Argonaut Group's Trident Insurance Introduces New Product, Inmate Medical Coverage.

SAN ANTONIO -- Trident Insurance Services, LLC, a wholly owned subsidiary of Argonaut Group, Inc. (NASDAQ:AGII) and one of the nation's leading providers of insurance for small to intermediate public entities, today announced the introduction of Inmate Medical Coverage for detention facilities in both the public and private sectors. Trident's new program will help to manage the increasing financial risks associated with providing medical care for seriously ill inmates in their custody.

Escalating health care costs across the country, together with the rising percentage of inmates with conditions requiring catastrophic medical coverage, are making inmate medical expenses a critical issue for many community jails and detention centers. Trident's program provides coverage for a wide range of severe medical issues which can arise in inmate populations, such as substance abuse, mental and nervous conditions, pregnancy, HIV/AIDS, kidney dialysis, aneurisms, and injuries arising from criminal acts.

Trident's Inmate Medical Coverage is targeted for detention facilities with a daily average inmate population of 100 or more persons. The program will be insured through an A.M. Best rated A+ carrier, with claim services provided by Trident.

Trident President, Michael E. Arledge, stated, "At Trident, our team of highly specialized underwriters, claims, and loss control experts take pride in partnering with public entities to understand and address their needs. For both public entities with jail exposure and private detention facilities, providing protection against catastrophic injury and illness was identified as critical in order to control and cap operating costs. We are pleased to take the lead in the public entity sector and provide this product as a solution for our clients as well as for the broader marketplace."

ABOUT TRIDENT INSURANCE SERVICES, LLC

Trident, a wholly owned subsidiary of Argonaut Group, Inc. (NASDAQ:AGII), is a recognized leader and expert in providing insurance services and solutions to Public Entity clients (preferred governmental entities and public school districts). Trident delivers an all-in-one solution, providing clients with specialized sales, underwriting, risk control, and claims management capabilities. Trident offers General Liability, Educators' Legal Liability, Automobile Liability, Property, Inland Marine, and Inmate Medical coverage through its property and liability public entity programs with the goal of providing comprehensive protection at a reasonable cost. All programs are underwritten by A.M. Best "A" (Excellent) rated carriers, offer local insurance agency representation, and feature centralized claims service.

ABOUT ARGONAUT GROUP, INC.

Headquartered in San Antonio, Argonaut Group, Inc. (NASDAQ:AGII) is a national underwriter of specialty insurance products in niche areas of the property and casualty market, with approximately $3.4 billion in assets. Through its insurance subsidiaries, Argonaut 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 Public Entity. Members of Argonaut Group include Colony, Argonaut Specialty, Rockwood, Great Central, Grocers Insurance, Trident, and Argonaut Insurance. Information on Argonaut Group and its subsidiaries is available at www.argonautgroup.com