Argo Group Announces Post-Merger Reorganization.HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda -- Argo Group International Holdings, Ltd. ("Argo") (NasdaqGS:AGII) announced today that its U.S. and Bermuda subsidiaries will be restructured to create a new organizational platform for 2008. Under the new structure, all U.S. subsidiaries of Argo will be wholly owned by one intermediate U.S. holding company. Argo will merge two intermediate Delaware holding companies: Argonaut Group, Inc., which owns the assets of the former U.S. publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. by the same name, and PXRE Corporation, which owns Connecticut domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. carrier PXRE Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company and will be the surviving entity in the merger. The unified U.S. holding company will go forward under the name Argonaut Group, Inc. and continue to be led by Dale H. Pilkington as president. Argo also plans to amalgamate (merge) two of its Bermuda domiciled insurance companies, Peleus Reinsurance Ltd. and PXRE Reinsurance Ltd., into one Bermuda Class 4 general business insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. . With surplus of approximately of $1.3 billion, the combined Peleus Reinsurance Ltd. will continue to execute on Argo's existing business plan for its Bermuda reinsurance operations under the leadership of Andrew Carrier as president. "I am delighted to be joining Argo at a time when the company is upgrading its platform to support future growth and enhance profitability," said Carrier. "I am certain these changes will be welcomed by our customers - both existing and prospective." Mark E. Watson III, president and chief executive officer of Argo, said, "After a careful examination of Argo's combined holdings resulting from the merger of Argonaut Group, Inc. and PXRE Group Ltd., we believe that additional opportunities for operational and financial efficiency can be unlocked through this reorganization. This new structure also aligns our business to better fit the needs of Argo Group as an international organization and positions us well to prosper in today's competitive marketplace." The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of Argo's U.S. and Bermuda subsidiaries will be effective as of December 31, 2007. ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD. Headquartered in Bermuda, Argo Group International Holdings, Ltd. (NasdaqGS:AGII) is an international underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of high-quality products and services designed to meet the unique coverage and claims handling needs of businesses in three primary segments: Excess and Surplus Lines, Select Markets, and International Specialty. Information on Argo Group and its subsidiaries is available at www.argolimited.com. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Such statements are qualified by the inherent risks and uncertainties surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. future expectations generally and also may materially differ from actual future experience involving any one or more of such statements. For a more detailed discussion of such risks and uncertainties, see Argo Group's filings with the SEC. The inclusion of a forward-looking statement herein should not be regarded as a representation by Argo Group that Argo Group's objectives will be achieved. Argo Group undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. |
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