8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 7, 2009

Argo Group International Holdings, Ltd.

(Exact name of registrant as specified in its charter)

Bermuda	1-15259	98-0214719
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
110 Pitts Bay Road Pembroke HM 08 Bermuda		P.O. Box HM 1282 Hamilton HM FX Bermuda
(Address, Including Zip Code, of Principal Executive Offices)		(Mailing Address)

Registrant’s telephone number, including area code: (441) 296-5858

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01. REGULATION FD DISCLOSURE.

Beginning on December 7, 2009, Argo Group International Holdings, Ltd. (“Argo Group”) made presentations to members of the equity investment community. Those presentations used the PowerPoint presentation materials attached hereto as Exhibit 99.1 to this Current Report on Form 8-K.

Note: The information in this report and Exhibit 99.1 attached hereto are furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

FORWARD-LOOKING STATEMENTS

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 materially differ 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.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

99.1 Argo Group International Holdings, Ltd. Presentation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
	By:	/s/ Jay S. Bullock
Dated: December 7, 2009		Name:	Jay S. Bullock
		Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Investor Presentation

December 2009

Exhibit 99.1

2.

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.

Argo Group Today

Major business segment locations

Bermuda Headquarters

An international specialty underwriter of property/casualty

insurance and reinsurance products

Headquartered in Bermuda

Operations in 50 states and worldwide

Total capitalization of $2.0 billion

Operations conducted through four business segments

Our Strategy

Deploy

capital

in

the

international

specialty

market

for

maximum

return

Continuous focus on new business development and organic growth

Grow strategically through acquisitions

Prudent management of our balance sheet and investment portfolio

Maximize shareholder value through our focus on Return on Capital

Brussels

London

3.

4.

Building a Specialty Platform

Goal

Execution

Status

•

Expand US Excess and Surplus

franchise and broaden US

specialty platform

•

Acquired Colony and Rockwood in 2001

•

Acquired the assets of Interstate and

Grocers in 2005 and 2003

•

Launched Public Entity business in 2001

•

Acquired Massamont and Insight in 2008

•

Completed 9 acquisitions of companies

and asset purchases over eight years

•

PXRE transaction in 2007

•

Launched Argo Re in 2008

•

Establish Bermuda Platform

•

Establish Lloyd’s Platform

•

Heritage acquisition in 2008

•

Enhance Argo’s risk profile

•

Significantly managed down legacy exposures

•

Sold PXRE’s legacy casualty exposure in 2008

•

Hired CFO in 2008

•

Hired Andrew Carrier as Argo Re President and

Nigel Mortimer as head of Excess Casualty in 2008

•

Recently Added:

•

International CEO: Julian Enoizi

•

Chief Actuary: Mike Fusco

•

Chief Risk Officer: Bernhard Scheifele

•

Chief Accounting Officer: James Tees

•

Bolster management ranks

5.

Argo Today –

A Diversified Business Model

US        International

YTD as of September 30, 2009

Note: Based on gross written premiums (GWP)

Insurance       Reinsurance

Property         Casualty

~70%

~30%

9%

91%

76%

24%

6.

What We Do

Combined

Ratio*

Insureds

Segment Profile

Excess and

Surplus Lines

•Commercial Property and

Casualty on a non-admitted basis

•Distribution through wholesale

agents and brokers

Commercial

Specialty

Argo

International

•Argo Managing Agency plc

•Short-tail risks with an emphasis

on commercial specialty, and

non-US professional indemnity

insurance

96%

56%

Reinsurance

•Insureds include US regional

carriers and international multi-

line carriers

•Casualty clients are

predominately US Fortune 1000

companies written on a primary

basis

•Argo Re (class 4 specialty

reinsurance platform)

•Provides property CAT

reinsurance, excess casualty

98%

*

GWP and Combined Ratio for YTD 2009

%

GWP*

31%

24%

9%

36%

96%

•Representative insureds include

restaurants, contractors, day

care centers, apartment

complexes, and others

•Commercial Property and

Casualty on an admitted basis

•Distribution through select

independent agents, brokers,

wholesalers and program

managers

•Food and hospitality, specialty

retail, grocery stores, mining

industry and public entities

•Insureds include US and

international small/medium

commercial businesses,

transportation, fine arts and

specie, financial institutions and

others

7.

Pre-Tax Operating Income

($mm)

Excess & Surplus Lines

Largest and Most Profitable Segment

Status

Combined ratio in low 90% range

Colony, Argonaut Specialty & Argo Pro

Competitive advantages

Excellent infrastructure –

broad

geography

Underwriting expertise

Broad product portfolio for small

account underwriters

Controlled distribution

Wholesale agents

Benefits from a category XII ‘A’

(Excellent) rating by A.M. Best

89%

89%

93%

96%

Combined Ratio

$102

$113

$98

$64

2006

2007

2008

YTD 2009

8.

Pre-Tax Operating Income

($mm)

Commercial Specialty

Specialty

Niche Segment

Status

2008 Gross Written Premium up 21%

Primarily admitted, retail-driven

Competitive advantages

Expertise in niche markets

–

grocery stores

–

mining operations

–

laundry & dry cleaners

–

small/medium-size public entities

Benefits from a category XII ‘A’

(Excellent) rating by A.M. Best

89%

89%

97%

96%

Combined Ratio

$50

$61

$43

$35

2006

2007

2008

YTD 2009

9.

Status

•

Underwriting on $1.2 billion of capital today

•

Achieved desired diversification in second

year

•

Appointed Andrew Carrier as Argo Re

President and Nigel Mortimer as head of

Excess Casualty

•

New casualty underwriting team in place

Competitive advantages

•

Utilize established infrastructure

•

Built diversified book of business

•

Proven record of leadership

•

Benefits from a category XII ‘A’

(Excellent)

rating by A.M. Best

Reinsurance

Argo Re –

Well Established

56%

78%

Pre-Tax Operating Income

($mm)

Combined Ratio

$25

$34

2008

YTD 2009

10.

Status

•

Acquired Heritage in May 2008

•

Appointed Julian Enoizi as CEO

in June 2009

•

Worldwide property

•

Direct and Facultative

•

North American and International

Binding Authority

•

Non-U.S. liability

•

Professional indemnity

•

General liability

Competitive advantages

•

Specialist knowledge

•

Access to decision makers

•

Carries the Lloyd’s market ratings

of ‘A’

(Excellent) rating by A.M.

Best, and ‘A+’

by S&P

Argo International

Lloyd’s Underwriting Agency

97%

102%

Pre-Tax Operating Income

($mm)

Note:

1

Data is for the full year ending Dec. 31, 2008

Combined Ratio

$11

$8

2008¹

YTD 2009

Combined Business Mix

Established platform to write business

worldwide and penetrate niche markets

Specialty Insurance

Excess & Surplus Lines

Commercial Specialty

Reinsurance/Insurance

Quota share reinsurance

of business partners

Property reinsurance

Excess casualty and

professional liability insurance

Argo International (Lloyd’s)

Worldwide property insurance

Non-U.S. liability

55%

9%

36%

As of September 30, 2009

11.

12.

Growth in Key Profit Drivers

Net Premium Earned

Gross Written Premium

Investment Income

$622

$1,602

2002

2008

17%

CAGR

$378

$1,127

2002

2008

20%

CAGR

$53

$150

2002

2008

19%

CAGR

($mm)

13.

$39.08

$33.52

$30.36

$27.22

$23.40

$45.15

$44.18

$51.04

2002

2003

2004

2005

2006

2007

2008

2009-Q3

Growth of Book Value

BVPS Growth Since 2002

12.2%

CAGR

*

Book

value

per

common

share

-

outstanding,

includes

the

impact

of

the

Series

A

Mandatory

Convertible

Preferred

Stock

on

an as if converted basis.  Preferred stock had fully converted into common shares as of Dec. 31, 2007.

14.

Significant Increases in Capital Relative to Operating Metrics

$1,954

$1,624

$1,816

$2,203

$2,558

$3,598

$4,001

$4,334

$1,516

$992

$1,782

$1,754

$860

$717

$567

$1,127

$860

$813

$699

$634

$563

2.2x

0.8x

2.6x

2.9x

2.5x

2.2x

2.1x

2.6x

0.6x

0.5x

0.8x

0.8x

0.9x

1.0x

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2003

2004

2005

2006

2007

2008

YTD 2009

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

Total Capitalization

Earning Assets

Net Premiums Written

EA Multiple

NPW Multiple

($mm)

Note:

1

Net Premium Written and Multiple are annualized using YTD information as of September 30, 2009

1

Argo Group 2008 Financial Highlights

2007

2008

Change

Gross Written Premium

$ 1.18B

$  1.60B

36%

Net Earned Premium

$ 860M

$ 1.13B

31%

Total Revenue

$ 1.0B

$ 1.25B

25%

Net Investment Income

$

134M

$

150M

12%

Net Income Per Share

$ 5.58

$ 2.05**

172%**

Net Operating Income Per Share

$ 3.71

$ 3.97

7%

YTD Growth in Book Value Per Share

15.5%

(2.1%)

** Impacted by $17.4mm of pre-tax losses from U.S. storms in Q2 and $74.0mm from hurricanes Gustav and Ike in Q3.

15.

Argo Group 2009 Third Quarter Results

2008

Nine Months

2009

Nine Months

Change

Gross Written Premium

$ 1.2B

$  1.6B

29%

Net Earned Premium

$ 803M

$ 1.1B

32%

Total Revenue

$ 909M

$ 1.2B

28%

Net Investment Income

$

113M

$

113M

0%

Net Income Per Share

$ 1.66

$ 2.48

49%

Net Operating Income Per Share

$ 2.24

$ 3.26

46%

YTD Growth in Book Value Per Share

(2.3%)

15.5%

16.

Strong Balance Sheet and Capital Base

In millions, except for book value and leverage data

*Includes $311.4 mm of Junior Subordinated Debentures

Dec 31, 2008

2,997

24.1%

1,782

1,353

6,382

$4,001

429

$44.18

Dec 31, 2007

2,245

21.0%

1,754

1,385

5,124

$3,598

369

$45.15

Reserves

Total Leverage*

Total Capital

Shareholders’

Equity

Total Assets

Investment Portfolio

Indebtedness*

Book Value Per Share

September 30, 2009

3,187

19.5%

1,954

1,573

6,821

$4,317

381

$51.04

17.

18.

Conservative Investment Portfolio

Fixed income (94%)

Equities (6%)

Total: $4.0bn

Total: $0.3bn

•

Average Rating of AA+

•

Duration of 3.0 years

•

Less than 1% subprime

•

Internally and externally managed

•

Conservative focus on large cap

32%

14%

19%

15%

15%

U.S. Government

State / Muni

Corporate

Structured

Short Term

Other

5%

Financials

Industrial & Other

17%

83%

19.

Focus Areas for the Coming Year

•

Investments in people

•

Investment in IT

•

Expense savings

•

Controlled expansion in the US and London

•

Focus on clients

•

Focus on distribution partners

•

Focus on the competitive environment

Internal

External

Premiums / Risk Selection

Levers to Drive a Profitable Organization

Investment Leverage / Yields

Financial Leverage / Capital Structure

Infrastructure Cost

20.

Why Argo?

•

Broadly diversified insurance and reinsurance platform

•

Deep product expertise in niche focus areas

•

Proven track record of growth and profitability

•

Proven ability to manage through insurance cycle

•

Prudent risk management and controls

•

Strong leadership

•

Significant room for future growth

•

ROE driven focus

Thank you

Q&A