Argo Group Comments on Preliminary Fourth Quarter 2021 Financial Results

 Argo Group International Holdings, Ltd. (“Argo”) (NYSE: ARGO), announced today that its results for the fourth quarter of 2021, which ended December 31, 2021, will be negatively affected by adverse prior year reserve development and non-operating charges, summarized in more detail below.

Items affecting the fourth quarter 2021 financial results include:

• Argo expects net adverse prior year reserve development to be in the range of $130 million to $140 million for the 2021 fourth quarter. Prior year adverse development was the result of the recently concluded fourth quarter 2021 reserve review. The largest reserve increases were related to construction defect claims within Argo’s U.S. Operations, in addition to reserve increases in the Run-off segment. The prior year reserve increase for construction defect primarily related to the 2017 and prior underwriting years in business lines that have either been significantly remediated or discontinued.

Additionally, several non-operating charges are anticipated to be reflected in Argo’s fourth quarter 2021 results:

• As part of an ongoing strategic review and recent operating results, an impairment of goodwill and intangible assets is expected to be in the range of $40 million to $45 million related to Argo’s Syndicate 1200 business unit, and
• Non-operating expense charges expected to be in the range of $20 million to $25 million primarily related to the reduction in Argo’s real estate footprint in the UK and the impairment of certain information technology assets.

FOURTH QUARTER 2021 EARNINGS RELEASE AND CONFERENCE CALL

Argo will release its fourth quarter results after the close of business on Tuesday, February 22, 2022 and will host a conference call for investors and analysts at 10 a.m. EST on Wednesday, February 23, 2022.