Argo Group Updates Its Estimated Exposure to Hurricane Ike and Invesment Losses for the Quarter Ended December 31, 2008.HAMILTON, Bermuda -- Argo Group International Holdings, Ltd. (NasdaqGS: AGII) said today it has increased its loss estimate for Hurricane Ike, including reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. premiums and estimated 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. recoveries, by approximately $15.0 million on a pre-tax basis. Argo Group's International Specialty segment accounted for $12.1 million of the increase with the remainder incurred in the Company's Reinsurance segment. Additionally, for the quarter ended Dec. 31, 2008, the Company said it expects to record a net realized loss Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. on a pre-tax basis of $16.7 million associated with its investment portfolio. This loss is primarily a result of an other-than-temporary impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge related to equity investments and to a lesser extent certain fixed-income investments of the Company totaling $22.1 million offset by net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of approximately $5.4 million. ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD. Headquartered in Hamilton, 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 four primary segments: Excess & Surplus Lines, Commercial Specialty, Reinsurance, 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. Such statements are qualified by the inherent risks and uncertainties surrounding 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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