10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-15259

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

(Exact name of registrant as specified in its charter)

Bermuda	98-0214719
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
110 Pitts Bay Road Pembroke HM08 Bermuda	P.O. Box HM 1282 Hamilton HM FX Bermuda
(Address of principal executive offices)	(Mailing address)

(441) 296-5858

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Security	Name of Each Exchange on Which Registered
Common Stock, par value of $1.00 per share	NASDAQ Global Select Market
Guarantee of Argo Group US, Inc. 6.500% Senior Notes due 2042	NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ☒ Accelerated filer  ☐ Non-accelerated filer  ☐

Smaller reporting company  ☐ Emerging growth company  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate the number of shares outstanding (net of treasury shares) of each of the issuer’s classes of common shares as of November 02, 2017.

Title	Outstanding
Common Shares, par value $1.00 per share	29,680,863

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

INDEX

		Page
PART I. Financial Information		3
Item 1.	Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016	3
	Condensed Consolidated Statements of (Loss) Income for three and nine months ended September 30, 2017 and 2016	4
	Condensed Consolidated Statements of (Loss) Comprehensive Income for the three and nine months ended September 30, 2017 and 2016	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	54
PART II. Other Information		54
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	55
Item 5.	Other Information	55
Item 6.	Exhibits	55
	Signatures	57

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except number of shares and per share amounts)

	September 30,			December 31,
	2017			2016 *
	(Unaudited)
Assets
Investments:
Fixed maturities available-for-sale, at fair value (cost: 2017 - $3,339.7; 2016 -    $2,938.8)	$	3,378.4		$	2,932.4
Equity securities available-for-sale, at fair value (cost: 2017 - $347.6; 2016 - $335.2)		480.5			447.4
Other investments (cost: 2017 - $553.1; 2016 - $531.6)		562.6			539.0
Short-term investments, at fair value (cost: 2017 - $386.0; 2016 - $405.5)		386.0			405.5
Total investments		4,807.5			4,324.3
Cash		235.8			86.0
Accrued investment income		23.6			20.7
Premiums receivable		678.8			463.8
Reinsurance recoverables		2,101.9			1,385.6
Goodwill		152.2			152.2
Intangible assets, net of accumulated amortization		108.3			67.7
Deferred acquisition costs, net		168.8			139.1
Ceded unearned premiums		461.4			302.8
Other assets		319.7			262.8
Total assets	$	9,058.0		$	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	4,305.9		$	3,350.8
Unearned premiums		1,286.0			970.0
Accrued underwriting expenses		97.5			115.0
Ceded reinsurance payable, net		822.6			466.6
Funds held		45.0			77.1
Senior unsecured fixed rate notes		139.6			139.5
Other indebtedness		184.7			55.4
Junior subordinated debentures		256.5			172.7
Current income taxes payable, net		11.0			8.1
Deferred tax liabilities, net		41.5			24.1
Other liabilities		59.7			33.0
Total liabilities		7,250.0			5,412.3
Commitments and contingencies (Note 16)
Shareholders' equity:
Common shares - $1.00 par, 500,000,000 shares authorized; 40,300,433 and    40,042,330 shares issued at September 30, 2017 and December 31, 2016,    respectively		40.3			40.0
Additional paid-in capital		1,129.1			1,123.3
Treasury shares (10,640,789 and 10,028,755 shares at September 30, 2017    and December 31, 2016, respectively)		(414.8	)		(378.2	)
Retained earnings		956.4			959.9
Accumulated other comprehensive income, net of taxes		97.0			47.7
Total shareholders' equity		1,808.0			1,792.7
Total liabilities and shareholders' equity	$	9,058.0		$	7,205.0

* Derived from audited consolidated financial statements.

See accompanying notes.

3

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(in millions, except number of shares and per share amounts)

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017		2016
Premiums and other revenue:
Earned premiums	$	389.3		$	358.7		$	1,167.8	$	1,048.5
Net investment income		30.9			32.7			105.0		89.6
Fee and other income		13.0			7.6			20.4		20.2
Net realized investment and other gains		6.0			17.7			25.1		12.8
Total revenue		439.2			416.7			1,318.3		1,171.1
Expenses:
Losses and loss adjustment expenses		326.4			207.8			779.5		596.0
Underwriting, acquisition and insurance expenses		166.1			137.4			474.4		403.0
Interest expense		7.5			4.9			20.4		14.6
Fee and other expense		5.0			5.9			12.4		18.1
Foreign currency exchange losses (gains)		0.1			(1.5	)		4.0		4.5
Total expenses		505.1			354.5			1,290.7		1,036.2
(Loss) income before income taxes		(65.9	)		62.2			27.6		134.9
Income tax (benefit) provision		(4.6	)		7.0			6.2		21.1
Net (loss) income	$	(61.3	)	$	55.2		$	21.4	$	113.8
Net (loss) income per common share:
Basic	$	(2.04	)	$	1.84		$	0.71	$	3.76
Diluted	$	(2.04	)	$	1.80		$	0.69	$	3.68
Dividend declared per common share	$	0.27		$	0.22		$	0.81	$	0.64
Weighted average common shares:
Basic		29,978,485			30,018,637			30,075,424		30,227,725
Diluted		29,978,485			30,728,383			30,893,026		30,889,487

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Net realized investment and other gains before    other-than-temporary impairment losses	$	6.2		$	20.1		$	26.8		$	21.8
Other-than-temporary impairment losses recognized in    earnings:
Other-than-temporary impairment losses on fixed    maturities		(0.1	)		(0.6	)		(0.1	)		(1.7	)
Other-than-temporary impairment losses on equity    securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Impairment losses recognized in earnings		(0.2	)		(2.4	)		(1.7	)		(9.0	)
Net realized investment and other gains	$	6.0		$	17.7		$	25.1		$	12.8

See accompanying notes.

4

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions)

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Net (loss) income	$	(61.3	)	$	55.2		$	21.4		$	113.8
Other comprehensive income:
Foreign currency translation adjustments		0.4			(1.0	)		(0.2	)		2.8
Unrealized gains on securities:
Gains arising during the year		38.5			19.8			100.1			97.7
Reclassification adjustment for gains included in    net income		(17.4	)		(17.0	)		(36.3	)		(25.1	)
Other comprehensive income before tax		21.5			1.8			63.6			75.4
Income tax provision related to other comprehensive    income:
Unrealized gains on securities:
Gains arising during the year		10.1			7.6			26.0			27.5
Reclassification adjustment for gains included in    net income		(5.5	)		(7.9	)		(11.7	)		(11.8	)
Income tax provision (benefit) related to other    comprehensive income		4.6			(0.3	)		14.3			15.7
Other comprehensive income, net of tax		16.9			2.1			49.3			59.7
Comprehensive (loss) income	$	(44.4	)	$	57.3		$	70.7		$	173.5

See accompanying notes.

5

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

	For the Nine Months Ended September 30,
	2017			2016
Cash flows from operating activities:
Net income	$	21.4		$	113.8
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Amortization and depreciation		24.4			27.4
Share-based payments expense		11.2			11.1
Deferred income tax (benefit) provision, net		(6.4	)		2.3
Net realized investment and other gains		(25.1	)		(12.8	)
Undistributed earnings from alternative investment portfolio		(38.6	)		(20.8	)
Loss on disposals of fixed assets, net		1.4			0.2
Change in:
Accrued investment income		(2.7	)		(0.3	)
Receivables		(690.9	)		(255.5	)
Deferred acquisition costs		(19.7	)		(14.9	)
Ceded unearned premiums		(65.8	)		(59.8	)
Reserves for losses and loss adjustment expenses		756.5			154.2
Unearned premiums		162.5			120.3
Ceded reinsurance payable and funds held		179.7			128.3
Income taxes		3.5			19.7
Accrued underwriting expenses		(42.5	)		(27.4	)
Other, net		(16.5	)		(35.0	)
Cash provided by operating activities		252.4			150.8
Cash flows from investing activities:
Sales of fixed maturity investments		1,069.7			761.8
Maturities and mandatory calls of fixed maturity investments		493.2			839.0
Sales of equity securities		140.0			155.3
Sales of other investments		68.3			92.1
Purchases of fixed maturity investments		(1,916.9	)		(1,650.7	)
Purchases of equity securities		(118.1	)		(114.7	)
Purchases of other investments		(25.2	)		(90.3	)
Change in foreign regulatory deposits and voluntary pools		(27.2	)		4.8
Change in short-term investments		291.4			(78.7	)
Settlements of foreign currency exchange forward contracts		—			(7.2	)
Acquisition of subsidiaries, net of cash acquired		(105.2	)		—
Purchases of fixed assets		(20.4	)		(26.7	)
Other, net		(15.6	)		31.9
Cash used in investing activities		(166.0	)		(83.4	)
Cash flows from financing activities:
Additional long-term borrowings		125.0			—
Activity under stock incentive plans		0.9			0.6
Repurchase of Company's common shares		(36.6	)		(45.3	)
Payment of cash dividends to common shareholders		(24.9	)		(19.8	)
Cash provided by (used in) financing activities		64.4			(64.5	)
Effect of exchange rate changes on cash		(1.0	)		(1.0	)
Change in cash		149.8			1.9
Cash, beginning of year		86.0			121.7
Cash, end of period	$	235.8		$	123.6

See accompanying notes.

6

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on February 24, 2017.

Effective February 6, 2017, we completed the acquisition of Maybrooke Holdings, S.A. (“Maybrooke”) and its direct subsidiaries, including Ariel Re. We have accounted for the acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations,” and the purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. See Note 3, “Acquisition of Maybrooke,” for additional discussion regarding the acquisition and the related financial disclosures. The Consolidated Financial Statements as of and for the three and nine months ended September 30, 2017 and the Notes to the Consolidated Financial Statements reflect the consolidated results of Argo Group and Maybrooke commencing on the date of acquisition.

The interim financial information as of and for the three and nine months ended September 30, 2017 and 2016 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.

During the first quarter of 2017, we evaluated and modified the presentation of our reportable segments to better reflect our new operating framework and management structure. Under this model, Argo Group’s chief operating decision maker – Mark E. Watson III, President and Chief Executive Officer – evaluates performance and allocates resources based on the review of the U.S. Operations and the International Operations. The U.S. Operations includes the former Excess & Surplus and Commercial Specialty reportable segments. The International Operations includes the former Syndicate 1200, International Specialty reportable segments, and the recently acquired Ariel Re business. (See Note 3, “Acquisition of Maybrooke” for details regarding Ariel Re.) The business unit that produces the risk and not the location of the underlying exposure is the primary characteristic in distinguishing operating and reportable segments. For example, a U.S. property exposure underwritten through our Syndicate platform would be included in International Operations. Consistent with prior periods, the Run-off Lines and Corporate segments include all other activity of Argo Group and are included in our consolidated financial results. Segment results for the three and nine months ended September 30, 2016 have been reclassified to conform to the current presentation.

2. Recently Issued Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation – Stock Compensation” (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires entities to apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. In addition to all the disclosures about modifications that are required today, the entities are required to affirmatively disclose when compensation expense has not changed. The ASU will be applied prospectively and is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including in any interim period for which financial statements have not been issued or made available for issuance. We are currently evaluating the impact that the adoption of the ASU will have on our financial results and disclosures.

7

In January 2017, the FASB issued ASU 2017-01, “Business Combinations” (Topic 805). ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance specifies the minimum inputs and processes required to meet the definition of a business. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those periods, with early adoption permitted. We do not anticipate that this ASU will have a material impact on our financial results or disclosures.

In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other” (Topic 350). ASU 2017-04 eliminates the requirement to calculate the implied fair value of goodwill that is done in Step 2 of the current goodwill impairment test to measure a goodwill impairment loss. Instead, entities will record an impairment loss based on the excess of a reporting unit’s carrying amount over its fair value. The guidance will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. We do not anticipate that this ASU will have a material impact on our financial results or disclosures.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230). ASU 2016-15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those years. This ASU will have an impact on how we present the distributions received from equity method investees in our statement of cash flows. We have elected to adopt the cumulative earnings approach to classify distributions received from equity method investees, which we will adopt retrospectively. We anticipate that this ASU will have no net effect on our consolidated statements of cash flows, but will likely have an immaterial impact on the classification of specific cash receipts and payments within the statement.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of the ASU will have on our financial results and disclosures, but do not anticipate that any such potential impact would be material.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (Topic 718). ASU 2016-09 simplifies the accounting for share-based payment award transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We have adopted this ASU as of January 1, 2017, and for presentation purposes, the incremental tax windfall or shortfall associated with these events has been classified as a cash inflow from operating activity as compared with a financing activity, as previously required. The impact to our financial statements was not material. Additionally, we have selected to continue estimating forfeitures based on historical patterns and will true-up the expenses upon vesting.

In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, the ASU modifies current guidance for lessors' accounting. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We do not anticipate that this ASU will have a material impact on our results of operations, but we anticipate an increase to the value of our assets and liabilities related to leases, with no material impact to equity.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-01 will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU will also require us to assess the ability to realize our deferred tax assets related to an available-for-sale debt security in combination with our other deferred tax assets. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. While we continue to evaluate the impact of this ASU, we anticipate the standard will increase the volatility of our consolidated statements of income, resulting from the remeasurement of our equity investments.

8

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606), which replaces most existing GAAP revenue recognition guidance and permits the use of either the retrospective or cumulative effect transition method. In August 2015, “Deferral of the Effective Date” (Topic 606), deferred the effective date of this guidance to interim and annual reporting periods beginning after December 15, 2017. Subsequently, in 2016, the FASB issued implementation guidance related to ASU 2014-09, including:

• ASU 2016-08, “Principal versus Agent considerations (Reporting Revenue Gross versus Net)” (Topic 606), which is intended to provide further clarification on the application of the principal versus agent implementations;

• ASU 2016-10, “Identifying Performance Obligations and Licensing” (Topic 606), which is intended to clarify the guidance for identifying promised goods or service in a contract with a customer;

• ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” (Topics 605 & 815);

• ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” (Topic 606), provides additional guidance for quantitative and qualitative disclosures in certain cases, and makes 12 additional technical corrections and improvements to the new revenue standard.

While insurance contracts are excluded from this ASU, fee income related to our brokerage operations and management of the third-party capital for our underwriting Syndicate 1200 at Lloyd’s will be subject to this updated guidance. We continue to evaluate what impact this ASU will have on our financial results and disclosures and which adoption method to apply, but do not anticipate such impact being material based on the limited revenue streams subject to the ASU.

3. Acquisition of Maybrooke

Effective February 6, 2017, we completed the acquisition of Maybrooke whereby we acquired all of the issued and outstanding capital stock of Maybrooke. The initial purchase price of $235.3 million was paid in cash from funds on hand and available under our credit facility (see Note 7, “Other Indebtedness”). The initial purchase price was subject to post-closing adjustments based on a final calculation of the purchase price, which we delivered to the seller, as required, within 90 days of closing. As of the date of this filing, we are in discussions with the seller to finalize and agree upon certain changes included in the final purchase price calculation. We anticipate resolving this matter by the end of 2017 and do not expect any material adjustments to the purchase price disclosed below.

Through the acquisition of Maybrooke, we acquired Ariel Re, a global underwriter of specialty insurance and reinsurance business written primarily through its Lloyd’s Syndicate 1910. Ariel Re provides Argo Group with a number of strategic advantages, including enhanced scale in its London- and Bermuda-based platforms.

9

The acquisition is being accounted for in accordance with ASC 805, “Business Combinations.” Purchase accounting, as defined by ASC 805, requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We are in the process of finalizing our determination of fair values, including an independent appraisal of certain assets and liabilities, including intangible assets. Therefore, a preliminary allocation of the purchase price to the acquired assets, liabilities, and intangible assets is presented in the table below:

(in millions)
Assets:
Investments	$	340.7
Cash		130.1
Accrued investment income		0.2
Premiums receivable		157.6
Reinsurance recoverables		80.2
Current income taxes receivable		0.6
Deferred acquisition costs, net		9.8
Ceded unearned premiums		92.6
Other assets		24.9
Total assets		836.7
Liabilities:
Reserves for losses and loss adjustment expenses		197.0
Unearned premiums		152.5
Accrued underwriting expenses		28.8
Ceded reinsurance payable, net		144.2
Junior subordinated debentures		83.6
Deferred tax liabilities		9.0
Other liabilities		30.7
Total liabilities		645.8
Net assets acquired		190.9
Initial purchase price		235.3
Intangible assets	$	44.4

During the second quarter of 2017, we engaged an independent valuation firm and anticipate completing our valuation analysis and closing the fair value measurement period by the end of 2017. The excess of the purchase price over the fair value of the net assets acquired has been preliminarily allocated to intangible assets, which will be specifically identified and quantified by the end of 2017. We did not record amortization expense related to the $44.4 million intangible assets during the nine months ended September 30, 2017, as the valuation analysis has not yet been completed. We anticipate recording both amortizable and non-amortizable identifiable intangible assets and goodwill upon the completion of the valuation analyses, including intangible assets relating to the Lloyd’s Syndicate 1910 stamp capacity (non-amortizable), distribution networks (amortizable), and the Ariel Re tradename (amortizable). Goodwill is calculated as the excess of the purchase price over the fair value of the net assets recognized, including identifiable intangible assets.

We recognized approximately $2.5 million of acquisition-related transaction costs in our Consolidated Statements of Income, all of which were recorded during the first quarter of 2017. Of these amounts, $2.2 million were reported in “Underwriting, acquisition and insurance expenses” and $0.3 million in “Interest expense” related to the borrowings under our credit facility to help fund the acquisition. No additional transaction costs were incurred during the three months ended September 30, 2017.

Maybrooke’s Contribution to Argo Group’s Revenue and (Loss) Income

The following selected financial information summarizes the results of Maybrooke from the date of acquisition that have been included in our Consolidated Statement of (Loss) Income:

(in millions)	For the Three Months Ended September 30, 2017			For the Nine Months Ended September 30, 2017
Revenues	$	27.5		$	93.7
Net loss	$	(26.7	)	$	(13.7	)

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Unaudited Pro forma Results of Operations

The following unaudited pro forma financial information has been provided to present a summary of the combined results of Argo Group’s operations with Maybrooke’s as if the acquisition had occurred on January 1, 2016. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above, as it may not include all necessary adjustments. Future changes to Maybrooke’s business, such as, but not limited to, the impact from underwriting decisions, changes in risk selection, or retention rates, could result in a material favorable or unfavorable impact on Argo Group’s future results of operations and financial position. The unaudited pro forma results for nine months ended September 30, 2017 include favorable development from prior accident years of $10.5 million, including $6.2 million relating to one specific claim in January 2017. In addition, the $2.5 million of nonrecurring transaction costs directly attributable to the acquisition for nine months ended September 30, 2017, as disclosed above, have also been removed from the unaudited pro forma results in the table below.

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except per share data)	2017			2016		2017		2016
Pro forma revenues	$	439.2		$	466.0	$	1,332.4	$	1,340.5
Pro forma net (loss) income		(63.4	)		56.2		29.8		132.9
Pro forma net (loss) income per share - basic		(2.11	)		1.87		0.99		4.40
Pro forma net (loss) income per share - diluted		(2.11	)		1.83		0.96		4.30

4. Investments

Composition of Invested Assets

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments were as follows:

September 30, 2017
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	342.7	$	0.5	$	3.2	$	340.0
Foreign Governments		231.9		7.9		3.5		236.3
Obligations of states and political subdivisions		324.1		11.9		0.8		335.2
Corporate bonds		1,612.7		29.0		9.9		1,631.8
Commercial mortgage-backed securities		147.4		0.4		1.1		146.7
Residential mortgage-backed securities		271.7		3.4		1.6		273.5
Asset-backed securities		156.4		0.7		0.6		156.5
Collateralized loan obligations		252.8		6.6		1.0		258.4
Total fixed maturities		3,339.7		60.4		21.7		3,378.4
Equity securities		347.6		138.2		5.3		480.5
Other investments		553.1		9.5		—		562.6
Short-term investments		386.0		—		—		386.0
Total investments	$	4,626.4	$	208.1	$	27.0	$	4,807.5

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December 31, 2016
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	275.1	$	0.6	$	4.5	$	271.2
Foreign Governments		244.2		1.1		8.0		237.3
Obligations of states and political subdivisions		375.7		8.9		1.8		382.8
Corporate bonds		1,316.9		23.3		19.5		1,320.7
Commercial mortgage-backed securities		154.9		0.4		1.6		153.7
Residential mortgage-backed securities		174.8		3.7		1.7		176.8
Asset-backed securities		127.6		0.1		2.1		125.6
Collateralized loan obligations		269.6		3.8		9.1		264.3
Total fixed maturities		2,938.8		41.9		48.3		2,932.4
Equity securities		335.2		117.9		5.7		447.4
Other investments		531.6		7.5		0.1		539.0
Short-term investments		405.5		—		—		405.5
Total investments	$	4,211.1	$	167.3	$	54.1	$	4,324.3

Included in “Total investments” in our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 is $154.8 million and $131.9 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of Syndicate 1200.

Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of September 30, 2017, by contractual maturity, were as follows:

(in millions)	Amortized Cost		Fair Value
Due in one year or less		231.9		230.3
Due after one year through five years		1,515.6		1,533.6
Due after five years through ten years		594.1		604.6
Thereafter		169.8		174.8
Structured securities		828.3		835.1
Total	$	3,339.7	$	3,378.4

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations.

Other Invested Assets

Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of September 30, 2017 and December 31, 2016 were as follows:

September 30, 2017
(in millions)	Carrying Value			Unfunded Commitments
Investment Type
Hedge funds	$	180.1		$	—
Private equity		167.7			117.9
Long only funds		215.7			—
Other investments		(0.9	)		—
Total other invested assets	$	562.6		$	117.9

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December 31, 2016
(in millions)	Carrying Value		Unfunded Commitments
Investment Type
Hedge funds	$	180.9	$	—
Private equity		179.0		93.4
Long only funds		170.7		—
Other investments		8.4		—
Total other invested assets	$	539.0	$	93.4

The following describes each investment type:

• Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including short sales, multi-strategy credit, relative value credit and distressed credit.

• Private equity: Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting.

• Long only funds: Our long only funds include a fund that primarily owns international stocks and funds that primarily own investment-grade corporate and sovereign fixed income securities.  

• Other investments: Other investments include participation in investment pools, foreign exchange currency forward contracts to manage our foreign currency exposure and a portfolio of foreign exchange currency forward contracts that are actively traded by an external currency manager for a total return strategy.

Unrealized Losses and Other-Than-Temporary Impairments

An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below:

September 30, 2017	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	279.2	$	2.7	$	17.6	$	0.5	$	296.8	$	3.2
Foreign Governments		194.8		3.4		6.2		0.1		201.0		3.5
Obligations of states and political subdivisions		25.7		0.3		15.0		0.5		40.7		0.8
Corporate bonds		426.9		8.2		72.5		1.7		499.4		9.9
Commercial mortgage-backed securities		73.6		0.4		26.8		0.7		100.4		1.1
Residential mortgage-backed securities		137.9		1.3		17.9		0.3		155.8		1.6
Asset-backed securities		69.4		0.3		9.3		0.3		78.7		0.6
Collateralized loan obligations (2)		61.0		1.0		2.3		—		63.3		1.0
Total fixed maturities		1,268.5		17.6		167.6		4.1		1,436.1		21.7
Equity securities		55.2		5.3		—		—		55.2		5.3
Other investments (1)		0.3		—		—		—		0.3		—
Short-term investments (1)		46.4		—		—		—		46.4		—
Total	$	1,370.4	$	22.9	$	167.6	$	4.1	$	1,538.0	$	27.0

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December 31, 2016	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	183.4	$	4.5	$	—	$	—	$	183.4	$	4.5
Foreign Governments		201.2		8.0		—		—		201.2		8.0
Obligations of states and political subdivisions		72.6		1.7		1.8		0.1		74.4		1.8
Corporate bonds		490.5		17.7		50.6		1.8		541.1		19.5
Commercial mortgage-backed securities		70.6		1.5		7.1		0.1		77.7		1.6
Residential mortgage-backed securities (2)		87.5		1.7		4.4		—		91.9		1.7
Asset-backed securities		69.7		1.4		8.2		0.7		77.9		2.1
Collateralized loan obligations		122.5		8.6		16.9		0.5		139.4		9.1
Total fixed maturities		1,298.0		45.1		89.0		3.2		1,387.0		48.3
Equity securities		62.1		5.7		—		—		62.1		5.7
Other investments		0.3		0.1		—		—		0.3		0.1
Short-term investments (1)		4.8		—		—		—		4.8		—
Total	$	1,365.2	$	50.9	$	89.0	$	3.2	$	1,454.2	$	54.1

⁽¹⁾ Unrealized losses less than one year are less than $0.1 million.

⁽²⁾ Unrealized losses one year or greater are less than $0.1 million.

We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. For equity securities and other investments, the length of time and the amount of decline in fair value are the principal factors in determining other-than-temporary impairment. We also recognize other-than-temporary losses on fixed maturity securities that we intend to sell.

We hold a total of 8,410 securities, of which 1,949 were in an unrealized loss position for less than one year and 182 were in an unrealized loss position for a period one year or greater as of September 30, 2017. Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral, as well. In considering whether an investment is other-than-temporarily impaired or not, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. In situations where we did not recognize other-than-temporary losses on investments in our equity portfolio, we have evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment and based on that evaluation, have the ability and intent to hold these investments until a recovery of the cost basis. We do not consider these investments to be other-than-temporarily impaired at September 30, 2017.

We recognized other-than-temporary losses on our fixed maturities and equity portfolio as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Other-than-temporary impairment:
Corporate bonds	$	(0.1	)	$	(0.6	)	$	(0.1	)	$	(1.7	)
Equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Other-than-temporary impairment losses	$	(0.2	)	$	(2.4	)	$	(1.7	)	$	(9.0	)

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Realized Gains and Losses

The following table presents our gross realized investment and other gains (losses):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Fixed maturities	$	6.3		$	5.4		$	18.9		$	16.4
Equity securities		9.4			20.8			37.1			45.4
Other investments		7.0			4.2			17.8			31.2
Short-term investments		0.2			—			0.7			0.4
Other assets		—			1.2			—			1.2
Gross realized investment and other gains		22.9			31.6			74.5			94.6
Realized losses
Fixed maturities		(4.8	)		(6.1	)		(16.0	)		(21.0	)
Equity securities		(1.4	)		(1.9	)		(3.9	)		(9.0	)
Other investments		(10.5	)		(3.5	)		(27.7	)		(42.7	)
Short-term investments		—			—			(0.1	)		(0.1	)
Other-than-temporary impairment losses on    fixed maturities		(0.1	)		(0.6	)		(0.1	)		(1.7	)
Other-than-temporary impairment losses on    equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Gross realized investment and other losses		(16.9	)		(13.9	)		(49.4	)		(81.8	)
Net realized investment and other gains (losses)    before income taxes		6.0			17.7			25.1			12.8
Income tax expense		(2.2	)		(6.5	)		(7.9	)		(7.7	)
Net realized investment and other gains (losses),    net of income taxes	$	3.8		$	11.2		$	17.2		$	5.1

The cost of securities sold is based on the specific identification method.

Changes in unrealized appreciation (depreciation) related to investments are summarized as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Change in unrealized gains (losses)
Fixed maturities	$	9.5		$	13.7		$	41.6		$	78.5
Equity securities		11.7			(10.8	)		20.2			(6.8	)
Other investments		(0.1	)		—			2.0			0.6
Short-term investments		—			(0.1	)		—			0.3
Net unrealized investment and other gains before    income taxes		21.1			2.8			63.8			72.6
Income tax provision		(4.6	)		0.3			(14.3	)		(15.7	)
Net unrealized investment and other gains, net of    income taxes	$	16.5		$	3.1		$	49.5		$	56.9

Foreign Currency Exchange Forward Contracts

We entered into foreign currency exchange forward contracts to manage currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to our investment portfolio returns, manage currency exposure on certain Euro (“EUR”) denominated investments and gain exposure to a total return strategy which invests in multiple currencies.These currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments”. The realized and unrealized gains and losses are included in “Net realized investment and other (losses) gains” in our Consolidated Statements of (Loss) Income.

15

The fair value of our foreign currency exchange forward contracts as of September 30, 2017 and December 31, 2016 was as follows:

(in millions)	September 30, 2017			December 31, 2016
Operational currency exposure	$	(1.6	)	$	—
Asset manager investment exposure		(3.0	)		0.7
Total return strategy		(0.8	)		3.3
	$	(5.4	)	$	4.0

The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Operational currency exposure	$	1.8		$	1.3		$	7.5		$	8.7
Asset manager investment exposure		0.6			—			1.1			2.3
Total return strategy		4.1			2.2			7.7			18.4
Gross realized investment gains		6.5			3.5			16.3			29.4
Realized losses
Operational currency exposure		(4.2	)		(0.8	)		(10.1	)		(16.3	)
Asset manager investment exposure		(3.6	)		(0.8	)		(10.4	)		(4.5	)
Total return strategy		(3.5	)		(1.6	)		(6.2	)		(20.1	)
Gross realized investment losses		(11.3	)		(3.2	)		(26.7	)		(40.9	)
Net realized investment (losses) gains on foreign    currency exchange forward contracts	$	(4.8	)	$	0.3		$	(10.4	)	$	(11.5	)

Regulatory Deposits, Pledged Securities and Letters of Credit

(in millions)	September 30, 2017		December 31, 2016
Securities on deposit for regulatory and other purposes	$	177.8	$	168.7
Securities pledged as collateral for letters of credit		42.6		35.9
Securities and cash on deposit supporting Lloyd’s business		405.6		161.8
Total restricted investments	$	626.0	$	366.4

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability.

Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels.

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs.

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs.

• Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

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We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of September 30, 2017. A description of the valuation techniques we use to measure assets at fair value is as follows:

Fixed Maturities (Available-for-Sale) Levels 1 and 2:

• United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date.

• United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things.

• Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Fixed Maturities (Available-for-Sale) Levels 3:

• We own a term loan that is valued using unobservable inputs.

Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date.

Equity Securities Level 2: We own interests in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the fund’s net asset value per share, at the end of each month. The underlying assets in the fund are valued primarily on the basis of closing market quotations or official closing prices on each valuation day.

Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following:

• Fair value measurements are obtained from the National Association of Insurance Commissioners’ Security Valuation Office at the reporting date.

• Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions.

Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s. Foreign currency future contracts are valued by our counterparty using market driven foreign currency exchange rates and are considered Level 2 investments.

Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date.

Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three and nine months ended September 30, 2017.

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Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:

			FairValue Measurements at Reporting Date Using
(in millions)	September 30, 2017		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	340.0	$	335.3	$	4.7	$	—
Foreign Governments		236.3		—		236.3		—
Obligations of states and political subdivisions		335.2		—		335.2		—
Corporate bonds		1,631.8		—		1,629.9		1.9
Commercial mortgage-backed securities		146.7		—		146.7		—
Residential mortgage-backed securities		273.5		—		273.5		—
Asset-backed securities		156.5		—		156.5		—
Collateralized loan obligations		258.4		—		258.4		—
Total fixed maturities		3,378.4		335.3		3,041.2		1.9
Equity securities		480.5		476.6		3.5		0.4
Other investments		124.1		—		124.1		—
Short-term investments		386.0		347.6		38.4		—
	$	4,369.0	$	1,159.5	$	3,207.2	$	2.3

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

			Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2016		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	271.2	$	228.0	$	43.2	$	—
Foreign Governments		237.3		—		237.3		—
Obligations of states and political subdivisions		382.8		—		382.8		—
Corporate bonds		1,320.7		—		1,318.7		2.0
Commercial mortgage-backed securities		153.7		—		153.7		—
Residential mortgage-backed securities		176.8		—		176.8		—
Asset-backed securities		125.6		—		125.6		—
Collateralized loan obligations		264.3		—		264.3		—
Total fixed maturities		2,932.4		228.0		2,702.4		2.0
Equity securities		447.4		444.9		2.1		0.4
Other investments		95.5		—		95.5		—
Short-term investments		405.5		375.1		30.4		—
	$	3,880.8	$	1,048.0	$	2,830.4	$	2.4

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting.

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A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Observable Inputs (Level 3)

(in millions)	Corporate Bonds			Equity Securities		Total
Beginning balance, January 1, 2017	$	2.0		$	0.4	$	2.4
Transfers into Level 3		—			—		—
Transfers out of Level 3		—			—		—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—			—		—
Included in other comprehensive income (loss)		(0.1	)		—		(0.1	)
Purchases, issuances, sales, and settlements:
Purchases		—			—		—
Issuances		—			—		—
Sales		—			—		—
Settlements		—			—		—
Ending balance, September 30, 2017	$	1.9		$	0.4	$	2.3
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at September 30, 2017	$	—		$	—	$	—

(in millions)	Corporate Bonds		Equity Securities			Total
Beginning balance, January 1, 2016	$	—	$	0.7		$	0.7
Transfers into Level 3		—		—			—
Transfers out of Level 3		—		—			—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—		—			—
Included in other comprehensive income (loss)		—		—			—
Purchases, issuances, sales, and settlements:
Purchases		2.0		—			2.0
Issuances		—		—			—
Sales		—		(0.3	)		(0.3	)
Settlements		—		—			—
Ending balance, December 31, 2016	$	2.0	$	0.4		$	2.4
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at December 31, 2016	$	—	$	—		$	—

At September 30, 2017 and December 31, 2016, we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis.

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5. Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

	For the Nine Months Ended September 30,
(in millions)	2017			2016
Net reserves beginning of the year	$	2,180.2		$	2,133.3
Net Maybrooke reserves acquired		131.8			—
Add:
Losses and LAE incurred during current calendar    year, net of reinsurance:
Current accident year		775.1			614.8
Prior accident years		4.4			(18.8	)
Losses and LAE incurred during calendar year,    net of reinsurance		779.5			596.0
Deduct:
Losses and LAE payments made during current    calendar year, net of reinsurance:
Current accident year		165.6			115.3
Prior accident years		413.7			403.9
Losses and LAE payments made during current    calendar year, net of reinsurance:		579.3			519.2
Change in participation interest (1)		(23.2	)		(36.3	)
Foreign exchange adjustments		18.9			1.0
Net reserves - end of period		2,507.9			2,174.8
Add:
Reinsurance recoverables on unpaid losses and    LAE, end of year		1,798.0			1,110.0
Gross reserves - end of period	$	4,305.9		$	3,284.8

⁽¹⁾ Amount represents decreases in reserves due to change in syndicate participation

Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.

The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:

	For the Nine Months Ended September 30,
(in millions)	2017			2016
U.S. Operations	$	(28.7	)	$	(25.6	)
International Operations		17.0			(10.8	)
Run-off Lines		16.1			17.6
Total unfavorable (favorable) prior-year development	$	4.4		$	(18.8	)

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The following describes the primary factors behind each segment’s prior accident year reserve development for nine months ended September 30, 2017, and 2016:

Nine months ended September 30, 2017:

• U.S. Operations: Favorable development for the workers compensation, surety and commercial automobile lines.

• International Operations: Unfavorable development in the property and liability lines, primarily due to the first quarter 2017 Ogden rate change and claims from Hurricane Matthew.  

• Run-off Lines:Unfavorable development in asbestos and other run-off segments partially offset by favorable development in risk management liability.

Nine months ended September 30, 2016:

• U.S. Operations: Favorable development within the commercial automobile, surety, workers compensation and property lines.

• International Operations: Favorable development within the property lines and our Brazil unit.

• Run-off Lines: Unfavorable development in asbestos and risk management liability.

In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

6. Junior Subordinated Debentures

Trust Preferred Debentures

Through a series of trusts, that are wholly-owned subsidiaries (non-consolidated), we issued debt. The debentures are variable with the rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The debentures are all unsecured and are subordinated to other indebtedness. At September 30, 2017 and December 31, 2016, all debentures were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest.

A summary of our outstanding junior subordinated debentures is presented below:

(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.42%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		5.24%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.42%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		5.40%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		5.17%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		5.17%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		5.12%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.87%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.72%		30.9
	Total Outstanding					$	172.7

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(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.00%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		4.90%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.00%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		4.98%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		4.76%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		4.77%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		4.79%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.55%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.36%		30.9
	Total Outstanding					$	172.7

Maybrooke Junior Subordinated Debentures

Unsecured junior subordinated debentures with a principal balance of $91.8 million were assumed through the acquisition of Maybrooke (“the Maybrooke debt”). The Maybrooke debt is carried on our consolidated balance sheet at $83.8 million, which represents our initial estimate of the debt’s fair value at the date of acquisition plus accumulated accretion of discount to par value, as required by accounting for business combinations under ASC 805 (see Note 3, “Acquisition of Maybrooke”). This fair value is subject to change based on finalizing the valuation of Maybrooke’s opening balance sheet by the end of 2017. At September 30, 2017, the Maybrooke debt was eligible for redemption at par. Interest accrues on the Maybrooke debt based on a variable rate, which is reset quarterly. Interest payments are payable quarterly. A summary of the terms of the Maybrooke debt outstanding at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Principal at September 30, 2017		Carrying Value at September 30, 2017
9/15/2007	9/15/2037	3 month LIBOR + 3.15%		4.47%	$	91.8	$	83.8

7. Other Indebtedness

Our Consolidated Balance Sheets includes various long-term debt instruments under the caption “Other indebtedness,” as detailed in the table below. Information regarding the terms and principal amounts of each of these debt instruments is also provided.

(in millions)
Debt Type	September 30, 2017		December 31, 2016
Floating rate loan stock	$	59.1	$	54.8
Term loan		125.0		—
Other debt		0.6		0.6
Total other indebtedness	$	184.7	$	55.4

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Floating Rate Loan Stock

This debt was assumed through the acquisition of Lloyd’s Syndicate 1200. These notes are unsecured. At September 30, 2017 and December 31, 2016, all notes were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest. Interest on the U.S. Dollar and Euro notes is due semiannually and quarterly, respectively. A summary of the notes outstanding at September 30, 2017 and December 31, 2016 is presented below:

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.66%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.67%		14.2
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		5.46%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.67%		12.4
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.57%		16.0
						$	59.1

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.18%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.70%		12.8
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		4.98%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.70%		11.2
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.58%		14.3
						$	54.8

No principal payments have been made since the acquisition of Lloyd’s Syndicate 1200. The floating rate loan stock denominated in Euros fluctuates due to foreign currency translation. The outstanding balance on these loans was $42.6 million and $38.3 million as of September 30, 2017 and December 31, 2016, respectively. The foreign currency translation adjustment is recorded in our Consolidated Statements of (Loss) Income.

Borrowing Under Credit Facility

On March 3, 2017, each of Argo Group, Argo Group US, Inc., Argo International Holdings Limited and Argo Underwriting Agency Limited (the “Borrowers”) entered into a $325.0 million Credit Agreement (“New Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The New Credit Agreement replaced and terminated the previous $175.0 million Credit Agreement (“Prior Agreement”).

The New Credit Agreement provides for a $200.0 million revolving credit facility with a maturity date of March 3, 2022 unless extended in accordance with the terms of the New Credit Agreement. In addition, the New Credit Agreement includes a $125.0 million term loan borrowing, which Argo Group used to pay off in its entirety the $125.0 million borrowing drawn on January 31, 2017 under the Prior Agreement to help fund the acquisition of Maybrooke. Interest accrues based on a variable rate, which resets and is payable based on reset options selected by Argo Group pursuant to the terms of the New Credit Agreement. A summary of the terms of the outstanding balance at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
3/3/2017	3/3/2019	2 month LIBOR + 1.5%		2.80%	$	125.0

Borrowings under the New Credit Agreement may be used for general corporate purposes, including working capital, permitted acquisitions and letters of credit, and each of the Borrowers has agreed to be jointly and severally liable for the obligations of the other Borrowers under the New Credit Agreement.

The New Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Borrowers could be required immediately to repay all amounts outstanding under the New Credit Agreement. Lenders holding at least a majority of the loans and commitments under the New Credit Agreement could elect to accelerate the maturity of the loans and/or terminate the commitments under the New Credit Agreement upon the occurrence and during the continuation of an event of default.

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Included in the New Credit Agreement is a provision that allows up to $200.0 million of the revolving credit facility to be used for LOCs, subject to availability. On March 3, 2017, the $0.2 million LOC outstanding under the Prior Credit Agreement was transferred to the New Credit Agreement. At September 30, 2017 and December 31, 2016, there were no borrowings outstanding under the revolving portions of the credit facilities. At September 30, 2017 and December 31, 2016, there were $0.5 million and $0.2 million, respectively in LOCs against the New and Prior Credit Agreement, respectively.

Other Debt

As part of the ARIS Title Insurance Corporation (“ARIS”) acquisition, at September 30, 2017 and December 31, 2016, we had a note payable for $0.6 million. The note had a variable interest rate of 2.00% above 30-day LIBOR, with the variable interest rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The note payable matures on April 1, 2019.

8. Disclosures about Fair Value of Financial Instruments

Cash. The carrying amount approximates fair value.

Investment securities and short-term investments. See Note 4, “Investments,” for additional information.

Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables approximates fair value. At September 30, 2017 and December 31, 2016, the carrying values of premiums receivable over 90 days were $20.5 million and $14.3 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016, are amounts that are due from trade capital providers associated with the operations of Syndicate 1200. Upon settlement, the receivable is offset against the liability which is included in “Ceded reinsurance payable, net” in our accompanying Consolidated Balance Sheets. At September 30, 2017 and December 31, 2016, the payable was in excess of the receivable. Of our reinsurance recoverables on paid losses, excluding amounts attributable to Syndicate 1200’s trade capital providers, at September 30, 2017 and December 31, 2016, the carrying values over 90 days were $13.2 million and $11.2 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At September 30, 2017 and December 31, 2016, the allowance for doubtful accounts for premiums receivable was $3.0 million and $2.7 million, respectively, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $2.1 million. At September 30, 2017, the amount of premiums receivable over 90 days secured by collateral was negligible. At December 31, 2016, premiums receivable over 90 days were secured by collateral in the amount of $0.1 million. Reinsurance recoverables on paid losses over 90 days were secured by collateral in the amount of $0.6 million at September 30, 2017 and December 31, 2016.

Debt. At September 30, 2017 and December 31, 2016, the fair value of our junior subordinated debentures, senior unsecured fixed rate notes and other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions.

A summary of our financial instruments whose carrying value did not equal fair value is shown below:

	September 30, 2017				December 31, 2016
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures
Trust preferred debentures	$	172.7	$	168.6	$	172.7	$	162.4
Maybrooke subordinated debenture		83.8		86.3		—		—
Senior unsecured fixed rate notes		139.6		139.4		139.5		139.3
Floating rate loan stock		59.1		57.7		54.8		51.5

9. Shareholders’ Equity

On August 8, 2017 our Board of Directors declared a quarterly cash dividend in the amount of $0.27 on each share of common stock outstanding. On September 15, 2017, we paid $8.3 million to our shareholders of record on September 1, 2017.

On August 2, 2016 our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. On August 29, 2016, we paid $6.7 million to our shareholders of record on August 15, 2016.

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On May 3, 2016, our Board of Directors declared a 10% stock dividend, payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. As a result of the stock dividend, 2,735,542 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

On May 3, 2016, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all the previous Repurchase Authorizations. As of September 30, 2017, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $93.7 million.   

For the nine months ended September 30, 2017, we repurchased a total of 612,034 common shares for $36.6 million. A summary of activity from January 1, 2017 through September 30, 2017 follows.

A summary of common shares repurchased for the nine months ended September 30, 2017 is shown below:

Repurchase Type	Date Trading Plan Initiated	2017 Purchase Period	Number of Shares Repurchased		Average Price of Shares Repurchased		Total Cost (in millions)		Repurchase Authorization Year
10b5-1 Trading Plan	6/14/2017	06/20/2017-08/10/2017		156,570	$	59.53	$	9.4	2016
10b5-1 Trading Plan	9/15/2017	09/18/2017-09/28/2017		33,488	$	60.85	$	2.0	2016
Open Market	N/A	08/11/2017-09/15/2017		421,976	$	59.75		25.2	2016
Total				612,034	$	59.75	$	36.6

10. Accumulated Other Comprehensive (Loss) Income

A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the nine months ended September 30, 2017, and 2016 is presented below:

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2017	$	(17.6	)	$	72.4		$	(7.1	)	$	47.7
Other comprehensive (loss) income before    reclassifications		(0.2	)		74.1			—			73.9
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(24.6	)		—			(24.6	)
Net current-period other comprehensive (loss)    income		(0.2	)		49.5			—			49.3
Balance at September 30, 2017	$	(17.8	)	$	121.9		$	(7.1	)	$	97.0

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2016	$	(21.6	)	$	40.0		$	(6.9	)	$	11.5
Other comprehensive (loss) income before    reclassifications		2.8			70.2			—			73.0
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(13.3	)		—			(13.3	)
Net current-period other comprehensive (loss)    income		2.8			56.9			—			59.7
Balance at September 30, 2016	$	(18.8	)	$	96.9		$	(6.9	)	$	71.2

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The following table illustrates the amounts reclassified from accumulated other comprehensive (loss) income shown in the above tables that have been included in our Consolidated Statements of (Loss) Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Unrealized gains on securities:
Net realized investment gains	$	(17.4	)	$	(17.0	)	$	(36.3	)	$	(25.1	)
Provision for income taxes (benefit)		5.5			7.9			11.7			11.8
Net of taxes	$	(11.9	)	$	(9.1	)	$	(24.6	)	$	(13.3	)

11. Net (Loss) Income Per Common Share

The following table presents the calculation of net (loss) income per common share on a basic and diluted basis:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except number of shares and per share amounts)	2017			2016		2017		2016
Net (loss) income	$	(61.3	)	$	55.2	$	21.4	$	113.8
Weighted average common shares    outstanding - basic		29,978,485			30,018,637		30,075,424		30,227,725
Effect of dilutive securities:
Equity compensation awards		—			709,746		817,602		661,762
Weighted average common shares    outstanding - diluted		29,978,485			30,728,383		30,893,026		30,889,487
Net (loss) income per common share:
Basic	$	(2.04	)	$	1.84	$	0.71	$	3.76
Diluted	$	(2.04	)	$	1.80	$	0.69	$	3.68

Excluded from the weighted average common shares outstanding calculation at September 30, 2017 and 2016 are 10,640,789 shares and 9,996,840 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three months ended September 30, 2017, 711,854 shares were not included in the calculation of diluted net loss per common share as their effect would have been anti-dilutive.

12. Supplemental Cash Flow Information

Income taxes paid. We paid income taxes of $10.1 million and $1.5 million during the nine months ended September 30, 2017, and 2016, respectively.

Income taxes recovered. We recovered income taxes of $2.4 million and $0.5 million during the nine months ended September 30, 2017, and 2016, respectively.

Interest paid was as follows:

	For the Nine Months Ended September 30,
(in millions)	2017		2016
Senior unsecured fixed rate notes	$	7.0	$	7.0
Junior subordinated debentures		9.4		5.7
Other indebtedness		3.0		2.0
Revolving credit facility		0.3		—
Total interest paid	$	19.7	$	14.7

13. Share-based Compensation

The fair value method of accounting is used for share-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The risk-free rate of return assumption is based on the

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five-year U.S. Treasury constant maturity rate on the measurement date. The expected dividend yield is based on our history and expected dividend payouts. The expected award life is based upon the average holding period over the history of the incentive plan. The expected volatility assumption is based on the historical change in our stock price over the previous five years preceding the measurement date.

The following table summarizes the assumptions we used for the nine months ended September 30, 2017, and 2016:

	For the Nine Months Ended September 30,
	2017			2016
Risk-free rate of return		1.85	%		1.12	%
Expected dividend yields		1.71	%		1.65	%
Expected award life (years)		4.48			4.50
Expected volatility		18.13	%		18.73	%

Argo Group’s Long-Term Incentive Plans

In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provides for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors, and other key employees. As of May 2014, 1.46 million shares remained available for grant under the 2007 Plan. In May 2014, our shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share unit awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the incentive plans; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan.

Share options may be in the form of incentive share options, non-qualified share options and restorative options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options. The term of the share options cannot exceed seven years from the grant date.

Restricted Shares

A summary of restricted share activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2017		702,030		$	42.69
Granted		239,997		$	62.91
Vested and issued		(154,706	)	$	41.65
Expired or forfeited		(34,970	)	$	48.80
Outstanding at September 30, 2017		752,351		$	49.07

The restricted shares vest over one to eight years. Expense recognized under this plan for the restricted shares was $2.5 million and $7.5 million for the three and nine months ended September 30, 2017, respectively, as compared to $1.7 million and $5.2 million for the three and nine months ended September 30, 2016, respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of (Loss) Income. As of September 30, 2017, there was $27.4 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group.

Stock-Settled SARs

In January 2016, we modified certain unvested cash-settled SARs, converting the awards into stock-settled SARs. We evaluated this modification under the terms of ASU 718 “Share Based Payments,” and determined that no additional expense resulted from the conversion. The expense for the stock-settled SARs will be amortized over the remaining vesting period.

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A summary of stock-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		1,982,695		$	34.80
Exercised		(396,355	)	$	31.52
Expired or forfeited		(105,024	)	$	40.62
Outstanding at September 30, 2017		1,481,316		$	35.26

The stock-settled SARs vest over a one to four-year period. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. Expense recognized for the stock-settled SARs was $0.7 million and $3.5 million for the three and nine months ended September 30, 2017, respectively, as compared to $1.0 million and $3.6 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017, there was $4.3 million of total unrecognized compensation cost related to stock-settled SARs outstanding.

Cash-Settled SARs

A summary of cash-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		500,486		$	32.08
Exercised		(235,663	)	$	32.37
Expired or forfeited		(14,628	)	$	23.74
Outstanding at September 30, 2017		250,195		$	32.30

As of September 30, 2017, all the cash-settled SARs are fully vested. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. Expense recognized for the cash-settle SARs was $0.3 million for the three months ended September 30, 2017. Due to a decrease in the fair market value of our stock, we recouped $0.6 million of expense for nine months ended September 30, 2017. Expense recognized for the cash-settle SARs was $2.6 million and $2.1 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017, there was no unrecognized compensation cost related to cash-settled SARs outstanding.

14. Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Commissions	$	70.8		$	59.3		$	201.2		$	178.5
General expenses		89.7			75.6			266.4			217.3
Premium taxes, boards and bureaus		11.8			6.1			25.9			19.0
		172.3			141.0			493.5			414.8
Net deferral of policy acquisition costs		(6.2	)		(3.6	)		(19.1	)		(11.8	)
Total underwriting, acquisition and insurance expenses	$	166.1		$	137.4		$	474.4		$	403.0

The $14.1 million and the $49.1 million increases in general expenses for the three and nine months ended September 30, 2017, respectively, as compared to the same periods in 2016 were driven by expenses attributable to the operations of Maybrooke coupled with increased information technology, marketing, occupancy and depreciation costs.

15. Income Taxes

We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035.

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We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation.

We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Eight of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our United Kingdom subsidiaries file separate United Kingdom income tax returns.

We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries generally file a consolidated United States federal income tax return.

We also have operations in Belgium, Brazil, France, Ireland, Luxembourg, Malta, Spain, and Switzerland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in Barbados and the United Arab Emirates, which are not subject to income tax under the laws of that country.

Our income tax provision includes the following components:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Current tax provision (benefit)	$	(2.9	)	$	10.8		$	12.6		$	18.8
Deferred tax provision (benefit) related to:
Future tax deductions		(2.5	)		(3.0	)		(6.1	)		1.9
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

For the three and nine months ended September 30, 2017 and 2016, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

	For the Three Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	(43.0	)			0.0	%	$	35.6				0.0	%
United States		(1.3	)			52.9	%		28.2				24.2	%
United Kingdom		(24.6	)			16.4	%		(2.8	)			-3.0	%
Barbados		—		(1)		0.0	%		—		(1)		0.0	%
Belgium		0.1				36.1	%		—		(1)		-160.0	%
Brazil		—		(1)		0.0	%		0.4				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.1	)			0.0	%
Luxembourg		(1.3	)			0.0	%		—		(1)		0.0	%
Malta		0.6				0.0	%		0.9				0.0	%
Switzerland		0.2				18.1	%		—		(1)		21.2	%
United Arab Emirates		3.5				0.0	%		—		(1)		0.0	%
Total	$	(65.9	)			7.0	%	$	62.2				11.3	%

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	For the Nine Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	8.7				0.0	%	$	79.7				0.0	%
United States		57.4				24.1	%		78.0				26.3	%
United Kingdom		(36.6	)			21.6	%		(24.9	)			-1.9	%
Barbados		—		(1)		0.0	%		—				0.0	%
Belgium		0.2				36.2	%		—		(1)		0.0	%
Brazil		(0.2	)			0.0	%		1.1				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.2	)			0.0	%
Luxembourg		(3.7	)			0.0	%		—		(1)		0.0	%
Malta		1.7				0.0	%		1.2				0.0	%
Switzerland		0.2				21.1	%		—		(1)		21.1	%
United Arab Emirates		—		(1)		0.0	%		—		(1)		0.0	%
Total	$	27.6				22.3	%	$	134.9				15.7	%

⁽¹⁾ Pre-tax income for the respective year was less than $0.1 million.

Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income tax provision at expected rate	$	(5.5	)	$	9.8		$	12.9		$	23.2
Tax effect of:
Tax-exempt interest		(0.6	)		(0.7	)		(2.1	)		(2.5	)
Dividends received deduction		(0.5	)		(0.4	)		(1.4	)		(1.7	)
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Other permanent adjustments, net		—			0.1			(1.1	)		0.3
Adjustment for prior period		(1.2	)		(0.8	)		(1.9	)		(0.8	)
Adjustment for annualized rate		0.8			(0.9	)		(1.5	)		(1.5	)
Other foreign adjustments		0.2			(0.1	)		0.1			(0.7	)
State income taxes, net of Federal benefit		—			—			0.1			(0.3	)
Foreign exchange adjustments		1.4			0.8			1.1			4.4
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1
Income tax (benefit) provision - Foreign	$	(3.9	)	$	0.2		$	(7.7	)	$	0.6
Income tax provision (benefit) - United States, Federal		(0.8	)		6.8		$	13.4			20.2
Income tax provision  - United States, State		0.1			—			0.2			—
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

Our net deferred tax assets (liabilities) are supported by taxes paid in previous periods, reversal of taxable temporary differences and recognition of future income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of sufficient taxable income in the future to recover tax benefits that cannot be recovered from taxes paid in the carryback period, generally two years for net operating losses and three years for capital losses for our United States operations.

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Management has determined that a valuation allowance is required for a portion of the tax-effected net operating loss carryforward included as part of the United States consolidated group of $15.1 million generated from PXRE Corporation and for the tax-effected net operating loss carryforward of $1.0 million from ARIS. The valuation allowances have been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. The loss carryforwards available per year are $2.8 million as required by Internal Revenue Code Section 382.

Furthermore, due to cumulative losses since inception, management has concluded that a valuation allowance is required for the full amount of the tax-effected net operating losses generated by our Brazil and Malta entities.

Accordingly, a valuation allowance of $25.9 million is required as of September 30, 2017 of which $13.2 million relates to the PXRE Corporation and ARIS loss carryforwards, $8.1 million relates to Brazil operations, $3.8 million relates to Maybrooke, and $0.8 million relates to Malta operations. For the nine months ended September 30, 2017, the valuation allowance was reduced by $0.7 million pertaining to the PXRE Corporation and ARIS loss carryforwards, $0.3 million pertaining to our Brazil operations, and $0.4 million pertaining to our Malta operations. Additionally, the valuation allowance increased $3.8 million pertaining to Maybrooke of which $2.7 million valuation allowance was acquired with Maybrooke.

Of the PXRE Corporation net operating loss carryforwards, $13.6 million will expire if not used by December 31, 2025 and $1.5 million will expire if not used by December 31, 2027. Of the ARIS loss carryforward, $0.2 million will expire if not used by December 31, 2027, $0.4 million will expire if not used by December 31, 2028 and $0.4 million will expire if not used by December 31, 2029.

For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of September 30, 2017 and 2016. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2013. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2014.  

16. Commitments and Contingencies

Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations.

We have contractual commitments to invest up to $117.9 million related to our limited partnership investments at September 30, 2017. These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years.

17.Segment Information

We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have two ongoing reporting segments: U.S. Operations and International Operations. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite. See Note 1, “Basis of Presentation,” for information on the changes to our reporting segments that were effective beginning in the first quarter of 2017.

We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments.

In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from the sales of investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment.

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Revenue and income (loss) before income taxes for each segment were as follows:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2017			2016		2017		2016
Revenue:
Earned premiums
U.S. Operations	$	242.6		$	216.3	$	692.9	$	629.7
International Operations		146.8			142.3		474.9		418.5
Run-off Lines		(0.1	)		0.1		—		0.3
Total earned premiums		389.3			358.7		1,167.8		1,048.5
Net investment income
U.S. Operations		18.8			20.3		66.0		55.8
International Operations		7.7			7.5		24.4		22.7
Run-off Lines		2.0			3.2		7.0		8.8
Corporate and Other		2.4			1.7		7.6		2.3
Total net investment income		30.9			32.7		105.0		89.6
Fee and other income		13.0			7.6		20.4		20.2
Net realized investment and other gains		6.0			17.7		25.1		12.8
Total revenue	$	439.2		$	416.7	$	1,318.3	$	1,171.1

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income (loss) before income taxes
U.S. Operations	$	28.7		$	45.9		$	118.9		$	126.2
International Operations		(77.5	)		20.1			(60.1	)		53.1
Run-off Lines		(12.7	)		(10.0	)		(16.4	)		(14.6	)
Total segment (loss) income before taxes		(61.5	)		56.0			42.4			164.7
Corporate and Other		(10.4	)		(11.5	)		(39.9	)		(42.6	)
Net realized investment and other gains		6.0			17.7			25.1			12.8
Total (loss) income before income taxes	$	(65.9	)	$	62.2		$	27.6		$	134.9

The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2017 and 2016. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Bermuda	$	23.3	$	29.0	$	72.0	$	86.1
Brazil		11.7		10.4		36.8		29.6
Malta		2.7		0.6		5.0		1.6
United Kingdom		109.1		102.4		361.2		301.1
United States		242.5		216.3		692.8		630.1
Total earned premiums	$	389.3	$	358.7	$	1,167.8	$	1,048.5

The following table represents identifiable assets:

(in millions)	September 30, 2017		December 31, 2016
U.S. Operations	$	4,335.1	$	3,961.2
International Operations		3,814.2		2,356.9
Run-off Lines		458.9		537.0
Corporate and Other		449.8		349.9
Total	$	9,058.0	$	7,205.0

Included in total assets at September 30, 2017 and December 31, 2016 are $815.7 million and $630.4 million, respectively, in assets associated with trade capital providers.

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18. Senior Unsecured Fixed Rate Notes

In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Notes due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

In accordance with ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At September 30, 2017 and December 31, 2016, the Notes consisted of the following:

(in millions)	September 30, 2017			December 31, 2016
Senior unsecured fixed rate notes
Principal	$	143.8		$	143.8
Less: unamortized debt issuance costs		(4.2	)		(4.3	)
Senior unsecured fixed rate notes, less unamortized debt    issuance costs	$	139.6		$	139.5

In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016, of the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings.

The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries.

33

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2017

(in millions)

(Unaudited)

	Argo Group International Holdings, Ltd (ParentGuarantor)			Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	(1.6	)	$	3,039.1	$	1,770.0		$	—		$	4,807.5
Cash		—			73.5		162.3			—			235.8
Accrued investment income		—			16.8		6.8			—			23.6
Premiums receivable		—			227.3		451.5			—			678.8
Reinsurance recoverables		—			1,450.3		651.6			—			2,101.9
Goodwill and other intangible assets, net		44.4			125.2		90.9			—			260.5
Deferred acquisition costs, net		—			82.3		86.5			—			168.8
Ceded unearned premiums		—			194.9		266.5			—			461.4
Other assets		8.3			173.7		137.7			—			319.7
Intercompany note receivable		—			50.2		69.8			(120.0	)		—
Investments in subsidiaries		2,086.7			—		—			(2,086.7	)		—
Total assets	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—		$	2,452.6	$	1,853.3		$	—		$	4,305.9
Unearned premiums		—			694.5		591.5			—			1,286.0
Funds held and ceded reinsurance payable, net		—			790.1		77.5			—			867.6
Long-term debt		153.4			284.6		142.8			—			580.8
Current income taxes payable, net		—			7.9		3.1			—			11.0
Deferred tax liabilities, net		—			37.3		4.2			—			41.5
Accrued underwriting expenses and other liabilities		12.1			103.2		41.9			—			157.2
Due to affiliates		44.3			6.9		(6.9	)		(44.3	)		—
Intercompany note payable		120.0			40.1		(40.1	)		(120.0	)		—
Total liabilities		329.8			4,417.2		2,667.3			(164.3	)		7,250.0
Total shareholders' equity		1,808.0			1,016.1		1,026.3			(2,042.4	)		1,808.0
Total liabilities and shareholders' equity	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0

⁽¹⁾ Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

⁽²⁾ Includes all Argo Group parent company eliminations.

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CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2016

(in millions)

	Argo Group International Holdings, Ltd (ParentGuarantor)		Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	2.2	$	2,834.2	$	1,487.9		$	—		$	4,324.3
Cash		—		53.7		32.3			—			86.0
Accrued investment income		—		16.0		4.7			—			20.7
Premiums receivable		—		204.9		258.9			—			463.8
Reinsurance recoverables		—		1,348.4		37.2			—			1,385.6
Goodwill and other intangible assets, net		—		127.1		92.8			—			219.9
Deferred acquisition costs, net		—		63.5		75.6			—			139.1
Ceded unearned premiums		—		168.9		133.9			—			302.8
Other assets		8.7		168.0		86.1			—			262.8
Intercompany note receivable		—		50.2		(50.2	)		—			—
Investments in subsidiaries		1,834.4		—		—			(1,834.4	)		—
Total assets	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—	$	2,322.4	$	1,028.4		$	—		$	3,350.8
Unearned premiums		—		580.0		390.0			—			970.0
Funds held and ceded reinsurance payable, net		—		750.2		(206.5	)		—			543.7
Long-term debt		28.4		284.4		54.8			—			367.6
Current income taxes payable, net		—		8.5		(0.4	)		—			8.1
Deferred tax liabilities, net		—		17.6		6.5			—			24.1
Accrued underwriting expenses and other liabilities		13.7		92.0		42.3			—			148.0
Due to affiliates		10.5		1.8		(1.8	)		(10.5	)		—
Total liabilities		52.6		4,056.9		1,313.3			(10.5	)		5,412.3
Total shareholders' equity		1,792.7		978.0		845.9			(1,823.9	)		1,792.7
Total liabilities and shareholders' equity	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0

⁽¹⁾ Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

⁽²⁾ Includes all Argo Group parent company eliminations.

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CONDENSED CONSOLIDATING STATEMENT OF LOSS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	145.3		$	244.0		$	—	$	389.3
Net investment (expense) income		(1.1	)		16.5			15.5			—		30.9
Fee and other income		—			12.3			0.7			—		13.0
Net realized investment and other gains (losses)		—			6.6			(0.6	)		—		6.0
Total revenue		(1.1	)		180.7			259.6			—		439.2
Expenses:
Losses and loss adjustment expenses		—			99.1			227.3			—		326.4
Underwriting, acquisition and insurance    expenses		5.6			74.0			86.5			—		166.1
Interest expense		1.6			4.2			1.7			—		7.5
Fee and other expense		—			4.1			0.9			—		5.0
Foreign currency exchange (gains) loss		—			(0.1	)		0.2			—		0.1
Total expenses		7.2			181.3			316.6			—		505.1
(Loss) Income before income taxes		(8.3	)		(0.6	)		(57.0	)		—		(65.9	)
Provision for income taxes		—			(0.6	)		(4.0	)		—		(4.6	)
Net (loss) income before equity in earnings of    subsidiaries		(8.3	)		0.0			(53.0	)		—		(61.3	)
Equity in undistributed earnings of    subsidiaries		(53.0	)		—			—			53.0		—
Net loss	$	(61.3	)	$	0.0		$	(53.0	)	$	53.0	$	(61.3	)

⁽¹⁾ Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

⁽²⁾ Includes all Argo Group parent company eliminations.

36

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 (expense) income		(0.9	)		22.5		11.1			—			32.7
Fee and other income		—			5.5		2.1			—			7.6
Net realized investment and other gains (losses)		—			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 (gains) loss		—			0.2		(1.7	)		—			(1.5	)
Total expenses		4.0			147.2		203.3			—			354.5
(Loss) Income before income taxes		(4.9	)		28.2		38.9			—			62.2
Provision for income taxes		—			6.8		0.2			—			7.0
Net (loss) income 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.

37

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	411.7		$	756.1		$	—		$	1,167.8
Net investment (expense) income		(3.2	)		64.7			43.5			—			105.0
Fee and other income		—			18.0			2.4			—			20.4
Net realized investment and other gains (losses)		0.5			25.6			(1.0	)		—			25.1
Total revenue		(2.7	)		520.0			801.0			—			1,318.3
Expenses:
Losses and loss adjustment expenses		—			247.7			531.8			—			779.5
Underwriting, acquisition and insurance    expenses		17.8			190.7			265.9			—			474.4
Interest expense		3.0			12.7			4.7			—			20.4
Fee and other expense		—			10.7			1.7			—			12.4
Foreign currency exchange loss		—			(0.1	)		4.1			—			4.0
Total expenses		20.8			461.7			808.2			—			1,290.7
(Loss) Income before income taxes		(23.5	)		58.3			(7.2	)		—			27.6
Provision for income taxes		—			13.9			(7.7	)		—			6.2
Net (loss) income before equity in earnings of    subsidiaries		(23.5	)		44.4			0.5			—			21.4
Equity in undistributed earnings of subsidiaries		44.9			—			—			(44.9	)		—
Net income	$	21.4		$	44.4		$	0.5		$	(44.9	)	$	21.4

⁽¹⁾ Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

⁽²⁾ Includes all Argo Group parent company eliminations.

38

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 (expense) income		(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)		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 (gains) loss		—			0.1		4.4			—			4.5
Total expenses		11.0			400.1		625.1			—			1,036.2
(Loss) Income before income taxes		(12.8	)		78.0		69.7			—			134.9
Provision for income taxes		—			20.5		0.6			—			21.1
Net (loss) income 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.

39

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	11.8		$	175.3		$	65.3		$	—		$	252.4
Cash flows from investing activities:
Proceeds from sales of investments		—			652.5			625.5			—			1,278.0
Maturities and mandatory calls of fixed    maturity investments		—			350.6			142.6			—			493.2
Purchases of investments		—			(1,140.8	)		(919.4	)		—			(2,060.2	)
Change in short-term investments and    foreign regulatory deposits		1.8			29.6			232.8			—			264.2
Settlements of foreign currency exchange    forward contracts		0.8			(5.5	)		4.7			—			—
Acquisition of subsidiaries, net of cash		(235.3	)		—			130.1			—			(105.2	)
Issuance of intercompany note, net		—			—			(120.0	)		120.0			—
Purchases of fixed assets and other, net		(0.1	)		(5.3	)		(30.6	)		—			(36.0	)
Cash (used in) provided by investing activities		(232.8	)		(118.9	)		65.7			120.0			(166.0	)
Cash flows from financing activities:
Additional long-term borrowings		125.0			—			—			—			125.0
Borrowing under intercompany note, net		120.0			—			—			(120.0	)		—
Activity under stock incentive plans		0.9			—			—			—			0.9
Repurchase of Company's common shares		—			(36.6	)		—			—			(36.6	)
Payment of cash dividend to common    shareholders		(24.9	)		—			—			—			(24.9	)
Cash provided by (used in) financing activities		221.0			(36.6	)		—			(120.0	)		64.4
Effect of exchange rate changes on cash		—			—			(1.0	)		—			(1.0	)
Change in cash		—			19.8			130.0			—			149.8
Cash, beginning of year		—			53.7			32.3			—			86.0
Cash, end of period	$	—		$	73.5		$	162.3		$	—		$	235.8

⁽¹⁾ Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

⁽²⁾ Includes all Argo Group parent company eliminations.

40

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 (used in) operating activities	$	19.6		$	60.7		$	70.5		$	—	$	150.8
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) provided by 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	)
Payment of cash dividend to common    shareholders		(19.8	)		—			—			—		(19.8	)
Cash used in financing activities		(19.2	)		(45.3	)		—			—		(64.5	)
Effect of exchange rate changes on cash		—			—			(1.0	)		—		(1.0	)
Change in cash		—			0.5			1.4			—		1.9
Cash, beginning of year		—			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.

41

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion and analysis of our results of operations for the three and nine months ended September 30, 2017 compared with the three and nine months ended September 30, 2016, and also a discussion of our financial condition as of September 30, 2017. This discussion and analysis should be read in conjunction with the attached unaudited interim Condensed Consolidated Financial Statements and notes thereto and Argo Group’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (“SEC”) on February 24, 2017, including the audited Consolidated Financial Statements and notes thereto.

Forward Looking Statements

Management’s Discussion and Analysis of Financial Condition and Results of Operations, Quantitative and Qualitative Disclosures about Market Risk and the accompanying Consolidated Financial Statements (including the notes thereto) may contain “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 our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that actual developments will be those anticipated by us. Actual results may differ materially as a result of significant risks and uncertainties, including non-receipt of expected payments, capital markets and their effect on investment income and fair value of the investment portfolio, development of claims and the effect on loss reserves, accuracy in estimating loss reserves, changes in the demand for our products, effect of general economic conditions, adverse government legislation and regulations, government investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments and changes in asset valuations. For a more detailed discussion of risks and uncertainties, see our public filings made with the SEC. We undertake no obligation to publicly update any forward looking statements.

Generally, it is our policy to communicate events that may have a material adverse impact on our operations or financial position, including property and casualty catastrophe events and material losses in the investment portfolio, in a timely manner through a public announcement. It is also our policy not to make public announcements regarding events that are believed to have no material adverse impact on our results of operations or financial position based on management’s current estimates and available information, other than through regularly scheduled calls, press releases or filings.

Consolidated Results of Operations

For the three and nine months ended September 30, 2017, we reported a net loss of $61.3 million ($2.04 per diluted share) and net income of $21.4 million ($0.69 per diluted share), respectively. Effective February 6, 2017, we completed the acquisition of Maybrooke Holdings, S.A., and its subsidiaries, including Ariel Reinsurance, Ltd. (collectively “Ariel Re”). Included in our consolidated results of operations for the three and nine months ended September 30, 2017 is activity specifically attributable to Ariel Re from the date of acquisition. For the three and nine months ended September 30, 2016, we reported net income of $55.2 million ($1.80 per diluted share) and $113.8 million ($3.68 per diluted share), respectively.

The following is a comparison of selected data from our operations:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Gross written premiums	$	805.1		$	585.4		$	2,090.9		$	1,665.8
Earned premiums	$	389.3		$	358.7		$	1,167.8		$	1,048.5
Net investment income		30.9			32.7			105.0			89.6
Fee and other income		13.0			7.6			20.4			20.2
Net realized investment and other    gains		6.0			17.7			25.1			12.8
Total revenue	$	439.2		$	416.7		$	1,318.3		$	1,171.1
(Loss) income before income taxes	$	(65.9	)	$	62.2		$	27.6		$	134.9
Income tax (benefit) provision		(4.6	)		7.0			6.2			21.1
Net (loss) income	$	(61.3	)	$	55.2		$	21.4		$	113.8
Loss ratio		83.8	%		57.9	%		66.7	%		56.8	%
Expense ratio		42.7	%		38.3	%		40.6	%		38.4	%
Combined ratio		126.5	%		96.2	%		107.3	%		95.2	%

42

Consolidated gross written and earned premiums by our four primary insurance lines were as follows:

	For the Three Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	245.1	$	75.5	$	145.8	$	81.8
Liability		333.5		182.8		267.3		170.7
Professional		89.0		53.5		75.0		43.6
Specialty		137.5		77.5		97.3		62.6
Total	$	805.1	$	389.3	$	585.4	$	358.7

	For the Nine Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	583.7	$	254.7	$	461.7	$	247.5
Liability		842.0		514.9		723.4		495.2
Professional		240.3		155.9		210.1		128.6
Specialty		424.9		242.3		270.6		177.2
Total	$	2,090.9	$	1,167.8	$	1,665.8	$	1,048.5

The increase in consolidated gross written premiums for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was attributable to growth across all product lines as we continue to focus on introducing new products and increasing renewal retention. Additionally, Ariel Re contributed gross written premiums of $136.0 million and $255.5 million for the three and nine months ended September 30, 2017, respectively. During 2017, all product lines have experienced increased competition and pressure on rates due to market conditions. Consolidated earned premiums increased for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 due to increased gross written premiums in the fourth quarter of 2016 and into the first nine months of 2017. The increase in consolidated earned premiums for the three and nine months ended September 30, 2017 includes Ariel Re earned premiums of $26.0 million and $90.9 million, respectively. Partially offsetting these increases was the reduction in our participation percentage for the Syndicate 1200 operations, from 53.5% for 2016 to 46.0% for 2017. Additionally, during the third quarter of 2017, we recorded catastrophe-related reinsurance premium adjustments which reduced net earned premiums by $14.5 million and, in connection with risk management activities related to the acquisition of Ariel Re, purchased additional reinsurance contracts which reduced net earned premiums by $8.1 million, all within our property lines.

Thedecrease in consolidated net investment income for the three months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable to decreased investment income from our alternative investment portfolio and increased investment related expenses, partially offset by increased investment income on fixed maturities. For the three months ended September 30, 2017, net investment income from our alternative investment portfolio decreased $4.0 million, from $9.8 million for the same period ended 2016, and investment related expenses increased $1.0 million. Partially offsetting these decreases in net investment income was $2.5 million of increased investment income on our fixed maturities portfolio, primarily related to the investment of Ariel Re cash. The increase in consolidated net investment income for the nine months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable to a $14.0 million increase in the net investment income of our alternative investment portfolio and a $7.0 million increase in income from our fixed maturities portfolio, partially offset by increased investment related expenses.Included in net investment income was $11.6 million of net investment gains relating to net asset sales initiated by an equity investee during the nine months ended September 30, 2017.

Consolidated net realized investment and other gains of $6.0 million for the three months ended September 30, 2017 consisted of $9.7 million in realized gains from the sale of equity and fixed maturity securities and $1.3 million in realized gains from other invested assets, primarily options. Partially offsetting these realized gains was $4.8 million of realized loss on our foreign currency forward contracts. For the three months ended September 30, 2017, we recognized $0.2 million in other-than-temporary impairment losses within our equity and fixed maturity portfolios. Consolidated net realized investment and other gains of $17.7 million for the three months ended September 30, 2016 consisted of $24.9 million in realized gains from the sale of fixed maturity and equity securities and $0.4 million from other invested assets. Partially offsetting these realized gains was $5.2 million of foreign currency losses, primarily from the sale of fixed maturities. Additionally, for the three months ended September 30, 2016, we recognized $2.4 million in other-than-temporary impairment losses within our fixed maturity and equity portfolios. Consolidated net realized investment and other gains of $25.1 million for the nine months ended September 30, 2017 consisted of $44.6 million in realized gains from the sale of fixed maturity and equity securities and $0.5 million from other invested assets, primarily options. Partially offsetting these realized gains was $18.3 million of realized foreign currency exchange losses, including $10.4 million on our foreign currency forward

43

contracts and $7.9 million on our fixed maturity and equity securities portfolios. Additionally, for the nine months ended September 30, 2017, we recognized $1.7 million in other-than-temporary impairment losses primarily within our equity portfolio. Consolidated net realized investment and other gains of $12.8 million for the nine months ended September 30, 2016 consisted of $48.3 million in realized gains from the sale of fixed maturity and equity securities and $0.2 million from other invested assets. Partially offsetting these realized gains was $26.7 million in realized foreign currency exchange losses, including $11.7 million in foreign currency forward contracts and $15.0 million in our fixed maturity portfolio. Additionally, for the nine months ended September 30, 2016 we recognized other-than-temporary impairment losses on our equity securities and fixed maturity portfolios of $7.3 million and $1.7 million, respectively.

The increase in the loss ratios for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily attributable to the significant catastrophe losses that occurred in the third quarter of 2017, as well as increased non-catastrophe losses within the current accident year recorded in our Lloyd’s Syndicate 1200.

Consolidated losses and loss adjustment expenses were $326.4 million and $207.8 million for the three months ended September 30, 2017 and 2016, respectively. Losses and loss adjustment expenses include $49.1 million for Ariel Re for the three months ended September 30, 2017. Catastrophe losses, net of reinsurance, for the third quarter of 2017 totaled $90.0 million, primarily attributable to Hurricanes Harvey, Irma and Maria and the Mexican earthquakes, as compared to $13.0 million for the third quarter of 2016, primarily due to the Louisiana floods and other U.S. storm activity. The third quarter of 2017 also included $15.0 million of non-catastrophe losses in the current accident year, driven primarily by higher than anticipated attritional losses on property business underwritten by our Lloyd’s Syndicate 1200. Included in losses and loss adjustment expenses for the three months ended September 30, 2017 was $1.3 million of net favorable loss reserve development on prior accident years compared to $2.9 million of net favorable loss reserve development on prior accident years for the same period ended 2016.

Consolidated losses and loss adjustment expenses were $779.5 million and $596.0 million for the nine months ended September 30, 2017 and 2016, respectively. Losses and loss adjustment expenses include $81.6 million for Ariel Re from the date of acquisition through September 30, 2017. Included in losses and loss adjustment expenses for the nine months ended September 30, 2017 and 2016 was $96.4 million and $40.5 million, respectively, in catastrophe losses, net of reinsurance. Included in losses and loss adjustment expenses for the nine months ended September 30, 2017 was $4.4 million of net unfavorable loss reserve development on prior accident years compared to $18.8 million of net favorable loss reserve development on prior accident years for the same period ended 2016.

The following table summarizes the above referenced loss reserve development with respect to prior year loss reserves by line of business for the nine months ended September 30, 2017.

(in millions)	2016 Net Reserves		Net Reserve Development (Favorable)/ Unfavorable			Percentof 2016 Net Reserves
General and professional liability	$	1,028.9	$	10.0			1.0	%
Workers compensation		312.9		(7.6	)		-2.4	%
Lloyd's liability		198.1		11.4			5.8	%
Commercial multi-peril		156.6		(2.6	)		-1.7	%
Commercial auto liability		113.6		(6.5	)		-5.7	%
Property		83.6		11.0			13.2	%
Reinsurance - nonproportional assumed property		65.6		(4.1	)		-6.3	%
Fidelity/Surety		38.4		(6.7	)		-17.4	%
All other lines		182.5		(0.5	)		-0.3	%
Total	$	2,180.2	$	4.4			0.2	%

Consolidated gross reserves for losses and loss adjustment expenses were $4,305.9 million (including $273.3 million of reserves attributable to our Lloyd’s Syndicate 1200’s trade capital providers) and $3,284.8 million (including $142.7 million of reserves attributable to our Lloyd’s Syndicate 1200’s trade capital providers) as of September 30, 2017 and 2016, respectively. Management has recorded its best estimate of loss reserves at each date based on current known facts and circumstances. Due to the significant uncertainties inherent in the estimation of loss reserves, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

44

Consolidated underwriting, insurance and acquisition expenses were $166.1 million and $474.4 million for the three and nine months ended September 30, 2017, respectively compared to $137.4 million and $403.0 million for the same periods ended 2016. Ariel Re contributed $8.3 million and $24.5 million in underwriting expenses for the three and nine months ended September 30, 2017, respectively.The expense ratio for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was negatively impacted by theaforementioned third quarter 2017 reductions to earned premiums for catastrophe-related reinsurance premium adjustments and additional reinsurance contracts purchased in connection with risk management activities related to the acquisition of Ariel Re. During the three months ended September 30, 2017, we also recorded a one-time acquisition expense of $3.5 million relating to the final resolution of a premium tax dispute in our U.S. Operations.The remaining increase in the expense ratio for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 included higher acquisition costs driven by declines in ceding commissions and fronting fees earned, and writing more binder business, which has higher acquisition rates, in our International Operations. Non-acquisition expenses were negatively impacted by increased information technology and marketing costs, as well as increased personnel expenses in our strategic growth units. Additionally, included in non-acquisition expense for the nine months ended September 30, 2017 was $2.5 million in transaction costs related to the Ariel Re acquisition.

Consolidated interest expense was $7.5 million and $20.4 million for the three and nine months ended September 30, 2017, respectively, compared to $4.9 million and $14.6 million for the same periods ended 2016. Included in consolidated interest expense was $1.2 million and $3.0 million from the operations of Ariel Re for the three and nine months ended September 30, 2017, respectively. The remaining increase was primarily attributable to interest expense on a $125.0 million term loan entered into to fund a portion of the acquisition price of Ariel Re and to a lesser extent, an increase in short-term LIBOR rates.

Consolidated foreign currency exchange loss was $0.1 million for the three months ended September 30, 2017, as compared to a $1.5 million foreign currency exchange gain for the three months ended September 30, 2016. Consolidated foreign currency exchange loss was $4.0 million and $4.5 million for the nine months ended September 30, 2017 and 2016, respectively. The changes in the foreign currency exchange gains/losses were due to fluctuations of the U.S. Dollar, on a weighted average basis, against the currencies in which we transact our business. For the three months ended September 30, 2017, the U.S. Dollar weakened against the British Pound, the Euro, the Canadian Dollar and the Australian Dollar. For the nine months ended September 30, 2017, the U.S. Dollar weakened against all major currencies. For the three and nine months ended September 30, 2016, the U.S. Dollar weakened against all major currencies, except for the British Pound.

The consolidated income tax provision represents the income tax expense or benefit associated with our operations based on the tax laws of the jurisdictions in which we operate. Therefore, the provision for income taxes represents taxes on the net income or loss for our Belgium, Brazil, Ireland, Luxembourg, Malta, Switzerland, United Kingdom and United States operations. The consolidated income tax benefit was $4.6 million for the three months ended September 30, 2017 compared to income tax expense of $7.0 million for the same period ended 2016. The effective tax rate declined to 7.0% for the three months ended September 30, 2017 from 11.3% for the same period ended 2016. The decline in the effective tax rate was due to approximately 37.4% of our consolidated loss before income taxes for the third quarter of 2017 being attributable to the United States and United Kingdom operations, our primary taxing jurisdictions, as compared to 40.8% of our consolidated income before income taxes being from the same jurisdictions in the third quarter of 2016. The majority of the remaining earnings for the comparative periods were attributable to our Bermuda operations, a zero-taxation jurisdiction. The consolidated provision for income taxes was $6.2 million and $21.1 million for the nine months ended September 30, 2017 and 2016, respectively. The effective tax rate was 22.3% and 15.7% for the nine months ended September 30, 2017 and 2016, respectively. The increase in the effective tax rate was primarily attributable to the change in the income tax provision for our United Kingdom operations, coupled with the impact of the weakening U.S. Dollar against the British Pound. Included in the provision for income taxes for the three and nine months ended September 30, 2017 was $2.6 million and $0.4 million of tax benefit for Ariel Re for the three and nine months ended September 30, 2017, respectively.

Segment Results

As discussed in Note 1 “Basis of Presentation” and Note 17 “Segment Information,” during the first quarter of 2017, we evaluated and modified the presentation of our reportable segments to reflect our new operating framework and management structure. As a result, we have organized our business into two ongoing reporting segments: U.S. Operations and the International Operations. The U.S. Operations includes the former Excess & Surplus and Commercial Specialty reportable segments. The International Operations includes the former Syndicate 1200 and International Specialty reportable segments, and the recently acquired Ariel Re business. Consistent with prior periods, the Run-off Lines and Corporate segments include all other activity of Argo Group and are included in our consolidated financial results. It is the business unit that produces the risk and not the location of the underlying exposure that is the primary characteristic in distinguishing U.S Operations from International Operations. For example, a U.S. property exposure underwritten through our Syndicate platform would be included in our International Operations.

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Our reportable segments include four primary insurance and reinsurance services and offerings as follows:

• Property includes both property insurance and reinsurance products. Insurance products cover commercial properties primarily in North America with some residential and international covers. Reinsurance covers underlying exposures that are located throughout the world, including the United States. These offerings include coverages for man-made and natural disasters.

• Liability includes a broad range of primary and excess casualty products for risks on both an admitted and non-admitted basis in the United States. Internationally, Argo underwrites worldwide casualty risks primarily exposed in the United Kingdom, Canada, and Australia.

• Professional includes various professional lines products including Errors and Omissions, Management Liability (including Directors and Officers) and Cyber coverages.

• Specialtyincludes niche insurance coverages including Marine & Energy, Accident & Health and Surety product offerings.

The results of operations for prior periods have been reclassified to conform to the current presentation.

In evaluating the operating performance of our segments, we focus on core underwriting and investing results before consideration of realized gains or losses from the sales of investments. Intersegment transactions are allocated to the segment that initiated the transaction. Realized investment gains and losses are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the corporate investment function and are not under the control of the individual business segments.

Since we generally manage and monitor the investment portfolio on an aggregate basis, the overall performance of the investment portfolio and related net investment income is discussed above on a consolidated basis under consolidated net investment income rather than within or by segment.

U.S. Operations

The following table summarizes the results of operations for the U.S. Operations segment:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Gross written premiums	$	428.9		$	360.8		$	1,128.9		$	970.2
Earned premiums	$	242.6		$	216.3		$	692.9		$	629.7
Losses and loss adjustment expenses		148.4			117.5			394.2			348.1
Underwriting, acquisition and insurance expenses		88.6			71.3			243.0			202.7
Underwriting income		5.6			27.5			55.7			78.9
Net investment income		18.8			20.3			66.0			55.8
Interest expense		(3.8	)		(2.2	)		(10.3	)		(6.8	)
Fee and other income		11.6			5.1			16.0			13.1
Fee and other expense		(3.5	)		(4.8	)		(8.5	)		(14.8	)
Income before income taxes	$	28.7		$	45.9		$	118.9		$	126.2
Loss ratio		61.2	%		54.3	%		56.8	%		55.3	%
Expense ratio		36.5	%		33.0	%		35.1	%		32.2	%
Combined ratio		97.7	%		87.3	%		91.9	%		87.5	%

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Gross written and earned premiums by our four primary insurance lines were as follows:

	For the Three Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	68.1	$	26.8	$	69.2	$	28.6
Liability		277.2		160.2		226.7		146.3
Professional		46.2		30.8		35.3		21.3
Specialty		37.4		24.8		29.6		20.1
Total	$	428.9	$	242.6	$	360.8	$	216.3

	For the Nine Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	193.4	$	85.8	$	188.6	$	93.7
Liability		715.4		454.8		613.2		429.1
Professional		119.9		85.5		98.9		56.8
Specialty		100.2		66.8		69.5		50.1
Total	$	1,128.9	$	692.9	$	970.2	$	629.7

Property

The decline in gross written and earned premiums for property for the three months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable to planned reductions due to increased competition and the pressure on rates. Additionally, the third quarter 2017 catastrophe-related reinsurance premium adjustments and additional reinsurance contracts purchased in connection with risk management activities related to the acquisition of Ariel Re reduced net earned premiums in U.S. Operations by $5.2 million. The increase in gross written premiums for property for the nine months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable to growth in our fronting programs, which do not impact earned premiums, but result in a ceding commissions received. The decline in earned premiums for property for the nine months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable the previously mentioned third quarter 2017 catastrophe-related reinsurance premium adjustments and catastrophe and risk management reinsurance contracts, as well as reduced gross written premiums for the non-fronting programs which were primarily driven by increased competition and pressure on rates.

Liability

The increase in gross written and earned premiums for liability for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was primarily attributable to capitalizing on targeted growth initiatives in the specialty and general casualty lines, growth in writings due to the upturn in the coal market and the introduction of new products in our programs division.

Professional

The increase in gross written and earned premiums within professional for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was primarily attributable to new business within our management liability and errors and omissions lines.

Specialty

The increase in gross written and earned premiums for specialty for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was driven by growth from new business in our surety lines and new products within our programs division.

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The increase in the loss ratio for the three months ended September 30, 2017 as compared to the same period in 2016 was driven by third quarter of 2017 catastrophe losses, as well as lower net favorable loss reserve development on prior accident years. Catastrophe losses for the third quarter of 2017 totaled $17.2 million, primarily from Hurricanes Harvey and Irma, as compared to $4.5 million for the third quarter of 2016, mainly attributable to the Louisiana floods. Included in losses and loss adjustment expenses for the three months ended September 30, 2017 was $10.7 million of net favorable loss reserve development on prior accident years primarily attributable to net favorable development for the general and products liability, surety and commercial automobile lines. Net favorable loss reserve development on prior accident years for the three months ended September 30, 2016 was $13.7 million concentrated in the surety, commercial automobile, commercial multiple peril and workers compensation lines.

The increase in the loss ratio for the nine months ended September 30, 2017 as compared to the same period in 2016 was primarily attributable to the previously mentioned third quarter of 2017 catastrophe losses, partially offset by increased net favorable loss reserve development on prior accident years. Catastrophe losses during the first nine months of 2017 totaled $22.1 million, primarily from Hurricanes Harvey and Irma, as compared to $11.5 million for the same period ended 2016, which were mainly attributable to the Louisiana floods and other U.S. storms. Included in losses and loss adjustment expenses for the nine months ended September 30, 2017 was $28.7 million of net favorable loss reserve development on prior accident years primarily attributable to net favorable development for the workers compensation, surety and commercial automobile lines. Net favorable loss reserve development on prior accident years for the nine months ended September 30, 2016 was $25.6 million concentrated in the commercial automobile, surety, workers compensation and property lines.

The increase in the expense ratio for the three months ended September 30, 2017 as compared to the same period in 2016 was primarily driven by changes in certain reinsurance agreements and programs that resulted in declines in ceding commissions and fronting fees earned, a one-time expense of $3.5 million relating to the final resolution of a premium tax dispute, as well as increased non-acquisition costs. The increase in non-acquisition expense was primarily driven by increased personnel expenses in our strategic growth units and increased information technology costs.

The increase in the expense ratio for the nine months ended September 30, 2017 as compared to the same period ended 2016 was primarily attributable to increased non-acquisition costs. The increase in non-acquisition expenses was primarily attributable to increased personnel expenses, information technology costs, outside services and occupancy costs. The acquisition expense ratio was slightly higher for the nine months ended September 30, 2017 as compared to the same period ended 2016, due to declines in fronting fees and ceding commissions earned and the previously mentioned premium tax charge incurred in the third quarter of 2017.  

Fee and other income, and the associated fee and other expense, increased for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 primarily due to closing a transaction in the third quarter of 2017 related to transferring to a third party the distribution rights and operations of certain business managed on behalf of unaffiliated insurance companies.

International Operations

The following table summarizes the results of operations for the International Operations segment:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Gross written premiums	$	376.3		$	224.5		$	962.0		$	695.3
Earned premiums	$	146.8		$	142.3		$	474.9		$	418.5
Losses and loss adjustment expenses		166.0			78.9			369.2			230.3
Underwriting, acquisition and insurance    expenses		63.5			50.9			183.8			157.6
Underwriting (loss) income		(82.7	)		12.5			(78.1	)		30.6
Net investment income		7.7			7.5			24.4			22.7
Interest expense		(2.8	)		(1.4	)		(7.1	)		(4.0	)
Fee and other income		0.8			2.0			2.3			5.3
Fee and other expense		(0.5	)		(0.5	)		(1.6	)		(1.5	)
(Loss) income before income taxes	$	(77.5	)	$	20.1		$	(60.1	)	$	53.1
Loss ratio		113.0	%		55.4	%		77.7	%		55.0	%
Expense ratio		43.3	%		35.8	%		38.7	%		37.7	%
Combined ratio		156.3	%		91.2	%		116.4	%		92.7	%

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Gross written and earned premiums by our four primary insurance lines were as follows:

	For the Three Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	177.1	$	48.8	$	76.6	$	53.2
Liability		56.3		22.6		40.5		24.3
Professional		42.8		22.7		39.7		22.3
Specialty		100.1		52.7		67.7		42.5
Total	$	376.3	$	146.8	$	224.5	$	142.3

	For the Nine Months Ended September 30,
	2017				2016
(in millions)	Gross Written		Net Earned		Gross Written		Net Earned
Property	$	390.3	$	168.9	$	273.1	$	153.8
Liability		126.6		60.1		109.9		65.8
Professional		120.4		70.4		111.2		71.8
Specialty		324.7		175.5		201.1		127.1
Total	$	962.0	$	474.9	$	695.3	$	418.5

Ariel Re contributed $136.0 million of gross written premiums and $26.0 million of earned premiums for the three months ended September 30, 2017, and $255.5 million of gross written premiums and $90.9 million of earned premiums for the nine months ended September 30, 2017.

Property

The previously mentioned third quarter 2017 catastrophe-related reinsurance premium adjustments and additional reinsurance contracts purchased in connection with risk management activities related to the acquisition of Ariel Re reduced net earned premiums in International Operations by $17.4 million. Excluding the impact of these transactions, gross written and earned premiums for property increased for the three months ended September 30, 2017 due to premiums written by Ariel Re and Argo Re, partially offset by reduced premiums for Syndicate 1200. For the three months ended September 30, 2017 Ariel Re contributed property lines gross written premiums of $103.3 million and $11.1 million earned premiums, respectively. Partially offsetting these increases were reduced gross written and earned premiums for Syndicate 1200 due to continued competition, rate reductions and a reduction in our ownership percentage for Syndicate 1200, from 53.5% for 2016 to 46.0% for 2017.

Excluding the impact of the aforementioned transactions in the third quarter of 2017, gross written and earned premiums also increased for the nine months ended September 30, 2017 as compared to the same period in 2016 due to premiums written by Ariel Re, partially offset by reduced premiums in our Lloyd’s Syndicate 1200 and, to a lesser extent, Argo Re. For the nine months ended September 30, 2017 Ariel Re contributed gross written premiums of $147.5 million and $43.5 million in earned premiums, respectively.

Liability

The increase in gross written premiums for liability for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily attributable to growth in our Bermuda casualty business due to the introduction of new products and a rate increase on a large policy that renewed during the third quarter of 2017. The decline in earned premiums for liability for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily attributable to a combination of changes to the reinsurance structure in 2017 and slightly lower premiums written in prior quarters.

Professional

The increase in gross written premiums for professional lines for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily attributable to growth in our Bermuda, Brazil and European professional lines, directors and officers and cyber lines, partially offset by a decline in professional indemnity. Earned premiums for professional lines for the third quarter of 2017 were relatively flat compared to the same period in 2016, while earned premiums were slightly lower for nine months ended September 30, 2017 as compared to the same period in 2016 primarily due to changes in our reinsurance programs.

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Specialty

The increase in gross written and earned premiums for specialty lines for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was primarily attributable to premiums written by Ariel Re. For the three months ended September 30, 2017 Ariel Re contributed specialty lines gross written premiums of $32.6 million and earned premiums of $15.1 million, respectively. For the nine months ended September 30, 2017 Ariel Re contributed specialty lines gross written premiums of $106.1 million and earned premiums of $47.1 million, respectively. Additionally, gross written and earned premiums were favorably impacted by increases within the surety and marine liability lines. Partially offsetting these increases were reductions in the aerospace division due to planned reductions to these exposures, as well as offshore energy due to continuing soft market conditions.

The increase in the loss ratios for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily attributable to the significant catastrophe losses that occurred in the third quarter of 2017, as well as increased non-catastrophe losses within the current accident year.

Included in losses and loss adjustment expenses for the three months ended September 30, 2017 was $49.1 million for Ariel Re. Net catastrophe losses for the third quarter of 2017 totaled $72.8 million, attributable to Hurricanes Harvey, Irma and Maria and the Mexican earthquakes, as compared to $8.5 million for the third quarter of 2016, primarily due to the Louisiana floods and other U.S. storm activity. The third quarter of 2017 also included $15.0 million of non-catastrophe losses in the current accident year, driven primarily by higher than anticipated attritional losses on property business underwritten by our Lloyd’s Syndicate 1200. Included in losses and loss adjustment expenses for the three months ended September 30, 2017 was $2.6 million of net favorable loss reserve development on prior accident years primarily attributable to net favorable development for specialty lines, partially offset by net unfavorable development within the liability and property lines. Net favorable loss reserve development on prior accident years for the three months ended September 30, 2016 was $0.6 million.

Included in losses and loss adjustment expenses for the nine months ended September 30, 2017 was $81.6 million for Ariel Re. The increase in the loss ratio for the nine months ended September 30, 2017 as compared to the same period in 2016 was primarily attributable to the previously mentioned third quarter 2017 net catastrophe losses, higher than anticipated non-catastrophe current accident year property claims of $26.5 million, as well as net unfavorable loss reserve development on prior accident years of $17.0 million. Catastrophe losses during the first nine months of 2017 totaled $74.3 million, primarily from Hurricanes Harvey, Irma, and Maria and the Mexican earthquakes, as compared to $29.0 million for the same period ended 2016, which were mainly attributable to the Alberta wildfire, Louisiana floods and other U.S. storms. The $17.0 million of net unfavorable loss reserve development on prior accident years for the nine months ended September 30, 2017 was concentrated in the property and liability lines, primarily due to the first quarter 2017 Ogden rate change and claims from Hurricane Matthew. Net favorable loss reserve development on prior accident years for the nine months ended September 30, 2016 was $10.8 million concentrated in property lines and our Brazil unit.

The expense ratio for the three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was negatively impacted by the aforementioned third quarter 2017 reductions to net earned premiums for catastrophe-related reinsurance premium adjustments and additional reinsurance contracts purchased in connection with risk management activities related to the acquisition of Ariel Re. These adjustments increased the expense ratio by 4.6 percentage points and 1.4 percentage points for the three and nine months ended September 30, 2017, respectively. Conversely, Ariel Re’s earned premiums relative to the associated underwriting expenses favorably impacted our expense ratio for both the third quarter and first nine months of 2017. Ariel Re contributed $8.3 million and $24.5 million in underwriting expenses for the three and nine months ended September 30, 2017, respectively. Excluding the results of operations for Ariel Re and the $17.4 of earned premium adjustments recorded in the third quarter of 2017, the adjusted expense ratio for the three months ended September 30, 2017 was 39.9%. The adjusted expense ratio for the nine months ended September 30, 2017 was 39.7%. The increase in the adjusted expense ratio for both the third quarter 2017 and first nine months of 2017 as compared to the same periods in 2016 was primarily due to writing more binder business in Syndicate 1200, which has higher acquisition rates, as well as increased personnel expenses, outside services and depreciation charges.

Fee income and other income represent fees and profit commission derived from the management of third party capital for our underwriting syndicate at Lloyd’s. The decline in fee and other income for the three and nine months ended September 30, 2017 as compared to the same periods in 2016 was primarily due to reduced profitability of our Lloyd’s syndicate. Fee and other expenses were comparable for the periods presented.

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Run-off Lines

The following table summarizes the results of operations for the Run-off Lines segment:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Earned premiums	$	(0.1	)	$	0.1		$	—		$	0.3
Losses and loss adjustment expenses		12.0			11.4			16.1			17.6
Underwriting, acquisition and insurance    expenses		2.2			1.5			6.2			5.0
Underwriting loss		(14.3	)		(12.8	)		(22.3	)		(22.3	)
Net investment income		2.0			3.2			7.0			8.8
Interest expense		(0.4	)		(0.4	)		(1.1	)		(1.1	)
Loss before income taxes	$	(12.7	)	$	(10.0	)	$	(16.4	)	$	(14.6	)

Losses and loss adjustment expenses for the three months ended September 30, 2017 was the result of net unfavorable loss reserve development on prior accident years driven by $13.6 million for our asbestos exposure due to increasing defense costs and increase in the time claims remain open and $3.0 million in the other run-off lines, partially offset by net favorable loss reserve development on prior accident years of $4.6 million for the run-off risk management lines. Loss and loss adjustment expenses for the three months ended September 30, 2016 included net unfavorable loss reserve development on prior accident years of $5.7 million for our asbestos exposure due to greater than expected defense costs on our primary exposures, $3.7 million development in our risk management lines and $2.0 million in our other run-off lines.  

Losses and loss adjustment expenses for the nine months ended September 30, 2017 was the result of net unfavorable loss reserve development on prior accident years driven by $13.6 million for our asbestos exposure due to increasing defense costs and increase in the time claims remain open and $5.2 million in other run-off lines, partially offset by net favorable loss reserve development on prior accident years of $2.7 million for the run-off risk management lines. Losses and loss adjustment expenses for the nine months ended September 30, 2016 included net unfavorable loss reserve development on prior accident years of $9.0 million for our asbestos exposure due to increased defense costs and a final settlement agreement with a large primary insured, $6.0 million in our risk management lines and $2.6 million in other run-off lines.

The following table represents a reconciliation of total gross and net reserves for the Run-off Lines. Amounts in the net column are reduced by reinsurance recoverable.

	Nine Months Ended September 30,
	2017						2016
(in millions)	Gross			Net			Gross			Net
Asbestos and environmental:
Loss reserves, beginning of the year	$	48.4		$	40.6		$	46.4		$	43.5
Incurred losses		12.5			15.2			15.6			10.5
Losses paid		(1.6	)		(5.2	)		(10.0	)		(10.0	)
Loss reserves - asbestos and environmental, end of    year		59.3			50.6			52.0			44.0
Risk management reserves		222.1			138.6			241.4			151.4
Run-off reinsurance reserves		1.8			1.8			2.2			2.2
Other run-off lines		4.9			4.9			4.2			4.2
Total loss reserves - Run-off Lines	$	288.1		$	195.9		$	299.8		$	201.8

Underwriting, acquisition and insurance expenses for the Run-off Lines segment consists primarily of administrative expenses. The increase in underwriting expense for three and nine months ended September 30, 2017 as compared to the same periods ended 2016 was primarily attributable to increased overhead expenses and decreased policyholder dividends. In addition, underwriting expenses for the three and nine months ended September 30, 2016 were favorably impacted a $0.2 million and $0.5 million, respectively, primarily from the reduction in bad debt expenses due to the collection of a premiums receivable balance that was previously written off.

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Liquidity and Capital Resources

The primary sources of our cash flows are premiums, reinsurance recoveries, proceeds from sales and redemptions of investments and investment income. The primary cash outflows are claim payments, loss adjustment expenses, reinsurance costs and operating expenses. Additional cash outflow occurs through payments of underwriting and acquisition costs such as commissions, taxes, payroll and general overhead expenses. Management believes that cash receipts from premiums, proceeds from investment sales and redemptions and investment income are sufficient to cover cash outflows in the foreseeable future. Should the need for additional cash arise, we believe we have access to additional sources of liquidity.

Cash provided by operating activities can fluctuate due to a timing difference in the collection of premiums and reinsurance recoveries and the payment of losses and expenses. For the nine months ended September 30, 2017, net cash provided by operating activities was $252.4 million, as compared to net cash provided by operating activities of $150.8 million for the nine months ended September 30, 2016. The increase in cash flows from operating activities in 2017 from 2016 is attributable to various fluctuations within our operating activities, primarily driven by the timing of reinsurance premium payments, reinsurance recoveries and premium cash receipts in the respective periods.

Net cash used in investing activities was $166.0 million for the nine months ended September 30, 2017, as compared to net cash used in investing activities of $83.4 million for the nine months ended September 30, 2016. Included in the $82.6 million net increase in cash used in investing activities was the $235.3 million cash outflow related to the purchase of Maybrooke, net of $130.1 million of cash acquired. The remaining increase in cash used in investing was mainly the result of the increase in cash used to purchase fixed maturity investments, partially offset by the proceeds from sales, maturities and calls of fixed maturities and short-term investments. As of September 30, 2017, $386.0 million of the investment portfolio was invested in short-term investments.

For nine months ended September 30, 2017, net cash provided by financing activities was $64.4 million, as compared to net cash used in financing activities of $64.5 million for the nine months ended September 30, 2016. During the nine months ended September 30, 2017, we borrowed $125.0 million as a term loan under our credit facility to help fund the acquisition of Maybrooke. During the nine months ended September 30, 2017 and 2016, we repurchased565,534and 815,196 shares of our common stock for a total cost of $36.6 million and $45.3 million, respectively. We paid cash dividends to our shareholders totaling $24.9 million and $19.8 million during the nine months ended September 30, 2017 and 2016, respectively.

Effective February 6, 2017, we completed the acquisition of Maybrooke Holdings, S.A. for $235.3 million. We drew $125.0 million under our Credit Agreement in order to help fund the acquisition and paid the remaining $110.3 million with available cash on hand. In addition to the cash needs related to this acquisition, we will have continuing cash needs for administrative expenses, the payment of principal and interest on borrowings, shareholder dividends and taxes. Funds to meet these obligations will come primarily from parent company cash, dividends and other payments from our insurance company subsidiaries and from our line of credit.

On March 3, 2017, each of Argo Group, Argo Group US, Inc., Argo International Holdings Limited, and Argo Underwriting Agency Limited (the “Borrowers”) entered into a $325 million credit agreement (“Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement replaced and terminated the original $175 credit agreement. The Credit Agreement provides for a $200.0 million revolving credit facility with a maturity date of March 3, 2022 unless extended in accordance with the terms of the Credit Agreement. In addition, the Credit Agreement includes a $125 million term loan borrowing, which Argo Group used to pay off in its entirety the $125.0 million borrowing drawn on January 31, 2017 under the prior credit agreement to help fund the acquisition of Maybrooke. At September 30, 2017, the $125.0 million drawn on this term loan remained outstanding, with a maturity date of March 3, 2019. The term loan bears interest based on a variable rate, which resets and is payable based on reset options we select pursuant to the terms of the Credit Agreement. As of September 30, 2017, the interest rate on this debt was equal to the two-month LIBOR (1.30% at September 30, 2017) plus 150 basis points, or 2.80%.

Borrowings under the Credit Agreement may be used for general corporate purposes, including working capital and permitted acquisitions, and each of the Borrowers has agreed to be jointly and severally liable for the obligations of the other Borrowers under the Credit Agreement.

The Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Borrowers could be required to repay all amounts outstanding under the Credit Agreement. Lenders holding at least a majority of the loans and commitments under the Credit Agreement could elect to accelerate the maturity of the loans and/or terminate the commitments under the Credit Agreement upon the occurrence and during the continuation of an event of default. No defaults or events of defaults have occurred as of the date of this filing.

Included in the Credit Agreement is a provision that allows up to $200.0 million of the revolving credit facility to be used for letters of credit (“LOCs”), subject to availability. As of September 30, 2017, there were no borrowings outstanding and $0.5 million in LOCs against the revolving credit facility.

52

On November 7, 2017, our Board of Directors declared a quarterly cash dividend in the amount of $0.27 on each share of common stock outstanding. The dividend will be paid on December 15, 2017 to shareholders of record at the close of business on December 1, 2017.

On May 3, 2016, our Board authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all the previous repurchase authorizations. Shares purchased are being held as treasury shares in accordance with the provisions of the Bermuda Companies Act 1981. As of September 30, 2017, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $93.7 million.

Refer to Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” in Argo Group’s Annual Report on Form 10-K for the year ended December 31, 2016 that Argo Group filed with the SEC on February 24, 2017 for further discussion on Argo Group’s liquidity.

Recent Accounting Standards and Critical Accounting Estimates

New Accounting Standards

The discussion of the adoption and pending adoption of recently issued accounting policies is included in Note 2, “Recently Issued Accounting Standards,” in the Notes to the Consolidated Financial Statements, included in Part I, Item 1 - “Consolidated Financial Statements (unaudited).”

Critical Accounting Estimates

Refer to “Critical Accounting Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 that we filed with the SEC on February 24, 2017 for information on accounting policies that we consider critical in preparing our consolidated financial statements. These policies include significant estimates made by management using information available at the time the estimates were made. However, these estimates could change materially if different information or assumptions were used.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We believe that we are principally exposed to four types of market risk: interest rate risk, credit risk, equity price risk and foreign currency risk.

Interest Rate Risk

Our primary market risk exposure is the exposure of our fixed maturity investment portfolio to interest rate risk and the changes in interest rates. Fluctuations in interest rates have a direct impact on the fair valuation of these securities. As interest rates rise, the fair value of our fixed maturity portfolio falls, and the converse is also true. We manage interest rate risk through an active portfolio management strategy that involves the selection of investments with appropriate characteristics, such as duration, yield, currency and liquidity that are tailored to the anticipated cash outflow characteristics of our liabilities. A significant portion of our investment portfolio matures each year, allowing for reinvestment at current market rates. The model duration of the assets comprising our fixed maturity investment portfolio was 2.52 years and 2.58 years at September 30, 2017 and December 31, 2016, respectively.

Credit Risk

We have exposure to credit risk on losses recoverable from reinsurers and receivables from insureds. Our controls to mitigate this risk include limiting our exposure to any one counterparty, evaluating the financial strength of our reinsurers, generally requiring minimum credit ratings and in certain cases receiving collateral from our reinsurers and insureds.

We also have exposure to credit risk in our investment holdings. Our risk management strategy and investment policy attempts to mitigate this risk by primarily investing in debt instruments of high credit quality issuers, limiting credit concentration, monitoring the credit quality of issuers and counterparties and diversifying issuers. The weighted average rating of our fixed maturity investments was A+ with 88.4% and 87.1% rated investment grade or better (BBB- or higher) at September 30, 2017 and December 31, 2016, respectively.

Our portfolio also includes alternative investments with a carrying value at September 30, 2017 and December 31, 2016 of $562.6 million and $539.0 million (11.7% and 12.5% of total invested assets) respectively. We may invest in both long and short equities, corporate debt securities, currencies, real estate, commodities and derivatives. We attempt to mitigate our risk by selecting managers with extensive experience, proven track records and robust controls and processes. We also mitigate our risk by diversifying through multiple managers and different types of assets and asset classes.

53

Equity Price Risk

We hold a diversified portfolio of equity securities with a fair value of $480.5 million and $447.4 million (10.0% and 10.3% of total invested assets) at September 30, 2017 and December 31, 2016, respectively. Our equity securities are exposed to equity price risk which is defined as the potential for loss in fair value due to a decline in equity prices. We believe the diversification of our equity securities among various industries, market segments and issuers mitigates our exposure to equity price risk.  

Foreign Currency Risk

We have exposure to foreign currency risk in our insurance contracts, invested assets and to a lesser extent, a portion of our debt. We attempt to manage our foreign currency risk by seeking to match our liabilities under insurance and reinsurance contracts that are payable in currencies other than the U.S. Dollar with cash and investments that are denominated in such currencies. We also use foreign exchange forward contracts to mitigate this risk. We recognized $0.1 million and $12.0 million in losses from movements in foreign currency rates for the three and nine months ended September 30, 2017, respectively. We recognized $3.3 million and $19.3 million in losses from movements in foreign currency rates for the three and nine months ended September 30, 2016, respectively. We recognized $4.8 million and $10.4 million in losses on our foreign currency forward contacts for the three and nine months ended September 30, 2017, respectively. We recognized $0.3 million in gains and $11.5 million in losses on our foreign currency forward contacts for the three and nine months ended September 30, 2016, respectively.

Item 4. Controls and Procedures

Argo Group, under the supervision and with the participation of its management, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) as of the end of the period covered by this report.  In designing and evaluating these disclosure controls and procedures, Argo Group and its management recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures.  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed by Argo Group in the reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There were no changes in the internal control over financial reporting made during the quarter ended September 30, 2017 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  We review our disclosure controls and procedures, which may include internal controls over financial reporting, on an ongoing basis.  From time to time, management makes changes to enhance the effectiveness of these controls and ensure that they continue to meet the needs of our business activities over time.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

Our subsidiaries are parties to legal actions incidental to their business.  Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations.

Item 1A.  Risk Factors

See “Risk Factors” in the Argo Group Annual Report on Form 10-K for the year ended December 31, 2016 and as updated for the Maybrooke acquisition in the Argo Group Quarterly Report on Form 10-Q for the three months ended March 31, 2017, for a detailed discussion of the additional risk factors affecting us.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchase of Equity Securities

On May 3, 2016, our Board authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all the previous Repurchase Authorizations.

54

From January 1, 2017 through September 30, 2017, we have repurchased a total of 612,034 shares for a total cost of $36.6 million. Since the inception of the repurchase authorizations through September 30, 2017, we have repurchased 10,640,789 shares of our common stock at an average price of $38.98 for a total cost of $414.8 million. These shares are being held as treasury shares in accordance with the provisions of the Bermuda Companies Act 1981. As of September 30, 2017, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $93.7 million.

The following table provides information with respect to shares of our common stock that were repurchased or surrendered during the three months ended September 30, 2017:

Period	Total Number of Shares Purchased (a)		Average Price Paid per Share (b)		Total Number of Shares Purchased as Part of Publically Announced Plan or Program (c)		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program (d)
July 1 through July 31, 2017		26,604	$	59.73		25,732	$	125,928,881
August 1 through August 31, 2017		352,307	$	60.06		332,820	$	110,967,483
September 1 through September 30, 2017		208,456	$	59.37		206,982	$	93,662,284
Total		587,367				565,534

Employees are allowed to surrender shares to settle the tax liability incurred upon the vesting or exercise of shares under our various employee equity compensation plans. For the three months ended September 30, 2017, we received 21,833 shares of our common stock, with an average price paid per share of $60.54 that were surrendered by employees in payment for the minimum required withholding taxes. In the above table, these shares are included in columns (a) and (b), but excluded from columns (c) and (d). These shares do not reduce the number of shares that may yet be purchased under the repurchase plan.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None.

Item 6.  Exhibits

A list of exhibits required to be filed as part of this report is set forth in the Exhibit Index of this Form 10-Q, which immediately precedes such exhibits, and is incorporated herein by reference.

55

EXHIBIT INDEX

Exhibit Number	Description
12.1	Statements of Computation of Ratios of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Dividends
31.1	Rule 13a – 14(a)/15d – 14(a) Certification of the Chief Executive Officer
31.2	Rule 13a – 14(a)/15d – 14(a) Certification of the Chief Financial Officer
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

56

SIGNATURES

Pursuant to the requirements of the Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
November 7, 2017	By	/s/ Mark E. Watson III
		Mark E. Watson III
		President and Chief Executive Officer
November 7, 2017	By	/s/ Jay S. Bullock
		Jay S. Bullock
		Executive Vice President and Chief Financial Officer

57

EX-12.1

Exhibit 12.1

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

STATEMENTS OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

(in millions, except ratios)

	Nine Months Ended September 30,				For the Years Ended December 31,
	2017		2016		2016		2015		2014		2013		2012
Earnings:
Income before provision for income    taxes	$	27.6	$	134.9	$	181.9	$	177.5	$	216.0	$	179.7	$	66.7
Add:
Fixed charges		25.3		17.7		23.7		23.7		24.8		25.1		28.4
Total earnings	$	52.9	$	152.6	$	205.6	$	201.2	$	240.8	$	204.8	$	95.1
Fixed charges:
Interest expense	$	20.4	$	14.6	$	19.6	$	19.0	$	19.9	$	20.2	$	23.7
Rental interest factor		4.9		3.1		4.1		4.7		4.9		4.9		4.7
Total fixed charges	$	25.3	$	17.7	$	23.7	$	23.7	$	24.8	$	25.1	$	28.4
Ratio of earnings to fixed charges	2.1:1		8.6:1		8.7:1		8.5:1		9.7:1		8.2:1		3.3:1

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a)

Certification of the Chief Executive Officer

I, Mark E. Watson III, President and Chief Executive Officer of Argo Group International Holdings, Ltd., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Argo Group International Holdings, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2017	/s/ Mark E. Watson III
	Mark E. Watson III
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a)

Certification of the Chief Financial Officer

I, Jay S. Bullock, Executive Vice President and Chief Financial Officer of Argo Group International Holdings, Ltd., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Argo Group International Holdings, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2017	/s/ Jay S. Bullock
	Jay S. Bullock
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Argo Group International Holdings, Ltd. (the “Company”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Mark E. Watson III, as President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

* * *

Certified this 7th day of November 2017.	/s/ Mark E. Watson III
	Mark E. Watson III
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Argo Group International Holdings, Ltd. (the “Company”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jay S. Bullock, as Executive Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

* * *

Certified this 7th day of November 2017.	/s/ Jay S. Bullock
	Jay S. Bullock
	Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 02, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	AGII
Entity Registrant Name	Argo Group International Holdings, Ltd.
Entity Central Index Key	0001091748
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		29,680,863

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	[1]
Assets
Fixed maturities available-for-sale, at fair value (cost: 2017 - $3,339.7; 2016 - $2,938.8)	$ 3,378.4	$ 2,932.4
Equity securities available-for-sale, at fair value (cost: 2017 - $347.6; 2016 - $335.2)	480.5	447.4
Other investments (cost: 2017 - $553.1; 2016 - $531.6)	562.6	539.0
Short-term investments, at fair value (cost: 2017 - $386.0; 2016 - $405.5)	386.0	405.5
Total investments	4,807.5	4,324.3
Cash	235.8	86.0
Accrued investment income	23.6	20.7
Premiums receivable	678.8	463.8
Reinsurance recoverables	2,101.9	1,385.6
Goodwill	152.2	152.2
Intangible assets, net of accumulated amortization	108.3	67.7
Deferred acquisition costs, net	168.8	139.1
Ceded unearned premiums	461.4	302.8
Other assets	319.7	262.8
Total assets	9,058.0	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	4,305.9	3,350.8
Unearned premiums	1,286.0	970.0
Accrued underwriting expenses	97.5	115.0
Ceded reinsurance payable, net	822.6	466.6
Funds held	45.0	77.1
Senior unsecured fixed rate notes	139.6	139.5
Other indebtedness	184.7	55.4
Junior subordinated debentures	256.5	172.7
Current income taxes payable, net	11.0	8.1
Deferred tax liabilities, net	41.5	24.1
Other liabilities	59.7	33.0
Total liabilities	7,250.0	5,412.3
Commitments and contingencies (Note 16)	0.0	0.0
Shareholders' equity:
Common shares - $1.00 par, 500,000,000 shares authorized; 40,300,433 and 40,042,330 shares issued at September 30, 2017 and December 31, 2016, respectively	40.3	40.0
Additional paid-in capital	1,129.1	1,123.3
Treasury shares (10,640,789 and 10,028,755 shares at September 30, 2017 and December 31, 2016, respectively)	(414.8)	(378.2)
Retained earnings	956.4	959.9
Accumulated other comprehensive income, net of taxes	97.0	47.7
Total shareholders' equity	1,808.0	1,792.7
Total liabilities and shareholders' equity	$ 9,058.0	$ 7,205.0

[1] Derived from audited consolidated financial statements.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	[1]
Statement Of Financial Position [Abstract]
Available-for-sale cost	$ 3,339.7	$ 2,938.8
Equity securities cost	347.6	335.2
Other investments cost	553.1	531.6
Short-term investments, Cost	$ 386.0	$ 405.5
Common shares, par value	$ 1.00	$ 1.00
Common shares, shares authorized	500,000,000	500,000,000
Common shares, shares issued	40,300,433	40,042,330
Treasury shares, shares	10,640,789	10,028,755

[1] Derived from audited consolidated financial statements.

XML

Condensed Consolidated Statements of (Loss) Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Premiums and other revenue:
Earned premiums	$ 389.3	$ 358.7	$ 1,167.8	$ 1,048.5
Net investment income	30.9	32.7	105.0	89.6
Fee and other income	13.0	7.6	20.4	20.2
Net realized investment and other gains	6.0	17.7	25.1	12.8
Total revenue	439.2	416.7	1,318.3	1,171.1
Expenses:
Losses and loss adjustment expenses	326.4	207.8	779.5	596.0
Underwriting, acquisition and insurance expenses	166.1	137.4	474.4	403.0
Interest expense	7.5	4.9	20.4	14.6
Fee and other expense	5.0	5.9	12.4	18.1
Foreign currency exchange losses (gains)	0.1	(1.5)	4.0	4.5
Total expenses	505.1	354.5	1,290.7	1,036.2
(Loss) income before income taxes	(65.9)	62.2	27.6	134.9
Income tax (benefit) provision	(4.6)	7.0	6.2	21.1
Net (loss) income	$ (61.3)	$ 55.2	$ 21.4	$ 113.8
Net (loss) income per common share:
Basic	$ (2.04)	$ 1.84	$ 0.71	$ 3.76
Diluted	(2.04)	1.80	0.69	3.68
Dividend declared per common share	$ 0.27	$ 0.22	$ 0.81	$ 0.64
Weighted average common shares:
Basic	29,978,485	30,018,637	30,075,424	30,227,725
Diluted	29,978,485	30,728,383	30,893,026	30,889,487
Net realized investment and other gains before other-than-temporary impairment losses	$ 6.2	$ 20.1	$ 26.8	$ 21.8
Other-than-temporary impairment losses recognized in earnings:
Other-than-temporary impairment losses on fixed maturities	(0.1)	(0.6)	(0.1)	(1.7)
Other-than-temporary impairment losses on equity securities	(0.1)	(1.8)	(1.6)	(7.3)
Impairment losses recognized in earnings	(0.2)	(2.4)	(1.7)	(9.0)
Net realized investment and other gains	$ 6.0	$ 17.7	$ 25.1	$ 12.8

XML

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (61.3)	$ 55.2	$ 21.4	$ 113.8
Other comprehensive income:
Foreign currency translation adjustments	0.4	(1.0)	(0.2)	2.8
Unrealized gains on securities:
Gains arising during the year	38.5	19.8	100.1	97.7
Reclassification adjustment for gains included in net income	(17.4)	(17.0)	(36.3)	(25.1)
Other comprehensive income before tax	21.5	1.8	63.6	75.4
Unrealized gains on securities:
Gains arising during the year	10.1	7.6	26.0	27.5
Reclassification adjustment for gains included in net income	(5.5)	(7.9)	(11.7)	(11.8)
Income tax provision (benefit) related to other comprehensive income	4.6	(0.3)	14.3	15.7
Other comprehensive income, net of tax	16.9	2.1	49.3	59.7
Comprehensive (loss) income	$ (44.4)	$ 57.3	$ 70.7	$ 173.5

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 21.4		$ 113.8
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation	24.4		27.4
Share-based payments expense	11.2		11.1
Deferred income tax (benefit) provision, net	(6.4)		2.3
Net realized investment and other gains	(25.1)		(12.8)
Undistributed earnings from alternative investment portfolio	(38.6)		(20.8)
Loss on disposals of fixed assets, net	1.4		0.2
Change in:
Accrued investment income	(2.7)		(0.3)
Receivables	(690.9)		(255.5)
Deferred acquisition costs	(19.7)		(14.9)
Ceded unearned premiums	(65.8)		(59.8)
Reserves for losses and loss adjustment expenses	756.5		154.2
Unearned premiums	162.5		120.3
Ceded reinsurance payable and funds held	179.7		128.3
Income taxes	3.5		19.7
Accrued underwriting expenses	(42.5)		(27.4)
Other, net	(16.5)		(35.0)
Cash provided by operating activities	252.4		150.8
Cash flows from investing activities:
Sales of fixed maturity investments	1,069.7		761.8
Maturities and mandatory calls of fixed maturity investments	493.2		839.0
Sales of equity securities	140.0		155.3
Sales of other investments	68.3		92.1
Purchases of fixed maturity investments	(1,916.9)		(1,650.7)
Purchases of equity securities	(118.1)		(114.7)
Purchases of other investments	(25.2)		(90.3)
Change in foreign regulatory deposits and voluntary pools	(27.2)		4.8
Change in short-term investments	291.4		(78.7)
Settlements of foreign currency exchange forward contracts	0.0		(7.2)
Acquisition of subsidiaries, net of cash acquired	(105.2)		0.0
Purchases of fixed assets	(20.4)		(26.7)
Other, net	(15.6)		31.9
Cash used in investing activities	(166.0)		(83.4)
Cash flows from financing activities:
Additional long-term borrowings	125.0		0.0
Activity under stock incentive plans	0.9		0.6
Repurchase of Company's common shares	(36.6)		(45.3)
Payment of cash dividends to common shareholders	(24.9)		(19.8)
Cash provided by (used in) financing activities	64.4		(64.5)
Effect of exchange rate changes on cash	(1.0)		(1.0)
Change in cash	149.8		1.9
Cash, beginning of year	86.0	[1]	121.7
Cash, end of period	$ 235.8		$ 123.6

[1] Derived from audited consolidated financial statements.

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Basis of Presentation

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on February 24, 2017.

Effective February 6, 2017, we completed the acquisition of Maybrooke Holdings, S.A. (“Maybrooke”) and its direct subsidiaries, including Ariel Re. We have accounted for the acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations,” and the purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. See Note 3, “Acquisition of Maybrooke,” for additional discussion regarding the acquisition and the related financial disclosures. The Consolidated Financial Statements as of and for the three and nine months ended September 30, 2017 and the Notes to the Consolidated Financial Statements reflect the consolidated results of Argo Group and Maybrooke commencing on the date of acquisition.

The interim financial information as of and for the three and nine months ended September 30, 2017 and 2016 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.

During the first quarter of 2017, we evaluated and modified the presentation of our reportable segments to better reflect our new operating framework and management structure. Under this model, Argo Group’s chief operating decision maker – Mark E. Watson III, President and Chief Executive Officer – evaluates performance and allocates resources based on the review of the U.S. Operations and the International Operations. The U.S. Operations includes the former Excess & Surplus and Commercial Specialty reportable segments. The International Operations includes the former Syndicate 1200, International Specialty reportable segments, and the recently acquired Ariel Re business. (See Note 3, “Acquisition of Maybrooke” for details regarding Ariel Re.) The business unit that produces the risk and not the location of the underlying exposure is the primary characteristic in distinguishing operating and reportable segments. For example, a U.S. property exposure underwritten through our Syndicate platform would be included in International Operations. Consistent with prior periods, the Run-off Lines and Corporate segments include all other activity of Argo Group and are included in our consolidated financial results. Segment results for the three and nine months ended September 30, 2016 have been reclassified to conform to the current presentation.

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Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

2. Recently Issued Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation – Stock Compensation” (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires entities to apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. In addition to all the disclosures about modifications that are required today, the entities are required to affirmatively disclose when compensation expense has not changed. The ASU will be applied prospectively and is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including in any interim period for which financial statements have not been issued or made available for issuance. We are currently evaluating the impact that the adoption of the ASU will have on our financial results and disclosures.

In January 2017, the FASB issued ASU 2017-01, “Business Combinations” (Topic 805). ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance specifies the minimum inputs and processes required to meet the definition of a business. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those periods, with early adoption permitted. We do not anticipate that this ASU will have a material impact on our financial results or disclosures.

In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other” (Topic 350). ASU 2017-04 eliminates the requirement to calculate the implied fair value of goodwill that is done in Step 2 of the current goodwill impairment test to measure a goodwill impairment loss. Instead, entities will record an impairment loss based on the excess of a reporting unit’s carrying amount over its fair value. The guidance will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. We do not anticipate that this ASU will have a material impact on our financial results or disclosures.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230). ASU 2016-15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those years. This ASU will have an impact on how we present the distributions received from equity method investees in our statement of cash flows. We have elected to adopt the cumulative earnings approach to classify distributions received from equity method investees, which we will adopt retrospectively. We anticipate that this ASU will have no net effect on our consolidated statements of cash flows, but will likely have an immaterial impact on the classification of specific cash receipts and payments within the statement.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of the ASU will have on our financial results and disclosures, but do not anticipate that any such potential impact would be material.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (Topic 718). ASU 2016-09 simplifies the accounting for share-based payment award transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We have adopted this ASU as of January 1, 2017, and for presentation purposes, the incremental tax windfall or shortfall associated with these events has been classified as a cash inflow from operating activity as compared with a financing activity, as previously required. The impact to our financial statements was not material. Additionally, we have selected to continue estimating forfeitures based on historical patterns and will true-up the expenses upon vesting.

In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, the ASU modifies current guidance for lessors' accounting. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We do not anticipate that this ASU will have a material impact on our results of operations, but we anticipate an increase to the value of our assets and liabilities related to leases, with no material impact to equity.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-01 will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU will also require us to assess the ability to realize our deferred tax assets related to an available-for-sale debt security in combination with our other deferred tax assets. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. While we continue to evaluate the impact of this ASU, we anticipate the standard will increase the volatility of our consolidated statements of income, resulting from the remeasurement of our equity investments.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606), which replaces most existing GAAP revenue recognition guidance and permits the use of either the retrospective or cumulative effect transition method. In August 2015, “Deferral of the Effective Date” (Topic 606), deferred the effective date of this guidance to interim and annual reporting periods beginning after December 15, 2017. Subsequently, in 2016, the FASB issued implementation guidance related to ASU 2014-09, including:

• ASU 2016-08, “Principal versus Agent considerations (Reporting Revenue Gross versus Net)” (Topic 606), which is intended to provide further clarification on the application of the principal versus agent implementations;

• ASU 2016-10, “Identifying Performance Obligations and Licensing” (Topic 606), which is intended to clarify the guidance for identifying promised goods or service in a contract with a customer;

• ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” (Topics 605 & 815);

• ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” (Topic 606), provides additional guidance for quantitative and qualitative disclosures in certain cases, and makes 12 additional technical corrections and improvements to the new revenue standard.

While insurance contracts are excluded from this ASU, fee income related to our brokerage operations and management of the third-party capital for our underwriting Syndicate 1200 at Lloyd’s will be subject to this updated guidance. We continue to evaluate what impact this ASU will have on our financial results and disclosures and which adoption method to apply, but do not anticipate such impact being material based on the limited revenue streams subject to the ASU.

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Acquisition of Maybrooke

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisition of Maybrooke

3. Acquisition of Maybrooke

Effective February 6, 2017, we completed the acquisition of Maybrooke whereby we acquired all of the issued and outstanding capital stock of Maybrooke. The initial purchase price of $235.3 million was paid in cash from funds on hand and available under our credit facility (see Note 7, “Other Indebtedness”). The initial purchase price was subject to post-closing adjustments based on a final calculation of the purchase price, which we delivered to the seller, as required, within 90 days of closing. As of the date of this filing, we are in discussions with the seller to finalize and agree upon certain changes included in the final purchase price calculation. We anticipate resolving this matter by the end of 2017 and do not expect any material adjustments to the purchase price disclosed below.

Through the acquisition of Maybrooke, we acquired Ariel Re, a global underwriter of specialty insurance and reinsurance business written primarily through its Lloyd’s Syndicate 1910. Ariel Re provides Argo Group with a number of strategic advantages, including enhanced scale in its London- and Bermuda-based platforms.

The acquisition is being accounted for in accordance with ASC 805, “Business Combinations.” Purchase accounting, as defined by ASC 805, requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We are in the process of finalizing our determination of fair values, including an independent appraisal of certain assets and liabilities, including intangible assets. Therefore, a preliminary allocation of the purchase price to the acquired assets, liabilities, and intangible assets is presented in the table below:

(in millions)
Assets:
Investments	$	340.7
Cash		130.1
Accrued investment income		0.2
Premiums receivable		157.6
Reinsurance recoverables		80.2
Current income taxes receivable		0.6
Deferred acquisition costs, net		9.8
Ceded unearned premiums		92.6
Other assets		24.9
Total assets		836.7
Liabilities:
Reserves for losses and loss adjustment expenses		197.0
Unearned premiums		152.5
Accrued underwriting expenses		28.8
Ceded reinsurance payable, net		144.2
Junior subordinated debentures		83.6
Deferred tax liabilities		9.0
Other liabilities		30.7
Total liabilities		645.8
Net assets acquired		190.9
Initial purchase price		235.3
Intangible assets	$	44.4

During the second quarter of 2017, we engaged an independent valuation firm and anticipate completing our valuation analysis and closing the fair value measurement period by the end of 2017. The excess of the purchase price over the fair value of the net assets acquired has been preliminarily allocated to intangible assets, which will be specifically identified and quantified by the end of 2017. We did not record amortization expense related to the $44.4 million intangible assets during the nine months ended September 30, 2017, as the valuation analysis has not yet been completed. We anticipate recording both amortizable and non-amortizable identifiable intangible assets and goodwill upon the completion of the valuation analyses, including intangible assets relating to the Lloyd’s Syndicate 1910 stamp capacity (non-amortizable), distribution networks (amortizable), and the Ariel Re tradename (amortizable). Goodwill is calculated as the excess of the purchase price over the fair value of the net assets recognized, including identifiable intangible assets.

We recognized approximately $2.5 million of acquisition-related transaction costs in our Consolidated Statements of Income, all of which were recorded during the first quarter of 2017. Of these amounts, $2.2 million were reported in “Underwriting, acquisition and insurance expenses” and $0.3 million in “Interest expense” related to the borrowings under our credit facility to help fund the acquisition. No additional transaction costs were incurred during the three months ended September 30, 2017.

Maybrooke’s Contribution to Argo Group’s Revenue and (Loss) Income

The following selected financial information summarizes the results of Maybrooke from the date of acquisition that have been included in our Consolidated Statement of (Loss) Income:

(in millions)	For the Three Months Ended September 30, 2017			For the Nine Months Ended September 30, 2017
Revenues	$	27.5		$	93.7
Net loss	$	(26.7	)	$	(13.7	)

Unaudited Pro forma Results of Operations

The following unaudited pro forma financial information has been provided to present a summary of the combined results of Argo Group’s operations with Maybrooke’s as if the acquisition had occurred on January 1, 2016. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above, as it may not include all necessary adjustments. Future changes to Maybrooke’s business, such as, but not limited to, the impact from underwriting decisions, changes in risk selection, or retention rates, could result in a material favorable or unfavorable impact on Argo Group’s future results of operations and financial position. The unaudited pro forma results for nine months ended September 30, 2017 include favorable development from prior accident years of $10.5 million, including $6.2 million relating to one specific claim in January 2017. In addition, the $2.5 million of nonrecurring transaction costs directly attributable to the acquisition for nine months ended September 30, 2017, as disclosed above, have also been removed from the unaudited pro forma results in the table below.

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except per share data)	2017			2016		2017		2016
Pro forma revenues	$	439.2		$	466.0	$	1,332.4	$	1,340.5
Pro forma net (loss) income		(63.4	)		56.2		29.8		132.9
Pro forma net (loss) income per share - basic		(2.11	)		1.87		0.99		4.40
Pro forma net (loss) income per share - diluted		(2.11	)		1.83		0.96		4.30

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Investments

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Investments

4. Investments

Composition of Invested Assets

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments were as follows:

September 30, 2017
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	342.7	$	0.5	$	3.2	$	340.0
Foreign Governments		231.9		7.9		3.5		236.3
Obligations of states and political subdivisions		324.1		11.9		0.8		335.2
Corporate bonds		1,612.7		29.0		9.9		1,631.8
Commercial mortgage-backed securities		147.4		0.4		1.1		146.7
Residential mortgage-backed securities		271.7		3.4		1.6		273.5
Asset-backed securities		156.4		0.7		0.6		156.5
Collateralized loan obligations		252.8		6.6		1.0		258.4
Total fixed maturities		3,339.7		60.4		21.7		3,378.4
Equity securities		347.6		138.2		5.3		480.5
Other investments		553.1		9.5		—		562.6
Short-term investments		386.0		—		—		386.0
Total investments	$	4,626.4	$	208.1	$	27.0	$	4,807.5

December 31, 2016
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	275.1	$	0.6	$	4.5	$	271.2
Foreign Governments		244.2		1.1		8.0		237.3
Obligations of states and political subdivisions		375.7		8.9		1.8		382.8
Corporate bonds		1,316.9		23.3		19.5		1,320.7
Commercial mortgage-backed securities		154.9		0.4		1.6		153.7
Residential mortgage-backed securities		174.8		3.7		1.7		176.8
Asset-backed securities		127.6		0.1		2.1		125.6
Collateralized loan obligations		269.6		3.8		9.1		264.3
Total fixed maturities		2,938.8		41.9		48.3		2,932.4
Equity securities		335.2		117.9		5.7		447.4
Other investments		531.6		7.5		0.1		539.0
Short-term investments		405.5		—		—		405.5
Total investments	$	4,211.1	$	167.3	$	54.1	$	4,324.3

Included in “Total investments” in our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 is $154.8 million and $131.9 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of Syndicate 1200.

Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of September 30, 2017, by contractual maturity, were as follows:

(in millions)	Amortized Cost		Fair Value
Due in one year or less		231.9		230.3
Due after one year through five years		1,515.6		1,533.6
Due after five years through ten years		594.1		604.6
Thereafter		169.8		174.8
Structured securities		828.3		835.1
Total	$	3,339.7	$	3,378.4

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations.

Other Invested Assets

Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of September 30, 2017 and December 31, 2016 were as follows:

September 30, 2017
(in millions)	Carrying Value			Unfunded Commitments
Investment Type
Hedge funds	$	180.1		$	—
Private equity		167.7			117.9
Long only funds		215.7			—
Other investments		(0.9	)		—
Total other invested assets	$	562.6		$	117.9

December 31, 2016
(in millions)	Carrying Value		Unfunded Commitments
Investment Type
Hedge funds	$	180.9	$	—
Private equity		179.0		93.4
Long only funds		170.7		—
Other investments		8.4		—
Total other invested assets	$	539.0	$	93.4

The following describes each investment type:

• Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including short sales, multi-strategy credit, relative value credit and distressed credit.

• Private equity: Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting.

• Long only funds: Our long only funds include a fund that primarily owns international stocks and funds that primarily own investment-grade corporate and sovereign fixed income securities.  

• Other investments: Other investments include participation in investment pools, foreign exchange currency forward contracts to manage our foreign currency exposure and a portfolio of foreign exchange currency forward contracts that are actively traded by an external currency manager for a total return strategy.

Unrealized Losses and Other-Than-Temporary Impairments

An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below:

September 30, 2017	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	279.2	$	2.7	$	17.6	$	0.5	$	296.8	$	3.2
Foreign Governments		194.8		3.4		6.2		0.1		201.0		3.5
Obligations of states and political subdivisions		25.7		0.3		15.0		0.5		40.7		0.8
Corporate bonds		426.9		8.2		72.5		1.7		499.4		9.9
Commercial mortgage-backed securities		73.6		0.4		26.8		0.7		100.4		1.1
Residential mortgage-backed securities		137.9		1.3		17.9		0.3		155.8		1.6
Asset-backed securities		69.4		0.3		9.3		0.3		78.7		0.6
Collateralized loan obligations (2)		61.0		1.0		2.3		—		63.3		1.0
Total fixed maturities		1,268.5		17.6		167.6		4.1		1,436.1		21.7
Equity securities		55.2		5.3		—		—		55.2		5.3
Other investments (1)		0.3		—		—		—		0.3		—
Short-term investments (1)		46.4		—		—		—		46.4		—
Total	$	1,370.4	$	22.9	$	167.6	$	4.1	$	1,538.0	$	27.0

December 31, 2016	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	183.4	$	4.5	$	—	$	—	$	183.4	$	4.5
Foreign Governments		201.2		8.0		—		—		201.2		8.0
Obligations of states and political subdivisions		72.6		1.7		1.8		0.1		74.4		1.8
Corporate bonds		490.5		17.7		50.6		1.8		541.1		19.5
Commercial mortgage-backed securities		70.6		1.5		7.1		0.1		77.7		1.6
Residential mortgage-backed securities (2)		87.5		1.7		4.4		—		91.9		1.7
Asset-backed securities		69.7		1.4		8.2		0.7		77.9		2.1
Collateralized loan obligations		122.5		8.6		16.9		0.5		139.4		9.1
Total fixed maturities		1,298.0		45.1		89.0		3.2		1,387.0		48.3
Equity securities		62.1		5.7		—		—		62.1		5.7
Other investments		0.3		0.1		—		—		0.3		0.1
Short-term investments (1)		4.8		—		—		—		4.8		—
Total	$	1,365.2	$	50.9	$	89.0	$	3.2	$	1,454.2	$	54.1

⁽¹⁾ Unrealized losses less than one year are less than $0.1 million.

⁽²⁾ Unrealized losses one year or greater are less than $0.1 million.

We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. For equity securities and other investments, the length of time and the amount of decline in fair value are the principal factors in determining other-than-temporary impairment. We also recognize other-than-temporary losses on fixed maturity securities that we intend to sell.

We hold a total of 8,410 securities, of which 1,949 were in an unrealized loss position for less than one year and 182 were in an unrealized loss position for a period one year or greater as of September 30, 2017. Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral, as well. In considering whether an investment is other-than-temporarily impaired or not, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. In situations where we did not recognize other-than-temporary losses on investments in our equity portfolio, we have evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment and based on that evaluation, have the ability and intent to hold these investments until a recovery of the cost basis. We do not consider these investments to be other-than-temporarily impaired at September 30, 2017.

We recognized other-than-temporary losses on our fixed maturities and equity portfolio as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Other-than-temporary impairment:
Corporate bonds	$	(0.1	)	$	(0.6	)	$	(0.1	)	$	(1.7	)
Equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Other-than-temporary impairment losses	$	(0.2	)	$	(2.4	)	$	(1.7	)	$	(9.0	)

Realized Gains and Losses

The following table presents our gross realized investment and other gains (losses):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Fixed maturities	$	6.3		$	5.4		$	18.9		$	16.4
Equity securities		9.4			20.8			37.1			45.4
Other investments		7.0			4.2			17.8			31.2
Short-term investments		0.2			—			0.7			0.4
Other assets		—			1.2			—			1.2
Gross realized investment and other gains		22.9			31.6			74.5			94.6
Realized losses
Fixed maturities		(4.8	)		(6.1	)		(16.0	)		(21.0	)
Equity securities		(1.4	)		(1.9	)		(3.9	)		(9.0	)
Other investments		(10.5	)		(3.5	)		(27.7	)		(42.7	)
Short-term investments		—			—			(0.1	)		(0.1	)
Other-than-temporary impairment losses on    fixed maturities		(0.1	)		(0.6	)		(0.1	)		(1.7	)
Other-than-temporary impairment losses on    equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Gross realized investment and other losses		(16.9	)		(13.9	)		(49.4	)		(81.8	)
Net realized investment and other gains (losses)    before income taxes		6.0			17.7			25.1			12.8
Income tax expense		(2.2	)		(6.5	)		(7.9	)		(7.7	)
Net realized investment and other gains (losses),    net of income taxes	$	3.8		$	11.2		$	17.2		$	5.1

The cost of securities sold is based on the specific identification method.

Changes in unrealized appreciation (depreciation) related to investments are summarized as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Change in unrealized gains (losses)
Fixed maturities	$	9.5		$	13.7		$	41.6		$	78.5
Equity securities		11.7			(10.8	)		20.2			(6.8	)
Other investments		(0.1	)		—			2.0			0.6
Short-term investments		—			(0.1	)		—			0.3
Net unrealized investment and other gains before    income taxes		21.1			2.8			63.8			72.6
Income tax provision		(4.6	)		0.3			(14.3	)		(15.7	)
Net unrealized investment and other gains, net of    income taxes	$	16.5		$	3.1		$	49.5		$	56.9

Foreign Currency Exchange Forward Contracts

We entered into foreign currency exchange forward contracts to manage currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to our investment portfolio returns, manage currency exposure on certain Euro (“EUR”) denominated investments and gain exposure to a total return strategy which invests in multiple currencies.These currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments”. The realized and unrealized gains and losses are included in “Net realized investment and other (losses) gains” in our Consolidated Statements of (Loss) Income.

The fair value of our foreign currency exchange forward contracts as of September 30, 2017 and December 31, 2016 was as follows:

(in millions)	September 30, 2017			December 31, 2016
Operational currency exposure	$	(1.6	)	$	—
Asset manager investment exposure		(3.0	)		0.7
Total return strategy		(0.8	)		3.3
	$	(5.4	)	$	4.0

The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Operational currency exposure	$	1.8		$	1.3		$	7.5		$	8.7
Asset manager investment exposure		0.6			—			1.1			2.3
Total return strategy		4.1			2.2			7.7			18.4
Gross realized investment gains		6.5			3.5			16.3			29.4
Realized losses
Operational currency exposure		(4.2	)		(0.8	)		(10.1	)		(16.3	)
Asset manager investment exposure		(3.6	)		(0.8	)		(10.4	)		(4.5	)
Total return strategy		(3.5	)		(1.6	)		(6.2	)		(20.1	)
Gross realized investment losses		(11.3	)		(3.2	)		(26.7	)		(40.9	)
Net realized investment (losses) gains on foreign    currency exchange forward contracts	$	(4.8	)	$	0.3		$	(10.4	)	$	(11.5	)

Regulatory Deposits, Pledged Securities and Letters of Credit

(in millions)	September 30, 2017		December 31, 2016
Securities on deposit for regulatory and other purposes	$	177.8	$	168.7
Securities pledged as collateral for letters of credit		42.6		35.9
Securities and cash on deposit supporting Lloyd’s business		405.6		161.8
Total restricted investments	$	626.0	$	366.4

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability.

Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels.

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs.

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs.

• Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of September 30, 2017. A description of the valuation techniques we use to measure assets at fair value is as follows:

Fixed Maturities (Available-for-Sale) Levels 1 and 2:

• United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date.

• United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things.

• Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Fixed Maturities (Available-for-Sale) Levels 3:

• We own a term loan that is valued using unobservable inputs.

Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date.

Equity Securities Level 2: We own interests in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the fund’s net asset value per share, at the end of each month. The underlying assets in the fund are valued primarily on the basis of closing market quotations or official closing prices on each valuation day.

Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following:

• Fair value measurements are obtained from the National Association of Insurance Commissioners’ Security Valuation Office at the reporting date.

• Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions.

Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s. Foreign currency future contracts are valued by our counterparty using market driven foreign currency exchange rates and are considered Level 2 investments.

Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date.

Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three and nine months ended September 30, 2017.

Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:

			FairValue Measurements at Reporting Date Using
(in millions)	September 30, 2017		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	340.0	$	335.3	$	4.7	$	—
Foreign Governments		236.3		—		236.3		—
Obligations of states and political subdivisions		335.2		—		335.2		—
Corporate bonds		1,631.8		—		1,629.9		1.9
Commercial mortgage-backed securities		146.7		—		146.7		—
Residential mortgage-backed securities		273.5		—		273.5		—
Asset-backed securities		156.5		—		156.5		—
Collateralized loan obligations		258.4		—		258.4		—
Total fixed maturities		3,378.4		335.3		3,041.2		1.9
Equity securities		480.5		476.6		3.5		0.4
Other investments		124.1		—		124.1		—
Short-term investments		386.0		347.6		38.4		—
	$	4,369.0	$	1,159.5	$	3,207.2	$	2.3

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

			Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2016		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	271.2	$	228.0	$	43.2	$	—
Foreign Governments		237.3		—		237.3		—
Obligations of states and political subdivisions		382.8		—		382.8		—
Corporate bonds		1,320.7		—		1,318.7		2.0
Commercial mortgage-backed securities		153.7		—		153.7		—
Residential mortgage-backed securities		176.8		—		176.8		—
Asset-backed securities		125.6		—		125.6		—
Collateralized loan obligations		264.3		—		264.3		—
Total fixed maturities		2,932.4		228.0		2,702.4		2.0
Equity securities		447.4		444.9		2.1		0.4
Other investments		95.5		—		95.5		—
Short-term investments		405.5		375.1		30.4		—
	$	3,880.8	$	1,048.0	$	2,830.4	$	2.4

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting.

A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Observable Inputs (Level 3)

(in millions)	Corporate Bonds			Equity Securities		Total
Beginning balance, January 1, 2017	$	2.0		$	0.4	$	2.4
Transfers into Level 3		—			—		—
Transfers out of Level 3		—			—		—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—			—		—
Included in other comprehensive income (loss)		(0.1	)		—		(0.1	)
Purchases, issuances, sales, and settlements:
Purchases		—			—		—
Issuances		—			—		—
Sales		—			—		—
Settlements		—			—		—
Ending balance, September 30, 2017	$	1.9		$	0.4	$	2.3
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at September 30, 2017	$	—		$	—	$	—

(in millions)	Corporate Bonds		Equity Securities			Total
Beginning balance, January 1, 2016	$	—	$	0.7		$	0.7
Transfers into Level 3		—		—			—
Transfers out of Level 3		—		—			—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—		—			—
Included in other comprehensive income (loss)		—		—			—
Purchases, issuances, sales, and settlements:
Purchases		2.0		—			2.0
Issuances		—		—			—
Sales		—		(0.3	)		(0.3	)
Settlements		—		—			—
Ending balance, December 31, 2016	$	2.0	$	0.4		$	2.4
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at December 31, 2016	$	—	$	—		$	—

At September 30, 2017 and December 31, 2016, we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis.

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Reserves for Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Reserves for Losses and Loss Adjustment Expenses

5. Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

	For the Nine Months Ended September 30,
(in millions)	2017			2016
Net reserves beginning of the year	$	2,180.2		$	2,133.3
Net Maybrooke reserves acquired		131.8			—
Add:
Losses and LAE incurred during current calendar    year, net of reinsurance:
Current accident year		775.1			614.8
Prior accident years		4.4			(18.8	)
Losses and LAE incurred during calendar year,    net of reinsurance		779.5			596.0
Deduct:
Losses and LAE payments made during current    calendar year, net of reinsurance:
Current accident year		165.6			115.3
Prior accident years		413.7			403.9
Losses and LAE payments made during current    calendar year, net of reinsurance:		579.3			519.2
Change in participation interest (1)		(23.2	)		(36.3	)
Foreign exchange adjustments		18.9			1.0
Net reserves - end of period		2,507.9			2,174.8
Add:
Reinsurance recoverables on unpaid losses and    LAE, end of year		1,798.0			1,110.0
Gross reserves - end of period	$	4,305.9		$	3,284.8

⁽¹⁾ Amount represents decreases in reserves due to change in syndicate participation

Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.

The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:

	For the Nine Months Ended September 30,
(in millions)	2017			2016
U.S. Operations	$	(28.7	)	$	(25.6	)
International Operations		17.0			(10.8	)
Run-off Lines		16.1			17.6
Total unfavorable (favorable) prior-year development	$	4.4		$	(18.8	)

The following describes the primary factors behind each segment’s prior accident year reserve development for nine months ended September 30, 2017, and 2016:

Nine months ended September 30, 2017:

• U.S. Operations: Favorable development for the workers compensation, surety and commercial automobile lines.

• International Operations: Unfavorable development in the property and liability lines, primarily due to the first quarter 2017 Ogden rate change and claims from Hurricane Matthew.  

• Run-off Lines:Unfavorable development in asbestos and other run-off segments partially offset by favorable development in risk management liability.

Nine months ended September 30, 2016:

• U.S. Operations: Favorable development within the commercial automobile, surety, workers compensation and property lines.

• International Operations: Favorable development within the property lines and our Brazil unit.

• Run-off Lines: Unfavorable development in asbestos and risk management liability.

In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

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Junior Subordinated Debentures

9 Months Ended

Sep. 30, 2017

Junior Subordinated Debentures [Member]

Junior Subordinated Debentures

6. Junior Subordinated Debentures

Trust Preferred Debentures

Through a series of trusts, that are wholly-owned subsidiaries (non-consolidated), we issued debt. The debentures are variable with the rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The debentures are all unsecured and are subordinated to other indebtedness. At September 30, 2017 and December 31, 2016, all debentures were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest.

A summary of our outstanding junior subordinated debentures is presented below:

(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.42%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		5.24%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.42%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		5.40%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		5.17%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		5.17%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		5.12%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.87%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.72%		30.9
	Total Outstanding					$	172.7

(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.00%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		4.90%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.00%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		4.98%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		4.76%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		4.77%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		4.79%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.55%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.36%		30.9
	Total Outstanding					$	172.7

Maybrooke Junior Subordinated Debentures

Unsecured junior subordinated debentures with a principal balance of $91.8 million were assumed through the acquisition of Maybrooke (“the Maybrooke debt”). The Maybrooke debt is carried on our consolidated balance sheet at $83.8 million, which represents our initial estimate of the debt’s fair value at the date of acquisition plus accumulated accretion of discount to par value, as required by accounting for business combinations under ASC 805 (see Note 3, “Acquisition of Maybrooke”). This fair value is subject to change based on finalizing the valuation of Maybrooke’s opening balance sheet by the end of 2017. At September 30, 2017, the Maybrooke debt was eligible for redemption at par. Interest accrues on the Maybrooke debt based on a variable rate, which is reset quarterly. Interest payments are payable quarterly. A summary of the terms of the Maybrooke debt outstanding at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Principal at September 30, 2017		Carrying Value at September 30, 2017
9/15/2007	9/15/2037	3 month LIBOR + 3.15%		4.47%	$	91.8	$	83.8

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Other Indebtedness

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Other Indebtedness

7. Other Indebtedness

Our Consolidated Balance Sheets includes various long-term debt instruments under the caption “Other indebtedness,” as detailed in the table below. Information regarding the terms and principal amounts of each of these debt instruments is also provided.

(in millions)
Debt Type	September 30, 2017		December 31, 2016
Floating rate loan stock	$	59.1	$	54.8
Term loan		125.0		—
Other debt		0.6		0.6
Total other indebtedness	$	184.7	$	55.4

Floating Rate Loan Stock

This debt was assumed through the acquisition of Lloyd’s Syndicate 1200. These notes are unsecured. At September 30, 2017 and December 31, 2016, all notes were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest. Interest on the U.S. Dollar and Euro notes is due semiannually and quarterly, respectively. A summary of the notes outstanding at September 30, 2017 and December 31, 2016 is presented below:

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.66%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.67%		14.2
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		5.46%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.67%		12.4
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.57%		16.0
						$	59.1

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.18%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.70%		12.8
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		4.98%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.70%		11.2
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.58%		14.3
						$	54.8

No principal payments have been made since the acquisition of Lloyd’s Syndicate 1200. The floating rate loan stock denominated in Euros fluctuates due to foreign currency translation. The outstanding balance on these loans was $42.6 million and $38.3 million as of September 30, 2017 and December 31, 2016, respectively. The foreign currency translation adjustment is recorded in our Consolidated Statements of (Loss) Income.

Borrowing Under Credit Facility

On March 3, 2017, each of Argo Group, Argo Group US, Inc., Argo International Holdings Limited and Argo Underwriting Agency Limited (the “Borrowers”) entered into a $325.0 million Credit Agreement (“New Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The New Credit Agreement replaced and terminated the previous $175.0 million Credit Agreement (“Prior Agreement”).

The New Credit Agreement provides for a $200.0 million revolving credit facility with a maturity date of March 3, 2022 unless extended in accordance with the terms of the New Credit Agreement. In addition, the New Credit Agreement includes a $125.0 million term loan borrowing, which Argo Group used to pay off in its entirety the $125.0 million borrowing drawn on January 31, 2017 under the Prior Agreement to help fund the acquisition of Maybrooke. Interest accrues based on a variable rate, which resets and is payable based on reset options selected by Argo Group pursuant to the terms of the New Credit Agreement. A summary of the terms of the outstanding balance at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
3/3/2017	3/3/2019	2 month LIBOR + 1.5%		2.80%	$	125.0

Borrowings under the New Credit Agreement may be used for general corporate purposes, including working capital, permitted acquisitions and letters of credit, and each of the Borrowers has agreed to be jointly and severally liable for the obligations of the other Borrowers under the New Credit Agreement.

The New Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Borrowers could be required immediately to repay all amounts outstanding under the New Credit Agreement. Lenders holding at least a majority of the loans and commitments under the New Credit Agreement could elect to accelerate the maturity of the loans and/or terminate the commitments under the New Credit Agreement upon the occurrence and during the continuation of an event of default.

Included in the New Credit Agreement is a provision that allows up to $200.0 million of the revolving credit facility to be used for LOCs, subject to availability. On March 3, 2017, the $0.2 million LOC outstanding under the Prior Credit Agreement was transferred to the New Credit Agreement. At September 30, 2017 and December 31, 2016, there were no borrowings outstanding under the revolving portions of the credit facilities. At September 30, 2017 and December 31, 2016, there were $0.5 million and $0.2 million, respectively in LOCs against the New and Prior Credit Agreement, respectively.

Other Debt

As part of the ARIS Title Insurance Corporation (“ARIS”) acquisition, at September 30, 2017 and December 31, 2016, we had a note payable for $0.6 million. The note had a variable interest rate of 2.00% above 30-day LIBOR, with the variable interest rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The note payable matures on April 1, 2019.

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Disclosures about Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Financial Instruments

8. Disclosures about Fair Value of Financial Instruments

Cash. The carrying amount approximates fair value.

Investment securities and short-term investments. See Note 4, “Investments,” for additional information.

Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables approximates fair value. At September 30, 2017 and December 31, 2016, the carrying values of premiums receivable over 90 days were $20.5 million and $14.3 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016, are amounts that are due from trade capital providers associated with the operations of Syndicate 1200. Upon settlement, the receivable is offset against the liability which is included in “Ceded reinsurance payable, net” in our accompanying Consolidated Balance Sheets. At September 30, 2017 and December 31, 2016, the payable was in excess of the receivable. Of our reinsurance recoverables on paid losses, excluding amounts attributable to Syndicate 1200’s trade capital providers, at September 30, 2017 and December 31, 2016, the carrying values over 90 days were $13.2 million and $11.2 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At September 30, 2017 and December 31, 2016, the allowance for doubtful accounts for premiums receivable was $3.0 million and $2.7 million, respectively, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $2.1 million. At September 30, 2017, the amount of premiums receivable over 90 days secured by collateral was negligible. At December 31, 2016, premiums receivable over 90 days were secured by collateral in the amount of $0.1 million. Reinsurance recoverables on paid losses over 90 days were secured by collateral in the amount of $0.6 million at September 30, 2017 and December 31, 2016.

Debt. At September 30, 2017 and December 31, 2016, the fair value of our junior subordinated debentures, senior unsecured fixed rate notes and other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions.

A summary of our financial instruments whose carrying value did not equal fair value is shown below:

	September 30, 2017				December 31, 2016
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures
Trust preferred debentures	$	172.7	$	168.6	$	172.7	$	162.4
Maybrooke subordinated debenture		83.8		86.3		—		—
Senior unsecured fixed rate notes		139.6		139.4		139.5		139.3
Floating rate loan stock		59.1		57.7		54.8		51.5

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Shareholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Shareholders' Equity

9. Shareholders’ Equity

On August 8, 2017 our Board of Directors declared a quarterly cash dividend in the amount of $0.27 on each share of common stock outstanding. On September 15, 2017, we paid $8.3 million to our shareholders of record on September 1, 2017.

On August 2, 2016 our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. On August 29, 2016, we paid $6.7 million to our shareholders of record on August 15, 2016.

On May 3, 2016, our Board of Directors declared a 10% stock dividend, payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. As a result of the stock dividend, 2,735,542 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

On May 3, 2016, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all the previous Repurchase Authorizations. As of September 30, 2017, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $93.7 million.   

For the nine months ended September 30, 2017, we repurchased a total of 612,034 common shares for $36.6 million. A summary of activity from January 1, 2017 through September 30, 2017 follows.

A summary of common shares repurchased for the nine months ended September 30, 2017 is shown below:

Repurchase Type	Date Trading Plan Initiated	2017 Purchase Period	Number of Shares Repurchased		Average Price of Shares Repurchased		Total Cost (in millions)		Repurchase Authorization Year
10b5-1 Trading Plan	6/14/2017	06/20/2017-08/10/2017		156,570	$	59.53	$	9.4	2016
10b5-1 Trading Plan	9/15/2017	09/18/2017-09/28/2017		33,488	$	60.85	$	2.0	2016
Open Market	N/A	08/11/2017-09/15/2017		421,976	$	59.75		25.2	2016
Total				612,034	$	59.75	$	36.6

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Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

10. Accumulated Other Comprehensive (Loss) Income

A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the nine months ended September 30, 2017, and 2016 is presented below:

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2017	$	(17.6	)	$	72.4		$	(7.1	)	$	47.7
Other comprehensive (loss) income before    reclassifications		(0.2	)		74.1			—			73.9
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(24.6	)		—			(24.6	)
Net current-period other comprehensive (loss)    income		(0.2	)		49.5			—			49.3
Balance at September 30, 2017	$	(17.8	)	$	121.9		$	(7.1	)	$	97.0

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2016	$	(21.6	)	$	40.0		$	(6.9	)	$	11.5
Other comprehensive (loss) income before    reclassifications		2.8			70.2			—			73.0
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(13.3	)		—			(13.3	)
Net current-period other comprehensive (loss)    income		2.8			56.9			—			59.7
Balance at September 30, 2016	$	(18.8	)	$	96.9		$	(6.9	)	$	71.2

The following table illustrates the amounts reclassified from accumulated other comprehensive (loss) income shown in the above tables that have been included in our Consolidated Statements of (Loss) Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Unrealized gains on securities:
Net realized investment gains	$	(17.4	)	$	(17.0	)	$	(36.3	)	$	(25.1	)
Provision for income taxes (benefit)		5.5			7.9			11.7			11.8
Net of taxes	$	(11.9	)	$	(9.1	)	$	(24.6	)	$	(13.3	)

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Net (Loss) Income Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

11. Net (Loss) Income Per Common Share

The following table presents the calculation of net (loss) income per common share on a basic and diluted basis:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except number of shares and per share amounts)	2017			2016		2017		2016
Net (loss) income	$	(61.3	)	$	55.2	$	21.4	$	113.8
Weighted average common shares    outstanding - basic		29,978,485			30,018,637		30,075,424		30,227,725
Effect of dilutive securities:
Equity compensation awards		—			709,746		817,602		661,762
Weighted average common shares    outstanding - diluted		29,978,485			30,728,383		30,893,026		30,889,487
Net (loss) income per common share:
Basic	$	(2.04	)	$	1.84	$	0.71	$	3.76
Diluted	$	(2.04	)	$	1.80	$	0.69	$	3.68

Excluded from the weighted average common shares outstanding calculation at September 30, 2017 and 2016 are 10,640,789 shares and 9,996,840 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three months ended September 30, 2017, 711,854 shares were not included in the calculation of diluted net loss per common share as their effect would have been anti-dilutive.

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Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

12. Supplemental Cash Flow Information

Income taxes paid. We paid income taxes of $10.1 million and $1.5 million during the nine months ended September 30, 2017, and 2016, respectively.

Income taxes recovered. We recovered income taxes of $2.4 million and $0.5 million during the nine months ended September 30, 2017, and 2016, respectively.

Interest paid was as follows:

	For the Nine Months Ended September 30,
(in millions)	2017		2016
Senior unsecured fixed rate notes	$	7.0	$	7.0
Junior subordinated debentures		9.4		5.7
Other indebtedness		3.0		2.0
Revolving credit facility		0.3		—
Total interest paid	$	19.7	$	14.7

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Share-based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Compensation

13. Share-based Compensation

The fair value method of accounting is used for share-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The risk-free rate of return assumption is based on the five-year U.S. Treasury constant maturity rate on the measurement date. The expected dividend yield is based on our history and expected dividend payouts. The expected award life is based upon the average holding period over the history of the incentive plan. The expected volatility assumption is based on the historical change in our stock price over the previous five years preceding the measurement date.

The following table summarizes the assumptions we used for the nine months ended September 30, 2017, and 2016:

	For the Nine Months Ended September 30,
	2017			2016
Risk-free rate of return		1.85	%		1.12	%
Expected dividend yields		1.71	%		1.65	%
Expected award life (years)		4.48			4.50
Expected volatility		18.13	%		18.73	%

Argo Group’s Long-Term Incentive Plans

In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provides for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors, and other key employees. As of May 2014, 1.46 million shares remained available for grant under the 2007 Plan. In May 2014, our shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share unit awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the incentive plans; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan.

Share options may be in the form of incentive share options, non-qualified share options and restorative options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options. The term of the share options cannot exceed seven years from the grant date.

Restricted Shares

A summary of restricted share activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2017		702,030		$	42.69
Granted		239,997		$	62.91
Vested and issued		(154,706	)	$	41.65
Expired or forfeited		(34,970	)	$	48.80
Outstanding at September 30, 2017		752,351		$	49.07

The restricted shares vest over one to eight years. Expense recognized under this plan for the restricted shares was $2.5 million and $7.5 million for the three and nine months ended September 30, 2017, respectively, as compared to $1.7 million and $5.2 million for the three and nine months ended September 30, 2016, respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of (Loss) Income. As of September 30, 2017, there was $27.4 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group.

Stock-Settled SARs

In January 2016, we modified certain unvested cash-settled SARs, converting the awards into stock-settled SARs. We evaluated this modification under the terms of ASU 718 “Share Based Payments,” and determined that no additional expense resulted from the conversion. The expense for the stock-settled SARs will be amortized over the remaining vesting period.

A summary of stock-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		1,982,695		$	34.80
Exercised		(396,355	)	$	31.52
Expired or forfeited		(105,024	)	$	40.62
Outstanding at September 30, 2017		1,481,316		$	35.26

The stock-settled SARs vest over a one to four-year period. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. Expense recognized for the stock-settled SARs was $0.7 million and $3.5 million for the three and nine months ended September 30, 2017, respectively, as compared to $1.0 million and $3.6 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017, there was $4.3 million of total unrecognized compensation cost related to stock-settled SARs outstanding.

Cash-Settled SARs

A summary of cash-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		500,486		$	32.08
Exercised		(235,663	)	$	32.37
Expired or forfeited		(14,628	)	$	23.74
Outstanding at September 30, 2017		250,195		$	32.30

As of September 30, 2017, all the cash-settled SARs are fully vested. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. Expense recognized for the cash-settle SARs was $0.3 million for the three months ended September 30, 2017. Due to a decrease in the fair market value of our stock, we recouped $0.6 million of expense for nine months ended September 30, 2017. Expense recognized for the cash-settle SARs was $2.6 million and $2.1 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017, there was no unrecognized compensation cost related to cash-settled SARs outstanding.

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Underwriting, Acquisition and Insurance Expenses

9 Months Ended

Sep. 30, 2017

Underwriting Acquisition And Insurance Expenses [Abstract]

Underwriting, Acquisition and Insurance Expenses

14. Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Commissions	$	70.8		$	59.3		$	201.2		$	178.5
General expenses		89.7			75.6			266.4			217.3
Premium taxes, boards and bureaus		11.8			6.1			25.9			19.0
		172.3			141.0			493.5			414.8
Net deferral of policy acquisition costs		(6.2	)		(3.6	)		(19.1	)		(11.8	)
Total underwriting, acquisition and insurance expenses	$	166.1		$	137.4		$	474.4		$	403.0

The $14.1 million and the $49.1 million increases in general expenses for the three and nine months ended September 30, 2017, respectively, as compared to the same periods in 2016 were driven by expenses attributable to the operations of Maybrooke coupled with increased information technology, marketing, occupancy and depreciation costs.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035.

We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation.

We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Eight of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our United Kingdom subsidiaries file separate United Kingdom income tax returns.

We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries generally file a consolidated United States federal income tax return.

We also have operations in Belgium, Brazil, France, Ireland, Luxembourg, Malta, Spain, and Switzerland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in Barbados and the United Arab Emirates, which are not subject to income tax under the laws of that country.

Our income tax provision includes the following components:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Current tax provision (benefit)	$	(2.9	)	$	10.8		$	12.6		$	18.8
Deferred tax provision (benefit) related to:
Future tax deductions		(2.5	)		(3.0	)		(6.1	)		1.9
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

For the three and nine months ended September 30, 2017 and 2016, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

	For the Three Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	(43.0	)			0.0	%	$	35.6				0.0	%
United States		(1.3	)			52.9	%		28.2				24.2	%
United Kingdom		(24.6	)			16.4	%		(2.8	)			-3.0	%
Barbados		—		(1)		0.0	%		—		(1)		0.0	%
Belgium		0.1				36.1	%		—		(1)		-160.0	%
Brazil		—		(1)		0.0	%		0.4				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.1	)			0.0	%
Luxembourg		(1.3	)			0.0	%		—		(1)		0.0	%
Malta		0.6				0.0	%		0.9				0.0	%
Switzerland		0.2				18.1	%		—		(1)		21.2	%
United Arab Emirates		3.5				0.0	%		—		(1)		0.0	%
Total	$	(65.9	)			7.0	%	$	62.2				11.3	%

	For the Nine Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	8.7				0.0	%	$	79.7				0.0	%
United States		57.4				24.1	%		78.0				26.3	%
United Kingdom		(36.6	)			21.6	%		(24.9	)			-1.9	%
Barbados		—		(1)		0.0	%		—				0.0	%
Belgium		0.2				36.2	%		—		(1)		0.0	%
Brazil		(0.2	)			0.0	%		1.1				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.2	)			0.0	%
Luxembourg		(3.7	)			0.0	%		—		(1)		0.0	%
Malta		1.7				0.0	%		1.2				0.0	%
Switzerland		0.2				21.1	%		—		(1)		21.1	%
United Arab Emirates		—		(1)		0.0	%		—		(1)		0.0	%
Total	$	27.6				22.3	%	$	134.9				15.7	%

⁽¹⁾ Pre-tax income for the respective year was less than $0.1 million.

Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income tax provision at expected rate	$	(5.5	)	$	9.8		$	12.9		$	23.2
Tax effect of:
Tax-exempt interest		(0.6	)		(0.7	)		(2.1	)		(2.5	)
Dividends received deduction		(0.5	)		(0.4	)		(1.4	)		(1.7	)
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Other permanent adjustments, net		—			0.1			(1.1	)		0.3
Adjustment for prior period		(1.2	)		(0.8	)		(1.9	)		(0.8	)
Adjustment for annualized rate		0.8			(0.9	)		(1.5	)		(1.5	)
Other foreign adjustments		0.2			(0.1	)		0.1			(0.7	)
State income taxes, net of Federal benefit		—			—			0.1			(0.3	)
Foreign exchange adjustments		1.4			0.8			1.1			4.4
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1
Income tax (benefit) provision - Foreign	$	(3.9	)	$	0.2		$	(7.7	)	$	0.6
Income tax provision (benefit) - United States, Federal		(0.8	)		6.8		$	13.4			20.2
Income tax provision  - United States, State		0.1			—			0.2			—
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

Our net deferred tax assets (liabilities) are supported by taxes paid in previous periods, reversal of taxable temporary differences and recognition of future income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of sufficient taxable income in the future to recover tax benefits that cannot be recovered from taxes paid in the carryback period, generally two years for net operating losses and three years for capital losses for our United States operations.

Management has determined that a valuation allowance is required for a portion of the tax-effected net operating loss carryforward included as part of the United States consolidated group of $15.1 million generated from PXRE Corporation and for the tax-effected net operating loss carryforward of $1.0 million from ARIS. The valuation allowances have been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. The loss carryforwards available per year are $2.8 million as required by Internal Revenue Code Section 382.

Furthermore, due to cumulative losses since inception, management has concluded that a valuation allowance is required for the full amount of the tax-effected net operating losses generated by our Brazil and Malta entities.

Accordingly, a valuation allowance of $25.9 million is required as of September 30, 2017 of which $13.2 million relates to the PXRE Corporation and ARIS loss carryforwards, $8.1 million relates to Brazil operations, $3.8 million relates to Maybrooke, and $0.8 million relates to Malta operations. For the nine months ended September 30, 2017, the valuation allowance was reduced by $0.7 million pertaining to the PXRE Corporation and ARIS loss carryforwards, $0.3 million pertaining to our Brazil operations, and $0.4 million pertaining to our Malta operations. Additionally, the valuation allowance increased $3.8 million pertaining to Maybrooke of which $2.7 million valuation allowance was acquired with Maybrooke.

Of the PXRE Corporation net operating loss carryforwards, $13.6 million will expire if not used by December 31, 2025 and $1.5 million will expire if not used by December 31, 2027. Of the ARIS loss carryforward, $0.2 million will expire if not used by December 31, 2027, $0.4 million will expire if not used by December 31, 2028 and $0.4 million will expire if not used by December 31, 2029.

For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of September 30, 2017 and 2016. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2013. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2014.  

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

16. Commitments and Contingencies

Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations.

We have contractual commitments to invest up to $117.9 million related to our limited partnership investments at September 30, 2017. These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years.

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Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

17.Segment Information

We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have two ongoing reporting segments: U.S. Operations and International Operations. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite. See Note 1, “Basis of Presentation,” for information on the changes to our reporting segments that were effective beginning in the first quarter of 2017.

We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments.

In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from the sales of investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment.

Revenue and income (loss) before income taxes for each segment were as follows:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2017			2016		2017		2016
Revenue:
Earned premiums
U.S. Operations	$	242.6		$	216.3	$	692.9	$	629.7
International Operations		146.8			142.3		474.9		418.5
Run-off Lines		(0.1	)		0.1		—		0.3
Total earned premiums		389.3			358.7		1,167.8		1,048.5
Net investment income
U.S. Operations		18.8			20.3		66.0		55.8
International Operations		7.7			7.5		24.4		22.7
Run-off Lines		2.0			3.2		7.0		8.8
Corporate and Other		2.4			1.7		7.6		2.3
Total net investment income		30.9			32.7		105.0		89.6
Fee and other income		13.0			7.6		20.4		20.2
Net realized investment and other gains		6.0			17.7		25.1		12.8
Total revenue	$	439.2		$	416.7	$	1,318.3	$	1,171.1

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income (loss) before income taxes
U.S. Operations	$	28.7		$	45.9		$	118.9		$	126.2
International Operations		(77.5	)		20.1			(60.1	)		53.1
Run-off Lines		(12.7	)		(10.0	)		(16.4	)		(14.6	)
Total segment (loss) income before taxes		(61.5	)		56.0			42.4			164.7
Corporate and Other		(10.4	)		(11.5	)		(39.9	)		(42.6	)
Net realized investment and other gains		6.0			17.7			25.1			12.8
Total (loss) income before income taxes	$	(65.9	)	$	62.2		$	27.6		$	134.9

The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2017 and 2016. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Bermuda	$	23.3	$	29.0	$	72.0	$	86.1
Brazil		11.7		10.4		36.8		29.6
Malta		2.7		0.6		5.0		1.6
United Kingdom		109.1		102.4		361.2		301.1
United States		242.5		216.3		692.8		630.1
Total earned premiums	$	389.3	$	358.7	$	1,167.8	$	1,048.5

The following table represents identifiable assets:

(in millions)	September 30, 2017		December 31, 2016
U.S. Operations	$	4,335.1	$	3,961.2
International Operations		3,814.2		2,356.9
Run-off Lines		458.9		537.0
Corporate and Other		449.8		349.9
Total	$	9,058.0	$	7,205.0

Included in total assets at September 30, 2017 and December 31, 2016 are $815.7 million and $630.4 million, respectively, in assets associated with trade capital providers.

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Senior Unsecured Fixed Rate Notes

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Senior Unsecured Fixed Rate Notes

18. Senior Unsecured Fixed Rate Notes

In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Notes due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

In accordance with ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At September 30, 2017 and December 31, 2016, the Notes consisted of the following:

(in millions)	September 30, 2017			December 31, 2016
Senior unsecured fixed rate notes
Principal	$	143.8		$	143.8
Less: unamortized debt issuance costs		(4.2	)		(4.3	)
Senior unsecured fixed rate notes, less unamortized debt    issuance costs	$	139.6		$	139.5

In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016, of the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings.

The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries.

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2017

(in millions)

(Unaudited)

	Argo Group International Holdings, Ltd (ParentGuarantor)			Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	(1.6	)	$	3,039.1	$	1,770.0		$	—		$	4,807.5
Cash		—			73.5		162.3			—			235.8
Accrued investment income		—			16.8		6.8			—			23.6
Premiums receivable		—			227.3		451.5			—			678.8
Reinsurance recoverables		—			1,450.3		651.6			—			2,101.9
Goodwill and other intangible assets, net		44.4			125.2		90.9			—			260.5
Deferred acquisition costs, net		—			82.3		86.5			—			168.8
Ceded unearned premiums		—			194.9		266.5			—			461.4
Other assets		8.3			173.7		137.7			—			319.7
Intercompany note receivable		—			50.2		69.8			(120.0	)		—
Investments in subsidiaries		2,086.7			—		—			(2,086.7	)		—
Total assets	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—		$	2,452.6	$	1,853.3		$	—		$	4,305.9
Unearned premiums		—			694.5		591.5			—			1,286.0
Funds held and ceded reinsurance payable, net		—			790.1		77.5			—			867.6
Long-term debt		153.4			284.6		142.8			—			580.8
Current income taxes payable, net		—			7.9		3.1			—			11.0
Deferred tax liabilities, net		—			37.3		4.2			—			41.5
Accrued underwriting expenses and other liabilities		12.1			103.2		41.9			—			157.2
Due to affiliates		44.3			6.9		(6.9	)		(44.3	)		—
Intercompany note payable		120.0			40.1		(40.1	)		(120.0	)		—
Total liabilities		329.8			4,417.2		2,667.3			(164.3	)		7,250.0
Total shareholders' equity		1,808.0			1,016.1		1,026.3			(2,042.4	)		1,808.0
Total liabilities and shareholders' equity	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0

⁽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, 2016

(in millions)

	Argo Group International Holdings, Ltd (ParentGuarantor)		Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	2.2	$	2,834.2	$	1,487.9		$	—		$	4,324.3
Cash		—		53.7		32.3			—			86.0
Accrued investment income		—		16.0		4.7			—			20.7
Premiums receivable		—		204.9		258.9			—			463.8
Reinsurance recoverables		—		1,348.4		37.2			—			1,385.6
Goodwill and other intangible assets, net		—		127.1		92.8			—			219.9
Deferred acquisition costs, net		—		63.5		75.6			—			139.1
Ceded unearned premiums		—		168.9		133.9			—			302.8
Other assets		8.7		168.0		86.1			—			262.8
Intercompany note receivable		—		50.2		(50.2	)		—			—
Investments in subsidiaries		1,834.4		—		—			(1,834.4	)		—
Total assets	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—	$	2,322.4	$	1,028.4		$	—		$	3,350.8
Unearned premiums		—		580.0		390.0			—			970.0
Funds held and ceded reinsurance payable, net		—		750.2		(206.5	)		—			543.7
Long-term debt		28.4		284.4		54.8			—			367.6
Current income taxes payable, net		—		8.5		(0.4	)		—			8.1
Deferred tax liabilities, net		—		17.6		6.5			—			24.1
Accrued underwriting expenses and other liabilities		13.7		92.0		42.3			—			148.0
Due to affiliates		10.5		1.8		(1.8	)		(10.5	)		—
Total liabilities		52.6		4,056.9		1,313.3			(10.5	)		5,412.3
Total shareholders' equity		1,792.7		978.0		845.9			(1,823.9	)		1,792.7
Total liabilities and shareholders' equity	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0

⁽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 LOSS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	145.3		$	244.0		$	—	$	389.3
Net investment (expense) income		(1.1	)		16.5			15.5			—		30.9
Fee and other income		—			12.3			0.7			—		13.0
Net realized investment and other gains (losses)		—			6.6			(0.6	)		—		6.0
Total revenue		(1.1	)		180.7			259.6			—		439.2
Expenses:
Losses and loss adjustment expenses		—			99.1			227.3			—		326.4
Underwriting, acquisition and insurance    expenses		5.6			74.0			86.5			—		166.1
Interest expense		1.6			4.2			1.7			—		7.5
Fee and other expense		—			4.1			0.9			—		5.0
Foreign currency exchange (gains) loss		—			(0.1	)		0.2			—		0.1
Total expenses		7.2			181.3			316.6			—		505.1
(Loss) Income before income taxes		(8.3	)		(0.6	)		(57.0	)		—		(65.9	)
Provision for income taxes		—			(0.6	)		(4.0	)		—		(4.6	)
Net (loss) income before equity in earnings of    subsidiaries		(8.3	)		0.0			(53.0	)		—		(61.3	)
Equity in undistributed earnings of    subsidiaries		(53.0	)		—			—			53.0		—
Net loss	$	(61.3	)	$	0.0		$	(53.0	)	$	53.0	$	(61.3	)

⁽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 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 (expense) income		(0.9	)		22.5		11.1			—			32.7
Fee and other income		—			5.5		2.1			—			7.6
Net realized investment and other gains (losses)		—			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 (gains) loss		—			0.2		(1.7	)		—			(1.5	)
Total expenses		4.0			147.2		203.3			—			354.5
(Loss) Income before income taxes		(4.9	)		28.2		38.9			—			62.2
Provision for income taxes		—			6.8		0.2			—			7.0
Net (loss) income 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 NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	411.7		$	756.1		$	—		$	1,167.8
Net investment (expense) income		(3.2	)		64.7			43.5			—			105.0
Fee and other income		—			18.0			2.4			—			20.4
Net realized investment and other gains (losses)		0.5			25.6			(1.0	)		—			25.1
Total revenue		(2.7	)		520.0			801.0			—			1,318.3
Expenses:
Losses and loss adjustment expenses		—			247.7			531.8			—			779.5
Underwriting, acquisition and insurance    expenses		17.8			190.7			265.9			—			474.4
Interest expense		3.0			12.7			4.7			—			20.4
Fee and other expense		—			10.7			1.7			—			12.4
Foreign currency exchange loss		—			(0.1	)		4.1			—			4.0
Total expenses		20.8			461.7			808.2			—			1,290.7
(Loss) Income before income taxes		(23.5	)		58.3			(7.2	)		—			27.6
Provision for income taxes		—			13.9			(7.7	)		—			6.2
Net (loss) income before equity in earnings of    subsidiaries		(23.5	)		44.4			0.5			—			21.4
Equity in undistributed earnings of subsidiaries		44.9			—			—			(44.9	)		—
Net income	$	21.4		$	44.4		$	0.5		$	(44.9	)	$	21.4

⁽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 (expense) income		(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)		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 (gains) loss		—			0.1		4.4			—			4.5
Total expenses		11.0			400.1		625.1			—			1,036.2
(Loss) Income before income taxes		(12.8	)		78.0		69.7			—			134.9
Provision for income taxes		—			20.5		0.6			—			21.1
Net (loss) income 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 CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	11.8		$	175.3		$	65.3		$	—		$	252.4
Cash flows from investing activities:
Proceeds from sales of investments		—			652.5			625.5			—			1,278.0
Maturities and mandatory calls of fixed    maturity investments		—			350.6			142.6			—			493.2
Purchases of investments		—			(1,140.8	)		(919.4	)		—			(2,060.2	)
Change in short-term investments and    foreign regulatory deposits		1.8			29.6			232.8			—			264.2
Settlements of foreign currency exchange    forward contracts		0.8			(5.5	)		4.7			—			—
Acquisition of subsidiaries, net of cash		(235.3	)		—			130.1			—			(105.2	)
Issuance of intercompany note, net		—			—			(120.0	)		120.0			—
Purchases of fixed assets and other, net		(0.1	)		(5.3	)		(30.6	)		—			(36.0	)
Cash (used in) provided by investing activities		(232.8	)		(118.9	)		65.7			120.0			(166.0	)
Cash flows from financing activities:
Additional long-term borrowings		125.0			—			—			—			125.0
Borrowing under intercompany note, net		120.0			—			—			(120.0	)		—
Activity under stock incentive plans		0.9			—			—			—			0.9
Repurchase of Company's common shares		—			(36.6	)		—			—			(36.6	)
Payment of cash dividend to common    shareholders		(24.9	)		—			—			—			(24.9	)
Cash provided by (used in) financing activities		221.0			(36.6	)		—			(120.0	)		64.4
Effect of exchange rate changes on cash		—			—			(1.0	)		—			(1.0	)
Change in cash		—			19.8			130.0			—			149.8
Cash, beginning of year		—			53.7			32.3			—			86.0
Cash, end of period	$	—		$	73.5		$	162.3		$	—		$	235.8

⁽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 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 (used in) operating activities	$	19.6		$	60.7		$	70.5		$	—	$	150.8
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) provided by 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	)
Payment of cash dividend to common    shareholders		(19.8	)		—			—			—		(19.8	)
Cash used in financing activities		(19.2	)		(45.3	)		—			—		(64.5	)
Effect of exchange rate changes on cash		—			—			(1.0	)		—		(1.0	)
Change in cash		—			0.5			1.4			—		1.9
Cash, beginning of year		—			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.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on February 24, 2017.

Effective February 6, 2017, we completed the acquisition of Maybrooke Holdings, S.A. (“Maybrooke”) and its direct subsidiaries, including Ariel Re. We have accounted for the acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations,” and the purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. See Note 3, “Acquisition of Maybrooke,” for additional discussion regarding the acquisition and the related financial disclosures. The Consolidated Financial Statements as of and for the three and nine months ended September 30, 2017 and the Notes to the Consolidated Financial Statements reflect the consolidated results of Argo Group and Maybrooke commencing on the date of acquisition.

The interim financial information as of and for the three and nine months ended September 30, 2017 and 2016 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.

During the first quarter of 2017, we evaluated and modified the presentation of our reportable segments to better reflect our new operating framework and management structure. Under this model, Argo Group’s chief operating decision maker – Mark E. Watson III, President and Chief Executive Officer – evaluates performance and allocates resources based on the review of the U.S. Operations and the International Operations. The U.S. Operations includes the former Excess & Surplus and Commercial Specialty reportable segments. The International Operations includes the former Syndicate 1200, International Specialty reportable segments, and the recently acquired Ariel Re business. (See Note 3, “Acquisition of Maybrooke” for details regarding Ariel Re.) The business unit that produces the risk and not the location of the underlying exposure is the primary characteristic in distinguishing operating and reportable segments. For example, a U.S. property exposure underwritten through our Syndicate platform would be included in International Operations. Consistent with prior periods, the Run-off Lines and Corporate segments include all other activity of Argo Group and are included in our consolidated financial results. Segment results for the three and nine months ended September 30, 2016 have been reclassified to conform to the current presentation.

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Acquisition of Maybrooke (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Preliminarily Allocation of Purchase Price to Acquired Assets, Liabilities, and Intangible Assets

Therefore, a preliminary allocation of the purchase price to the acquired assets, liabilities, and intangible assets is presented in the table below:

(in millions)
Assets:
Investments	$	340.7
Cash		130.1
Accrued investment income		0.2
Premiums receivable		157.6
Reinsurance recoverables		80.2
Current income taxes receivable		0.6
Deferred acquisition costs, net		9.8
Ceded unearned premiums		92.6
Other assets		24.9
Total assets		836.7
Liabilities:
Reserves for losses and loss adjustment expenses		197.0
Unearned premiums		152.5
Accrued underwriting expenses		28.8
Ceded reinsurance payable, net		144.2
Junior subordinated debentures		83.6
Deferred tax liabilities		9.0
Other liabilities		30.7
Total liabilities		645.8
Net assets acquired		190.9
Initial purchase price		235.3
Intangible assets	$	44.4

Summary of Selected Financial Information and Pro Forma Results

The following selected financial information summarizes the results of Maybrooke from the date of acquisition that have been included in our Consolidated Statement of (Loss) Income:

(in millions)	For the Three Months Ended September 30, 2017			For the Nine Months Ended September 30, 2017
Revenues	$	27.5		$	93.7
Net loss	$	(26.7	)	$	(13.7	)

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except per share data)	2017			2016		2017		2016
Pro forma revenues	$	439.2		$	466.0	$	1,332.4	$	1,340.5
Pro forma net (loss) income		(63.4	)		56.2		29.8		132.9
Pro forma net (loss) income per share - basic		(2.11	)		1.87		0.99		4.40
Pro forma net (loss) income per share - diluted		(2.11	)		1.83		0.96		4.30

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Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments were as follows:

September 30, 2017
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	342.7	$	0.5	$	3.2	$	340.0
Foreign Governments		231.9		7.9		3.5		236.3
Obligations of states and political subdivisions		324.1		11.9		0.8		335.2
Corporate bonds		1,612.7		29.0		9.9		1,631.8
Commercial mortgage-backed securities		147.4		0.4		1.1		146.7
Residential mortgage-backed securities		271.7		3.4		1.6		273.5
Asset-backed securities		156.4		0.7		0.6		156.5
Collateralized loan obligations		252.8		6.6		1.0		258.4
Total fixed maturities		3,339.7		60.4		21.7		3,378.4
Equity securities		347.6		138.2		5.3		480.5
Other investments		553.1		9.5		—		562.6
Short-term investments		386.0		—		—		386.0
Total investments	$	4,626.4	$	208.1	$	27.0	$	4,807.5

December 31, 2016
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities
U.S. Governments	$	275.1	$	0.6	$	4.5	$	271.2
Foreign Governments		244.2		1.1		8.0		237.3
Obligations of states and political subdivisions		375.7		8.9		1.8		382.8
Corporate bonds		1,316.9		23.3		19.5		1,320.7
Commercial mortgage-backed securities		154.9		0.4		1.6		153.7
Residential mortgage-backed securities		174.8		3.7		1.7		176.8
Asset-backed securities		127.6		0.1		2.1		125.6
Collateralized loan obligations		269.6		3.8		9.1		264.3
Total fixed maturities		2,938.8		41.9		48.3		2,932.4
Equity securities		335.2		117.9		5.7		447.4
Other investments		531.6		7.5		0.1		539.0
Short-term investments		405.5		—		—		405.5
Total investments	$	4,211.1	$	167.3	$	54.1	$	4,324.3

Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of September 30, 2017, by contractual maturity, were as follows:

(in millions)	Amortized Cost		Fair Value
Due in one year or less		231.9		230.3
Due after one year through five years		1,515.6		1,533.6
Due after five years through ten years		594.1		604.6
Thereafter		169.8		174.8
Structured securities		828.3		835.1
Total	$	3,339.7	$	3,378.4

Schedule Of Carrying Value And Unfunded Investment Commitments Of Other Invested Assets Portfolio

Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of September 30, 2017 and December 31, 2016 were as follows:

September 30, 2017
(in millions)	Carrying Value			Unfunded Commitments
Investment Type
Hedge funds	$	180.1		$	—
Private equity		167.7			117.9
Long only funds		215.7			—
Other investments		(0.9	)		—
Total other invested assets	$	562.6		$	117.9

December 31, 2016
(in millions)	Carrying Value		Unfunded Commitments
Investment Type
Hedge funds	$	180.9	$	—
Private equity		179.0		93.4
Long only funds		170.7		—
Other investments		8.4		—
Total other invested assets	$	539.0	$	93.4

Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments

An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below:

September 30, 2017	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	279.2	$	2.7	$	17.6	$	0.5	$	296.8	$	3.2
Foreign Governments		194.8		3.4		6.2		0.1		201.0		3.5
Obligations of states and political subdivisions		25.7		0.3		15.0		0.5		40.7		0.8
Corporate bonds		426.9		8.2		72.5		1.7		499.4		9.9
Commercial mortgage-backed securities		73.6		0.4		26.8		0.7		100.4		1.1
Residential mortgage-backed securities		137.9		1.3		17.9		0.3		155.8		1.6
Asset-backed securities		69.4		0.3		9.3		0.3		78.7		0.6
Collateralized loan obligations (2)		61.0		1.0		2.3		—		63.3		1.0
Total fixed maturities		1,268.5		17.6		167.6		4.1		1,436.1		21.7
Equity securities		55.2		5.3		—		—		55.2		5.3
Other investments (1)		0.3		—		—		—		0.3		—
Short-term investments (1)		46.4		—		—		—		46.4		—
Total	$	1,370.4	$	22.9	$	167.6	$	4.1	$	1,538.0	$	27.0

December 31, 2016	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	183.4	$	4.5	$	—	$	—	$	183.4	$	4.5
Foreign Governments		201.2		8.0		—		—		201.2		8.0
Obligations of states and political subdivisions		72.6		1.7		1.8		0.1		74.4		1.8
Corporate bonds		490.5		17.7		50.6		1.8		541.1		19.5
Commercial mortgage-backed securities		70.6		1.5		7.1		0.1		77.7		1.6
Residential mortgage-backed securities (2)		87.5		1.7		4.4		—		91.9		1.7
Asset-backed securities		69.7		1.4		8.2		0.7		77.9		2.1
Collateralized loan obligations		122.5		8.6		16.9		0.5		139.4		9.1
Total fixed maturities		1,298.0		45.1		89.0		3.2		1,387.0		48.3
Equity securities		62.1		5.7		—		—		62.1		5.7
Other investments		0.3		0.1		—		—		0.3		0.1
Short-term investments (1)		4.8		—		—		—		4.8		—
Total	$	1,365.2	$	50.9	$	89.0	$	3.2	$	1,454.2	$	54.1

⁽¹⁾ Unrealized losses less than one year are less than $0.1 million.

⁽²⁾ Unrealized losses one year or greater are less than $0.1 million.

Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios

We recognized other-than-temporary losses on our fixed maturities and equity portfolio as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Other-than-temporary impairment:
Corporate bonds	$	(0.1	)	$	(0.6	)	$	(0.1	)	$	(1.7	)
Equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Other-than-temporary impairment losses	$	(0.2	)	$	(2.4	)	$	(1.7	)	$	(9.0	)

Schedule of Company's Gross Realized Investment Gains (Losses)

The following table presents our gross realized investment and other gains (losses):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Fixed maturities	$	6.3		$	5.4		$	18.9		$	16.4
Equity securities		9.4			20.8			37.1			45.4
Other investments		7.0			4.2			17.8			31.2
Short-term investments		0.2			—			0.7			0.4
Other assets		—			1.2			—			1.2
Gross realized investment and other gains		22.9			31.6			74.5			94.6
Realized losses
Fixed maturities		(4.8	)		(6.1	)		(16.0	)		(21.0	)
Equity securities		(1.4	)		(1.9	)		(3.9	)		(9.0	)
Other investments		(10.5	)		(3.5	)		(27.7	)		(42.7	)
Short-term investments		—			—			(0.1	)		(0.1	)
Other-than-temporary impairment losses on    fixed maturities		(0.1	)		(0.6	)		(0.1	)		(1.7	)
Other-than-temporary impairment losses on    equity securities		(0.1	)		(1.8	)		(1.6	)		(7.3	)
Gross realized investment and other losses		(16.9	)		(13.9	)		(49.4	)		(81.8	)
Net realized investment and other gains (losses)    before income taxes		6.0			17.7			25.1			12.8
Income tax expense		(2.2	)		(6.5	)		(7.9	)		(7.7	)
Net realized investment and other gains (losses),    net of income taxes	$	3.8		$	11.2		$	17.2		$	5.1

Schedule of Changes in Unrealized Appreciation (Depreciation)

Changes in unrealized appreciation (depreciation) related to investments are summarized as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Change in unrealized gains (losses)
Fixed maturities	$	9.5		$	13.7		$	41.6		$	78.5
Equity securities		11.7			(10.8	)		20.2			(6.8	)
Other investments		(0.1	)		—			2.0			0.6
Short-term investments		—			(0.1	)		—			0.3
Net unrealized investment and other gains before    income taxes		21.1			2.8			63.8			72.6
Income tax provision		(4.6	)		0.3			(14.3	)		(15.7	)
Net unrealized investment and other gains, net of    income taxes	$	16.5		$	3.1		$	49.5		$	56.9

Schedule of Fair Value of Foreign Currency Exchange Forward Contracts

The fair value of our foreign currency exchange forward contracts as of September 30, 2017 and December 31, 2016 was as follows:

(in millions)	September 30, 2017			December 31, 2016
Operational currency exposure	$	(1.6	)	$	—
Asset manager investment exposure		(3.0	)		0.7
Total return strategy		(0.8	)		3.3
	$	(5.4	)	$	4.0

Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts

The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Realized gains
Operational currency exposure	$	1.8		$	1.3		$	7.5		$	8.7
Asset manager investment exposure		0.6			—			1.1			2.3
Total return strategy		4.1			2.2			7.7			18.4
Gross realized investment gains		6.5			3.5			16.3			29.4
Realized losses
Operational currency exposure		(4.2	)		(0.8	)		(10.1	)		(16.3	)
Asset manager investment exposure		(3.6	)		(0.8	)		(10.4	)		(4.5	)
Total return strategy		(3.5	)		(1.6	)		(6.2	)		(20.1	)
Gross realized investment losses		(11.3	)		(3.2	)		(26.7	)		(40.9	)
Net realized investment (losses) gains on foreign    currency exchange forward contracts	$	(4.8	)	$	0.3		$	(10.4	)	$	(11.5	)

Schedule of Regulatory Deposits, Pledged Securities and Letters of Credit

Regulatory Deposits, Pledged Securities and Letters of Credit

(in millions)	September 30, 2017		December 31, 2016
Securities on deposit for regulatory and other purposes	$	177.8	$	168.7
Securities pledged as collateral for letters of credit		42.6		35.9
Securities and cash on deposit supporting Lloyd’s business		405.6		161.8
Total restricted investments	$	626.0	$	366.4

Financial Assets Measured at Fair Value on Recurring Basis

Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:

			FairValue Measurements at Reporting Date Using
(in millions)	September 30, 2017		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	340.0	$	335.3	$	4.7	$	—
Foreign Governments		236.3		—		236.3		—
Obligations of states and political subdivisions		335.2		—		335.2		—
Corporate bonds		1,631.8		—		1,629.9		1.9
Commercial mortgage-backed securities		146.7		—		146.7		—
Residential mortgage-backed securities		273.5		—		273.5		—
Asset-backed securities		156.5		—		156.5		—
Collateralized loan obligations		258.4		—		258.4		—
Total fixed maturities		3,378.4		335.3		3,041.2		1.9
Equity securities		480.5		476.6		3.5		0.4
Other investments		124.1		—		124.1		—
Short-term investments		386.0		347.6		38.4		—
	$	4,369.0	$	1,159.5	$	3,207.2	$	2.3

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

			Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2016		Level 1 (a)		Level 2 (b)		Level 3 (c)
Fixed maturities
U.S. Governments	$	271.2	$	228.0	$	43.2	$	—
Foreign Governments		237.3		—		237.3		—
Obligations of states and political subdivisions		382.8		—		382.8		—
Corporate bonds		1,320.7		—		1,318.7		2.0
Commercial mortgage-backed securities		153.7		—		153.7		—
Residential mortgage-backed securities		176.8		—		176.8		—
Asset-backed securities		125.6		—		125.6		—
Collateralized loan obligations		264.3		—		264.3		—
Total fixed maturities		2,932.4		228.0		2,702.4		2.0
Equity securities		447.4		444.9		2.1		0.4
Other investments		95.5		—		95.5		—
Short-term investments		405.5		375.1		30.4		—
	$	3,880.8	$	1,048.0	$	2,830.4	$	2.4

^(a) Quoted prices in active markets for identical assets

^(b) Significant other observable inputs

^(c) Significant unobservable inputs

Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3

A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Observable Inputs (Level 3)

(in millions)	Corporate Bonds			Equity Securities		Total
Beginning balance, January 1, 2017	$	2.0		$	0.4	$	2.4
Transfers into Level 3		—			—		—
Transfers out of Level 3		—			—		—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—			—		—
Included in other comprehensive income (loss)		(0.1	)		—		(0.1	)
Purchases, issuances, sales, and settlements:
Purchases		—			—		—
Issuances		—			—		—
Sales		—			—		—
Settlements		—			—		—
Ending balance, September 30, 2017	$	1.9		$	0.4	$	2.3
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at September 30, 2017	$	—		$	—	$	—

(in millions)	Corporate Bonds		Equity Securities			Total
Beginning balance, January 1, 2016	$	—	$	0.7		$	0.7
Transfers into Level 3		—		—			—
Transfers out of Level 3		—		—			—
Total gains or losses (realized/unrealized):
Included in net income (loss)		—		—			—
Included in other comprehensive income (loss)		—		—			—
Purchases, issuances, sales, and settlements:
Purchases		2.0		—			2.0
Issuances		—		—			—
Sales		—		(0.3	)		(0.3	)
Settlements		—		—			—
Ending balance, December 31, 2016	$	2.0	$	0.4		$	2.4
Amount of total gains or losses for the year included in net income (loss)    attributable to the change in unrealized gains or losses relating to assets    still held at December 31, 2016	$	—	$	—		$	—

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Reserves for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

	For the Nine Months Ended September 30,
(in millions)	2017			2016
Net reserves beginning of the year	$	2,180.2		$	2,133.3
Net Maybrooke reserves acquired		131.8			—
Add:
Losses and LAE incurred during current calendar    year, net of reinsurance:
Current accident year		775.1			614.8
Prior accident years		4.4			(18.8	)
Losses and LAE incurred during calendar year,    net of reinsurance		779.5			596.0
Deduct:
Losses and LAE payments made during current    calendar year, net of reinsurance:
Current accident year		165.6			115.3
Prior accident years		413.7			403.9
Losses and LAE payments made during current    calendar year, net of reinsurance:		579.3			519.2
Change in participation interest (1)		(23.2	)		(36.3	)
Foreign exchange adjustments		18.9			1.0
Net reserves - end of period		2,507.9			2,174.8
Add:
Reinsurance recoverables on unpaid losses and    LAE, end of year		1,798.0			1,110.0
Gross reserves - end of period	$	4,305.9		$	3,284.8

⁽¹⁾ Amount represents decreases in reserves due to change in syndicate participation

Impact from Unfavorable (Favorable) Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment

The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:

	For the Nine Months Ended September 30,
(in millions)	2017			2016
U.S. Operations	$	(28.7	)	$	(25.6	)
International Operations		17.0			(10.8	)
Run-off Lines		16.1			17.6
Total unfavorable (favorable) prior-year development	$	4.4		$	(18.8	)

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Junior Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2017

Junior Subordinated Debentures [Member]

Schedule of Junior Subordinated Debentures

A summary of our outstanding junior subordinated debentures is presented below:

(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.42%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		5.24%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.42%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		5.40%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		5.17%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		5.17%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		5.12%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.87%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.92%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.72%		30.9
	Total Outstanding					$	172.7

(in millions)
Issue Date	Trust Preferred Pools	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
Argo Group
05/15/2003	PXRE Capital Statutory Trust II	05/15/2033	3M LIBOR + 4.10%		5.00%	$	18.1
11/06/2003	PXRE Capital Trust VI	09/30/2033	3M LIBOR + 3.90%		4.90%		10.3
Argo Group US
05/15/2003	Argonaut Group Statutory Trust I	05/15/2033	3M LIBOR + 4.10%		5.00%		15.5
12/16/2003	Argonaut Group Statutory Trust III	01/08/2034	3M LIBOR + 4.10%		4.98%		12.3
04/29/2004	Argonaut Group Statutory Trust IV	04/29/2034	3M LIBOR + 3.85%		4.76%		13.4
05/26/2004	Argonaut Group Statutory Trust V	05/24/2034	3M LIBOR + 3.85%		4.77%		12.3
05/12/2004	Argonaut Group Statutory Trust VI	05/12/2034	3M LIBOR + 3.80%		4.79%		13.4
09/17/2004	Argonaut Group Statutory Trust VII	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/22/2004	Argonaut Group Statutory Trust VIII	09/22/2034	3M LIBOR + 3.55%		4.55%		15.5
10/22/2004	Argonaut Group Statutory Trust IX	12/15/2034	3M LIBOR + 3.60%		4.56%		15.5
09/15/2005	Argonaut Group Statutory Trust X	09/15/2035	3M LIBOR + 3.40%		4.36%		30.9
	Total Outstanding					$	172.7

Maybrooke Junior Subordinated Debentures [Member]

Schedule of Junior Subordinated Debentures

A summary of the terms of the Maybrooke debt outstanding at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Principal at September 30, 2017		Carrying Value at September 30, 2017
9/15/2007	9/15/2037	3 month LIBOR + 3.15%		4.47%	$	91.8	$	83.8

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Other Indebtedness (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Terms and Principal Amounts of Each Debt Instrument

Our Consolidated Balance Sheets includes various long-term debt instruments under the caption “Other indebtedness,” as detailed in the table below. Information regarding the terms and principal amounts of each of these debt instruments is also provided.

(in millions)
Debt Type	September 30, 2017		December 31, 2016
Floating rate loan stock	$	59.1	$	54.8
Term loan		125.0		—
Other debt		0.6		0.6
Total other indebtedness	$	184.7	$	55.4

Floating Rate Loan Stock [Member]

Schedule of Junior Subordinated Debentures

A summary of the notes outstanding at September 30, 2017 and December 31, 2016 is presented below:

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.66%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.67%		14.2
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		5.46%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.67%		12.4
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.57%		16.0
						$	59.1

(in millions)
Issue Date	Currency	Maturity	Rate Structure	Interest Rate at December 31, 2016		Amount
12/08/2004	U.S. Dollar	11/15/2034	6 month LIBOR + 4.2%		5.18%	$	6.5
09/06/2005	Euro	08/22/2035	3 month LIBOR + 4.0%		3.70%		12.8
10/31/2006	U.S. Dollar	01/15/2036	6 month LIBOR + 4.0%		4.98%		10.0
10/31/2006	Euro	11/22/2036	3 month LIBOR + 4.0%		3.70%		11.2
06/08/2007	Euro	09/15/2037	3 month LIBOR + 3.9%		3.58%		14.3
						$	54.8

New Credit Agreement [Member]

Schedule of Floating Rate Loan Stock and Borrowing Under Credit Facility, Notes Outstanding

A summary of the terms of the outstanding balance at September 30, 2017 is presented below:

(in millions)
Issue Date	Maturity	Rate Structure	Interest Rate at September 30, 2017		Amount
3/3/2017	3/3/2019	2 month LIBOR + 1.5%		2.80%	$	125.0

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Disclosures about Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value

A summary of our financial instruments whose carrying value did not equal fair value is shown below:

	September 30, 2017				December 31, 2016
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures
Trust preferred debentures	$	172.7	$	168.6	$	172.7	$	162.4
Maybrooke subordinated debenture		83.8		86.3		—		—
Senior unsecured fixed rate notes		139.6		139.4		139.5		139.3
Floating rate loan stock		59.1		57.7		54.8		51.5

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Repurchase of Shares

A summary of common shares repurchased for the nine months ended September 30, 2017 is shown below:

Repurchase Type	Date Trading Plan Initiated	2017 Purchase Period	Number of Shares Repurchased		Average Price of Shares Repurchased		Total Cost (in millions)		Repurchase Authorization Year
10b5-1 Trading Plan	6/14/2017	06/20/2017-08/10/2017		156,570	$	59.53	$	9.4	2016
10b5-1 Trading Plan	9/15/2017	09/18/2017-09/28/2017		33,488	$	60.85	$	2.0	2016
Open Market	N/A	08/11/2017-09/15/2017		421,976	$	59.75		25.2	2016
Total				612,034	$	59.75	$	36.6

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Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Changes in Accumulated Other Comprehensive (Loss) Income

A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the nine months ended September 30, 2017, and 2016 is presented below:

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2017	$	(17.6	)	$	72.4		$	(7.1	)	$	47.7
Other comprehensive (loss) income before    reclassifications		(0.2	)		74.1			—			73.9
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(24.6	)		—			(24.6	)
Net current-period other comprehensive (loss)    income		(0.2	)		49.5			—			49.3
Balance at September 30, 2017	$	(17.8	)	$	121.9		$	(7.1	)	$	97.0

(in millions)	Foreign Currency Translation Adjustments			Unrealized Holding Gains on Securities			Defined Benefit Pension Plans			Total
Balance at January 1, 2016	$	(21.6	)	$	40.0		$	(6.9	)	$	11.5
Other comprehensive (loss) income before    reclassifications		2.8			70.2			—			73.0
Amounts reclassified from accumulated other    comprehensive (loss) income		—			(13.3	)		—			(13.3	)
Net current-period other comprehensive (loss)    income		2.8			56.9			—			59.7
Balance at September 30, 2016	$	(18.8	)	$	96.9		$	(6.9	)	$	71.2

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income

The following table illustrates the amounts reclassified from accumulated other comprehensive (loss) income shown in the above tables that have been included in our Consolidated Statements of (Loss) Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Unrealized gains on securities:
Net realized investment gains	$	(17.4	)	$	(17.0	)	$	(36.3	)	$	(25.1	)
Provision for income taxes (benefit)		5.5			7.9			11.7			11.8
Net of taxes	$	(11.9	)	$	(9.1	)	$	(24.6	)	$	(13.3	)

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Net (Loss) Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share on Basic and Diluted Basis

The following table presents the calculation of net (loss) income per common share on a basic and diluted basis:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions, except number of shares and per share amounts)	2017			2016		2017		2016
Net (loss) income	$	(61.3	)	$	55.2	$	21.4	$	113.8
Weighted average common shares    outstanding - basic		29,978,485			30,018,637		30,075,424		30,227,725
Effect of dilutive securities:
Equity compensation awards		—			709,746		817,602		661,762
Weighted average common shares    outstanding - diluted		29,978,485			30,728,383		30,893,026		30,889,487
Net (loss) income per common share:
Basic	$	(2.04	)	$	1.84	$	0.71	$	3.76
Diluted	$	(2.04	)	$	1.80	$	0.69	$	3.68

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Schedule of Interest Paid

Interest paid was as follows:

	For the Nine Months Ended September 30,
(in millions)	2017		2016
Senior unsecured fixed rate notes	$	7.0	$	7.0
Junior subordinated debentures		9.4		5.7
Other indebtedness		3.0		2.0
Revolving credit facility		0.3		—
Total interest paid	$	19.7	$	14.7

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Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Fair Value Assumptions

The following table summarizes the assumptions we used for the nine months ended September 30, 2017, and 2016:

	For the Nine Months Ended September 30,
	2017			2016
Risk-free rate of return		1.85	%		1.12	%
Expected dividend yields		1.71	%		1.65	%
Expected award life (years)		4.48			4.50
Expected volatility		18.13	%		18.73	%

Summary of Restricted Share Activity

A summary of restricted share activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2017		702,030		$	42.69
Granted		239,997		$	62.91
Vested and issued		(154,706	)	$	41.65
Expired or forfeited		(34,970	)	$	48.80
Outstanding at September 30, 2017		752,351		$	49.07

Summary of Stock-Settled SARs Activity

A summary of stock-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		1,982,695		$	34.80
Exercised		(396,355	)	$	31.52
Expired or forfeited		(105,024	)	$	40.62
Outstanding at September 30, 2017		1,481,316		$	35.26

Summary of Cash-Settled SARs Activity

A summary of cash-settled SARs activity as of September 30, 2017 and changes during the nine months then ended is as follows:

	Shares			Weighted-Average Exercise Price
Outstanding at January 1, 2017		500,486		$	32.08
Exercised		(235,663	)	$	32.37
Expired or forfeited		(14,628	)	$	23.74
Outstanding at September 30, 2017		250,195		$	32.30

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Underwriting, Acquisition and Insurance Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Underwriting Acquisition And Insurance Expenses [Abstract]

Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Commissions	$	70.8		$	59.3		$	201.2		$	178.5
General expenses		89.7			75.6			266.4			217.3
Premium taxes, boards and bureaus		11.8			6.1			25.9			19.0
		172.3			141.0			493.5			414.8
Net deferral of policy acquisition costs		(6.2	)		(3.6	)		(19.1	)		(11.8	)
Total underwriting, acquisition and insurance expenses	$	166.1		$	137.4		$	474.4		$	403.0

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax Provision (Benefit)

Our income tax provision includes the following components:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Current tax provision (benefit)	$	(2.9	)	$	10.8		$	12.6		$	18.8
Deferred tax provision (benefit) related to:
Future tax deductions		(2.5	)		(3.0	)		(6.1	)		1.9
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates

For the three and nine months ended September 30, 2017 and 2016, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

	For the Three Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	(43.0	)			0.0	%	$	35.6				0.0	%
United States		(1.3	)			52.9	%		28.2				24.2	%
United Kingdom		(24.6	)			16.4	%		(2.8	)			-3.0	%
Barbados		—		(1)		0.0	%		—		(1)		0.0	%
Belgium		0.1				36.1	%		—		(1)		-160.0	%
Brazil		—		(1)		0.0	%		0.4				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.1	)			0.0	%
Luxembourg		(1.3	)			0.0	%		—		(1)		0.0	%
Malta		0.6				0.0	%		0.9				0.0	%
Switzerland		0.2				18.1	%		—		(1)		21.2	%
United Arab Emirates		3.5				0.0	%		—		(1)		0.0	%
Total	$	(65.9	)			7.0	%	$	62.2				11.3	%

	For the Nine Months Ended September 30,
(in millions)	2017							2016
	Pre-Tax Income (Loss)				Effective Tax Rate			Pre-Tax Income (Loss)				Effective Tax Rate
Bermuda	$	8.7				0.0	%	$	79.7				0.0	%
United States		57.4				24.1	%		78.0				26.3	%
United Kingdom		(36.6	)			21.6	%		(24.9	)			-1.9	%
Barbados		—		(1)		0.0	%		—				0.0	%
Belgium		0.2				36.2	%		—		(1)		0.0	%
Brazil		(0.2	)			0.0	%		1.1				0.0	%
Ireland(2)		(0.1	)			0.0	%		(0.2	)			0.0	%
Luxembourg		(3.7	)			0.0	%		—		(1)		0.0	%
Malta		1.7				0.0	%		1.2				0.0	%
Switzerland		0.2				21.1	%		—		(1)		21.1	%
United Arab Emirates		—		(1)		0.0	%		—		(1)		0.0	%
Total	$	27.6				22.3	%	$	134.9				15.7	%

⁽¹⁾ Pre-tax income for the respective year was less than $0.1 million.

Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate

Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income tax provision at expected rate	$	(5.5	)	$	9.8		$	12.9		$	23.2
Tax effect of:
Tax-exempt interest		(0.6	)		(0.7	)		(2.1	)		(2.5	)
Dividends received deduction		(0.5	)		(0.4	)		(1.4	)		(1.7	)
Valuation allowance change		0.8			(0.8	)		(0.3	)		0.4
Other permanent adjustments, net		—			0.1			(1.1	)		0.3
Adjustment for prior period		(1.2	)		(0.8	)		(1.9	)		(0.8	)
Adjustment for annualized rate		0.8			(0.9	)		(1.5	)		(1.5	)
Other foreign adjustments		0.2			(0.1	)		0.1			(0.7	)
State income taxes, net of Federal benefit		—			—			0.1			(0.3	)
Foreign exchange adjustments		1.4			0.8			1.1			4.4
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1
Income tax (benefit) provision - Foreign	$	(3.9	)	$	0.2		$	(7.7	)	$	0.6
Income tax provision (benefit) - United States, Federal		(0.8	)		6.8		$	13.4			20.2
Income tax provision  - United States, State		0.1			—			0.2			—
Foreign withholding taxes		—			—			0.3			0.3
Income tax provision (benefit)	$	(4.6	)	$	7.0		$	6.2		$	21.1

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Revenue and Income (Loss) Before Income Taxes for Each Segment

Revenue and income (loss) before income taxes for each segment were as follows:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2017			2016		2017		2016
Revenue:
Earned premiums
U.S. Operations	$	242.6		$	216.3	$	692.9	$	629.7
International Operations		146.8			142.3		474.9		418.5
Run-off Lines		(0.1	)		0.1		—		0.3
Total earned premiums		389.3			358.7		1,167.8		1,048.5
Net investment income
U.S. Operations		18.8			20.3		66.0		55.8
International Operations		7.7			7.5		24.4		22.7
Run-off Lines		2.0			3.2		7.0		8.8
Corporate and Other		2.4			1.7		7.6		2.3
Total net investment income		30.9			32.7		105.0		89.6
Fee and other income		13.0			7.6		20.4		20.2
Net realized investment and other gains		6.0			17.7		25.1		12.8
Total revenue	$	439.2		$	416.7	$	1,318.3	$	1,171.1

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Income (loss) before income taxes
U.S. Operations	$	28.7		$	45.9		$	118.9		$	126.2
International Operations		(77.5	)		20.1			(60.1	)		53.1
Run-off Lines		(12.7	)		(10.0	)		(16.4	)		(14.6	)
Total segment (loss) income before taxes		(61.5	)		56.0			42.4			164.7
Corporate and Other		(10.4	)		(11.5	)		(39.9	)		(42.6	)
Net realized investment and other gains		6.0			17.7			25.1			12.8
Total (loss) income before income taxes	$	(65.9	)	$	62.2		$	27.6		$	134.9

Schedule of Earned Premiums by Geographic Location

The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2017 and 2016. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Bermuda	$	23.3	$	29.0	$	72.0	$	86.1
Brazil		11.7		10.4		36.8		29.6
Malta		2.7		0.6		5.0		1.6
United Kingdom		109.1		102.4		361.2		301.1
United States		242.5		216.3		692.8		630.1
Total earned premiums	$	389.3	$	358.7	$	1,167.8	$	1,048.5

Identifiable Assets

The following table represents identifiable assets:

(in millions)	September 30, 2017		December 31, 2016
U.S. Operations	$	4,335.1	$	3,961.2
International Operations		3,814.2		2,356.9
Run-off Lines		458.9		537.0
Corporate and Other		449.8		349.9
Total	$	9,058.0	$	7,205.0

XML

Senior Unsecured Fixed Rate Notes (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability

At September 30, 2017 and December 31, 2016, the Notes consisted of the following:

(in millions)	September 30, 2017			December 31, 2016
Senior unsecured fixed rate notes
Principal	$	143.8		$	143.8
Less: unamortized debt issuance costs		(4.2	)		(4.3	)
Senior unsecured fixed rate notes, less unamortized debt    issuance costs	$	139.6		$	139.5

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2017

(in millions)

(Unaudited)

	Argo Group International Holdings, Ltd (ParentGuarantor)			Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	(1.6	)	$	3,039.1	$	1,770.0		$	—		$	4,807.5
Cash		—			73.5		162.3			—			235.8
Accrued investment income		—			16.8		6.8			—			23.6
Premiums receivable		—			227.3		451.5			—			678.8
Reinsurance recoverables		—			1,450.3		651.6			—			2,101.9
Goodwill and other intangible assets, net		44.4			125.2		90.9			—			260.5
Deferred acquisition costs, net		—			82.3		86.5			—			168.8
Ceded unearned premiums		—			194.9		266.5			—			461.4
Other assets		8.3			173.7		137.7			—			319.7
Intercompany note receivable		—			50.2		69.8			(120.0	)		—
Investments in subsidiaries		2,086.7			—		—			(2,086.7	)		—
Total assets	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—		$	2,452.6	$	1,853.3		$	—		$	4,305.9
Unearned premiums		—			694.5		591.5			—			1,286.0
Funds held and ceded reinsurance payable, net		—			790.1		77.5			—			867.6
Long-term debt		153.4			284.6		142.8			—			580.8
Current income taxes payable, net		—			7.9		3.1			—			11.0
Deferred tax liabilities, net		—			37.3		4.2			—			41.5
Accrued underwriting expenses and other liabilities		12.1			103.2		41.9			—			157.2
Due to affiliates		44.3			6.9		(6.9	)		(44.3	)		—
Intercompany note payable		120.0			40.1		(40.1	)		(120.0	)		—
Total liabilities		329.8			4,417.2		2,667.3			(164.3	)		7,250.0
Total shareholders' equity		1,808.0			1,016.1		1,026.3			(2,042.4	)		1,808.0
Total liabilities and shareholders' equity	$	2,137.8		$	5,433.3	$	3,693.6		$	(2,206.7	)	$	9,058.0

⁽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, 2016

(in millions)

	Argo Group International Holdings, Ltd (ParentGuarantor)		Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer)		Other Subsidiaries and Eliminations (1)			Consolidating Adjustments(2)			Total
Assets
Investments	$	2.2	$	2,834.2	$	1,487.9		$	—		$	4,324.3
Cash		—		53.7		32.3			—			86.0
Accrued investment income		—		16.0		4.7			—			20.7
Premiums receivable		—		204.9		258.9			—			463.8
Reinsurance recoverables		—		1,348.4		37.2			—			1,385.6
Goodwill and other intangible assets, net		—		127.1		92.8			—			219.9
Deferred acquisition costs, net		—		63.5		75.6			—			139.1
Ceded unearned premiums		—		168.9		133.9			—			302.8
Other assets		8.7		168.0		86.1			—			262.8
Intercompany note receivable		—		50.2		(50.2	)		—			—
Investments in subsidiaries		1,834.4		—		—			(1,834.4	)		—
Total assets	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	$	—	$	2,322.4	$	1,028.4		$	—		$	3,350.8
Unearned premiums		—		580.0		390.0			—			970.0
Funds held and ceded reinsurance payable, net		—		750.2		(206.5	)		—			543.7
Long-term debt		28.4		284.4		54.8			—			367.6
Current income taxes payable, net		—		8.5		(0.4	)		—			8.1
Deferred tax liabilities, net		—		17.6		6.5			—			24.1
Accrued underwriting expenses and other liabilities		13.7		92.0		42.3			—			148.0
Due to affiliates		10.5		1.8		(1.8	)		(10.5	)		—
Total liabilities		52.6		4,056.9		1,313.3			(10.5	)		5,412.3
Total shareholders' equity		1,792.7		978.0		845.9			(1,823.9	)		1,792.7
Total liabilities and shareholders' equity	$	1,845.3	$	5,034.9	$	2,159.2		$	(1,834.4	)	$	7,205.0

⁽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 (Loss) Income

CONDENSED CONSOLIDATING STATEMENT OF LOSS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	145.3		$	244.0		$	—	$	389.3
Net investment (expense) income		(1.1	)		16.5			15.5			—		30.9
Fee and other income		—			12.3			0.7			—		13.0
Net realized investment and other gains (losses)		—			6.6			(0.6	)		—		6.0
Total revenue		(1.1	)		180.7			259.6			—		439.2
Expenses:
Losses and loss adjustment expenses		—			99.1			227.3			—		326.4
Underwriting, acquisition and insurance    expenses		5.6			74.0			86.5			—		166.1
Interest expense		1.6			4.2			1.7			—		7.5
Fee and other expense		—			4.1			0.9			—		5.0
Foreign currency exchange (gains) loss		—			(0.1	)		0.2			—		0.1
Total expenses		7.2			181.3			316.6			—		505.1
(Loss) Income before income taxes		(8.3	)		(0.6	)		(57.0	)		—		(65.9	)
Provision for income taxes		—			(0.6	)		(4.0	)		—		(4.6	)
Net (loss) income before equity in earnings of    subsidiaries		(8.3	)		0.0			(53.0	)		—		(61.3	)
Equity in undistributed earnings of    subsidiaries		(53.0	)		—			—			53.0		—
Net loss	$	(61.3	)	$	0.0		$	(53.0	)	$	53.0	$	(61.3	)

⁽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 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 (expense) income		(0.9	)		22.5		11.1			—			32.7
Fee and other income		—			5.5		2.1			—			7.6
Net realized investment and other gains (losses)		—			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 (gains) loss		—			0.2		(1.7	)		—			(1.5	)
Total expenses		4.0			147.2		203.3			—			354.5
(Loss) Income before income taxes		(4.9	)		28.2		38.9			—			62.2
Provision for income taxes		—			6.8		0.2			—			7.0
Net (loss) income 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 NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	—		$	411.7		$	756.1		$	—		$	1,167.8
Net investment (expense) income		(3.2	)		64.7			43.5			—			105.0
Fee and other income		—			18.0			2.4			—			20.4
Net realized investment and other gains (losses)		0.5			25.6			(1.0	)		—			25.1
Total revenue		(2.7	)		520.0			801.0			—			1,318.3
Expenses:
Losses and loss adjustment expenses		—			247.7			531.8			—			779.5
Underwriting, acquisition and insurance    expenses		17.8			190.7			265.9			—			474.4
Interest expense		3.0			12.7			4.7			—			20.4
Fee and other expense		—			10.7			1.7			—			12.4
Foreign currency exchange loss		—			(0.1	)		4.1			—			4.0
Total expenses		20.8			461.7			808.2			—			1,290.7
(Loss) Income before income taxes		(23.5	)		58.3			(7.2	)		—			27.6
Provision for income taxes		—			13.9			(7.7	)		—			6.2
Net (loss) income before equity in earnings of    subsidiaries		(23.5	)		44.4			0.5			—			21.4
Equity in undistributed earnings of subsidiaries		44.9			—			—			(44.9	)		—
Net income	$	21.4		$	44.4		$	0.5		$	(44.9	)	$	21.4

⁽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 (expense) income		(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)		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 (gains) loss		—			0.1		4.4			—			4.5
Total expenses		11.0			400.1		625.1			—			1,036.2
(Loss) Income before income taxes		(12.8	)		78.0		69.7			—			134.9
Provision for income taxes		—			20.5		0.6			—			21.1
Net (loss) income 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 Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(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	$	11.8		$	175.3		$	65.3		$	—		$	252.4
Cash flows from investing activities:
Proceeds from sales of investments		—			652.5			625.5			—			1,278.0
Maturities and mandatory calls of fixed    maturity investments		—			350.6			142.6			—			493.2
Purchases of investments		—			(1,140.8	)		(919.4	)		—			(2,060.2	)
Change in short-term investments and    foreign regulatory deposits		1.8			29.6			232.8			—			264.2
Settlements of foreign currency exchange    forward contracts		0.8			(5.5	)		4.7			—			—
Acquisition of subsidiaries, net of cash		(235.3	)		—			130.1			—			(105.2	)
Issuance of intercompany note, net		—			—			(120.0	)		120.0			—
Purchases of fixed assets and other, net		(0.1	)		(5.3	)		(30.6	)		—			(36.0	)
Cash (used in) provided by investing activities		(232.8	)		(118.9	)		65.7			120.0			(166.0	)
Cash flows from financing activities:
Additional long-term borrowings		125.0			—			—			—			125.0
Borrowing under intercompany note, net		120.0			—			—			(120.0	)		—
Activity under stock incentive plans		0.9			—			—			—			0.9
Repurchase of Company's common shares		—			(36.6	)		—			—			(36.6	)
Payment of cash dividend to common    shareholders		(24.9	)		—			—			—			(24.9	)
Cash provided by (used in) financing activities		221.0			(36.6	)		—			(120.0	)		64.4
Effect of exchange rate changes on cash		—			—			(1.0	)		—			(1.0	)
Change in cash		—			19.8			130.0			—			149.8
Cash, beginning of year		—			53.7			32.3			—			86.0
Cash, end of period	$	—		$	73.5		$	162.3		$	—		$	235.8

⁽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 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 (used in) operating activities	$	19.6		$	60.7		$	70.5		$	—	$	150.8
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) provided by 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	)
Payment of cash dividend to common    shareholders		(19.8	)		—			—			—		(19.8	)
Cash used in financing activities		(19.2	)		(45.3	)		—			—		(64.5	)
Effect of exchange rate changes on cash		—			—			(1.0	)		—		(1.0	)
Change in cash		—			0.5			1.4			—		1.9
Cash, beginning of year		—			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.

XML

Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017
Maybrooke [Member]
Basis Of Presentation [Line Items]
Effective date of acquisition	Feb. 06, 2017

XML

Acquisition of Maybrooke - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended			9 Months Ended
	Feb. 06, 2017	Jan. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Underwriting, acquisition and insurance expenses			$ 166,100,000		$ 137,400,000	$ 474,400,000	$ 403,000,000
Interest expense			7,500,000		$ 4,900,000	20,400,000	14,600,000
Favorable development from prior accident years						$ 4,400,000	$ (18,800,000)
Maybrooke [Member]
Business Acquisition [Line Items]
Business acquisition effective date						Feb. 06, 2017
Initial purchase price paid	$ 235,300,000
Initial purchase price subject to post closing adjustments, due date	90 days
Intangible assets	$ 44,400,000		44,400,000			$ 44,400,000
Amortization of Intangible Assets						0
Transaction cost from acquisition			2,500,000	$ 2,500,000		2,500,000
Underwriting, acquisition and insurance expenses				2,200,000
Additional transaction costs			$ 0
Favorable development from prior accident years						$ 10,500,000
Maybrooke [Member] | One Specific Claim [Member]
Business Acquisition [Line Items]
Favorable development from prior accident years		$ 6,200,000
Maybrooke [Member] | Credit Facility [Member]
Business Acquisition [Line Items]
Interest expense				$ 300,000

XML

Acquisition of Maybrooke - Schedule of Preliminarily Allocation of Purchase Price to Acquired Assets, Liabilities, and Intangible Assets (Detail) - Maybrooke [Member] - USD ($) $ in Millions	Feb. 06, 2017	Sep. 30, 2017
Assets:
Investments	$ 340.7
Cash	130.1
Accrued investment income	0.2
Premiums receivable	157.6
Reinsurance recoverables	80.2
Current income taxes receivable	0.6
Deferred acquisition costs, net	9.8
Ceded unearned premiums	92.6
Other assets	24.9
Total assets	836.7
Liabilities:
Reserves for losses and loss adjustment expenses	197.0
Unearned premiums	152.5
Accrued underwriting expenses	28.8
Ceded reinsurance payable, net	144.2
Junior subordinated debentures	83.6
Deferred tax liabilities	9.0
Other liabilities	30.7
Total liabilities	645.8
Net assets acquired	190.9
Initial purchase price	235.3
Intangible assets	$ 44.4	$ 44.4

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Acquisition of Maybrooke - Summary of Selected Financial Information (Detail) - Maybrooke [Member] - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Revenues	$ 27.5	$ 93.7
Net loss	$ (26.7)	$ (13.7)

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Acquisition of Maybrooke - Summary of Pro Forma Results (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Pro forma revenues	$ 439.2	$ 466.0	$ 1,332.4	$ 1,340.5
Pro forma net (loss) income	$ (63.4)	$ 56.2	$ 29.8	$ 132.9
Pro forma net (loss) income per share - basic	$ (2.11)	$ 1.87	$ 0.99	$ 4.40
Pro forma net (loss) income per share - diluted	$ (2.11)	$ 1.83	$ 0.96	$ 4.30

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Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Invested Assets [Line Items]
Amortized Cost	$ 3,339.7	$ 2,938.8	[1]
Fair Value	3,378.4	2,932.4	[1]
Amortized Cost	347.6	335.2	[1]
Fair Value	480.5	447.4	[1]
Invested Assets Amortized Cost	4,626.4	4,211.1
Investments Gross Unrealized Gains	208.1	167.3
Investments Gross Unrealized losses	27.0	54.1
Total investments	4,807.5	4,324.3	[1]
Fixed Maturities [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	3,339.7	2,938.8
Gross Unrealized Gains	60.4	41.9
Gross Unrealized Losses	21.7	48.3
Fair Value	3,378.4	2,932.4
Fixed Maturities [Member] | Collateralized Loan Obligations [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	252.8	269.6
Gross Unrealized Gains	6.6	3.8
Gross Unrealized Losses	1.0	9.1
Fair Value	258.4	264.3
Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	271.7	174.8
Gross Unrealized Gains	3.4	3.7
Gross Unrealized Losses	1.6	1.7
Fair Value	273.5	176.8
Fixed Maturities [Member] | U.S. Governments [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	342.7	275.1
Gross Unrealized Gains	0.5	0.6
Gross Unrealized Losses	3.2	4.5
Fair Value	340.0	271.2
Fixed Maturities [Member] | Foreign Governments [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	231.9	244.2
Gross Unrealized Gains	7.9	1.1
Gross Unrealized Losses	3.5	8.0
Fair Value	236.3	237.3
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	324.1	375.7
Gross Unrealized Gains	11.9	8.9
Gross Unrealized Losses	0.8	1.8
Fair Value	335.2	382.8
Fixed Maturities [Member] | Corporate Bonds [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	1,612.7	1,316.9
Gross Unrealized Gains	29.0	23.3
Gross Unrealized Losses	9.9	19.5
Fair Value	1,631.8	1,320.7
Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	147.4	154.9
Gross Unrealized Gains	0.4	0.4
Gross Unrealized Losses	1.1	1.6
Fair Value	146.7	153.7
Fixed Maturities [Member] | Asset-backed Securities [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	156.4	127.6
Gross Unrealized Gains	0.7	0.1
Gross Unrealized Losses	0.6	2.1
Fair Value	156.5	125.6
Equity Securities [Member]
Schedule of Invested Assets [Line Items]
Amortized Cost	347.6	335.2
Gross Unrealized Gains	138.2	117.9
Gross Unrealized Losses	5.3	5.7
Fair Value	480.5	447.4
Other Investments [Member]
Schedule of Invested Assets [Line Items]
Invested Assets Amortized Cost	553.1	531.6
Investments Gross Unrealized Gains	9.5	7.5
Investments Gross Unrealized losses	0.0	0.1
Total investments	562.6	539.0
Short-Term Investments [Member]
Schedule of Invested Assets [Line Items]
Invested Assets Amortized Cost	386.0	405.5
Investments Gross Unrealized Gains	0.0	0.0
Investments Gross Unrealized losses	0.0	0.0
Total investments	$ 386.0	$ 405.5

[1] Derived from audited consolidated financial statements.

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Investments - Additional Information (Detail)	Sep. 30, 2017 USD ($) Security	Dec. 31, 2016 USD ($)
Amortized Cost And Fair Value Debt Securities [Abstract]
Fair value of investments, assets managed on behalf of the trade capital providers | $	$ 154,800,000	$ 131,900,000
Number of securities in an unrealized loss position, total | Security	8,410
Number of securities in an unrealized loss position for less than one year | Security	1,949
Number of securities in an unrealized loss position for a period of one year or greater | Security	182
Transfers between Level 1 and Level 2 securities | $	$ 0
Transfers between Level 2 and Level 1 securities | $	$ 0

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Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) $ in Millions	Sep. 30, 2017 USD ($)
Investments Debt And Equity Securities [Abstract]
Amortized Cost, Due in one year or less	$ 231.9
Amortized Cost, Due after one year through five years	1,515.6
Amortized Cost, Due after five years through ten years	594.1
Amortized Cost, Thereafter	169.8
Amortized Cost, Structured securities	828.3
Amortized Cost, Total	3,339.7
Fair Value, Due in one year or less	230.3
Fair Value, Due after one year through five years	1,533.6
Fair Value, Due after five years through ten years	604.6
Fair Value, Thereafter	174.8
Fair Value, Structured securities	835.1
Fair Value, Total	$ 3,378.4

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Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Carrying Value	$ 4,807.5	$ 4,324.3	[1]
Other investments, Carrying Value	(0.9)	8.4
Hedge funds [Member]
Schedule of Investments [Line Items]
Carrying Value	180.1	180.9
Unfunded Commitments	0.0	0.0
Private equity [Member]
Schedule of Investments [Line Items]
Carrying Value	167.7	179.0
Unfunded Commitments	117.9	93.4
Long only funds [Member]
Schedule of Investments [Line Items]
Carrying Value	215.7	170.7
Unfunded Commitments	0.0	0.0
Other Invested Assets [Member]
Schedule of Investments [Line Items]
Carrying Value	562.6	539.0
Unfunded Commitments	117.9	93.4
Other Investments [Member] | Changes Measurement
Schedule of Investments [Line Items]
Unfunded Commitments	$ 0.0	$ 0.0

[1] Derived from audited consolidated financial statements.

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Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		$ 1,370.4		$ 1,365.2
Unrealized Losses, Less Than One Year		22.9		50.9
Fair Value, One Year or Greater		167.6		89.0
Unrealized Losses, One Year or Greater		4.1		3.2
Fair Value, Total		1,538.0		1,454.2
Unrealized Losses, Total		27.0		54.1
Fixed Maturities [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		1,268.5		1,298.0
Unrealized Losses, Less Than One Year		17.6		45.1
Fair Value, One Year or Greater		167.6		89.0
Unrealized Losses, One Year or Greater		4.1		3.2
Fair Value, Total		1,436.1		1,387.0
Unrealized Losses, Total		21.7		48.3
Fixed Maturities [Member] | Collateralized Loan Obligations [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		61.0	[1]	122.5
Unrealized Losses, Less Than One Year		1.0	[1]	8.6
Fair Value, One Year or Greater		2.3	[1]	16.9
Unrealized Losses, One Year or Greater		0.0	[1]	0.5
Fair Value, Total		63.3	[1]	139.4
Unrealized Losses, Total		1.0	[1]	9.1
Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		137.9		87.5	[1]
Unrealized Losses, Less Than One Year		1.3		1.7	[1]
Fair Value, One Year or Greater		17.9		4.4	[1]
Unrealized Losses, One Year or Greater		0.3		0.0	[1]
Fair Value, Total		155.8		91.9	[1]
Unrealized Losses, Total		1.6		1.7	[1]
Fixed Maturities [Member] | U.S. Governments [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		279.2		183.4
Unrealized Losses, Less Than One Year		2.7		4.5
Fair Value, One Year or Greater		17.6		0.0
Unrealized Losses, One Year or Greater		0.5		0.0
Fair Value, Total		296.8		183.4
Unrealized Losses, Total		3.2		4.5
Fixed Maturities [Member] | Foreign Governments [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		194.8		201.2
Unrealized Losses, Less Than One Year		3.4		8.0
Fair Value, One Year or Greater		6.2		0.0
Unrealized Losses, One Year or Greater		0.1		0.0
Fair Value, Total		201.0		201.2
Unrealized Losses, Total		3.5		8.0
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		25.7		72.6
Unrealized Losses, Less Than One Year		0.3		1.7
Fair Value, One Year or Greater		15.0		1.8
Unrealized Losses, One Year or Greater		0.5		0.1
Fair Value, Total		40.7		74.4
Unrealized Losses, Total		0.8		1.8
Fixed Maturities [Member] | Corporate Bonds [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		426.9		490.5
Unrealized Losses, Less Than One Year		8.2		17.7
Fair Value, One Year or Greater		72.5		50.6
Unrealized Losses, One Year or Greater		1.7		1.8
Fair Value, Total		499.4		541.1
Unrealized Losses, Total		9.9		19.5
Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		73.6		70.6
Unrealized Losses, Less Than One Year		0.4		1.5
Fair Value, One Year or Greater		26.8		7.1
Unrealized Losses, One Year or Greater		0.7		0.1
Fair Value, Total		100.4		77.7
Unrealized Losses, Total		1.1		1.6
Fixed Maturities [Member] | Asset-backed Securities [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		69.4		69.7
Unrealized Losses, Less Than One Year		0.3		1.4
Fair Value, One Year or Greater		9.3		8.2
Unrealized Losses, One Year or Greater		0.3		0.7
Fair Value, Total		78.7		77.9
Unrealized Losses, Total		0.6		2.1
Equity Securities [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		55.2		62.1
Unrealized Losses, Less Than One Year		5.3		5.7
Fair Value, One Year or Greater		0.0		0.0
Unrealized Losses, One Year or Greater		0.0		0.0
Fair Value, Total		55.2		62.1
Unrealized Losses, Total		5.3		5.7
Other Investments [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year		0.3	[2]	0.3
Unrealized Losses, Less Than One Year		0.0	[2]	0.1
Fair Value, One Year or Greater		0.0	[2]	0.0
Unrealized Losses, One Year or Greater		0.0	[2]	0.0
Fair Value, Total		0.3	[2]	0.3
Unrealized Losses, Total		0.0	[2]	0.1
Short-Term Investments [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than One Year	[2]	46.4		4.8
Unrealized Losses, Less Than One Year	[2]	0.0		0.0
Fair Value, One Year or Greater	[2]	0.0		0.0
Unrealized Losses, One Year or Greater	[2]	0.0		0.0
Fair Value, Total	[2]	46.4		4.8
Unrealized Losses, Total	[2]	$ 0.0		$ 0.0

[1] Unrealized losses one year or greater are less than $0.1 million.

[2] Unrealized losses less than one year are less than $0.1 million.

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Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Parenthetical) (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Investments Debt And Equity Securities [Abstract]
Unrealized losses less than one year	$ 0.1
Unrealized losses one year or greater	$ 0.1

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Investments - Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other-than-temporary impairment:
Other-than-temporary impairment losses	$ (0.2)	$ (2.4)	$ (1.7)	$ (9.0)
Corporate Bonds [Member]
Other-than-temporary impairment:
Other-than-temporary impairment losses	(0.1)	(0.6)	(0.1)	(1.7)
Equity Securities [Member]
Other-than-temporary impairment:
Other-than-temporary impairment losses	$ (0.1)	$ (1.8)	$ (1.6)	$ (7.3)

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Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Investments [Line Items]
Gross realized investment and other gains	$ 22.9	$ 31.6	$ 74.5	$ 94.6
Gross realized investment and other losses	(16.9)	(13.9)	(49.4)	(81.8)
Net realized investment and other gains	6.0	17.7	25.1	12.8
Income tax expense	(2.2)	(6.5)	(7.9)	(7.7)
Net realized investment and other gains (losses), net of income taxes	3.8	11.2	17.2	5.1
Fixed Maturities [Member]
Schedule of Investments [Line Items]
Gross realized investment and other gains	6.3	5.4	18.9	16.4
Gross realized investment and other losses	(4.8)	(6.1)	(16.0)	(21.0)
Equity Securities [Member]
Schedule of Investments [Line Items]
Gross realized investment and other gains	9.4	20.8	37.1	45.4
Gross realized investment and other losses	(1.4)	(1.9)	(3.9)	(9.0)
Other Investments [Member]
Schedule of Investments [Line Items]
Gross realized investment and other gains	7.0	4.2	17.8	31.2
Gross realized investment and other losses	(10.5)	(3.5)	(27.7)	(42.7)
Short-Term Investments [Member]
Schedule of Investments [Line Items]
Gross realized investment and other gains	0.2	0.0	0.7	0.4
Gross realized investment and other losses	0.0	0.0	(0.1)	(0.1)
Other Assets [Member]
Schedule of Investments [Line Items]
Gross realized investment and other gains	0.0	1.2	0.0	1.2
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member]
Schedule of Investments [Line Items]
Gross realized investment and other losses	(0.1)	(0.6)	(0.1)	(1.7)
Other-Than-Temporary Impairment Losses on Equity Securities [Member]
Schedule of Investments [Line Items]
Gross realized investment and other losses	$ (0.1)	$ (1.8)	$ (1.6)	$ (7.3)

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Investments - Schedule of Changes in Unrealized Appreciation (Depreciation) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Investments [Line Items]
Net unrealized investment and other gains before income taxes	$ 21.1	$ 2.8	$ 63.8	$ 72.6
Income tax provision	(4.6)	0.3	(14.3)	(15.7)
Net unrealized investment and other gains, net of income taxes	16.5	3.1	49.5	56.9
Fixed Maturities [Member]
Schedule of Investments [Line Items]
Net unrealized investment and other gains before income taxes	9.5	13.7	41.6	78.5
Equity Securities [Member]
Schedule of Investments [Line Items]
Net unrealized investment and other gains before income taxes	11.7	(10.8)	20.2	(6.8)
Other Investments [Member]
Schedule of Investments [Line Items]
Net unrealized investment and other gains before income taxes	(0.1)	0.0	2.0	0.6
Short-Term Investments [Member]
Schedule of Investments [Line Items]
Net unrealized investment and other gains before income taxes	$ 0.0	$ (0.1)	$ 0.0	$ 0.3

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Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Fair value of foreign currency exchange forward contracts	$ (5.4)	$ 4.0
Operational Currency Exposure [Member]
Schedule of Investments [Line Items]
Fair value of foreign currency exchange forward contracts	(1.6)	0.0
Asset Manager Investment Exposure [Member]
Schedule of Investments [Line Items]
Fair value of foreign currency exchange forward contracts	(3.0)	0.7
Total return strategy [Member]
Schedule of Investments [Line Items]
Fair value of foreign currency exchange forward contracts	$ (0.8)	$ 3.3

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Investments - Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Investments [Line Items]
Realized gains from foreign currency exchange forward contracts	$ 6.5	$ 3.5	$ 16.3	$ 29.4
Realized losses from foreign currency exchange forward contracts	(11.3)	(3.2)	(26.7)	(40.9)
Net realized investment (losses) gains on foreign currency exchange forward contracts	(4.8)	0.3	(10.4)	(11.5)
Operational Currency Exposure [Member]
Schedule of Investments [Line Items]
Realized gains from foreign currency exchange forward contracts	1.8	1.3	7.5	8.7
Realized losses from foreign currency exchange forward contracts	(4.2)	(0.8)	(10.1)	(16.3)
Asset Manager Investment Exposure [Member]
Schedule of Investments [Line Items]
Realized gains from foreign currency exchange forward contracts	0.6	0.0	1.1	2.3
Realized losses from foreign currency exchange forward contracts	(3.6)	(0.8)	(10.4)	(4.5)
Total return strategy [Member]
Schedule of Investments [Line Items]
Realized gains from foreign currency exchange forward contracts	4.1	2.2	7.7	18.4
Realized losses from foreign currency exchange forward contracts	$ (3.5)	$ (1.6)	$ (6.2)	$ (20.1)

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Investments - Regulatory Deposits, Pledged Securities and Letters of Credit (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Securities and cash on deposit supporting Lloyd’s business	$ 405.6	$ 161.8
Total restricted investments	626.0	366.4
Securities Deposits For Regulatory and Other Purposes [Member]
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Securities on deposit for regulatory and other purposes	177.8	168.7
Securities Pledged as Collateral [Member]
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Securities pledged as collateral for letters of credit	$ 42.6	$ 35.9

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Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		$ 4,807.5	$ 4,324.3	[1]
Other Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		562.6	539.0
Short-Term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		386.0	405.5
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		4,369.0	3,880.8
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	1,159.5	1,048.0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	3,207.2	2,830.4
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	2.3	2.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		3,378.4	2,932.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		258.4	264.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		273.5	176.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	335.3	228.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collateralized Loan Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential Mortgage-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	3,041.2	2,702.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	258.4	264.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	273.5	176.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	1.9	2.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		340.0	271.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	335.3	228.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	4.7	43.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		236.3	237.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	236.3	237.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		335.2	382.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	335.2	382.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		1,631.8	1,320.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	1,629.9	1,318.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	1.9	2.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		146.7	153.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	146.7	153.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		156.5	125.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	156.5	125.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Other Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		124.1	95.5
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	124.1	95.5
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		480.5	447.4
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	476.6	444.9
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	3.5	2.1
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	0.4	0.4
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments		386.0	405.5
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[2]	347.6	375.1
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[3]	38.4	30.4
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total investments	[4]	$ 0.0	$ 0.0

[1] Derived from audited consolidated financial statements.

[2] Quoted prices in active markets for identical assets

[3] Significant other observable inputs

[4] Significant unobservable inputs

XML

Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 2.4	$ 0.7
Transfers into Level 3	0.0	0.0
Transfers out of Level 3	0.0	0.0
Included in net income (loss)	0.0	0.0
Included in other comprehensive income (loss)	(0.1)	0.0
Purchases	0.0	2.0
Issuances	0.0	0.0
Sales	0.0	(0.3)
Settlements	0.0	0.0
Ending balance	2.3	2.4
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period	0.0	0.0
Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	0.4	0.7
Transfers into Level 3	0.0	0.0
Transfers out of Level 3	0.0	0.0
Included in net income (loss)	0.0	0.0
Included in other comprehensive income (loss)	0.0	0.0
Purchases	0.0	0.0
Issuances	0.0	0.0
Sales	0.0	(0.3)
Settlements	0.0	0.0
Ending balance	0.4	0.4
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period	0.0	0.0
Corporate Bonds [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	2.0	0.0
Transfers into Level 3	0.0	0.0
Transfers out of Level 3	0.0	0.0
Included in net income (loss)	0.0	0.0
Included in other comprehensive income (loss)	(0.1)	0.0
Purchases	0.0	2.0
Issuances	0.0	0.0
Sales	0.0	0.0
Settlements	0.0	0.0
Ending balance	1.9	2.0
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period	$ 0.0	$ 0.0

XML

Reserves for Losses and Loss Adjustment Expenses - Reserves for Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	[2]
Liability for Claims and Claims Adjustment Expense [Abstract]
Net reserves beginning of the year				$ 2,180.2	$ 2,133.3
Net Maybrooke reserves acquired				131.8	0.0
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year				775.1	614.8
Prior accident years				4.4	(18.8)
Losses and LAE incurred during calendar year, net of reinsurance		$ 326.4	$ 207.8	779.5	596.0
Current accident year				165.6	115.3
Prior accident years				413.7	403.9
Losses and LAE payments made during current calendar year, net of reinsurance:				579.3	519.2
Change in participation interest	[1]			(23.2)	(36.3)
Foreign exchange adjustments				18.9	1.0
Net reserves - end of period		2,507.9	2,174.8	2,507.9	2,174.8
Reinsurance recoverables on unpaid losses and LAE, end of year		(1,798.0)	(1,110.0)	(1,798.0)	(1,110.0)
Gross reserves - end of period		$ 4,305.9	$ 3,284.8	$ 4,305.9	$ 3,284.8	$ 3,350.8

[1] Amount represents decreases in reserves due to change in syndicate participation

[2] Derived from audited consolidated financial statements.

XML

Reserves for Losses and Loss Adjustment Expenses - Impact from Unfavorable (Favorable) Development of Prior Accident Years' Loss and LAE Reserves on Each Reporting Segment (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]
Total unfavorable (favorable) prior-year development	$ 4.4	$ (18.8)
U.S. Operations [Member]
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]
Total unfavorable (favorable) prior-year development	(28.7)	(25.6)
International Operations [Member]
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]
Total unfavorable (favorable) prior-year development	17.0	(10.8)
Run Off Lines [Member]
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]
Total unfavorable (favorable) prior-year development	$ 16.1	$ 17.6

XML

Junior Subordinated Debentures - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Junior subordinated debentures	$ 256.5	$ 172.7	[1]
Maybrooke Junior Subordinated Debentures [Member]
Debt Instrument [Line Items]
Unsecured Debt	83.8
Junior subordinated debentures	91.8
Trust Preferred Debentures [Member]
Debt Instrument [Line Items]
Junior subordinated debentures	$ 172.7	$ 172.7
Trust Preferred Debentures [Member] | Junior Subordinated Debentures [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage	100.00%	100.00%

[1] Derived from audited consolidated financial statements.

XML

Junior Subordinated Debentures - Schedule of Junior Subordinated Debentures (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Junior subordinated debentures, Amount	$ 256.5	$ 172.7	[1]
Trust Preferred Debentures [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Amount	$ 172.7	$ 172.7
Trust Preferred Debentures [Member] | PXRE Capital Statutory Trust II [Member] | Argo Group [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	May 15, 2003	May 15, 2003
Junior subordinated debentures, Maturity date	May 15, 2033	May 15, 2033
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.42%	5.00%
Junior subordinated debentures, Amount	$ 18.1	$ 18.1
Trust Preferred Debentures [Member] | PXRE Capital Trust VI [Member] | Argo Group [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Nov. 06, 2003	Nov. 06, 2003
Junior subordinated debentures, Maturity date	Sep. 30, 2033	Sep. 30, 2033
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.24%	4.90%
Junior subordinated debentures, Amount	$ 10.3	$ 10.3
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust I [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	May 15, 2003	May 15, 2003
Junior subordinated debentures, Maturity date	May 15, 2033	May 15, 2033
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.42%	5.00%
Junior subordinated debentures, Amount	$ 15.5	$ 15.5
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust III [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Dec. 16, 2003	Dec. 16, 2003
Junior subordinated debentures, Maturity date	Jan. 08, 2034	Jan. 08, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.40%	4.98%
Junior subordinated debentures, Amount	$ 12.3	$ 12.3
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust IV [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Apr. 29, 2004	Apr. 29, 2004
Junior subordinated debentures, Maturity date	Apr. 29, 2034	Apr. 29, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.17%	4.76%
Junior subordinated debentures, Amount	$ 13.4	$ 13.4
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust V [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	May 26, 2004	May 26, 2004
Junior subordinated debentures, Maturity date	May 24, 2034	May 24, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.17%	4.77%
Junior subordinated debentures, Amount	$ 12.3	$ 12.3
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust VI [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	May 12, 2004	May 12, 2004
Junior subordinated debentures, Maturity date	May 12, 2034	May 12, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	5.12%	4.79%
Junior subordinated debentures, Amount	$ 13.4	$ 13.4
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust VII [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Sep. 17, 2004	Sep. 17, 2004
Junior subordinated debentures, Maturity date	Dec. 15, 2034	Dec. 15, 2031
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	4.92%	4.56%
Junior subordinated debentures, Amount	$ 15.5	$ 15.5
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust VIII [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Sep. 22, 2004	Sep. 22, 2004
Junior subordinated debentures, Maturity date	Sep. 22, 2034	Sep. 22, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	4.87%	4.55%
Junior subordinated debentures, Amount	$ 15.5	$ 15.5
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust IX [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Oct. 22, 2004	Oct. 22, 2004
Junior subordinated debentures, Maturity date	Dec. 15, 2034	Dec. 15, 2034
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	4.92%	4.56%
Junior subordinated debentures, Amount	$ 15.5	$ 15.5
Trust Preferred Debentures [Member] | Argonaut Group Statutory Trust X [Member] | Argo Group US [Member]
Debt Instrument [Line Items]
Junior subordinated debentures, Issue date	Sep. 15, 2005	Sep. 15, 2005
Junior subordinated debentures, Maturity date	Sep. 15, 2035	Sep. 15, 2035
Junior subordinated debentures, Rate Structure	2017 and 2016: 3M LIBOR + 4.10%
Junior subordinated debentures, interest rate stated percentage	4.72%	4.36%
Junior subordinated debentures, Amount	$ 30.9	$ 30.9

[1] Derived from audited consolidated financial statements.

XML

Junior Subordinated Debentures - Schedule of Maybrooke Junior Subordinated Debentures (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Principal	$ 143.8	$ 143.8
Maybrooke Junior Subordinated Debentures [Member]
Debt Instrument [Line Items]
Issue Date	Sep. 15, 2007
Maturity	Sep. 15, 2037
Rate Structure	3M LIBOR + 3.15%
Interest Rate	4.47%
Principal	$ 91.8
Carrying Value	$ 83.8

XML

Other Indebtedness - Schedule of Terms and Principal Amounts of Each Debt Instrument (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Other indebtedness	$ 184.7	$ 55.4	[1]
Term Loan [Member]
Debt Instrument [Line Items]
Other indebtedness	125.0	0.0
Floating Rate Loan Stock [Member]
Debt Instrument [Line Items]
Other indebtedness	59.1	54.8
Other Debt [Member]
Debt Instrument [Line Items]
Other indebtedness	$ 0.6	$ 0.6

[1] Derived from audited consolidated financial statements.

XML

Other Indebtedness - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended	12 Months Ended
	Jan. 31, 2017	Sep. 30, 2017	Dec. 31, 2016	Mar. 03, 2017	Mar. 07, 2014
Debt Instrument [Line Items]
Floating rate loan stock denominated in Euros		$ 42,600,000	$ 38,300,000
New Credit Agreement [Member]
Debt Instrument [Line Items]
Maturity		Mar. 03, 2019
New Credit Agreement [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount				$ 325,000,000
New Credit Agreement [Member] | Revolving Credit Facility [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount				200,000,000
Revolving credit facility maturity date		Mar. 03, 2022
Letter of credit facility amount outstanding		$ 0	0
New Credit Agreement [Member] | Term Loan [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount				125,000,000
New Credit Agreement [Member] | Letter Of Credit [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount		200,000,000
Letter of credit facility amount		$ 500,000		$ 200,000
Prior Agreement [Member] | Revolving Credit Facility [Member] | Maybrooke [Member]
Debt Instrument [Line Items]
Repayments of borrowings	$ 125,000,000
Prior Agreement [Member] | Revolving Credit Facility [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing amount					$ 175,000,000
Prior Agreement [Member] | Letter Of Credit [Member] | J P Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Letter of credit facility amount			$ 200,000
Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%	100.00%
Other Debt [Member]
Debt Instrument [Line Items]
Note payable as part of ARIS acquisition		$ 600,000	$ 600,000
Maturity		Apr. 01, 2019
Debt instrument, interest rate terms		The note had a variable interest rate of 2.00% above 30-day LIBOR, with the variable interest rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly.
Other Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Variable interest rate of note payable, above 30-day LIBOR		2.00%

XML

Other Indebtedness - Schedule of Floating Rate Loan Stock, Notes Outstanding (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Amount	$ 59.1	$ 54.8
Other indebtedness, Amount	$ 184.7	$ 55.4	[1]
Floating Rate Loan Stock, U.S. Dollar, Start Year 2004 [Member]
Debt Instrument [Line Items]
Issue Date	Dec. 08, 2004	Dec. 08, 2004
Maturity	Nov. 15, 2034	Nov. 15, 2034
Rate Structure	Third Quarter of 2017 and 2016: 6 month LIBOR + 4.2%
Interest Rate	5.66%	5.18%
Amount	$ 6.5	$ 6.5
Floating Rate Loan Stock, Euro, Start Year 2005 [Member]
Debt Instrument [Line Items]
Issue Date	Sep. 06, 2005	Sep. 06, 2005
Maturity	Aug. 22, 2035	Aug. 22, 2035
Rate Structure	Third Quarter of 2017 and 2016: 3 month LIBOR + 4.0%
Interest Rate	3.67%	3.70%
Amount	$ 14.2	$ 12.8
Floating Rate Loan Stock, U.S. Dollar, Start Year 2006 [Member]
Debt Instrument [Line Items]
Issue Date	Oct. 31, 2006	Oct. 31, 2006
Maturity	Jan. 15, 2036	Jan. 15, 2036
Rate Structure	Third Quarter of 2017 and 2016: 6 month LIBOR + 4.0%
Interest Rate	5.46%	4.98%
Amount	$ 10.0	$ 10.0
Floating Rate Loan Stock, Euro, Start Year 2006 [Member]
Debt Instrument [Line Items]
Issue Date	Oct. 31, 2006	Oct. 31, 2006
Maturity	Nov. 22, 2036	Nov. 22, 2036
Rate Structure	Third Quarter of 2017 and 2016: 3 month LIBOR + 4.0%
Interest Rate	3.67%	3.70%
Amount	$ 12.4	$ 11.2
Floating Rate Loan Stock, Euro, Start Year 2007 [Member]
Debt Instrument [Line Items]
Issue Date	Jun. 08, 2007	Jun. 08, 2007
Maturity	Sep. 15, 2037	Sep. 15, 2037
Rate Structure	Third Quarter of 2017and 2016: 3 month LIBOR + 3.9%
Interest Rate	3.57%	3.58%
Amount	$ 16.0	$ 14.3
New Credit Agreement [Member]
Debt Instrument [Line Items]
Issue Date	Mar. 03, 2017
Maturity	Mar. 03, 2019
Rate Structure	2 month LIBOR + 1.5%
Interest Rate	2.80%
Other indebtedness, Amount	$ 125.0

[1] Derived from audited consolidated financial statements.

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Disclosures about Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financial Instruments Owned and Pledged as Collateral [Line Items]
Premiums receivable	$ 678.8	$ 463.8	[1]
Reinsurance recoverables	2,101.9	1,385.6	[1]
Premiums receivable, allowance for doubtful accounts	3.0	2.7
Over 90 Days [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Premiums receivable	20.5	14.3
Reinsurance recoverables	13.2	11.2
Reinsurance recoverables, allowance for doubtful accounts	2.1	2.1
Premiums receivables, secured by collateral		0.1
Reinsurance recoverables, secured by collateral	$ 0.6	$ 0.6

[1] Derived from audited consolidated financial statements.

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Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Maybrooke Junior Subordinated Debentures [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	$ 83.8	$ 0.0
Maybrooke Junior Subordinated Debentures [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	86.3	0.0
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	172.7	172.7
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	168.6	162.4
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	139.6	139.5
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	139.4	139.3
Floating Rate Loan Stock [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	59.1	54.8
Floating Rate Loan Stock [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments	$ 57.7	$ 51.5

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Shareholders Equity - Additional Information (Detail) - USD ($)						3 Months Ended		9 Months Ended
	Sep. 15, 2017	Aug. 08, 2017	Aug. 29, 2016	Aug. 02, 2016	May 03, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Class Of Stock [Line Items]
Dividends declaration date		Aug. 08, 2017		Aug. 02, 2016
Dividend declared per common share		$ 0.27		$ 0.22		$ 0.27	$ 0.22	$ 0.81	$ 0.64
Dividends payable date		Sep. 15, 2017		Aug. 29, 2016
Cash dividends paid - common shares, total	$ 8,300,000		$ 6,700,000
Dividend payable, date of record		Sep. 01, 2017		Aug. 15, 2016
Common shares repurchased on open market								612,034
Common shares repurchased on open market, total cost								$ 36,600,000
2016 Repurchase Authorization [Member]
Class Of Stock [Line Items]
Remaining number of shares available under repurchase authorization, Value						$ 93,700,000		$ 93,700,000
Common shares repurchased on open market								612,034
Common shares repurchased on open market, total cost								$ 36,600,000
2016 Repurchase Authorization [Member] | Maximum [Member]
Class Of Stock [Line Items]
Total number of shares authorized for purchase, Value					$ 150,000,000
Stock Dividend [Member]
Class Of Stock [Line Items]
Dividends declaration date					May 03, 2016
Dividends payable date					Jun. 15, 2016
Dividend payable, date of record					Jun. 01, 2016
Stock dividend declared					10.00%
Additional stock issued as dividend					2,735,542

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Shareholders Equity - Schedule of Repurchase of Shares (Detail) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Equity Class Of Treasury Stock [Line Items]
Common shares repurchased on open market | shares	612,034
Average Price of Shares Repurchased | $ / shares	$ 59.75
Total Cost (in millions) | $	$ 36.6
10b5-1 Trading Plan Initiated In 06/14/2017 [Member]
Equity Class Of Treasury Stock [Line Items]
Date Trading Plan Initiated	Jun. 14, 2017
Trading Plan Purchase Period Start Date	Jun. 20, 2017
Common shares repurchased on open market | shares	156,570
Average Price of Shares Repurchased | $ / shares	$ 59.53
Total Cost (in millions) | $	$ 9.4
Repurchase Authorization Year	2016
Trading Plan Purchase Period End Date	Aug. 10, 2017
10b5-1 Trading Plan Initiated In 09/15/2017 [Member]
Equity Class Of Treasury Stock [Line Items]
Date Trading Plan Initiated	Sep. 15, 2017
Trading Plan Purchase Period Start Date	Sep. 18, 2017
Common shares repurchased on open market | shares	33,488
Average Price of Shares Repurchased | $ / shares	$ 60.85
Total Cost (in millions) | $	$ 2.0
Repurchase Authorization Year	2016
Trading Plan Purchase Period End Date	Sep. 28, 2017
Open Market Repurchase Authorization Two Thousand And Sixteen [Member]
Equity Class Of Treasury Stock [Line Items]
Trading Plan Purchase Period Start Date	Aug. 11, 2017
Common shares repurchased on open market | shares	421,976
Average Price of Shares Repurchased | $ / shares	$ 59.75
Total Cost (in millions) | $	$ 25.2
Repurchase Authorization Year	2016
Trading Plan Purchase Period End Date	Sep. 15, 2017

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Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance			$ 47.7	[1]	$ 11.5
Other comprehensive (loss) income before reclassifications			73.9		73.0
Amounts reclassified from accumulated other comprehensive (loss) income			(24.6)		(13.3)
Other comprehensive income, net of tax	$ 16.9	$ 2.1	49.3		59.7
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance	97.0	71.2	97.0		71.2
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance			(17.6)		(21.6)
Other comprehensive (loss) income before reclassifications			(0.2)		2.8
Amounts reclassified from accumulated other comprehensive (loss) income			0.0		0.0
Other comprehensive income, net of tax			(0.2)		2.8
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance	(17.8)	(18.8)	(17.8)		(18.8)
Unrealized Holding Gains on Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance			72.4		40.0
Other comprehensive (loss) income before reclassifications			74.1		70.2
Amounts reclassified from accumulated other comprehensive (loss) income			(24.6)		(13.3)
Other comprehensive income, net of tax			49.5		56.9
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance	121.9	96.9	121.9		96.9
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance			(7.1)		(6.9)
Other comprehensive (loss) income before reclassifications			0.0		0.0
Amounts reclassified from accumulated other comprehensive (loss) income			0.0		0.0
Other comprehensive income, net of tax			0.0		0.0
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance	$ (7.1)	$ (6.9)	$ (7.1)		$ (6.9)

[1] Derived from audited consolidated financial statements.

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Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Unrealized gains on securities:
Reclassification adjustment for gains included in net income	$ (17.4)	$ (17.0)	$ (36.3)	$ (25.1)
Provision for income taxes (benefit)	5.5	7.9	11.7	11.8
Net of taxes			(24.6)	(13.3)
Unrealized Holding Gains on Securities [Member]
Unrealized gains on securities:
Net of taxes			(24.6)	(13.3)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains on Securities [Member]
Unrealized gains on securities:
Reclassification adjustment for gains included in net income	(17.4)	(17.0)	(36.3)	(25.1)
Provision for income taxes (benefit)	5.5	7.9	11.7	11.8
Net of taxes	$ (11.9)	$ (9.1)	$ (24.6)	$ (13.3)

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Net (Loss) Income Per Common Share - Net (Loss) Income Per Common Share on Basic and Diluted Basis (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net (loss) income	$ (61.3)	$ 55.2	$ 21.4	$ 113.8
Weighted average common shares outstanding - basic	29,978,485	30,018,637	30,075,424	30,227,725
Effect of dilutive securities:
Equity compensation awards	0	709,746	817,602	661,762
Weighted average common shares outstanding - diluted	29,978,485	30,728,383	30,893,026	30,889,487
Net (loss) income per common share - basic	$ (2.04)	$ 1.84	$ 0.71	$ 3.76
Net (loss) income per common share - diluted	$ (2.04)	$ 1.80	$ 0.69	$ 3.68

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Net (Loss) Income Per Common Share - Additional Information (Detail) - shares	3 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	[1]	Sep. 30, 2016
Earnings Per Share [Abstract]
Treasury shares, shares	10,640,789	10,028,755		9,996,840
Anti-dilutive securities not included in calculation of diluted net loss per common share	711,854

[1] Derived from audited consolidated financial statements.

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Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Taxes Paid Net [Abstract]
Income taxes paid	$ 10.1	$ 1.5
Income taxes recovered	$ 2.4	$ 0.5

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Supplemental Cash Flow Information - Schedule of Interest Paid (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow [Line Items]
Total interest paid	$ 19.7	$ 14.7
Revolving Credit Facility [Member]
Supplemental Cash Flow [Line Items]
Total interest paid	0.3	0.0
Senior Unsecured Fixed Rate Notes [Member]
Supplemental Cash Flow [Line Items]
Total interest paid	7.0	7.0
Junior Subordinated Debentures [Member]
Supplemental Cash Flow [Line Items]
Total interest paid	9.4	5.7
Other Indebtedness [Member]
Supplemental Cash Flow [Line Items]
Total interest paid	$ 3.0	$ 2.0

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Share-based Compensation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation arrangement by share-based payment award, award vesting period, years	5 years	5 years

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Share-based Compensation - Fair Value Assumptions (Detail)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free rate of return	1.85%	1.12%
Expected dividend yields	1.71%	1.65%
Expected award life (years)	4 years 5 months 23 days	4 years 6 months
Expected volatility	18.13%	18.73%

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Share-Based Compensation - 2014 Long-Term Incentive Plan - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Nov. 30, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period, years				5 years	5 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, compensation expense		$ 2.5	$ 1.7	$ 7.5	$ 5.2
Employee service share-based compensation, unrecognized compensation costs on non-vested awards		27.4		$ 27.4
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period, years				1 year
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period, years				8 years
Stock-Settled SARs Activity [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, compensation expense		0.7	1.0	$ 3.5	3.6
Employee service share-based compensation, unrecognized compensation costs on non-vested awards		4.3		$ 4.3
Stock-Settled SARs Activity [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period, years				1 year
Stock-Settled SARs Activity [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period, years				4 years
Cash-Settled SARs Activity [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, compensation expense		0.3	$ 2.6		$ 2.1
Employee service share-based compensation, unrecognized compensation costs on non-vested awards		$ 0.0		$ 0.0
Share-based compensation arrangement by share-based payment award, compensation expense recouped				$ 0.6
2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized						4,500,000
Share-based compensation arrangement by share-based payment award, number of shares available for grant	1,460,000
2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, additional number of shares authorized	2,800,000
Count of restricted shares, settle in common shares				2.75

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Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at January 1, 2017 | shares	702,030
Granted, Shares | shares	239,997
Vested and issued, Shares | shares	(154,706)
Expired or forfeited, Shares | shares	(34,970)
Shares, Outstanding at June 30, 2017 | shares	752,351
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2017 | $ / shares	$ 42.69
Granted, Weighted-Average Grant Date Fair Value | $ / shares	62.91
Vested and issued, Weighted-Average Grant Date Fair Value | $ / shares	41.65
Expired or forfeited, Weighted-Average Grant Date Fair Value | $ / shares	48.80
Weighted-Average Grant Date Fair Value, Outstanding at June 30, 2017 | $ / shares	$ 49.07

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Share-based Compensation - Summary of Stock-Settled SARs Activity (Detail) - Stock-Settled SARs Activity [Member]	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at January 1, 2017 | shares	1,982,695
Exercised, Shares | shares	(396,355)
Expired or forfeited, Shares | shares	(105,024)
Shares, Outstanding at June 30, 2017 | shares	1,481,316
Weighted-Average Exercise Price, Outstanding at January 1, 2017 | $ / shares	$ 34.80
Exercised, Weighted-Average Exercise Price | $ / shares	31.52
Expired or forfeited, Weighted-Average Exercise Price | $ / shares	40.62
Weighted-Average Exercise Price, Outstanding at June 30, 2017 | $ / shares	$ 35.26

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Share-based Compensation - Summary of Cash-Settled SARs Activity (Detail) - Cash-Settled SARs Activity [Member]	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at January 1, 2017 | shares	500,486
Exercised, Shares | shares	(235,663)
Expired or forfeited, Shares | shares	(14,628)
Shares, Outstanding at June 30, 2017 | shares	250,195
Weighted-Average Exercise Price, Outstanding at January 1, 2017 | $ / shares	$ 32.08
Exercised, Weighted-Average Exercise Price | $ / shares	32.37
Expired or forfeited, Weighted-Average Exercise Price | $ / shares	23.74
Weighted-Average Exercise Price, Outstanding at June 30, 2017 | $ / shares	$ 32.30

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Underwriting, Acquisition and Insurance Expenses - Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Underwriting Acquisition And Insurance Expenses [Abstract]
Commissions	$ 70.8	$ 59.3	$ 201.2	$ 178.5
General expenses	89.7	75.6	266.4	217.3
Premium taxes, boards and bureaus	11.8	6.1	25.9	19.0
Underwriting, acquisition and insurance expenses, total	172.3	141.0	493.5	414.8
Net deferral of policy acquisition costs	(6.2)	(3.6)	(19.1)	(11.8)
Total underwriting, acquisition and insurance expenses	$ 166.1	$ 137.4	$ 474.4	$ 403.0

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Underwriting, Acquisition and Insurance Expenses - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Underwriting Acquisition And Insurance Expenses [Abstract]
Increase in general expense	$ 14.1	$ 49.1

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Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Current tax provision (benefit)	$ (2.9)	$ 10.8	$ 12.6	$ 18.8
Future tax deductions	(2.5)	(3.0)	(6.1)	1.9
Valuation allowance change	0.8	(0.8)	(0.3)	0.4
Income tax provision (benefit)	$ (4.6)	$ 7.0	$ 6.2	$ 21.1

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Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (65.9)		$ 62.2		$ 27.6		$ 134.9
Effective Tax Rate	7.00%		11.30%		22.30%		15.70%
Bermuda [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (43.0)		$ 35.6		$ 8.7		$ 79.7
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
United States [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (1.3)		$ 28.2		$ 57.4		$ 78.0
Effective Tax Rate	52.90%		24.20%		24.10%		26.30%
United Kingdom [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (24.6)		$ (2.8)		$ (36.6)		$ (24.9)
Effective Tax Rate	16.40%		(3.00%)		21.60%		(1.90%)
Barbados [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.0	[1]	$ 0.0	[1]	$ 0.0	[1]	$ 0.0
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
Belgium [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.1		$ 0.0	[1]	$ 0.2		$ 0.0	[1]
Effective Tax Rate	36.10%		(160.00%)		36.20%		0.00%
Brazil [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.0	[1]	$ 0.4		$ (0.2)		$ 1.1
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
Ireland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (0.1)		$ (0.1)		$ (0.1)		$ (0.2)
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
Luxembourg [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (1.3)		$ 0.0	[1]	$ (3.7)		$ 0.0	[1]
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
Malta [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.6		$ 0.9		$ 1.7		$ 1.2
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%
Switzerland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.2		$ 0.0	[1]	$ 0.2		$ 0.0	[1]
Effective Tax Rate	18.10%		21.20%		21.10%		21.10%
United Arab Emirates [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 3.5		$ 0.0	[1]	$ 0.0	[1]	$ 0.0	[1]
Effective Tax Rate	0.00%		0.00%		0.00%		0.00%

[1] Pre-tax income for the respective year was less than $0.1 million.

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Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ (65.9)	$ 62.2		$ 27.6		$ 134.9
Belgium [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	0.1	0.0	[1]	0.2		0.0	[1]
United Arab Emirates [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	3.5	0.0	[1]	0.0	[1]	0.0	[1]
Ireland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	(0.1)	(0.1)		(0.1)		(0.2)
Switzerland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	0.2	0.0	[1]	0.2		0.0	[1]
Maximum [Member] | Belgium [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)		0.1				0.1
Maximum [Member] | United Arab Emirates [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)		0.1				0.1
Maximum [Member] | Ireland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	0.1			0.1
Maximum [Member] | Switzerland [Member]
Income Tax Examination [Line Items]
Pre-Tax Income (Loss)	$ 0.1	$ 0.1		$ 0.1		$ 0.1

[1] Pre-tax income for the respective year was less than $0.1 million.

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Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax provision at expected rate	$ (5.5)	$ 9.8	$ 12.9	$ 23.2
Tax-exempt interest	(0.6)	(0.7)	(2.1)	(2.5)
Dividends received deduction	(0.5)	(0.4)	(1.4)	(1.7)
Valuation allowance change	0.8	(0.8)	(0.3)	0.4
Other permanent adjustments, net	0.0	0.1	(1.1)	0.3
Adjustment for prior period	(1.2)	(0.8)	(1.9)	(0.8)
Adjustment for annualized rate	0.8	(0.9)	(1.5)	(1.5)
Other foreign adjustments	0.2	(0.1)	0.1	(0.7)
State income taxes, net of Federal benefit	0.0	0.0	0.1	(0.3)
Foreign exchange adjustments	1.4	0.8	1.1	4.4
Foreign withholding taxes	0.0	0.0	0.3	0.3
Income tax provision (benefit)	(4.6)	7.0	6.2	21.1
Income tax (benefit) provision - Foreign	(3.9)	0.2	(7.7)	0.6
Income tax provision (benefit) - United States, Federal	(0.8)	6.8	13.4	20.2
Income tax provision - United States, State	0.1	0.0	0.2	0.0
Foreign withholding taxes	$ 0.0	$ 0.0	$ 0.3	$ 0.3

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Income Taxes - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Feb. 06, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes Disclosure [Line Items]
Net operating losses carryback period				2 years
Capital losses carryback period				3 years
Net operating loss carryforward		$ 15,100,000		$ 15,100,000
Loss carryforwards per year		2,800,000		2,800,000
Valuation allowance		25,900,000		25,900,000
Increase (decrease) in valuation allowance		(800,000)	$ 800,000	300,000	$ (400,000)
Unrecognized tax benefits		0	$ 0	0	$ 0
December 31, 2025 [Member]
Income Taxes Disclosure [Line Items]
Loss carryforwards, amounts expiring if not utilized				13,600,000
December 31, 2027 [Member]
Income Taxes Disclosure [Line Items]
Loss carryforwards, amounts expiring if not utilized				1,500,000
Brazil [Member]
Income Taxes Disclosure [Line Items]
Valuation allowance		8,100,000		8,100,000
Increase (decrease) in valuation allowance				300,000
Maybrooke [Member]
Income Taxes Disclosure [Line Items]
Valuation allowance		3,800,000		3,800,000
Increase (decrease) in valuation allowance	$ 2,700,000			3,800,000
Malta [Member]
Income Taxes Disclosure [Line Items]
Valuation allowance		800,000		800,000
Increase (decrease) in valuation allowance				400,000
PXRE Reinsurance Company [Member]
Income Taxes Disclosure [Line Items]
Valuation allowance		13,200,000		13,200,000
Increase (decrease) in valuation allowance				700,000
ARIS [Member]
Income Taxes Disclosure [Line Items]
Net operating loss carryforward		$ 1,000,000		1,000,000
ARIS [Member] | December 31, 2027 [Member]
Income Taxes Disclosure [Line Items]
Loss carryforwards, amounts expiring if not utilized				200,000
ARIS [Member] | December 31, 2028 [Member]
Income Taxes Disclosure [Line Items]
Loss carryforwards, amounts expiring if not utilized				400,000
ARIS [Member] | December 31, 2029 [Member]
Income Taxes Disclosure [Line Items]
Loss carryforwards, amounts expiring if not utilized				$ 400,000

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Commitments And Contingencies [Line Items]
Contractual commitments related to its limited partnership investments	$ 117.9
Maximum [Member]
Commitments And Contingencies [Line Items]
Contractual commitments period	13 years

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Segment Information - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segment	2
Assets associated with trade capital providers | $	$ 815.7	$ 630.4

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Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Earned premiums	$ 389.3	$ 358.7	$ 1,167.8	$ 1,048.5
Net investment income	30.9	32.7	105.0	89.6
Fee and other income	13.0	7.6	20.4	20.2
Net realized investment and other gains	6.0	17.7	25.1	12.8
Total revenue	439.2	416.7	1,318.3	1,171.1
Income (loss) before income taxes	(65.9)	62.2	27.6	134.9
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net investment income	2.4	1.7	7.6	2.3
Income (loss) before income taxes	(10.4)	(11.5)	(39.9)	(42.6)
Operating Segments [Members]
Segment Reporting Information [Line Items]
Income (loss) before income taxes	(61.5)	56.0	42.4	164.7
U.S. Operations [Member]
Segment Reporting Information [Line Items]
Earned premiums	242.6	216.3	692.9	629.7
Net investment income	18.8	20.3	66.0	55.8
U.S. Operations [Member] | Operating Segments [Members]
Segment Reporting Information [Line Items]
Income (loss) before income taxes	28.7	45.9	118.9	126.2
International Operations [Member]
Segment Reporting Information [Line Items]
Earned premiums	146.8	142.3	474.9	418.5
Net investment income	7.7	7.5	24.4	22.7
International Operations [Member] | Operating Segments [Members]
Segment Reporting Information [Line Items]
Income (loss) before income taxes	(77.5)	20.1	(60.1)	53.1
Run Off Lines [Member]
Segment Reporting Information [Line Items]
Earned premiums	(0.1)	0.1	0.0	0.3
Net investment income	2.0	3.2	7.0	8.8
Run Off Lines [Member] | Operating Segments [Members]
Segment Reporting Information [Line Items]
Income (loss) before income taxes	$ (12.7)	$ (10.0)	$ (16.4)	$ (14.6)

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Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	$ 389.3	$ 358.7	$ 1,167.8	$ 1,048.5
Bermuda [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	23.3	29.0	72.0	86.1
Brazil [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	11.7	10.4	36.8	29.6
Malta [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	2.7	0.6	5.0	1.6
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	109.1	102.4	361.2	301.1
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total earned premiums	$ 242.5	$ 216.3	$ 692.8	$ 630.1

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Segment Information - Identifiable Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Identifiable assets	$ 9,058.0	$ 7,205.0	[1]
U.S. Operations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Identifiable assets	4,335.1	3,961.2
International Operations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Identifiable assets	3,814.2	2,356.9
Run Off Lines [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Identifiable assets	458.9	537.0
Corporate and Other [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Identifiable assets	$ 449.8	$ 349.9

[1] Derived from audited consolidated financial statements.

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Senior Unsecured Fixed Rate Notes - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Equity Method Investments [Line Items]
Principal amount of senior note		$ 143,800,000	$ 143,800,000
Senior Unsecured Fixed Rate Notes [Member]
Schedule Of Equity Method Investments [Line Items]
Principal amount of senior note	$ 143,750,000
Debt instrument interest rate stated percentage	6.50%
Maturity		Sep. 15, 2042
Initial maturity date		Sep. 15, 2017
Debt Instrument, Redemption Price, Percentage	100.00%

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Senior Unsecured Fixed Rate Notes - Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Principal	$ 143.8	$ 143.8
Less: unamortized debt issuance costs	(4.2)	(4.3)
Senior unsecured fixed rate notes, less unamortized debt issuance costs	$ 139.6	$ 139.5	[1]

[1] Derived from audited consolidated financial statements.

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Senior Unsecured Fixed Rate Notes - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016		Sep. 30, 2016	Dec. 31, 2015
Assets
Investments		$ 4,807.5	$ 4,324.3	[1]
Cash		235.8	86.0	[1]	$ 123.6	$ 121.7
Accrued investment income		23.6	20.7	[1]
Premiums receivable		678.8	463.8	[1]
Reinsurance recoverables		2,101.9	1,385.6	[1]
Goodwill and other intangible assets, net		260.5	219.9
Deferred acquisition costs, net		168.8	139.1	[1]
Ceded unearned premiums		461.4	302.8	[1]
Other assets		319.7	262.8	[1]
Intercompany note receivable		0.0	0.0
Investments in subsidiaries		0.0	0.0
Total assets		9,058.0	7,205.0	[1]
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses		4,305.9	3,350.8	[1]	3,284.8
Unearned premiums		1,286.0	970.0	[1]
Funds held and ceded reinsurance payable, net		867.6	543.7
Long-term debt		580.8	367.6
Current income taxes payable, net		11.0	8.1	[1]
Deferred tax liabilities, net		41.5	24.1	[1]
Accrued underwriting expenses and other liabilities		157.2	148.0
Due to affiliates		0.0	0.0
Intercompany note payable		0.0
Total liabilities		7,250.0	5,412.3	[1]
Total shareholders' equity		1,808.0	1,792.7	[1]
Total liabilities and shareholders' equity		9,058.0	7,205.0	[1]
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]
Assets
Investments		(1.6)	2.2
Cash		0.0	0.0		0.0	0.0
Accrued investment income		0.0	0.0
Premiums receivable		0.0	0.0
Reinsurance recoverables		0.0	0.0
Goodwill and other intangible assets, net		44.4	0.0
Deferred acquisition costs, net		0.0	0.0
Ceded unearned premiums		0.0	0.0
Other assets		8.3	8.7
Intercompany note receivable		0.0	0.0
Investments in subsidiaries		2,086.7	1,834.4
Total assets		2,137.8	1,845.3
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses		0.0	0.0
Unearned premiums		0.0	0.0
Funds held and ceded reinsurance payable, net		0.0	0.0
Long-term debt		153.4	28.4
Current income taxes payable, net		0.0	0.0
Deferred tax liabilities, net		0.0	0.0
Accrued underwriting expenses and other liabilities		12.1	13.7
Due to affiliates		44.3	10.5
Intercompany note payable		120.0
Total liabilities		329.8	52.6
Total shareholders' equity		1,808.0	1,792.7
Total liabilities and shareholders' equity		2,137.8	1,845.3
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]
Assets
Investments		3,039.1	2,834.2
Cash		73.5	53.7		89.3	88.8
Accrued investment income		16.8	16.0
Premiums receivable		227.3	204.9
Reinsurance recoverables		1,450.3	1,348.4
Goodwill and other intangible assets, net		125.2	127.1
Deferred acquisition costs, net		82.3	63.5
Ceded unearned premiums		194.9	168.9
Other assets		173.7	168.0
Intercompany note receivable		50.2	50.2
Investments in subsidiaries		0.0	0.0
Total assets		5,433.3	5,034.9
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses		2,452.6	2,322.4
Unearned premiums		694.5	580.0
Funds held and ceded reinsurance payable, net		790.1	750.2
Long-term debt		284.6	284.4
Current income taxes payable, net		7.9	8.5
Deferred tax liabilities, net		37.3	17.6
Accrued underwriting expenses and other liabilities		103.2	92.0
Due to affiliates		6.9	1.8
Intercompany note payable		40.1
Total liabilities		4,417.2	4,056.9
Total shareholders' equity		1,016.1	978.0
Total liabilities and shareholders' equity		5,433.3	5,034.9
Other Subsidiaries and Eliminations [Member]
Assets
Investments	[2]	1,770.0	1,487.9
Cash	[2]	162.3	32.3		34.3	32.9
Accrued investment income	[2]	6.8	4.7
Premiums receivable	[2]	451.5	258.9
Reinsurance recoverables	[2]	651.6	37.2
Goodwill and other intangible assets, net	[2]	90.9	92.8
Deferred acquisition costs, net	[2]	86.5	75.6
Ceded unearned premiums	[2]	266.5	133.9
Other assets	[2]	137.7	86.1
Intercompany note receivable	[2]	69.8	(50.2)
Investments in subsidiaries	[2]	0.0	0.0
Total assets	[2]	3,693.6	2,159.2
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	[2]	1,853.3	1,028.4
Unearned premiums	[2]	591.5	390.0
Funds held and ceded reinsurance payable, net	[2]	77.5	(206.5)
Long-term debt	[2]	142.8	54.8
Current income taxes payable, net	[2]	3.1	(0.4)
Deferred tax liabilities, net	[2]	4.2	6.5
Accrued underwriting expenses and other liabilities	[2]	41.9	42.3
Due to affiliates	[2]	(6.9)	(1.8)
Intercompany note payable	[2]	(40.1)
Total liabilities	[2]	2,667.3	1,313.3
Total shareholders' equity	[2]	1,026.3	845.9
Total liabilities and shareholders' equity	[2]	3,693.6	2,159.2
Consolidating Adjustments [Member]
Assets
Investments	[3]	0.0	0.0
Cash	[3]	0.0	0.0		$ 0.0	$ 0.0
Accrued investment income	[3]	0.0	0.0
Premiums receivable	[3]	0.0	0.0
Reinsurance recoverables	[3]	0.0	0.0
Goodwill and other intangible assets, net	[3]	0.0	0.0
Deferred acquisition costs, net	[3]	0.0	0.0
Ceded unearned premiums	[3]	0.0	0.0
Other assets	[3]	0.0	0.0
Intercompany note receivable	[3]	(120.0)	0.0
Investments in subsidiaries	[3]	(2,086.7)	(1,834.4)
Total assets	[3]	(2,206.7)	(1,834.4)
Liabilities and Shareholders' Equity
Reserves for losses and loss adjustment expenses	[3]	0.0	0.0
Unearned premiums	[3]	0.0	0.0
Funds held and ceded reinsurance payable, net	[3]	0.0	0.0
Long-term debt	[3]	0.0	0.0
Current income taxes payable, net	[3]	0.0	0.0
Deferred tax liabilities, net	[3]	0.0	0.0
Accrued underwriting expenses and other liabilities	[3]	0.0	0.0
Due to affiliates	[3]	(44.3)	(10.5)
Intercompany note payable	[3]	(120.0)
Total liabilities	[3]	(164.3)	(10.5)
Total shareholders' equity	[3]	(2,042.4)	(1,823.9)
Total liabilities and shareholders' equity	[3]	$ (2,206.7)	$ (1,834.4)

[1] Derived from audited consolidated financial statements.

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

[3] Includes all Argo Group parent company eliminations.

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Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of (Loss) Income (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Premiums and other revenue:
Earned premiums		$ 389.3	$ 358.7	$ 1,167.8	$ 1,048.5
Net investment (expense) income		30.9	32.7	105.0	89.6
Fee and other income		13.0	7.6	20.4	20.2
Net realized investment and other gains (losses)		6.0	17.7	25.1	12.8
Total revenue		439.2	416.7	1,318.3	1,171.1
Expenses:
Losses and loss adjustment expenses		326.4	207.8	779.5	596.0
Underwriting, acquisition and insurance expenses		166.1	137.4	474.4	403.0
Interest expense		7.5	4.9	20.4	14.6
Fee and other expense		5.0	5.9	12.4	18.1
Foreign currency exchange (gains) loss		0.1	(1.5)	4.0	4.5
Total expenses		505.1	354.5	1,290.7	1,036.2
(Loss) income before income taxes		(65.9)	62.2	27.6	134.9
Provision for income taxes		(4.6)	7.0	6.2	21.1
Net (loss) income before equity in earnings of subsidiaries		(61.3)	55.2	21.4	113.8
Equity in undistributed earnings of subsidiaries		0.0	0.0	0.0	0.0
Net (loss) income		(61.3)	55.2	21.4	113.8
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]
Premiums and other revenue:
Earned premiums		0.0	0.0	0.0	0.0
Net investment (expense) income		(1.1)	(0.9)	(3.2)	(2.0)
Fee and other income		0.0	0.0	0.0	0.0
Net realized investment and other gains (losses)		0.0	0.0	0.5	0.2
Total revenue		(1.1)	(0.9)	(2.7)	(1.8)
Expenses:
Losses and loss adjustment expenses		0.0	0.0	0.0	0.0
Underwriting, acquisition and insurance expenses		5.6	3.7	17.8	10.0
Interest expense		1.6	0.3	3.0	1.0
Fee and other expense		0.0	0.0	0.0	0.0
Foreign currency exchange (gains) loss		0.0	0.0	0.0	0.0
Total expenses		7.2	4.0	20.8	11.0
(Loss) income before income taxes		(8.3)	(4.9)	(23.5)	(12.8)
Provision for income taxes		0.0	0.0	0.0	0.0
Net (loss) income before equity in earnings of subsidiaries		(8.3)	(4.9)	(23.5)	(12.8)
Equity in undistributed earnings of subsidiaries		(53.0)	60.1	44.9	126.6
Net (loss) income		(61.3)	55.2	21.4	113.8
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]
Premiums and other revenue:
Earned premiums		145.3	128.0	411.7	368.1
Net investment (expense) income		16.5	22.5	64.7	62.6
Fee and other income		12.3	5.5	18.0	14.9
Net realized investment and other gains (losses)		6.6	19.4	25.6	32.5
Total revenue		180.7	175.4	520.0	478.1
Expenses:
Losses and loss adjustment expenses		99.1	83.5	247.7	220.9
Underwriting, acquisition and insurance expenses		74.0	54.0	190.7	150.6
Interest expense		4.2	4.0	12.7	11.8
Fee and other expense		4.1	5.5	10.7	16.7
Foreign currency exchange (gains) loss		(0.1)	0.2	(0.1)	0.1
Total expenses		181.3	147.2	461.7	400.1
(Loss) income before income taxes		(0.6)	28.2	58.3	78.0
Provision for income taxes		(0.6)	6.8	13.9	20.5
Net (loss) income before equity in earnings of subsidiaries		0.0	21.4	44.4	57.5
Equity in undistributed earnings of subsidiaries		0.0	0.0	0.0	0.0
Net (loss) income		0.0	21.4	44.4	57.5
Other Subsidiaries and Eliminations [Member]
Premiums and other revenue:
Earned premiums	[1]	244.0	230.7	756.1	680.4
Net investment (expense) income	[1]	15.5	11.1	43.5	29.0
Fee and other income	[1]	0.7	2.1	2.4	5.3
Net realized investment and other gains (losses)	[1]	(0.6)	(1.7)	(1.0)	(19.9)
Total revenue	[1]	259.6	242.2	801.0	694.8
Expenses:
Losses and loss adjustment expenses	[1]	227.3	124.3	531.8	375.1
Underwriting, acquisition and insurance expenses	[1]	86.5	79.7	265.9	242.4
Interest expense	[1]	1.7	0.6	4.7	1.8
Fee and other expense	[1]	0.9	0.4	1.7	1.4
Foreign currency exchange (gains) loss	[1]	0.2	(1.7)	4.1	4.4
Total expenses	[1]	316.6	203.3	808.2	625.1
(Loss) income before income taxes	[1]	(57.0)	38.9	(7.2)	69.7
Provision for income taxes	[1]	(4.0)	0.2	(7.7)	0.6
Net (loss) income before equity in earnings of subsidiaries	[1]	(53.0)	38.7	0.5	69.1
Equity in undistributed earnings of subsidiaries	[1]	0.0	0.0	0.0	0.0
Net (loss) income	[1]	(53.0)	38.7	0.5	69.1
Consolidating Adjustments [Member]
Premiums and other revenue:
Earned premiums	[2]	0.0	0.0	0.0	0.0
Net investment (expense) income	[2]	0.0	0.0	0.0	0.0
Fee and other income	[2]	0.0	0.0	0.0	0.0
Net realized investment and other gains (losses)	[2]	0.0	0.0	0.0	0.0
Total revenue	[2]	0.0	0.0	0.0	0.0
Expenses:
Losses and loss adjustment expenses	[2]	0.0	0.0	0.0	0.0
Underwriting, acquisition and insurance expenses	[2]	0.0	0.0	0.0	0.0
Interest expense	[2]	0.0	0.0	0.0	0.0
Fee and other expense	[2]	0.0	0.0	0.0	0.0
Foreign currency exchange (gains) loss	[2]	0.0	0.0	0.0	0.0
Total expenses	[2]	0.0	0.0	0.0	0.0
(Loss) income before income taxes	[2]	0.0	0.0	0.0	0.0
Provision for income taxes	[2]	0.0	0.0	0.0	0.0
Net (loss) income before equity in earnings of subsidiaries	[2]	0.0	0.0	0.0	0.0
Equity in undistributed earnings of subsidiaries	[2]	53.0	(60.1)	(44.9)	(126.6)
Net (loss) income	[2]	$ 53.0	$ (60.1)	$ (44.9)	$ (126.6)

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

[2] Includes all Argo Group parent company eliminations.

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Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2017		Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Net cash flows from operating activities		$ 252.4		$ 150.8
Cash flows from investing activities:
Proceeds from sales of investments		1,278.0		1,009.2
Maturities and mandatory calls of fixed maturity investments		493.2		839.0
Purchases of investments		(2,060.2)		(1,855.7)
Change in short-term investments and foreign regulatory deposits		264.2		(73.9)
Settlements of foreign currency exchange forward contracts		0.0		(7.2)
Acquisition of subsidiaries, net of cash		(105.2)		0.0
Issuance of intercompany note, net		0.0
Purchases of fixed assets and other, net		(36.0)		5.2
Cash used in investing activities		(166.0)		(83.4)
Cash flows from financing activities:
Additional long-term borrowings		125.0		0.0
Borrowing under intercompany note, net		0.0
Activity under stock incentive plans		0.9		0.6
Repurchase of Company's common shares		(36.6)		(45.3)
Payment of cash dividends to common shareholders		(24.9)		(19.8)
Cash provided by (used in) financing activities		64.4		(64.5)
Effect of exchange rate changes on cash		(1.0)		(1.0)
Change in cash		149.8		1.9
Cash, beginning of year		86.0	[1]	121.7
Cash, end of period		235.8		123.6
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash flows from operating activities		11.8		19.6
Cash flows from investing activities:
Proceeds from sales of investments		0.0		0.0
Maturities and mandatory calls of fixed maturity investments		0.0		0.0
Purchases of investments		0.0		0.0
Change in short-term investments and foreign regulatory deposits		1.8		(0.4)
Settlements of foreign currency exchange forward contracts		0.8		0.0
Acquisition of subsidiaries, net of cash		(235.3)
Issuance of intercompany note, net		0.0
Purchases of fixed assets and other, net		(0.1)		0.0
Cash used in investing activities		(232.8)		(0.4)
Cash flows from financing activities:
Additional long-term borrowings		125.0
Borrowing under intercompany note, net		120.0
Activity under stock incentive plans		0.9		0.6
Repurchase of Company's common shares		0.0		0.0
Payment of cash dividends to common shareholders		(24.9)		(19.8)
Cash provided by (used in) financing activities		221.0		(19.2)
Effect of exchange rate changes on cash		0.0		0.0
Change in cash		0.0		0.0
Cash, beginning of year		0.0		0.0
Cash, end of period		0.0		0.0
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash flows from operating activities		175.3		60.7
Cash flows from investing activities:
Proceeds from sales of investments		652.5		762.4
Maturities and mandatory calls of fixed maturity investments		350.6		419.7
Purchases of investments		(1,140.8)		(1,134.6)
Change in short-term investments and foreign regulatory deposits		29.6		(70.5)
Settlements of foreign currency exchange forward contracts		(5.5)		0.0
Acquisition of subsidiaries, net of cash		0.0
Issuance of intercompany note, net		0.0
Purchases of fixed assets and other, net		(5.3)		8.1
Cash used in investing activities		(118.9)		(14.9)
Cash flows from financing activities:
Additional long-term borrowings		0.0
Borrowing under intercompany note, net		0.0
Activity under stock incentive plans		0.0		0.0
Repurchase of Company's common shares		(36.6)		(45.3)
Payment of cash dividends to common shareholders		0.0		0.0
Cash provided by (used in) financing activities		(36.6)		(45.3)
Effect of exchange rate changes on cash		0.0		0.0
Change in cash		19.8		0.5
Cash, beginning of year		53.7		88.8
Cash, end of period		73.5		89.3
Other Subsidiaries and Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash flows from operating activities	[2]	65.3		70.5
Cash flows from investing activities:
Proceeds from sales of investments	[2]	625.5		246.8
Maturities and mandatory calls of fixed maturity investments	[2]	142.6		419.3
Purchases of investments	[2]	(919.4)		(721.1)
Change in short-term investments and foreign regulatory deposits	[2]	232.8		(3.0)
Settlements of foreign currency exchange forward contracts	[2]	4.7		(7.2)
Acquisition of subsidiaries, net of cash	[2]	130.1
Issuance of intercompany note, net	[2]	(120.0)
Purchases of fixed assets and other, net	[2]	(30.6)		(2.9)
Cash used in investing activities	[2]	65.7		(68.1)
Cash flows from financing activities:
Additional long-term borrowings	[2]	0.0
Borrowing under intercompany note, net	[2]	0.0
Activity under stock incentive plans	[2]	0.0		0.0
Repurchase of Company's common shares	[2]	0.0		0.0
Payment of cash dividends to common shareholders	[2]	0.0		0.0
Cash provided by (used in) financing activities	[2]	0.0		0.0
Effect of exchange rate changes on cash	[2]	(1.0)		(1.0)
Change in cash	[2]	130.0		1.4
Cash, beginning of year	[2]	32.3		32.9
Cash, end of period	[2]	162.3		34.3
Consolidating Adjustments [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash flows from operating activities	[3]	0.0		0.0
Cash flows from investing activities:
Proceeds from sales of investments	[3]	0.0		0.0
Maturities and mandatory calls of fixed maturity investments	[3]	0.0		0.0
Purchases of investments	[3]	0.0		0.0
Change in short-term investments and foreign regulatory deposits	[3]	0.0		0.0
Settlements of foreign currency exchange forward contracts	[3]	0.0		0.0
Acquisition of subsidiaries, net of cash	[3]	0.0
Issuance of intercompany note, net	[3]	120.0
Purchases of fixed assets and other, net	[3]	0.0		0.0
Cash used in investing activities	[3]	120.0		0.0
Cash flows from financing activities:
Additional long-term borrowings	[3]	0.0
Borrowing under intercompany note, net	[3]	(120.0)
Activity under stock incentive plans	[3]	0.0		0.0
Repurchase of Company's common shares	[3]	0.0		0.0
Payment of cash dividends to common shareholders	[3]	0.0		0.0
Cash provided by (used in) financing activities	[3]	(120.0)		0.0
Effect of exchange rate changes on cash	[3]	0.0		0.0
Change in cash	[3]	0.0		0.0
Cash, beginning of year	[3]	0.0		0.0
Cash, end of period	[3]	$ 0.0		$ 0.0

[1] Derived from audited consolidated financial statements.

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

[3] Includes all Argo Group parent company eliminations.