2019 ANNUAL REPORT

During this time, we achieved some notable results, including breaking gross written premium records in the U.S. and overall. This is thanks to strong outcomes in some of our most profitable lines of business. These results were tempered by losses and reserving actions that were disappointing, but which resulted from lines of business we have exited or where remedial action has taken place.

2019 demonstrated for us where our strengths truly lie, and we started work to increase our focus on opportunities to emulate the successes we have seen in the U.S. across Argo as a whole.

We continue to assess every aspect of our business and make decisions to drive Argo toward sustained profitability. We are focused on disciplined action and on doing everything we can to ensure strong returns on investment for our shareholders.

Our expertise and value as a specialty insurer is clearer than ever – a value proposition that is obvious to Argo’s investors, customers and employees.

Argo is a growth business. Our focus is, and will remain, on U.S. domiciled risks. This represents 80% of our premium today – regardless of it being underwritten in U.S. or international markets. And this is where we expect we will find most of our opportunities as we move forward.

We know this market. It is our strength and will continue to be our focus. Our progress over the past year has positioned Argo to strike as rates improve in key areas.

As we look to new markets and develop new products, we will do so with discipline and with an eye on profitable returns. The strategy is straightforward: we will invest in businesses with strong prospects of generating favorable returns in a 3- to 5-year time period.

We understand our strengths. We have the talent in place to execute our strategy. And we will stay focused on the task in front of us: achieving profitability across our entire business.

On behalf of Argo’s senior leadership team, I would like to thank Argo employees, partners and shareholders for remaining steadfast and strong as we endure these times of change.

Sincerely,

Kevin Rehnberg
Chief Executive Officer
Argo Group