Dale H. Pilkington Appointed President of Excess and Surplus Lines Segment for Argonaut Group.

SAN ANTONIO -- Argonaut Group, Inc. (NasdaqGS:AGII), announced today that Dale H. Pilkington, who currently serves as President of its Colony Group operating subsidiary, has been appointed President of Argonaut Group's Excess and Surplus Lines (E&S)segment.

Argonaut Group's E&S segment writes commercial property and casualty accounts on a primarily non-admitted basis through Colony Group and Argonaut Specialty. Recognized as one of the top 15 excess and surplus lines carriers in the U.S., Colony underwrites difficult risks that the standard market is unwilling or unable to underwrite due to the unique risk characteristics associated with a class of business or particular insured. Argonaut Specialty, an underwriting manager, focuses on accounts in the non-admitted market larger in size and complexity than those generally targeted by Colony. Both Colony and Argonaut Specialty will report to Mr. Pilkington in his role as President of Excess and Surplus Lines. Mr. Pilkington will retain his position as President of Colony Group until a successor is named.

"Dale has a proven track record of producing superior results and has guided Colony through an unprecedented phase of growth and expansion over the past few years," said Mark E. Watson III, President and CEO of Argonaut Group, Inc. "The role is a natural progression for Dale and will enable our E&S segment to fully leverage the benefit of his strategic vision and experience in the wholesale business sector. I look forward to watching Argonaut Group's E&S segment continue its profitable growth under Dale's leadership."

"Over the past few years, Argonaut Group has focused a great deal of attention on growing its presence in the excess and surplus lines marketplace, both organically and through strategic acquisitions. Today, our E&S segment accounts for over half of Argonaut Group's gross written premium," added Pilkington. "Going forward, our dedicated and committed team will continue to expand and improve our product offerings and partner with our clients to attain a leading position in each of the markets we serve."

Mr. Pilkington joined Colony in 1993 and assumed the role of Vice President, Underwriting in 1994. He joined Argonaut Group as part of the acquisition of Colony's parent company in 2001, and was named President of Colony Group in November 2002. Previously, Mr. Pilkington held positions at General Reinsurance and EH Crump, in addition to owning and managing a retail operation in Florida. He holds a B.S. in Accounting from University of South Florida in Tampa. Mr. Pilkington is a member of the NAPSLO Board of Directors and currently serves as its Treasurer.

ABOUT ARGONAUT GROUP, INC.

Headquartered in San Antonio, Argonaut Group, Inc. (NasdaqGS:AGII) is a national underwriter of specialty insurance products in niche areas of the property and casualty market, with $3.6 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.