Investor Presentation

Jay S. Bullock, CFO

September 7, 2011

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 –

About Us

International Specialty Underwriter of P&C Insurance

and Reinsurance Risks

•

Business

platform

is

comprised

of

four

distinct

businesses;

Each

fully

accountable

•

Core U.S. businesses are profitable

•

International platform supports corporate objectives of growth, profitability

and diversification.

First and Foremost an Underwriting Company

•

Underwriting results ex. CATS in the 1H of 2011 were good in spite of competition

•

Five-year (2006-10) average combined ratio was 98.7% vs. 99.4% (industry)

Solid Financial Strength (Balance Sheet)

•

Rated

‘A’

(Excellent)

by

A.M.

Best

(Class

Size

XII)

1

•

Conservatively capitalized/modest use of financial leverage

1

Argo P/C Insurance & reinsurance operations

3.

Our Strategy

•

Become a recognized worldwide leader of custom insurance and

reinsurance solutions for our clients

•

Create a competitive advantage through superior customer service,

product innovation and underwriting knowledge

•

Achieve profitable growth organically and/or through opportunistic

acquisitions throughout the cycle

•

Manage capital and risk appropriately / maintain strong ratings

•

Hire top tier talent to support our strategy

4.

Maximize shareholder value through growth in book value per share

BVPS Growth Since 2002

*2011-Q2 impacted primarily by tornado activity in Missouri and Alabama totaling $31.9M (net of reinstatement premiums).

**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.

Our Track Record:

Maximizing Shareholder Value

5.

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011-Q2

$23,40

$27.22

$30.36

$33.52

$39.08

$45.15

$44.18

$52.36

$58.41

$56.65*

Commercial Specialty Segment

Pre-Tax

Operating

Income

(Data

in

Millions)

and

Combined

Ratio

6.

About Us

•

Designs customized commercial insurance

programs for grocers, fabricare, restaurants

and other specialty retail clients

•

2

largest provider of commercial insurance

to small and midsize U.S. public entities

•

2

largest provider of commercial insurance

to the coal mine industry

•

Distributes products direct, through

wholesalers and independent agents

NWP by Business Unit

nd

nd

Q2 NWP By Business Unit

About Us

Excess & Surplus Lines Segment

7.

Pre-Tax

Operating

Income

(Data

in

Millions)

and

Combined

Ratio

•

Ranked among the top 10 E&S carriers

in the U.S. based on 2010 DWP

•

Strong relationships with national,

local and regional wholesale brokers

•

Target market is non-standard

(hard-to-place) risks

•

U/W expertise is a competitive advantage

Syndicate 1200

About Us

8.

Gross

Written

Premiums

(Millions)

Q2 NWP by Line of Business

Primary Classes of Business

•

Property (D&F)

•

Professional Lines

•

Aviation

•

Energy & Marine

Mix of Business:

•

Worldwide property (67% of GPW)

•

Non-U.S. liability (33% of GPW)

Lloyd’s Rated:

•

‘A’

(Excellent) by A.M. Best

•

‘A+’

(Strong) by S&P

International Specialty

About Us

Gross Written Premium

9.

Q2 NWP by Line of Business

Operating Income (Data in Millions)

and Combined Ratio

•

Underwrites excess casualty & professional

lines insurance, property CAT, property per

risk and proportional property treaty

reinsurance worldwide

•

Established regional office in Dubai

•

Establishing operations in Brazil

•

History of strong U/W profits

•

Distributes through brokers

Argo Group Q2 2011 Financial Highlights

CONSOLIDATED GAAP VIEW

Net written premium decreased 14.5% in the quarter.

•

Marketplace still undisciplined

•

Will continue to exit or walk away from unattractively priced risks

The combined ratio before CATS and PY reserve development

97.2%

vs.

100.9%

in

Q2

2010.

•

Underlying results remain strong despite the competitive market

•

Pre-tax losses from Q2 CATS were $31.9 million (net of estimated

reinstatement premiums), compared to pre-tax losses in Q2 2010 of   

$15.1 million (net of estimated reinstatement premiums)

•

Previous actions to de-risk the portfolio not yet reflected in results

10.

Book

value

per

share

(BVPS)

was

$56.65

at

June

30,

2011,

an increase from   54.76 at June 30, 2010.

$

Q2’2011 Financial Highlights

CONSOLIDATED GAAP VIEW

11.

($ in millions)

Operating Income

For the Quarter Ended

6/30/2011

6/30/2010

Pre-tax

operating

income

(before

CATs

&

PY

development)

1

35.2

24.4

CATs, net of estimated reinstatement premium

(31.9)

(15.1)

Prior year reserve (increase) / decrease

1.1

9.3

Pre-tax operating income

4.4

18.6

Combined Ratio

For the Quarter Ended

6/30/2011

6/30/2010

Loss Ratio (before CATs & PY development)

59.1%

64.6%

Expense Ratio

38.1%

36.3%

Combined Ratio (before CATs & PY development)

97.2%

100.9%

CATs, net of estimated reinstatement premium

11.7%

4.8%

Prior year reserve increase / (decrease)

-0.3%

-3.0%

Total Combined Ratio

108.6%

102.7%

1

Also excludes realized capital gains / (losses) and foreign exchange gains / (losses).

Note: All CATS and all associated calculations in the table are adjusted for reinstatement premium.

H1’2011 Financial Highlights

CONSOLIDATED GAAP VIEW

12.

($ in millions)

Operating Income

For the Six Months Ended

6/30/2011

6/30/2010

Pre-tax

operating

income

(before

CATs

&

PY

development)

1

$62.6

$54.4

CATs, net of estimated reinstatement premium

(144.9)

(43.9)

Prior year reserve (increase) / decrease

(3.6)

20.3

Pre-tax operating income

($85.9)

$30.8

Combined Ratio

For the Six Months Ended

6/30/2011

6/30/2010

Loss Ratio (before CATs & PY development)

59.4%

62.3%

Expense Ratio

39.3%

37.9%

Combined Ratio (before CATs & PY development)

98.7%

100.2%

CATs, net of estimated reinstatement premium

27.1%

6.9%

Prior year reserve increase / (decrease)

0.8%

-3.3%

Total Combined Ratio

126.6%

103.8%

1

Also excludes realized capital gains / (losses) and foreign exchange gains / (losses).

Note: All CATS and all associated calculations in the table are adjusted for reinstatement premium.

Balance Sheet

CONSOLIDATED GAAP VIEW

13.

($ in millions)

June 30,

December 31,

%

2011

2010

Variance

(unaudited)

Total investments

4,298.9

$      

4,215.4

$      

2.0%

Cash and cash equivalents

49.0

83.5

(41.3%)

Accrued investment income

32.7

33.5

(2.4%)

Receivables

1,433.6

1,505.7

(4.8%)

Goodwill and intangible assets

247.1

249.1

(0.8%)

Deferred acquisition costs

135.4

139.7

(3.1%)

Ceded unearned premiums                           

195.9

164.0

19.5%

Other assets

121.1

97.6

24.1%

6,513.7

$      

6,488.5

$      

0.4%

Reserves for losses and loss adjustment expenses

3,356.1

$      

3,152.2

$      

6.5%

Unearned premiums

664.7

654.1

1.6%

Ceded reinsurance payable

397.3

524.3

(24.2%)

Debt                                               

68.2

65.0

4.9%

Junior subordinated debentures                    

311.5

311.5

0.0%

Other liabilities

167.3

155.3

7.7%

4,965.1

4,862.4

2.1%

Total shareholders' equity

1,548.6

1,626.1

(4.8%)

6,513.7

$      

6,488.5

$      

0.4%

Book value per common share

56.65

$        

58.41

$        

(3.0%)

Assets

Total assets

Liabilities and Shareholders' Equity

Total liabilities

Total liabilities and shareholders' equity

Investment Portfolio

CONSOLIDATED GAAP VIEW

14.

($ millions)

Jun. 30, 2011

Mar. 31, 2011

Total cash and investments

Fair Value

% of Total

Fair Value

% of Total

USD DENOMINATED:

Fixed maturities

U.S. Governments

$440.7

10.1%

$413.2

9.6%

Non-U.S. Governments

35.9

0.8%

3.9

0.1%

Obligations of states and political subdivisions

617.4

14.2%

614.7

14.3%

Corporate securities

1,031.8

23.7%

1,007.6

23.5%

Structured securities

CMO/MBS-agency

562.4

12.9%

614.0

14.3%

CMO/MBS-non agency

34.7

0.8%

37.0

0.9%

CMBS

184.1

4.2%

195.6

4.6%

ABS-residential

15.5

0.4%

16.5

0.4%

ABS-non residential

81.7

1.9%

99.1

2.3%

FOREIGN DENOMINATED:

Governments

208.0

4.8%

200.1

4.7%

Credit

100.7

2.3%

90.3

2.1%

Total Fixed maturities

$3,312.9

76.2%

$3,292.0

76.7%

Equity securities

$375.9

8.6%

$336.5

7.8%

Other investments

226.1

5.2%

164.3

3.8%

Short-term investments

384.0

8.8%

391.3

9.1%

Total investments

$4,298.9

98.9%

$4,184.1

97.5%

Cash and cash equivalents

49.0

1.1%

105.4

2.5%

Total cash and investments

$4,347.9

100.0%

$4,289.5

100.0%

Argo Group -

Recap of Major Highlights

Argo is an established carrier in the international specialty

insurance and reinsurance markets.

•

Core U.S. operations continue to perform well

•

International platform supports diversification & future growth strategy

•

Underwriting focus & talent are key competitive advantages

•

Businesses well-positioned to take advantage of a hardening market

Management committed to maximizing shareholder value

•

Achieved book value per share CAGR of 11% since 2002

•

Quality of capital and balance sheet is excellent

•

Will continue to repatriate capital as appropriate

15.