„+“ and „-“ mark the position of the rating in the main rating category. Argo Group International Holdings, already reeling from a tough 2019 fourth quarter and year, now must deal with downgraded credit ratings from A.M. Best.“We believe our organization has great potential, but our results for 2019 are not indicative of our future direction,” Rehnberg explained. Argo Group International Holdings, already reeling from a tough 2019 fourth quarter and year, now must deal with downgraded credit ratings from A.M. Best. “Once again, a portion of this fourth-quarter charge was related to its Lloyd’s operation, which over the years has had a number of challenges. The ratings agency also cited Argo’s settlement agreement with Voce as a positive development.Broken down, U.S. gross and net written premiums saw increases, but international operations declined on both fronts.At the same time, A.M. Best said Argo’s Q4 2019 results are troubling.Thank you! Please tell us what we can do to improve this article.Consolidated gross written premiums reached $712.8 million during the quarter versus $702 million the year before. “Once discovered, Argo management portrayed this inquiry to AM Best as non-material, and as a formal request for additional documentation,” said the ratings agency in a statement.By putting the company under review with negative implications status, AM Best said it is considering the serious nature of the SEC inquiry as well as diminished credibility among Argo stakeholders. Entire IR Site Press Releases Only Filings Only ; Argo Group > Investors > News & Market Information > Credit Ratings.
Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” and the Long-Term IR of “bbb” on $143.75 million 6.5% senior unsecured notes due 2042 of Argo Group US, Inc. (Argo … Best said its rating action is in response to the U.S. Securities and Exchange Commission’s decision last fall to subpoena Argo about executive compensation policies, including those for now-former CEO Mark Watson III.
Specifically, the ratings agency has removed from under review with negative implications and downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” from “a” of Argo Re and its subsidiaries. Search Investor Relations. All areas had been under review with negative implications, and there is also now a negative outlook for the credit ratings.Argo also gets some credit from A.M. Best for “proactively working” through its issues. Sudden and significant reserve development generally raises questions around risk awareness as it signals a potential weakness in readily identifying problematic areas of its business, which may result in additional reserve surprises in the future.”A.M. Best noted that Argo’s new management has worked hard to right the ship, pointing out, for example, the company’s previously stated eagerness to work with the SEC on its inquiry, appoint a new board chairman, update its board and replace its CEO. AM Best also has placed under review with negative implications the Long-Term ICR of “bbb” and the Long-Term Issue Credit Ratings (Long-Term IR) of the parent, Argo Group International Holdings, Ltd.This action also highlights the importance of enterprise risk management (ERM), corporate governance and the role that management and the board play to ensure that a proper risk management framework is in place to protect against these types of issues, AM Best affirmed.Additionally, AM Best has placed under review with negative implications the Long-Term ICR of “bbb” and the Long-Term IR of San Antonio, Tex.-based Argo Group US Inc. Argo US’ senior unsecured notes are fully and unconditionally guaranteed by Argo Group, said the ratings agency.Get the insurance industry's trusted newsletter— “bb+” on preferred stockAM Best said it had affirmed Argo Group’s ratings on Oct. 9, 2019, but was unaware that the SEC subpoena had been issued to Argo some time before this date. The company has a strong foundation of specialty insurance and reinsurance businesses, focused largely on the most attractive specialty market: U.S.-domiciled risks. Thank you!
The AM Best ratings review includes the Financial Strength Rating (FSR) of “A” (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Argo Re Ltd. and its subsidiaries.