Argonaut Completes Acquisition of Renewal Rights to Fulcrum Excess & Surplus Lines.

Business Editors & Insurance Writers

SAN ANTONIO--(BUSINESS WIRE)--May 6, 2002

Argonaut Group, Inc. (Nasdaq:AGII) today announced that it has completed its previously announced acquisition of the renewal rights and certain other assets of SCOR subsidiary Fulcrum Insurance Company, an excess and surplus lines underwriter concentrating in specialized property, transportation and general liability risks based in Scottsdale, Arizona.

John Latham, President of both Colony Group and the new Fulcrum Underwriting Managers, Inc., commented: " We are pleased to add this platform to our existing structure. Vice Presidents Bob Karr, Glen Plagmann, Gary Snapp, Tom Buckhardt, and Scott Wilson will continue to manage and develop the business, which will now be written principally by Argonaut's Colony National Insurance Co. subsidiary. While we plan to capitalize on the strengths of both Colony and Fulcrum for the mutual benefit of both our customers and our respective organizations, we intend to maintain separate operations and will continue to afford two market alternatives that share the same commitment to service, professionalism, and sound underwriting. I couldn't be more pleased to work with this great new team and all of the Fulcrum agents as we go forward."

Argonaut Group is a national provider of specialty insurance products focused on high-quality customer service for specific niches of property-casualty insurance. The Company has superior financial strength with assets in excess of $1.9 billion, no debt, and financial strength of its principal subsidiary rated "A (excellent)" by A.M. Best and "A" by Standard & Poor's. Argonaut Group is traded on NASDAQ's National Market System, ticker symbol AGII. More information can be found on their website at www.argonautgroup.com.