Argonaut Group's Grocers Insurance Receives Official Endorsement From IGA, Inc.

SAN ANTONIO -- Grocers Insurance, a member of the Select Markets segment of Argonaut Group, Inc. (NASDAQ:AGII), has received the official endorsement from IGA, INC., as the preferred national property and casualty insurance market for IGA member stores. With 1300 IGA stores in the United States, this endorsement provides Grocers with an extraordinary opportunity to expand its nationwide presence and generate new business through Grocers' appointed agency base.

IGA selected Grocers Insurance as its endorsed carrier based on Grocers' 35-year record of service to grocery retailers, its industry-specific services and resources, and its national network of agents who specialize in handling grocery clientele. Bob Grottke, IGA's Chief Financial Officer, stated, "Grocers Insurance, given its exclusive concentration on the grocery industry, was a natural fit for IGA. As the leading provider of insurance services to independent grocery retailers, we knew Grocers Insurance would have the expertise to address the individual needs of our diverse membership. In fact, in a recent survey of our Alliance members in the United States, the overwhelming majority of those who responded that they were satisfied with their current insurance program, identified Grocers Insurance as their insurance provider."

As a specialty underwriter, Grocers Insurance is able to offer enhanced products tailored to the risks of its select customer base, such as Hepatitis A coverage, higher crime coverage for weekends, and coverage for equipment breakdown and disruption of utility services. Policyholders also have access to over thirty separate loss-prevention programs geared expressly to the retail grocery environment. Bill Meisen, President of Grocers Insurance, commented, "We look forward to the opportunity to show IGA Retailers the difference that working with an insurer who understands their business can make. We are committed to providing IGA member stores with the level of service and coverage they need at competitive rates over the long term."

To obtain more information about the IGA Program, contact Grocers Insurance toll free at 866-672-3067.

FORWARD-LOOKING STATEMENTS DISCLOSURE

This news release may contain "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. For a more detailed discussion of risks and uncertainties, see the Company's public filings made with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements.

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 assets of approximately $3.2 billion. Through its operating subsidiaries, Argonaut Group offers high quality customer service in programs tailored to the needs of its customers' business and risk management strategies. Collectively, Colony Group, Argonaut Specialty, Rockwood Casualty Group, Argonaut Insurance Company, Great Central Insurance, Grocers Insurance, and Trident Insurance Services underwrite a full line of products in four primary areas: Excess and Surplus, Select Markets, Risk Management, and Public Entity. Information on Argonaut Group and its subsidiaries is available at www.argonautgroup.com.

ABOUT IGA, INC.

IGA, the only global supermarketer based in the United States, is the world's largest voluntary supermarket network with aggregate worldwide retail sales of more than $21 billion per year. The Alliance includes more than 4,000 Hometown Proud Supermarkets worldwide, supported by 36 distribution companies and more the 55 major manufacturers, vendors and suppliers encompassing everything from grocery to equipment items. IGA ranks in the top 10 in world food supermarketing. IGA has operations in 48 of the United States and more than 40 countries, commonwealths, and territories on all six inhabited continents.