.9

847.0

1,311.0

8.0x

Net Earned Premiums

124.6

813.0

1,250.7

10.0x

Financial Strength

2000

2006

TTM 2Q'13

'00-1Q'13 Factor

Total Assets

$1,565.8

$3,721.5

$6,575.3

4.2x

Total Investments

1,085.6

2,514.1

3,985.4

3.7x

Shareholder's Equity

501.1

847.7

1,491.1

3.0x

Total Capital

501.1

992.0

1,892.2

3.8x

Debt / Total Capital

0.0%

14.5%

21.2%

A.M. Best Rating

A

A

A

11.

Consolidated GWP up 14.3% in 2Q 2013 vs. 2Q 2012

2Q YoY Premium Growth in 3 out of 4 Segments

Reflects impact of strategic initiatives taken, rate increases and improved retention

11.

$143.9

$175.8

$50

$75

$100

$125

$150

$175

$200

2012

2013

Excess

&

Surplus

Lines

$92.7

$85.6

$50

$60

$70

$80

$90

$100

2012

2013

Commercial

Specialty

$84.3

$96.1

$50

$60

$70

$80

$90

$100

2012

2013

International

Specialty

$153.2

$184.9

$50

$75

$100

$125

$150

$175

$200

2012

2013

Syndicate

1200

12.

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, with focus on small/medium accounts

•

Underwrites on both admitted & non-admitted

basis and across all business enterprises via

two brands:

•

Colony Specialty

•

Argo Pro

GWP by Business Unit (TTM 6/30/13)

Casualty 32%

Transportation 15%

Environmental 4%

Allied Medical 5%

Management Liability 3%

Property 11%

Contract  23%

Errors & Omissions 6%

Excess & Surplus Lines Segment (30% of TTM GWP)

Combined Ratio

PTOI

99.6%

97.8%

95.5%

91.9%

93.3%

89.3%

’13/2Q*

‘11

‘10

‘09

‘08

‘07

‘12

94.4%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

’13/2Q*

‘11

‘10

‘09

‘08

‘07

‘12

*Data is based on TTM as of June 30, 2013.

*Data is based on YTD as of June 30, 2013.

$726.5

$684.3

$642.3

$522.6

$478.9

$513.5

$565.7

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

$112.7

$98.3

$64.7

$69.1

$74.4

$83.2

$34.0

-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

13.

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

Outperformed E&S Peers in 2012

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.

New segment management

team is formed.

Year of execution on the newly

restructured platform.

Year of restructure and

implementation of new strategy.

Commercial Specialty

About Us

•

Business primarily placed through

retail

distribution partners

•

Argo Insurance –

Designs customized

commercial insurance programs for grocers, dry

cleaners, restaurants and other specialty retail

clients

•

Trident –

2

largest provider of insurance to

small and midsize U.S. public entities

•

Rockwood –

2

largest provider of commercial

insurance to coal mining industry

•

Alteris

–

fee based business where Argo or

others accept the risk

96.5%

99.0%

108.3%

115.1%

96.5%

88.7%

101.2%

Gross

Written

Premium

Pre-Tax

Operating

Income

&

Combined

Ratio

*Data is based on TTM as of June 30, 2013.

*Data is based on YTD as of June 30, 2013.

GWP

by

Business

Unit

(TTM

6/30/13)

U.S. Retail (Argo Insurance) 20%

Restaurants 5%

Grocery 8%

Dry Cleaners 4%

Other Industries 2%

Public Entity

(Trident) 27%

Surety 10%

Mining

(Rockwood) 18%

Other 3%

Alteris Managed Premium 23%

Other 1%

Transportation 3%

State Workers’

Comp Funds 14%

Self Insured Public Entity 4%

$50.0

($30.0)

($20.0)

($10.0)

-

$10.0

$20.0

$30.0

$40.0

$60.0

$70.0

$61.3

$43.0

$45.8

$33.1

$1.4

($18.9)

$9.0

’13/2Q*

‘11

‘10

‘09

‘08

‘07

‘12

’13/2Q*

‘11

‘10

‘09

‘08

‘07

‘12

-

100.0

200.0

300.0

400.0

500.0

600.0

$420.7

$510.9

$475.7

$428.1

$428.8

$437.0

$428.3

Combined Ratio

PTOI

14.

nd

nd

(23% of GWP)

15.

General Liability 15%

Prof. Indemnity 13%

Directors & Officers 2%

Int’l Casualty Treaty 2%

Other 2%

Syndicate 1200 (31% 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

6/30/13)

Property 47%

Liability 34%

Specialty 14%

Aerospace 5%

Property Fac 17%

N. Am. & Int’l Binders 11%

Personal Accident 10%

Int’l Property Treaty 1%

Other 8%

15.

115.3%

131.7%

95.8%

112.3%

‘12

‘10

‘09

‘08

‘11

96.2%

Gross

Written

Premium

Pre-Tax

Operating

Income

&

Combined

Ratio

‘12

‘10

‘09

‘08

‘11

Combined Ratio

PTOI

93.4%

’13/2Q*

’13/2Q*

*Data is based on TTM as of June 30, 2013.

*Data is based on YTD as of June 30, 2013.

Cargo 2%

Offshore Energy 6%

Onshore Energy 4%

Yachts & Hulls 2%

$40.0

$20.0

($20.0)

($40.0)

-

($60.0)

($80.0)

($5.2)

$30.0

($28.1)

($63.8)

$31.8

$19.9

800.0

700.0

600.0

500.0

400.0

300.0

200.0

100.0

$282.9

$706.0

$389.9

$438.5

$533.4

$568.1

16.

International Specialty (16% of GWP)

About

Us

•

Bermuda team underwrites

•

Building diversity through international

expansion:

•

Established primary operations in Brazil

•

Established operations in Euro zone

•

Established regional office in Dubai

•

Distributes through brokers

16.

Gross

Written

Premium

Pre-Tax

Operating

Income

&

Combined

Ratio

GWP

by

Business

Unit

(TTM

6/30/13)

Excess Casualty 19%

Professional Liability 10%

Brazil 22%

Marine Cargo 7%

Property & Engineering 6%

Motor 5%

Financial Lines 4%

‘12

‘10

‘09

‘08

‘11

’13/2Q*

‘12

‘10

‘09

‘08

‘11

’13/2Q*

72.8%

177.5%

52.3%

77.9%

97.1%

92.1%

Combined Ratio

PTOI

*Data is based on TTM as of June 30, 2013.

*Data is based on YTD as of June 30, 2013.

Reinsurance 49%

Other Assumed Re 5%

Property Risk XS 3%

Property Pro Rata 8%

Property Cat 33%

$60.0

$40.0

$20.0

($20.0)

-

($40.0)

($60.0)

($80.0)

$23.6

$50.3

$35.7

$15.7

$9.2

($67.7)

300.0

250.0

200.0

150.0

100.0

50.0

-

$126.4

$162.9

$188.9

$198.2

$260.2

$292.6

•

Excess casualty and professional liability

for Fortune 1000 accounts

•

Property cat, short tail per risk and

proportional treaty reinsurance worldwide

17.

2Q Operating Results

17.

2Q 2013

2Q 2012

Gross Written Premiums

$542.2

$474.2

Net Written Premiums

390.2

361.5

Earned Premiums

327.5

290.2

Losses and LAE

192.7

175.8

Other Reinsurance-Related Expenses

4.7

6.9

Underwriting, Acquisition and Insurance Expenses

124.6

114.6

Underwriting Income / (Loss)

$5.5

($7.1)

Net Investment Income

25.3

30.0

Fee Income, net

0.2

0.5

Interest Expense

5.1

5.5

Operating Income / (Loss)

$25.9

$17.9

Foreign Currency Exchange Gain / (Loss)

5.9

9.8

Net Realized Investment Gains 

11.0

(2.7)

Pre-Tax Income / (Loss)

$42.8

$25.0

Income Tax Provision

11.1

1.0

Net Income / (Loss)

$31.7

$24.0

Operating Income (Loss) per Common Share (Diluted)

1

$0.74

$0.50

Net Income (Loss) per Common Share (Diluted)

$1.13

$0.84

Loss Ratio

2

59.7%

62.1%

Expense Ratio

3

38.6%

40.4%

Combined Ratio

98.3%

102.5%

All data in millions except for per share data and ratio calculations.

(1) Calculated using 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).

18.

18.

As of June 30, 2013

Conservative Investment Strategy

17%

18.

•

Duration of 3.5 years

•

Average rating of ‘AA-’

•

Book yield of 3.2%

•

Very liquid

•

Conservatively managed

Portfolio Characteristics

Equity Investments by Sector

9% Healthcare

Energy

20%

4% Industrials

15% Funds

6% Financials

13% Info Tech

3% Materials

7% Consumer

Discretionary

Consumer Staples

20%

Asset Allocation

7% Other

Fixed

70%

Maturities.

8% Short Term

15% Equities

Total:

$4.0B

Total:

$0.6B

Fixed Maturities by Type

9% Short Term

Corporate

35%.

18% Gov.

17% Structured

State/Muni

21%.

Total:

$3.1B*

*$2.79b in fixed maturities, $0.28b in short term

2% Utilities

1% Teleco

19.

Active Capital Management

Through share repurchases and dividends, we have returned >$280 million of

capital and repurchased 23% of shares outstanding from 2009 through Q2 2013

Note: Not adjusted for June 2013 stock dividend.

2009

2010

2011

2012

Q1 13

Q2 13

2009-Q2 13

Total Shares O/S

30,982,839

31,206,796

31,285,469

31,384,271

31,463,460

33,970,108

Less: Treasury Shares

145,999

3,363,560

4,971,305

6,459,613

6,785,438

7,213,189

Net Shares

30,836,840

27,843,236

26,314,164

24,924,658

24,678,022

26,756,919

Shares Repurchased

145,999

3,217,561

1,607,745

1,488,308

325,825

427,751

7,213,189

As % of Beg. Net Shares

0%

10%

6%

6%

1%

2%

23%

Avg. Repurchase Price/sh

$35.23

$33.08

$30.72

$29.92

$37.71

$41.58

$32.63

Total Repurchased ($mm)

$5.1

$106.4

$49.4

$44.5

$12.3

$17.8

$235.56

Dividends/sh

$0.48

$0.48

$0.48

$0.15

$0.15

Dividend Payments ($mm)

$14.3

$13.1

$12.3

$3.7

$4.0

$47.38

Repurchases + Dividends ($mm)

$5.1

$120.7

$62.5

$56.8

$16.0

$21.8

$282.9

20.

Stock Price Performance –

Last 12 Months

Source:  SNL Financial (as of 8/1/13).

Note:

Peer

Group

consists

of:

Allied

World,

American

Financial,

Arch

Capital,

Aspen,

AXIS

Capital,

Endurance,

Global

Indemnity,

HCC,

Markel,

Navigators,

OneBeacon, RLI Corp, Selective Group, Tower Group, W.R. Berkley.

+80.0%

+70.0%

+60.0%

+50.0%

+40.0%

+30.0%

+20.0%

+10.0%

+0.0%

(10.0%)

Aug-12

Oct-12

Dec-12

Feb-13

Apr-13

Jun-13

Aug-13

+73%

+33%

+24%

Argo Group

Peer Group

S&P 500

21.

Compelling Valuation vs. Peer Group

0.79x

1.19x

0.39x

Difference

Source:  SNL Financial (as of 8/1/13).

Note:

Price

to

book

is

average

price/book

across

all

peer

companies.

Peer

Group

consists

of:

Allied

World,

American

Financial,

Arch

Capital,

Aspen,

AXIS

Capital,

Endurance,

Global

Indemnity,

HCC,

Markel,

Navigators,

OneBeacon,

RLI

Corp,

Selective

Group,

Tower

Group,

W.R.

Berkley.

-

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

Price/Book

Jan-00

Aug-13

Argo

0.70x

0.79x

Peer Avg.

1.17x

1.19x

Difference

0.47x

0.39x

22.

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

We

believe

that

Argo

Group

has

potential

to

generate

substantial

value

for

new

and

existing

investors.

•

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