Argo Group International 8K Regulation FD Disclosure | ARGO-PA 13 May 14

1Q 2014 Investor Presentation

May 2014

Exhibit 99.1

Forward-Looking Statements

This

presentation

contains

“forward-looking

statements”

which

are

made

pursuant

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

the

Company.

There

can

assurance

that

actual

developments

will

those

anticipated

the

Company.

Actual

results

may

differ

materially

from

those

projected

result

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 at a Glance

Exchange / Ticker:

NASDAQ / “AGII”

Share Price:

$45.21

Market Capitalization:

$1.2 billion

Annual Dividend / Yield:

$0.60 per share / 1.3%

Gross Written Premium:

$1.9 billion

Capital:

$2.0 billion

Analyst Coverage:

Raymond James (Outperform) -

Greg Peters

Sterne Agee (Buy) -

Dan Farrell

William Blair (Outperform) -

Adam Klauber

Compass Point (Neutral) -

Ken Billingsley

Dowling & Partners (Neutral) -

Kyle LaBarre

Guggenheim (Neutral) -

Bijan Moazami

KBW (Market Perform) -

Brett Shirreffs

Macquarie (Neutral) -

Amit Kumar

Note: Market information as of May 5, 2014 and annual performance figures as of TTM March 31, 2014.

Global underwriter of specialty insurance &

reinsurance

Strategically located in major insurance centers

•

U.S., Bermuda and London

Established presence in attractive markets

•

Leader in U.S. Excess & Surplus Lines

•

Top Quartile Lloyd’s Syndicate by stamp

•

Strong core Commercial Specialty franchise

•

Flexible reinsurance & excess casualty platform

•

Primary presence in Brazil

Diversified by geography, product & distribution

Broad and strong producer relationships

•

Retailers, wholesalers and brokers (Lloyd’s, Re)

“A”

(excellent) A.M. Best rating

Primary

Insurance

Reinsurance

Property

Casualty

GWP by Business Type

GWP by Business Mix

Argo Franchise Overview

Leading Specialty Franchise

Sustainable competitive advantage

•

Niche markets

•

Underwriting expertise

•

Superior customer service

•

Product innovation

Profitable organic & strategic growth

•

Profitable through cycles

•

Key underwriters/teams

•

Deals that meet stringent criteria

Deep, tenured management team

Active capital management

Maximize

Shareholder

value through

growth in

Book Value

per Share

Strategy Aligned Toward Shareholder Value

Evolution of Growth and Diversification

2001

•

Acquired Colony

and Rockwood

•

Founded Trident

(Public Entity)

2005

•

Sold Risk

Management

business

2007

•

Formed Argo Re

2008

•

2011

•

Established local

presence in Brazil

*Excludes GWP recorded in runoff and corporate & other.

Acquired Lloyd’s

Syndicate 1200

Rebranded Argo Group

Completed acquisition

in Bermuda

Argo Group Business Mix ($1.9B in GWP)

GWP by Segment

Excess &

Surplus Lines

Commercial

Specialty

Syndicate

1200

International

Specialty

31%

15%

32%

GWP by Product

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.

22%

16%

Excess &

Surplus Lines

32%

Other

Commercial

Specialty

Property

Public Entity

21%

Marine &

Aerospace

Surety 2%

Alteris

Mining 4%

Emerging Mkts 8%

Emerging Markets 4%

54%

11%

31%

GWP by Business Type

Primary

Insurance

Reinsurance

Multi-Channel Distribution Strategy

Maximizing Shareholder Value –

BVPS Growth

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.

Book

value

per

common

–

outstanding:

Adjusted for June 2013 stock dividend

2008-2011

restated

reflect

adoption

ASU

2010-26

(related

accounting

for

costs

associated

with

acquiring

renewing

insurance

contracts);

2007

and

prior

not

restated

2006 and prior years adjusted for PXRE merger

2003-2006

includes

impact

Series

Mandatory

Convertible

Preferred

as-if

converted

basis.

Preferred

stock

fully

converted

into

common

Dec.

31,

2007

2002

Reported Book Value

Cumulative Dividends

Price/Book¹

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1Q ‘14

10.

Scale

2002

2006

TTM 1Q '14

'02-1Q'14 Factor

Gross Written Premiums

$622.1

$1,155.6

$1,913.3

3.1x

Net Written Premiums

484.0

847.0

1,349.1

2.8x

Net Earned Premiums

378.4

813.0

1,325.3

3.5x

Financial Strength

2002

2006

TTM 1Q '14

'02-1Q'14 Factor

Total Assets

$2,208.9

$3,721.5

$6,431.4

2.9x

Total Investments

1,181.3

2,514.1

4,118.5

3.5x

Shareholder's Equity

327.7

847.7

1,594.9

4.9x

Total Capital

327.7

992.0

1,998.5

6.1x

Debt / Total Capital

0.0%

14.5%

20.2%

A.M. Best Rating

Substantial Growth and Financial Strength

11.

Combined Ratio

93.3%

-6.6%

86.7%

Combined Ratio

89.6%

-5.5%

84.1%

Combined Ratio

98.6%

2.9%

101.5%

Combined Ratio

95.6%

-6.2%

89.4%

1Q YoY Gross Written Premium & Combined Ratio

11.

Consolidated GWP up 5.7% and Combined Ratio down 3.9% in 1Q 2014

vs. 1Q 2013

Excess & Surplus Lines

Commercial Specialty

International Specialty

Syndicate 1200

12.

88.9%

89.3%

99.6%

97.4%

95.5%

91.9%

93.3%

89.4%

88.1%

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:

GWP by Business Unit (TTM 3/31/14)

Casualty 33%

Transportation 11%

Environmental 5%

Allied Medical 6%

Management Liability 5%

Property 11%

Contract 23%

Errors & Omissions 5%

Excess & Surplus Lines Segment (32% of TTM GWP)

12.

Combined Ratio

PTOI

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘13

‘11

‘10

‘09

‘08

‘06

‘12

‘07

‘14/1Q*

*Data is based on YTD as of March 31, 2014.

’13

‘11

‘10

‘09

‘08

‘06

‘12

‘07

‘14/1Q*

*Data is based on TTM as of March 31, 2014.

•

Colony Specialty

•

Argo Pro

13.

97.4%

95.5%

91.9%

88.1%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

2010

2011

2012

2013

E&S Operating Platform Enhancement

New segment

management team

is formed

Year of

restructuring and

strategy

enhancement

Year of execution

on the newly

restructured

platform

Continued

execution and

combined ratio

improvement

Through restructuring initiatives and strategy enhancement,

Argo enters 2014 as an industry-leading E&S underwriter

14.

Commercial Specialty (22% of GWP)

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 –

largest provider of insurance to

small and midsize U.S. public entities

•

Rockwood –

largest provider of commercial

insurance to coal mining industry

•

Alteris

–

fee based business where Argo or

others accept the risk

Combined Ratio

PTOI

GWP by Business Unit (TTM 3/31/14)

U.S. Retail (Argo Insurance) 18%

Restaurants 6%

Grocery 8%

Dry Cleaners 2%

Other Industries 2%

Public Entity

(Trident) 22%

Surety 11%

Mining

(Rockwood) 19%

Other 3%

Alteris Managed Premium 26%

Other <1%

Transportation 3%

State Workers’

Comp Funds 7%

Self Insured Public Entity 6%

89.4%

88.7%

95.6%

98.1%

108.3%115.1%

96.5%

101.5%

97.8%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘13

‘11

‘10

‘09

‘08

‘06

‘12

‘07

‘14/1Q*

*Data is based on YTD as of March 31, 2014.

’13

‘11

‘10

‘09

‘08

‘06

‘12

‘07

‘14/1Q*

*Data is based on TTM as of March 31, 2014.

15.

General Liability 16%

Prof. Indemnity 12%

Int’l Casualty Treaty 3%

Directors & Officers 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 3/31/14)

Property 47%

Liability 34%

Specialty 14%

Aerospace 4%

Property Fac 17%

Personal Accident 12%

N. Am. & Int’l Binders 12%

Other 5%

15.

115.2%

131.7%

95.8%

112.3%

‘12

‘10

‘09

‘08

‘11

96.2%

Combined Ratio

PTOI

92.4%

‘14/1Q*

Offshore Energy 6%

Onshore Energy 4%

Cargo 2%

Yachts & Hulls 2%

86.7%

’13

*Data is based on YTD as of March 31, 2014.

*Data is based on TTM as of March 31, 2014.

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

’13

‘10

‘09

‘08

‘12

‘14/1Q*

‘11

16.

International Specialty (15% of GWP)

About Us

•

Bermuda team underwrites

16.

GWP by Business Unit (TTM 3/31/14)

Excess Casualty 20%

Professional Liability 11%

Brazil 23%

Marine Cargo 9%

Motor 5%

Financial Lines 6%

Combined Ratio

PTOI

Reinsurance 45%

Other Assumed Re 3%

Property Risk XS 3%

Property Pro Rata 7%

Property Cat 32%

71.7%

177.5%

52.3%

77.9%

‘12

‘10

‘09

‘08

‘11

97.1%

95.5%

‘14/1Q*

84.1%

’13

*Data is based on YTD as of March 31, 2014.

*Data is based on TTM as of March 31, 2014.

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

’13

‘10

‘09

‘08

‘12

‘14/1Q*

‘11

��

Property cat, short tail per risk and

proportional treaty reinsurance worldwide

•

Excess casualty and professional liability for

Fortune 1000 accounts

•

Building diversity through international

expansion:

•

Distributes through brokers

•

Established primary operations in Brazil

•

Established operations in Euro zone

•

Established regional office in Dubai

17.

1Q 2014 Operating Results

17.

1Q 2014

1Q 2013

Gross Written Premiums

$463.1

$438.2

Net Written Premiums

276.8

279.0

Earned Premiums

325.7

304.2

Losses and LAE

182.5

170.5

Other Reinsurance-Related Expenses

0.0

5.1

Underwriting, Acquisition and Insurance Expenses

128.7

126.7

Underwriting Income / (Loss)

$14.5

$1.9

Net Investment Income

23.3

27.9

Fee Expense, net

1.4

0.0

Interest Expense

5.0

4.9

Operating Income / (Loss)

$31.4

$24.9

Foreign Currency Exchange Gain / (Loss)

0.2

3.1

Net Realized Investment Gains

11.1

9.5

Pre-Tax Income / (Loss)

$42.7

$37.5

Income Tax Provision

2.5

4.8

Net Income / (Loss)

$40.2

$32.7

Operating Income (Loss) per Common Share (Diluted)

$0.93

$0.71

Net Income (Loss) per Common Share (Diluted)

$1.49

$1.16

Loss Ratio

56.0%

57.0%

Expense Ratio

39.5%

42.4%

Combined Ratio

95.5%

99.4%

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.

17%

18.

As of March 31, 2014

•

Duration of 2.7 years

•

Average rating of ‘A+’

•

Book yield of 2.7%*

•

Very liquid

•

Conservatively managed

Portfolio Characteristics

Total:

$0.5b

Total:

$3.2b*

*$2.8 billion in fixed maturities, $0.4 billion in short term

2% Utilities & Telecom

*Book yield is pre-tax & includes all fixed maturities

Conservative Investment Strategy

19.

Active Capital Management

Through share repurchases and dividends, we have returned over $315 million of

capital and repurchased 25% of shares outstanding from 2010 through 1Q 2014

Note: Not adjusted for June 2013 stock dividend.

2010-1Q '14

($millions)

2010

2011

2012

2013

1Q 2014

Total

Total Shares O/S

31,206,796

31,285,469

31,384,271

34,066,889

34,180,904

Less: Treasury Shares

3,363,560

4,971,305

6,459,613

7,558,345

7,723,529

Net Shares

27,843,236

26,314,164

24,924,658

26,508,544

26,457,375

Shares Repurchased

3,217,561

1,607,745

1,488,308

1,098,732

165,184

7,577,530

As % of Beg. Net Shares

10%

25%

Avg. Repurchase Price/sh

$33.05

$30.69

$29.89

$41.02

$45.34

$33.35

Total Repurchased ($mm)

$106.3

$49.3

$44.5

$45.1

$7.5

$252.7

Dividends/sh

$0.48

$0.60

$0.15

$2.19

Dividend Payments ($mm)

$15.3

$14.2

$13.4

$16.1

$4.0

$63.0

Repurchases + Dividends ($mm)

$121.7

$63.6

$57.9

$61.1

$11.5

$315.7

20.

Stock Price Performance –

Last 2 Years

Source: SNL Financial (as of 5/5/14).

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, W.R. Berkley.

21.

Price/Book

Jan-00

May-14

Argo

0.70x

0.77x

Peer Avg.

1.17x

1.18x

Difference

0.47x

0.41x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

1.8x

2.0x

Jan-00

Jan-02

Jan-04

Jan-06

Jan-08

Jan-10

Jan-12

Jan-14

Argo

Peer Group

Compelling Valuation vs. Peer Group

0.77x

1.18x

0.41x

Difference

Source: SNL Financial (as of 5/5/14).

Note: Price to book is average price/book across all peer companies based on latest reported book value as of 2/26/14. Peer Group consists of: Allied World, American

Financial, Arch Capital, Aspen, AXIS Capital, Endurance, Global Indemnity, HCC, Markel, Navigators, OneBeacon, RLI Corp, Selective Group, W.R. Berkley.

22.

Well Positioned for Value Creation in 2014 and Beyond

•

Compelling investment case

•

Stock trading at a discount to book value and below peers

•

Upside potential as past and ongoing efforts continue

believe

that

Argo

Group

has

potential

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

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

Argo Group International (ARGO-PA) 8-KRegulation FD Disclosure