XML 47 R35.htm IDEA: XBRL DOCUMENT v3.5.0.2
Senior Unsecured Fixed Rate Notes (Tables)
9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability

At September 30, 2016 and December 31, 2015, the Notes consisted of the following:

 

(in millions)

 

September 30,

2016

 

 

December 31,

2015

 

Senior unsecured fixed rate notes

 

 

 

 

 

 

 

 

Principal

 

$

143.8

 

 

$

143.8

 

Less: unamortized debt issuance costs

 

 

(4.4

)

 

 

(4.5

)

Senior unsecured fixed rate notes, less unamortized debt issuance costs

 

$

139.4

 

 

$

139.3

 

 

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2016

(in millions)

(Unaudited)

 

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

2.6

 

 

$

2,871.2

 

 

$

1,439.8

 

 

$

 

 

$

4,313.6

 

Cash

 

 

 

 

 

89.3

 

 

 

34.3

 

 

 

 

 

 

123.6

 

Accrued investment income

 

 

 

 

 

16.3

 

 

 

5.6

 

 

 

 

 

 

21.9

 

Premiums receivable

 

 

 

 

 

213.2

 

 

 

290.2

 

 

 

 

 

 

503.4

 

Reinsurance recoverables

 

 

 

 

 

1,300.9

 

 

 

(17.8

)

 

 

 

 

 

1,283.1

 

Goodwill and other intangible assets, net

 

 

 

 

 

127.6

 

 

 

93.5

 

 

 

 

 

 

221.1

 

Deferred acquisition costs, net

 

 

 

 

 

64.7

 

 

 

83.0

 

 

 

 

 

 

147.7

 

Ceded unearned premiums

 

 

 

 

 

162.2

 

 

 

149.4

 

 

 

 

 

 

311.6

 

Other assets

 

 

9.4

 

 

 

160.0

 

 

 

85.7

 

 

 

 

 

 

255.1

 

Intercompany note receivable

 

 

 

 

 

50.2

 

 

 

(50.2

)

 

 

 

 

 

 

Investments in subsidiaries

 

 

1,862.1

 

 

 

 

 

 

 

 

 

(1,862.1

)

 

 

 

Total assets

 

$

1,874.1

 

 

$

5,055.6

 

 

$

2,113.5

 

 

$

(1,862.1

)

 

$

7,181.1

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

 

 

 

2,292.7

 

 

 

992.1

 

 

$

 

 

$

3,284.8

 

Unearned premiums

 

 

 

 

 

582.7

 

 

 

427.5

 

 

 

 

 

 

1,010.2

 

Funds held and ceded reinsurance payable, net

 

 

 

 

 

733.7

 

 

 

(215.2

)

 

 

 

 

 

518.5

 

Long-term debt

 

 

28.4

 

 

 

284.3

 

 

 

56.7

 

 

 

 

 

 

369.4

 

Current income taxes payable, net

 

 

 

 

 

8.8

 

 

 

(1.1

)

 

 

 

 

 

7.7

 

Deferred tax liabilities, net

 

 

 

 

 

25.0

 

 

 

15.7

 

 

 

 

 

 

40.7

 

Accrued underwriting expenses and other liabilities

 

 

13.2

 

 

 

109.9

 

 

 

38.3

 

 

 

 

 

 

161.4

 

Due to (from) affiliates

 

 

44.1

 

 

 

0.2

 

 

 

(0.2

)

 

 

(44.1

)

 

 

 

Total liabilities

 

 

85.7

 

 

 

4,037.3

 

 

 

1,313.8

 

 

 

(44.1

)

 

 

5,392.7

 

Total shareholders' equity

 

 

1,788.4

 

 

 

1,018.3

 

 

 

799.7

 

 

 

(1,818.0

)

 

 

1,788.4

 

Total liabilities and shareholders' equity

 

$

1,874.1

 

 

$

5,055.6

 

 

$

2,113.5

 

 

$

(1,862.1

)

 

$

7,181.1

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

6.2

 

 

$

2,761.0

 

 

$

1,348.5

 

 

$

 

 

$

4,115.7

 

Cash

 

 

 

 

 

88.8

 

 

 

32.9

 

 

 

 

 

 

121.7

 

Accrued investment income

 

 

 

 

 

16.4

 

 

 

5.2

 

 

 

 

 

 

21.6

 

Premiums receivable

 

 

 

 

 

166.4

 

 

 

238.1

 

 

 

 

 

 

404.5

 

Reinsurance recoverables

 

 

 

 

 

1,212.2

 

 

 

(91.1

)

 

 

 

 

 

1,121.1

 

Goodwill and other intangible assets, net

 

 

 

 

 

129.8

 

 

 

95.7

 

 

 

 

 

 

225.5

 

Current income taxes receivable, net

 

 

 

 

 

4.7

 

 

 

6.9

 

 

 

 

 

 

11.6

 

Deferred acquisition costs, net

 

 

 

 

 

58.2

 

 

 

74.2

 

 

 

 

 

 

132.4

 

Ceded unearned premiums

 

 

 

 

 

125.8

 

 

 

125.0

 

 

 

 

 

 

250.8

 

Other assets

 

 

8.2

 

 

 

151.7

 

 

 

60.8

 

 

 

 

 

 

220.7

 

Intercompany note receivable

 

 

 

 

 

49.8

 

 

 

(49.8

)

 

 

 

 

 

 

Investments in subsidiaries

 

 

1,715.9

 

 

 

 

 

 

 

 

 

(1,715.9

)

 

 

 

Total assets

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

 

 

$

2,194.1

 

 

$

929.5

 

 

$

 

 

$

3,123.6

 

Unearned premiums

 

 

 

 

 

501.5

 

 

 

385.2

 

 

 

 

 

 

886.7

 

Funds held and ceded reinsurance payable, net

 

 

 

 

 

702.6

 

 

 

(312.6

)

 

 

 

 

 

390.0

 

Long-term debt

 

 

28.4

 

 

 

284.2

 

 

 

54.6

 

 

 

 

 

 

367.2

 

Deferred tax liabilities, net

 

 

 

 

 

11.9

 

 

 

11.7

 

 

 

 

 

 

23.6

 

Accrued underwriting expenses and other liabilities

 

 

16.3

 

 

 

95.4

 

 

 

54.7

 

 

 

 

 

 

166.4

 

Due to (from) affiliates

 

 

17.5

 

 

 

2.3

 

 

 

(2.3

)

 

 

(17.5

)

 

 

 

Total liabilities

 

 

62.2

 

 

 

3,792.0

 

 

 

1,120.8

 

 

 

(17.5

)

 

 

4,957.5

 

Total shareholders' equity

 

 

1,668.1

 

 

 

972.8

 

 

 

725.6

 

 

 

(1,698.4

)

 

 

1,668.1

 

Total liabilities and shareholders' equity

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

Condensed Consolidating Statement of Income

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

(in millions)

(Unaudited)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

 

 

$

128.0

 

 

$

230.7

 

 

$

 

 

$

358.7

 

Net investment income (expense)

 

 

(0.9

)

 

 

22.5

 

 

 

11.1

 

 

 

 

 

 

32.7

 

Fee and other income

 

 

 

 

 

5.5

 

 

 

2.1

 

 

 

 

 

 

7.6

 

Net realized investment and other (losses)

   gains

 

 

 

 

 

19.4

 

 

 

(1.7

)

 

 

 

 

 

17.7

 

Total revenue

 

 

(0.9

)

 

 

175.4

 

 

 

242.2

 

 

 

 

 

 

416.7

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

 

 

 

83.5

 

 

 

124.3

 

 

 

 

 

 

207.8

 

Underwriting, acquisition and insurance

   expenses

 

 

3.7

 

 

 

54.0

 

 

 

79.7

 

 

 

 

 

 

137.4

 

Interest expense

 

 

0.3

 

 

 

4.0

 

 

 

0.6

 

 

 

 

 

 

4.9

 

Fee and other expense

 

 

 

 

 

5.5

 

 

 

0.4

 

 

 

 

 

 

5.9

 

Foreign currency exchange loss (gain)

 

 

 

 

 

0.2

 

 

 

(1.7

)

 

 

 

 

 

(1.5

)

Total expenses

 

 

4.0

 

 

 

147.2

 

 

 

203.3

 

 

 

 

 

 

354.5

 

Income (loss) before income taxes

 

 

(4.9

)

 

 

28.2

 

 

 

38.9

 

 

 

 

 

 

62.2

 

Provision for income taxes

 

 

 

 

 

6.8

 

 

 

0.2

 

 

 

 

 

 

7.0

 

Net income (loss) before equity in earnings of

   subsidiaries

 

 

(4.9

)

 

 

21.4

 

 

 

38.7

 

 

 

 

 

 

55.2

 

Equity in undistributed earnings of subsidiaries

 

 

60.1

 

 

 

 

 

 

 

 

 

(60.1

)

 

 

 

Net income

 

$

55.2

 

 

$

21.4

 

 

$

38.7

 

 

$

(60.1

)

 

$

55.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015

(in millions)

(Unaudited)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

 

 

$

122.1

 

 

$

223.9

 

 

$

 

 

$

346.0

 

Net investment income (expense)

 

 

(0.2

)

 

 

11.2

 

 

 

7.6

 

 

 

(0.2

)

 

 

18.4

 

Fee and other income

 

 

 

 

 

7.6

 

 

 

1.6

 

 

 

 

 

 

9.2

 

Net realized investment and other gains

 

 

 

 

 

4.3

 

 

 

2.3

 

 

 

 

 

 

6.6

 

Total revenue

 

 

(0.2

)

 

 

145.2

 

 

 

235.4

 

 

 

(0.2

)

 

 

380.2

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

 

 

 

75.4

 

 

 

124.6

 

 

 

 

 

 

200.0

 

Underwriting, acquisition and insurance expenses

 

 

4.9

 

 

 

48.0

 

 

 

79.9

 

 

 

 

 

 

132.8

 

Interest expense

 

 

0.5

 

 

 

3.8

 

 

 

0.7

 

 

 

(0.2

)

 

 

4.8

 

Fee and other expense

 

 

 

 

 

7.6

 

 

 

0.6

 

 

 

 

 

 

8.2

 

Foreign currency exchange loss (gain)

 

 

 

 

 

0.1

 

 

 

(1.9

)

 

 

 

 

 

(1.8

)

Total expenses

 

 

5.4

 

 

 

134.9

 

 

 

203.9

 

 

 

(0.2

)

 

 

344.0

 

Income (loss) before income taxes

 

 

(5.6

)

 

 

10.3

 

 

 

31.5

 

 

 

 

 

 

36.2

 

Provision for income taxes

 

 

 

 

 

2.1

 

 

 

(1.2

)

 

 

 

 

 

0.9

 

Net income (loss) before equity in earnings of

   subsidiaries

 

 

(5.6

)

 

 

8.2

 

 

 

32.7

 

 

 

 

 

 

35.3

 

Equity in undistributed earnings of subsidiaries

 

 

40.9

 

 

 

 

 

 

 

 

 

(40.9

)

 

 

 

Net income

 

$

35.3

 

 

$

8.2

 

 

$

32.7

 

 

$

(40.9

)

 

$

35.3

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(in millions)

(Unaudited)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

 

 

$

368.1

 

 

$

680.4

 

 

$

 

 

$

1,048.5

 

Net investment income (expense)

 

 

(2.0

)

 

 

62.6

 

 

 

29.0

 

 

 

 

 

 

89.6

 

Fee and other income

 

 

 

 

 

14.9

 

 

 

5.3

 

 

 

 

 

 

20.2

 

Net realized investment and other gains (losses)

   gains

 

 

0.2

 

 

 

32.5

 

 

 

(19.9

)

 

 

 

 

 

12.8

 

Total revenue

 

 

(1.8

)

 

 

478.1

 

 

 

694.8

 

 

 

 

 

 

1,171.1

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

 

 

 

220.9

 

 

 

375.1

 

 

 

 

 

 

596.0

 

Underwriting, acquisition and insurance

   expenses

 

 

10.0

 

 

 

150.6

 

 

 

242.4

 

 

 

 

 

 

403.0

 

Interest expense

 

 

1.0

 

 

 

11.8

 

 

 

1.8

 

 

 

 

 

 

14.6

 

Fee and other expense

 

 

 

 

 

16.7

 

 

 

1.4

 

 

 

 

 

 

18.1

 

Foreign currency exchange loss

 

 

 

 

 

0.1

 

 

 

4.4

 

 

 

 

 

 

4.5

 

Total expenses

 

 

11.0

 

 

 

400.1

 

 

 

625.1

 

 

 

 

 

 

1,036.2

 

Income (loss) before income taxes

 

 

(12.8

)

 

 

78.0

 

 

 

69.7

 

 

 

 

 

 

134.9

 

Provision for income taxes

 

 

 

 

 

20.5

 

 

 

0.6

 

 

 

 

 

 

21.1

 

Net income (loss) before equity in earnings of

   subsidiaries

 

 

(12.8

)

 

 

57.5

 

 

 

69.1

 

 

 

 

 

 

113.8

 

Equity in undistributed earnings of subsidiaries

 

 

126.6

 

 

 

 

 

 

 

 

 

(126.6

)

 

 

 

Net income

 

$

113.8

 

 

$

57.5

 

 

$

69.1

 

 

$

(126.6

)

 

$

113.8

 

 

(1)

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations

(2)

Includes all Argo Group parent company eliminations

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

 

 

$

376.0

 

 

$

650.6

 

 

$

 

 

$

1,026.6

 

Net investment income (expense)

 

 

(0.7

)

 

 

47.2

 

 

 

22.2

 

 

 

(0.2

)

 

 

68.5

 

Fee and other income

 

 

 

 

 

14.0

 

 

 

3.9

 

 

 

 

 

 

17.9

 

Net realized investment and other gains gains

 

 

2.0

 

 

 

20.1

 

 

 

0.3

 

 

 

(2.0

)

 

 

20.4

 

Total revenue

 

 

1.3

 

 

 

457.3

 

 

 

677.0

 

 

 

(2.2

)

 

 

1,133.4

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

 

 

 

220.0

 

 

 

354.3

 

 

 

 

 

 

574.3

 

Underwriting, acquisition and insurance

   expenses

 

 

14.4

 

 

 

149.5

 

 

 

238.0

 

 

 

 

 

 

401.9

 

Interest expense

 

 

1.2

 

 

 

11.4

 

 

 

1.9

 

 

 

(0.2

)

 

 

14.3

 

Fee and other expense

 

 

 

 

 

16.4

 

 

 

1.6

 

 

 

 

 

 

18.0

 

Foreign currency exchange loss (gain)

 

 

 

 

 

1.0

 

 

 

(9.4

)

 

 

 

 

 

(8.4

)

Total expenses

 

 

15.6

 

 

 

398.3

 

 

 

586.4

 

 

 

(0.2

)

 

 

1,000.1

 

Income (loss) before income taxes

 

 

(14.3

)

 

 

59.0

 

 

 

90.6

 

 

 

(2.0

)

 

 

133.3

 

Provision for income taxes

 

 

 

 

 

13.3

 

 

 

(2.0

)

 

 

 

 

 

11.3

 

Net income (loss) before equity in earnings of

   subsidiaries

 

 

(14.3

)

 

 

45.7

 

 

 

92.6

 

 

 

(2.0

)

 

 

122.0

 

Equity in undistributed earnings of subsidiaries

 

 

136.3

 

 

 

 

 

 

 

 

 

(136.3

)

 

 

 

Net income

 

$

122.0

 

 

$

45.7

 

 

$

92.6

 

 

$

(138.3

)

 

$

122.0

 

 

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(in millions)

(Unaudited)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

19.6

 

 

$

60.6

 

 

$

70.5

 

 

$

 

 

$

150.7

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

 

 

 

762.4

 

 

 

246.8

 

 

 

 

 

 

1,009.2

 

Maturities and mandatory calls of fixed maturity

   investments

 

 

 

 

 

419.7

 

 

 

419.3

 

 

 

 

 

 

839.0

 

Purchases of investments

 

 

 

 

 

(1,134.6

)

 

 

(721.1

)

 

 

 

 

 

(1,855.7

)

Change in short-term investments and foreign

   regulatory deposits

 

 

(0.4

)

 

 

(70.5

)

 

 

(3.0

)

 

 

 

 

 

(73.9

)

Settlements of foreign currency exchange

   forward contracts

 

 

 

 

 

 

 

 

(7.2

)

 

 

 

 

 

(7.2

)

Purchases of fixed assets and other, net

 

 

 

 

 

8.1

 

 

 

(2.9

)

 

 

 

 

 

5.2

 

Cash used in investing activities

 

 

(0.4

)

 

 

(14.9

)

 

 

(68.1

)

 

 

 

 

 

(83.4

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Repurchase of Company's common shares

 

 

 

 

 

(45.3

)

 

 

 

 

 

 

 

 

(45.3

)

Excess tax expense from share-based payment

   arrangements

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(19.8

)

 

 

 

 

 

 

 

 

 

 

 

(19.8

)

Cash used in financing activities

 

 

(19.2

)

 

 

(45.2

)

 

 

 

 

 

 

 

 

(64.4

)

Effect of exchange rate changes on cash

 

 

 

 

 

 

 

 

(1.0

)

 

 

 

 

 

(1.0

)

Change in cash

 

 

 

 

 

0.5

 

 

 

1.4

 

 

 

 

 

 

1.9

 

Cash, beginning of the period

 

 

 

 

 

88.8

 

 

 

32.9

 

 

 

 

 

 

121.7

 

Cash, end of period

 

$

 

 

$

89.3

 

 

$

34.3

 

 

$

 

 

$

123.6

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in millions)

(Unaudited)

 

 

 

Argo Group

International

Holdings, Ltd.

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

12.6

 

 

$

130.6

 

 

$

92.6

 

 

$

 

 

$

235.8

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

 

 

 

524.5

 

 

 

204.3

 

 

 

 

 

 

728.8

 

Maturities and mandatory calls of fixed maturity

   investments

 

 

 

 

 

509.5

 

 

 

127.9

 

 

 

 

 

 

637.4

 

Purchases of investments

 

 

 

 

 

(1,073.2

)

 

 

(395.3

)

 

 

 

 

 

(1,468.5

)

Change in short-term investments and foreign

   regulatory deposits

 

 

1.3

 

 

 

(34.5

)

 

 

(29.2

)

 

 

 

 

 

(62.4

)

Settlements of foreign currency exchange

   forward contracts

 

 

1.5

 

 

 

 

 

 

(8.2

)

 

 

 

 

 

(6.7

)

Issuance of intercompany note, net

 

 

 

 

 

15.0

 

 

 

(15.0

)

 

 

 

 

 

 

Purchases of fixed assets and other, net

 

 

0.2

 

 

 

(7.3

)

 

 

2.5

 

 

 

 

 

 

(4.6

)

Cash provided by (used in) investing activities

 

 

3.0

 

 

 

(66.0

)

 

 

(113.0

)

 

 

 

 

 

(176.0

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

1.5

 

Repurchase of Company's common shares

 

 

 

 

 

(29.7

)

 

 

 

 

 

 

 

 

(29.7

)

Excess tax expense from share-based payment

   arrangements

 

 

 

 

 

0.6

 

 

 

 

 

 

 

 

 

0.6

 

Payment of cash dividend to common

   shareholders

 

 

(17.1

)

 

 

 

 

 

 

 

 

 

 

 

(17.1

)

Cash used in financing activities

 

 

(15.6

)

 

 

(29.1

)

 

 

 

 

 

 

 

 

(44.7

)

Effect of exchange rate changes on cash

 

 

 

 

 

 

 

 

0.1

 

 

 

 

 

 

0.1

 

Change in cash

 

 

 

 

 

35.5

 

 

 

(20.3

)

 

 

 

 

 

15.2

 

Cash, beginning of period

 

 

 

 

 

49.3

 

 

 

31.7

 

 

 

 

 

 

81.0

 

Cash, end of period

 

$

 

 

$

84.8

 

 

$

11.4

 

 

$

 

 

$

96.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.