S&P affirms Argonaut

Standard & Poor's said it affirmed the BBB- counterparty credit rating on Argonaut Group Inc., a wholly owned subsidiary of Argo Group International Holdings Ltd., and its A- counterparty credit ratings on insurance company affiliates.

The outlook remains negative.

S&P said the affirmations reflect subsidiary Peleus Reinsurance Ltd.'s plans to acquire Heritage Underwriting Agency plc for $279 million.

Ratings reflect the company's diversified business mix, successful execution of its strategy, improving earnings, strong capitalization, conservative financial leverage and strong fixed-charge coverage, the agency said.

Partially offsetting these positive factors is the drag on the combined ratio from discontinued operations, S&P said.

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