Argo Group Establishes New Sidecar, Harambee Re
HAMILTON, Bermuda -- January 7, 2013
Argo Group International Holdings, Ltd. (NasdaqGS: AGII), announced today the
establishment of Harambee Re 2013-1 Ltd (“Harambee Re”) for the 2013 accident
year. This is the first sidecar established by Argo Group.
Unlike other sidecars, which typically write either reinsurance or
retrocession business, Harambee Re is the first sidecar transaction to support
both a reinsurance and an insurance portfolio. Harambee Re provides capacity
of approximately 5% of premium income for specific property portfolios that
represent two of Argo Group’s core businesses: Argo Re, the Group’s
reinsurance operation and Colony Specialty, Argo Group’s Excess and Surplus
Argo Group President and Chief Executive Officer Mark E. Watson III stated,
“We are pleased to support our business growth objectives with this new
funding vehicle. Harambee Re enables us to grow the size of two of our core
businesses without adding materially to the Group’s exposure to the volatility
associated with US earthquakes and hurricanes.”
The establishment of Harambee Re continues Argo Group’s utilization of a
variety of mechanisms to efficiently capitalize on market opportunities and
builds upon the company’s previous insurance-linked securities transactions,
Loma Reinsurance 2011-1 and Loma Reinsurance 2011-2.
ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
Argo Group International Holdings, Ltd. (NasdaqGS: AGII) is an international
underwriter of specialty insurance and reinsurance products in the property
and casualty market. Argo Group offers a full line of products and services
designed to meet the unique coverage and claims handling needs of businesses
in four primary segments: Excess & Surplus Lines, Commercial Specialty,
International Specialty and Syndicate 1200. Argo Group's insurance
subsidiaries are A. M. Best-rated 'A' (Excellent) (third highest rating out of
16 rating classifications) with a stable outlook, and Argo's U.S. insurance
subsidiaries are Standard and Poor's-rated 'A-' (Strong) with a stable
outlook. More information on Argo Group and its subsidiaries is available at
This press release contains certain statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements are qualified by the inherent risks and uncertainties surrounding
future expectations generally and also may differ materially from actual
future experience involving any one or more of such statements. For a more
detailed discussion of such risks and uncertainties, see Argo Group's filings
with the SEC. The inclusion of a forward-looking statement herein should not
be regarded as a representation by Argo Group that Argo Group's objectives
will be achieved. Argo Group undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information, future
events or otherwise.
Argo Group International Holdings, Ltd.
Lisa Scannell, 617-235-6138
VP, Corporate Marketing and Communications
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