4Q 2012 Investor Presentation

March 2013

Exhibit 99.1

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.  

2.

3.

Argo Group at a Glance

Exchange / Ticker:

NASDAQ / “AGII”

Share Price:

$40.08

Primary Market Capitalization:

$993 million

Annual Dividend / Yield:

$0.60 per share / 1.5%

Gross Written Premium:

$1.7 billion

Capital:

$1.9 billion

Analyst Coverage:

Adam Klauber, William Blair (Outperform)

Greg Peters, Raymond James (Outperform)

Amit Kumar, Macquarie (Outperform)

Kyle Labarre, Dowling & Partners (Neutral)

Atlanta

Barcelona

Bermuda

Boston

Brussels

Chicago

Dallas

Denver

Dubai

Houston

London

Los Angeles

Malta

New York

Paris

Portland

Richmond

Rio de Janeiro

Rockwood

San Antonio

San Francisco

Sao Paulo

Scottsdale

Seattle

Zurich

Note: Market information as of March 15, 2013 and annual performance figures as of December 31, 2012.

4.

Argo’s Franchise is Well Positioned for Success

Global underwriter of specialty P&C insurance and

reinsurance through four distinct business

segments

Broad footprint with operations strategically located

in major insurance centers –

U.S., Bermuda,

London, and Brazil

Emphasis on insurance and casualty lines

A leader in the U.S. Excess & Surplus lines market

Among the largest Syndicates at Lloyds by stamp

capacity

Deep relationships with retailers, wholesalers and

Lloyds brokers

Financial strength is excellent as indicated by A.M.

Best rating of ‘A’

Proven track record of active capital management

2012 GWP

Insurance

85%

Reinsurance

15%

Casualty

~60%

Property

~40%

Strategy Focused on Enhancing Shareholder Value

Recognized leader of specialty insurance solutions for our clients

Sustain competitive advantage through superior customer service,

product innovation and underwriting knowledge

Opportunistically grow organically and/or through strategic

acquisitions throughout the underwriting cycle

Manage capital and risk appropriately / maintain strong ratings

Proven ability to attract talented teams

5.

Maximize shareholder value through growth in book value per share

6.

Evolution to an International & Diversified Specialty U/W

2001

•

Acquired Colony

and Rockwood

•

Founded Trident

(Public Entity)

2005

•

Sold Risk 

Management

business

2007

•

Rebranded Argo Group

•

Completed merger

with PXRE

•

Formed Argo Re

2008

•

Acquired Lloyds

Syndicate 1200

2011

•

Established  local

presence in Europe,                   

Brazil & Dubai

(part of Int’l Specialty)

6.

1

Excludes GWP recorded in runoff and corporate & other.

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

BVPS

$23.39

$27.22

$30.36

$33.50

$39.08

$45.15

$44.18

$52.36

$57.82

$55.60

$60.75

Total Capital (Millions)

$328

$567

$717

$860

$992

$1,754

$1,782

$1,996

$1,986

$1,840

$1,915

$186

$272

$622

$788

$903

$1,056

$1,153

$1,182

$1,605

$1,987

$1,530

$1,544

$1,744

400

800

1,200

1,600

2,000

Risk Management (sold in 2005)

International Specialty

Syndicate 1200

Commercial Specialty (includes Trident)

Excess & Surplus Lines

15%

31%

29%

25%

7.

Argo Group Business Mix -

$1.7B in 2012 GWP

7.

GWP by Segment

Excess &

Surplus Lines

Commercial

Specialty

GWP by Product

GWP by Geography

United

States

London

Bermuda

*Data is based on full year 2012.

22%

Excess &

Surplus Lines

29%

Other

Commercial

Specialty

Property

Public Entity

21%

7%

6%

Marine &

Aerospace

Surety 2%

5%

Alteris

Mining 4%

Emerging Mkts 3%

Emerging Markets 3%

54%

12%

31%

GWP by Business Type

Primary

Insurance

Reinsurance

Syndicate

1200

International

Specialty

31%

15%

29%

25%

85%

15%

Maximizing Shareholder Value –

BVPS Growth

$45.15

$44.18

$52.36

$57.82

$60.75

$39.08

2008

2009

2010

2011

2006

2007

2005

2004

2003

2002

$23.39

$27.22

$30.36

$33.50

1.1x

1.1x

1.2x

1.6x

1.7x

1.2x

0.9x

0.8x

0.7x

0.6x

= Price/Book

1

8.

2012

0.7x

$55.60

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

-

* Book value per common share - outstanding, includes the impact of the Series A Mandatory Convertible Preferred Stock as if on a converted basis.  Preferred stock

had fully converted into common shares as of Dec. 31, 2007.

Price / book calculated at 52-week high and most recent book value per share. Stock price and book value adjusted for PXRE merger for 2006 and prior years.

1

Note the book value amounts for 2011 and 2010  reflect the effect of the Company’s adoption of new guidance related to accounting for costs associated with acquiring

or renewing insurance contracts.  2009 and prior periods have not been restated.

9.

Substantial Growth and Financial Strength

Scale

2000

2006

2012

'00-'12 Factor

Gross Written Premiums

$186.1

$1,155.6

$1,745.7

9.4x

Net Written Premiums

163.9

847.0

1,244.5

7.6x

Net Earned Premiums

124.6

813.0

1,186.5

9.5x

Market Capitalization

456.9

1,131.5

895.5

2.0x

Employees

779

1,332

1,218

1.6x

Financial Strength

2000

2006

2012

'00-'12 Factor

Total Assets

$1,565.8

$3,721.5

$6,689.6

4.3x

Total Investments

1,085.6

2,514.1

4,200.7

3.9x

Shareholder's Equity

501.1

847.7

1,514.1

3.0x

Total Capital

501.1

992.0

1,915.0

3.8x

Debt / Total Capital

0.0%

14.5%

20.9%

AM Best Rating

A

A

A

S&P Rating (FSR)

A

A-

A-

10.

Consolidated GWP up 13.0% in 2012 vs. 2011

2012 Premium Growth Up Across All Segments

Reflects impact of strategic initiatives taken, rate increases and improved retention

10.

$478.9

$513.5

$300

$350

$400

$450

$500

$550

2011

2012

Excess & Surplus Lines

$438.5

$533.4

$300

$350

$400

$450

$500

$550

$600

2011

2012

Syndicate 1200

$428.8

$437.0

$350

$370

$390

$410

$430

$450

2011

2012

Commercial Specialty

$198.2

$260.2

$140

$160

$180

$200

$220

$240

$260

$280

2011

2012

International Specialty

11.

About Us

•

A leader in the U.S. Excess & Surplus

lines market

•

Strong relationships with national,

local and regional wholesale brokers

•

Seasoned U/W expertise is a competitive

advantage

•

Target market is small, medium and

large non-standard (hard-to-place) risks

underwritten on both an admitted and

non-admitted basis

GWP by Business Unit –

2012

Casualty

30%

Transportation

17%

Environmental

4%

Allied Medical

5%

Management Liability

2%

Property

9%

Contract

23%

Errors & Omissions

9%

Excess & Surplus Lines Segment (29% of 2012 GWP)

11.

93.3%

99.6%

97.8%

95.5%

89.3%

88.9%

‘12

‘10

‘09

‘08

‘07

‘06

‘11

91.9%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘12

‘10

‘09

‘08

‘07

‘06

‘11

Combined Ratio

PTOI

12.

E&S Lines Profitability in 2012 Outperforms Peers

New segment management

team is formed.

Year of restructure and

implementation of new

strategy.

Year of execution on the newly

restructured platform.

97.8%

95.7%

91.9%

92.7%

98.6%

103.9%

84.4%

87.2%

92.5%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

2010

2011

2012

Argo E&S

Peer Average

Top Quartile Peer Average

Peers include: WR Berkley Specialty Segment, Alterra US Segment, American Safety E&S Segment, Aspen Insurance Segment, Axis Insurance Segment, Endurance

Insurance Segment, HCC US P&C Segment, Markel E&S Segment, Navigators Insurance Segment, RLI P&C Segments, Arch Insurance Segment, United National

Insurance Segment. Top quartile peers include the above mentioned segments from WR Berkley, RLI, and HCC.

13.

Commercial Specialty (25% of GWP)

About Us

•

Designs customized commercial insurance

programs for grocers, dry cleaners

restaurants and other specialty retail clients

•

2

nd

largest

provider

of

commercial

insurance

to small and midsize U.S. public entities

•

2

nd

largest

provider

of

commercial

insurance

to the coal mining industry

•

Distributes products directly through

wholesalers and independent agents

GWP by Business Unit –

2012

Argo Insurance U.S. Retail  23%

Restaurants 5%

Grocery 10%

Dry Cleaners 5%

Other Industries 3%

Mining 18%

Public Entity 28%

Commercial 2%

Programs...…

Argo Surety  8%

Alteris 49%

Corp. Accts/Other 21%

.

96.5%

96.5%

99.0%

108.3%

88.7%

89.4%

‘12

‘10

‘09

‘08

‘07

‘06

‘11

115.1%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘12

‘10

‘09

‘08

‘07

‘06

‘11

Combined Ratio

PTOI

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

14.

Syndicate 1200 (31% of GWP)

About Us

•

Established multi-class

platform at Lloyds of London

•

Ranked among the largest

Syndicates at Lloyds by Stamp

Capacity

•

Lloyd’s market ratings:

•

‘A’

(Excellent) by A.M. Best

•

‘A+’

(Strong) by S&P

GWP by Business Unit –

2012

Property 47%

Liability 33%

Specialty 16%

Aerospace 5%

Prof. Indemnity 13%

General Liability 13%

Directors & Officers 2%

Other  4%

Int’l Property Treaty 3%

NA & Int’l Binders 10%

Personal Accident 10%

Property FAC  17%

Other 6%

14.

115.3%

131.7%

95.8%

112.3%

‘12

‘10

‘09

‘08

‘11

96.2%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘12

‘10

‘09

‘08

‘11

Combined Ratio

PTOI

(80.0)

(60.0)

(40.0)

(20.0)

-

20.0

40.0

15.

International Specialty (15% of GWP)

About Us

•

Bermuda team underwrites property CAT,

short tail per risk and proportional treaty

reinsurance worldwide, excess casualty and

professional liability

•

Building diversity through international

expansion:

•

Established primary operations in Brazil

•

Established operations in Euro zone

•

Established regional office in Dubai

•

Distributes through brokers

GWP by Business Unit –

2012

Property

CAT

37%

Casualty

21%

Professional

10%

Other

6%

Property

Pro

Rata

5%

15.

Property

Risk

XS

3%

Brazil

18%

72.8%

177.5%

52.3%

77.9%

‘12

‘10

‘09

‘08

‘11

97.1%

Gross Written Premium

Pre-Tax Operating Income & Combined Ratio

‘12

‘10

‘09

‘08

‘11

Combined Ratio

PTOI

-

50.0

100.0

150.0

200.0

250.0

300.0

$126.4

$162.9

$188.9

$198.2

$260.2

(80.0)

(60.0)

(40.0)

(20.0)

-

20.0

40.0

60.0

16.

4Q

12

vs.

4Q

11

FY

2012

vs.

FY

2011

Gross Written Premiums

$389.7

$341.8

$1,745.7

$1,544.8

Net Written Premiums

277.5

249.0

1,244.5

1,071.8

Earned Premiums

314.7

278.0

1,186.5

1,082.0

Losses and LAE

219.7

198.7

747.6

863.1

Other Reinsurance-Related Expenses

6.5

2.8

27.3

5.9

Underwriting, Acquisition and Insurance Expenses

118.2

111.0

464.5

425.7

Underwriting Income / (Loss)

($29.7)

($34.5)

($52.9)

($212.7)

Net Investment Income

28.5

29.5

118.8

125.8

Fee Income, net

0.5

(0.4)

5.3

1.4

Interest Expense

6.7

5.6

23.7

22.1

Operating Income / (Loss)

($7.4)

($11.0)

$47.5

($107.6)

Foreign Currency Exchange Gain / (Loss)

(1.5)

7.6

(4.3)

(3.5)

Net Realized Investment Gains

7.0

11.5

25.7

49.2

Debt Extinguishment Costs

2.2

0.0

2.2

0.0

Pre-Tax Income / (Loss)

($4.1)

$8.1

$66.7

($61.9)

Income Tax Provision

0.6

6.7

14.4

20.0

Net Income / (Loss)

($4.7)

$1.4

$52.3

($81.9)

Operating

Income

(Loss)

per

Common

Share

(Diluted)

($0.24)

($0.35)

$1.46

($3.36)

Net Income (Loss) per Common Share (Diluted)

($0.19)

$0.05

$2.01

($3.02)

Loss Ratio

71.2%

72.2%

64.5%

80.2%

Expense Ratio

4

38.4%

40.3%

40.1%

39.6%

Combined Ratio

109.6%

112.5%

104.6%

119.8%

1

Retrospectively adjusted for the accounting amendment which modified the definition of deferred acquisition costs.

2

At assumed tax rate of 20% for 2012 and 15% for 2011.

3

Defined as Losses and LAE / (Earned Premiums less Other Reinsurance-Related Expenses).

4

Defined as Underwriting, Acquisition and Insurance Expenses / (Earned Premiums less Other Reinsurance-Related Expenses).

All data in millions except for per share data and ratio calculations.

4Q & YTD Operating Results –

2012 vs. 2011

16.

3

1

1

2

17.

17%

17.

Conservative Investment Strategy

As of December 31, 2012

•

Duration of 3.3 years

•

Average rating of ‘AA-’

•

Book yield of 3.4%

•

Very liquid

•

Conservatively managed

Portfolio Characteristics

Total:

$0.5B

Total:

$3.4B*

*$3.15b in fixed maturities, $0.23b in short term

Asset Allocation

7% Other

Fixed

73%

Maturities.

9% Short Term Invest.

12% Equities

Total:

$4.3B

Equity Investments by Sector

9% Healthcare

Energy

24%

4% Industrials

11% Funds

5% Financials

12% Info Tech

4% Materials

6% Consumer

Discretionary

Consumer Staples

Fixed Maturities by Type

7% Short Term

Corporate

36%.

21% Gov.

18% Structured

State/Muni

18%.

18.

Well Positioned for Value Creation in 2013 and Beyond

•

Compelling case for multiple expansion as Argo trades below peers and at a discount to

book value

•

Improving insurance market conditions may increase investor appetite in the space

•

We have made the major changes to our mix of business with few remaining, and the

results are beginning to flow through the financials

•

Improving industry prices to have a favorable impact on premium base and loss ratios

•

We have acquired some of the best talent in the industry

•

Will continue to build more revenue from a non-risk bearing MGA strategy

•

Operations in emerging markets are beginning to gain traction and scale

•

Yields remain at low levels and any improvement will produce a favorable impact on ROE

•

Moderate financial leverage

•

Strong balance sheet that is adequately reserved and with excellent asset quality

We believe that Argo Group has potential to generate substantial value for new and existing investors.

19.

Compelling Valuation

0.64x

1.16x

Price/Book

Jan-00

Mar-13

Argo

0.70x

0.64x

Peer Avg

1.17x

1.16x

Difference

0.47x

0.52x

0.52x

Difference

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Argo

Peer Group

Note: Price to book is average price/book across all peer companies. Peers include: Arch, Amtrust, W.R. Berkley, Axis, Markel, HCC, American Financial, Allied World, Alterra, Aspen,

Endurance, RLI, OneBeacon, Selective, Navigators, Tower, Global Indemnity.