AIFA 2008 Mid-Winter Conference

March 3, 2008

Exhibit 99.1

2

Forward-Looking Statements

Forward-Looking Statements

This

presentation

contains

“forward-looking

statements”

which

are

made

pursuant

to

the

safe

harbor

provisions

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

The

forward-looking

statements

are

based

on

the

Company's

current

expectations

and

beliefs

concerning

future

developments

and

their

potential

effects

on

the

Company.

There

can

be

no

assurance

that

actual

developments

will

be

those

anticipated

by

the

Company.

Actual

results

may

differ

materially

from

those

projected

as

a

result

of

significant

risks

and

uncertainties,

including

non-

receipt

of

the

expected

payments,

changes

in

interest

rates,

effect

of

the

performance

of

financial

markets

on

investment

income

and

fair

values

of

investments,

development

of

claims

and

the

effect

on

loss

reserves,

accuracy

in

projecting

loss

reserves,

the

impact

of

competition

and

pricing

environments,

changes

in

the

demand

for

the

Company's

products,

the

effect

of

general

economic

conditions,

adverse

state

and

federal

legislation,

regulations

and

regulatory

investigations

into

industry

practices,

developments

relating

to

existing

agreements,

heightened

competition,

changes

in

pricing

environments,

and

changes

in

asset

valuations.

The

Company

undertakes

no

obligation

to

publicly

update

any

forward-looking

statements

as

a

result

of

events

or

developments

subsequent

to

the

presentation.  

3

The Argo Group Story

The Argo Group Story

The Company

Argo Group is an international specialty underwriter of

property/casualty insurance focused on niche markets

The Objective

To maintain our profitable growth record as we execute upon

our largest business combination to date

The Strategy

Apply our proven business model in deploying capital in

selected areas for maximum return

4

Focus:  Specialty underwriter in niche markets

Three

Business

Units

Three

Business

Units

Successful

Business

Model

Successful

Business

Model

A

G

E

N

D

A

Growing an International Specialty Underwriter

A

G

E

N

D

A

Growing an International Specialty Underwriter

Growth and Profitability

Three

Business

Units

Three

Business

Units

5

Argo Group Today

Argo Group Today

Specialty underwriter in attractive niche areas of property,

casualty insurance and reinsurance

Headquarters:  Bermuda

–

operates in 50 states and internationally

Market Cap over $1B

Three ongoing business segments

–

Excess and Surplus Lines (E&S)

–

Select Markets

–

International Specialty

Major business

segment locations

Headquarters

Brussels

6

A Recap of Our Successful Business Model

A Recap of Our Successful Business Model

1.

Target attractive

niche markets

2.

Develop leading,

differentiated

positions

3.

Expand position

–

organically

–

selective acquisitions

4.

Results: Growth

in premiums and

earnings

7

Key Criteria In Selecting Niche Markets

Higher margin, return

Market leadership in a reasonable time frame

Disciplined underwriting

Sustained, profitable organic growth

7

1.  A

T

T

R

A

C

T

I

V

E  N

I

C

H

E  M

A

R

K

E

T

S

A Different Type of Approach

8

2.  D

E

V

E

L

O

P  L

E

A

D

E

R

S

H

I

P  P

O

S

I

T

I

O

N

S

Examples of Leadership Positions

2.  D

E

V

E

L

O

P  L

E

A

D

E

R

S

H

I

P  P

O

S

I

T

I

O

N

S

Examples of Leadership Positions

E&S market position

Commercial insurance for small / medium

public entities

Insurance for retail fabricare industry

Workers’

compensation for coal mines in

Pennsylvania and Maryland

P/C insurance for independent grocery stores

8

Leader

Leader

Leader

Leader

Leader

9

3.  E

X

P

A

N

D  P

O

S

I

T

I

O

N

A Solid Record of Disciplined Growth

3.  E

X

P

A

N

D  P

O

S

I

T

I

O

N

A Solid Record of Disciplined Growth

2007 Revenues

90%+

90%+

New Businesses Last Seven Years

Businesses acquired:

PXRE

Rockwood

Interstate

Grocers

Coregis

Fulcrum

Public Entity

Argonaut Specialty

Assets acquired:

New businesses launched:

Organic Growth Strategies

Cross Selling

Increased Product Offerings

Colony

Peleus

10

4.  R

E

S

U

L

T

S

:  G

R

O

W

T

H

An Impressive Growth Record…

4.  R

E

S

U

L

T

S

:  G

R

O

W

T

H

An Impressive Growth Record…

$1.9B

$5.1B

2001

2007

Total Assets

18%

CAGR

$1.2B

$272M

2001

2007

Gross Written Premiums

28%

CAGR

10

11

4.  R

E

S

U

L

T

S

:  G

R

O

W

T

H

…

With Solid Segment Underwriting Performance

Combined Ratio for Ongoing Segments

90% 

or less

   92.1%**

92.7%

94.0%*

  94.3%*

2004

2005

2006

2007

Target

11

* Exclusive of losses from hurricane activity

** Exclusive of merger-related expenses

12

Focus:  Specialty underwriter in niche markets

Successful

Business

Model

Successful

Business

Model

A

G

E

N

D

A

Growing an International Specialty Underwriter

A

G

E

N

D

A

Growing an International Specialty Underwriter

Three

Business

Units

Three

Business

Units

Growth and Profitability

13

Three Growth Platforms

Three Growth Platforms

Excess & Surplus Lines

Select Markets

International Specialty

GWP $726M

Operating Income

up 11%

GWP $421M

Operating Income

up 22%

New Bermuda-

based platform

14

Three Growth Platforms

Three Growth Platforms

Select Markets

International Specialty

GWP $421M

Operating Income

up 22%

New Bermuda-

based platform

GWP $726M

Operating Income

up 11%

Excess & Surplus Lines

15

Pre-Tax Operating Income

($M)

Excess & Surplus  Lines:

Largest and Most Profitable Segment

Excess & Surplus  Lines:

Largest and Most Profitable Segment

Status

Combined ratio of 89.3%

Colony & Argonaut Specialty

Competitive advantages

Excellent infrastructure

Underwriting expertise

Controlled distribution

Rated ‘A’

(Excellent) by A.M. Best

92.6%

88.9%

89.3%

Combined ratio

*  Includes hurricane losses

$58*

$102

$113

2005

2006

2007

16

Excess & Surplus Lines

GWP $726M

Operating Income

up 11%

Three Growth Platforms

Three Growth Platforms

International Specialty

Select Markets

GWP $421M

Operating Income

up 22%

New Bermuda-

based platform

17

Pre-Tax Operating Income

($M)

Select Markets:

Consistently Profitable Segment

Select Markets:

Consistently Profitable Segment

Status

Combined ratio of 88.7

Primarily retail-driven

Competitive advantages

Expertise in niche markets

–

grocery stores

–

mining operations

–

laundry & dry cleaners

–

small/medium-size public entities

92.6%

89.4%

88.7%

Combined ratio

*  Includes hurricane losses

$38*

$50

$61

2005

2006

2007

18

Three Growth Platforms

Three Growth Platforms

Excess & Surplus Lines*

Select Markets

GWP $726M

Operating Income

up 11%

GWP $421M

Operating Income

up 22%

New Bermuda-

based platform

International Specialty

19

Peleus –

Positioned Well At Outset

Peleus –

Positioned Well At Outset

Immediate Strengths

A rating by A.M. Best

Began 2008 with approx. $1.3B in capital

Appointed Andrew Carrier as Peleus president

–

New underwriting team in place

–

Proven record of leadership

–

Built diversified books of business

Utilize established infrastructure

Launched business with January 1, 2008 renewals

19

20

Combined Business Mix

Combined Business Mix

20

Specialty Insurance

Excess & Surplus Lines

Select Markets

International Specialty

Quota share reinsurance

of business partners

Property reinsurance

Prospective insurance

opportunities

~85%

~15%

21

Group’s 2007 Results

Group’s 2007 Results

2006

2007

Change

Gross Written Premium

$ 1.15B

$ 1.18B

2%

Net Earned Premium

$ 813M

$ 860M

6%

Total Revenue

$ 939M

$ 1.0B

6%

Net Investment Income

$ 105M

$ 134M

28%

Net Income Per Share

$ 4.82

$ 5.58

16%

22

Dec 31, 2007

2,425

21.0%

1,754

1,385

5,124

$3,598

369

$45.15

Dec 31, 2006

2,029

14.5%

992

848

3,722

$2,558

144

$39.08

Strong Balance Sheet and Capital Base

Strong Balance Sheet and Capital Base

Reserves

Total Leverage

Total Capital

Shareholders’

Equity

Total Assets

Investment Portfolio

22

Indebtedness

Book Value Per Share

In millions except for book value and leverage data

23

Minimal Sub-prime Exposure

Minimal Sub-prime Exposure

Total Argo Group Investment Portfolio -

$3.6 billion

Sub-prime/Alt-A Exposure only 1.0% of total portfolio

–

Total exposure approximately $40M

–

33% Alt-A / 67% Sub-prime

–

99% are AAA or AA rated

–

Only 20% are 2005-2006 Vintage

•

All are AAA rated

Portfolio has no derivative investments

23

24

A

G

E

N

D

A

Growing an International Specialty Underwriter

A

G

E

N

D

A

Growing an International Specialty Underwriter

Focus:  Specialty underwriter in niche markets

Successful

Business

Model

Successful

Business

Model

Three

Business

Units

Three

Business

Units

Growth and Profitability

25

Continue to Execute Successful Business Model

Continue to Execute Successful Business Model

1.

Target attractive

niche markets

2.

Develop leading,

differentiated

positions

3.

Expand position

–

organically

–

selective acquisitions

4.

Results: Growth

in premiums and

earnings

26

Capital Deployment Strategy 12-18 Months

Capital Deployment Strategy 12-18 Months

Support loss reserves and balance sheet

Growth of core business

–

Deploy capital opportunistically across all three segments

–

Reduce reliance on third-party reinsurance

Pursue attractive market opportunities

–

Selective acquisitions that complement existing business lines

–

Books of business and companies

Repatriate capital depending on capital position and stock price

–

$150M stock repurchase program authorized

–

Dividend

27

Our Focus:  Continuing to Improve ROE

Our Focus:  Continuing to Improve ROE

13.3%

14.8%

13.4%

15%

2005

2006

2007*

Goal

27

* Calculated using average equity, includes extraordinary gain of $66.3M

28

I

N  S

U

M

M

A

R

Y

A Stronger and Better Positioned Specialty Underwriter

I

N  S

U

M

M

A

R

Y

A Stronger and Better Positioned Specialty Underwriter

Proven and successful business model

–

Impressive growth record, profitability and strong cash flow

Acquisition of PXRE creates powerful competitive force in

specialty lines market

–

Unique international specialty platform

–

Bermuda presence advantages

–

Diversified business mix

–

Growth via geographic reach / expansion

ROE-driven focus

–

Effective capital deployment + high-margin focus = ROE improvement

Thank you!

AIFA 2008 Mid-Winter Conference