Argo Group International Holdings Ltd. announced that two officer appointments to its finance division. N. James Tees as chief accounting officer and treasurer, and Rip Reeves as chief investment officer. Both will report to Argo Group CFO Jay Bullock. Mr. Tees has 18 years experience working in financial positions for insurance and reinsurance companies. He comes to Argo Group from Max Capital Group, where he most recently held the position of EVP of finance and investments. Prior to Max Capital, Mr. Tees held the position of VP and controller for Stockton Holdings, following 11 years with Coopers & Lybrand. He holds a bachelor of science in accounting from the School of Management at the University of Scranton in Pennsylvania and has the designation of certified public accountant. Mr. Reeves has 25 years experience in portfolio management, sales and trading both on Wall Street and at investment firms. Prior to Argo Group Mr. Reeves spent nine years as a senior portfolio manager for insurance clients at Standish Mellon Asset Management. He has also managed insurance assets at Scudder, Stevens and Clark and pension and insurance assets at J.P. Morgan Investment Management. Mr. Reeves holds a bachelor of science in marketing and an MBA, both from Louisiana State University.

Argo Group International Holdings Ltd. reported unaudited consolidated earnings results for the third quarter and nine months ended Sept. 30, 2009. For the quarter, the company reported that net income was $27.6 million or $0.89 per diluted share compared to a net loss of $8.8 million or $0.29 per diluted share for the third quarter of 2008. Net operating income was $25.4 million or $0.82 per share compared to net operating income of $12.2 million or $0.40 per diluted share for the third quarter of 2008. Both net income and net operating income were impacted during the period by a matter pertaining to its run-off unit that was subjected to binding arbitration, which resulted in a net charge after-tax of $3.8 million or $0.12 per share. Total revenue was $383.8 million against $351.4 million in the same period in 2008. Earned premiums were $347.2 million compared to $322.8 million for the third quarter of 2008. Net investment income for the three months ended Sept. 30, 2009 and 2008, was $31.9 million and $38.8 million, respectively. Net realized gains and losses on sales of investments and other than temporary impairment charges were a gain of $0.7 million and a loss of $18.4 million for the three months ended Sept. 30, 2009 and Sept. 30, 2008, respectively. Income before taxes was $37.4 million compared to loss before taxes of $6.4 million reported a year ago. Net income before taxes from operations was $31.7 million compared to $15.3 million reported a year ago. For the nine months, net income was $76.5 million or $2.48 per diluted share compared to net income of $51.1 million or $1.66 per diluted share for the first nine months of 2008. Net operating income was $100.3 million or $3.26 per share compared to $68.9 million or $2.24 per share for the first nine months of 2008. The difference between net income and net operating income for the first nine months of 2009 includes the nine-month impact of the items covered above as well as a 2009 second quarter charge for impairment of an intangible asset. Year-to-date 2009 and 2008, the company has recognized favorable prior years' loss development of $12.8 million and $26.6 million, respectively. Total revenue was $1.16 billion against $908.7 million in the same nine-month period of 2008. Earned premiums were $1.06 billion compared to $803.4 million in the first nine months of 2008. Net investment income for the first nine months of 2009 and 2008 was $113.1 million and $113.4 million respectively. Net realized gains and losses on the sales of investments and other than temporary impairment charges were a loss of $20.3 million against a loss of $18.3 million for the first nine months of 2009 and 2008, respectively. Income before taxes was $91.3 million compared to $64.5 million reported a year ago. Net income before taxes from operations was $125.4 million compared to $86.1 million reported a year ago. Book value per share at Sept. 30, 2009, rose 7.4% to $51.04 from $47.51 at June 30, 2009, and has increased 15.5% year-to-date.

Argo Group International Holdings, Ltd., Q3 2009 Earnings Call, Nov-03 2009