Investments (Tables)

3 Months Ended

Mar. 31, 2023

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, allowance for credit losses, and fair value of fixed maturity investments were as follows:

March 31, 2023
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Fixed maturities
U.S. Governments	$	412.5	$	—	$	24.6	$	—	$	387.9
Foreign Governments	35.8		0.4		7.2		0.8		28.2
Obligations of states and political subdivisions	109.0		0.6		8.3		0.4		100.9
Corporate bonds	1,360.5		1.1		140.7		1.4		1,219.5
Commercial mortgage-backed securities	335.2		—		50.4		—		284.8
Residential mortgage-backed securities	314.1		0.2		46.1		—		268.2
Asset-backed securities	149.3		—		12.1		0.1		137.1
Collateralized loan obligations	253.4		0.4		16.0		—		237.8
Total fixed maturities	$	2,969.8	$	2.7	$	305.4	$	2.7	$	2,664.4

December 31, 2022
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Fixed maturities
U.S. Governments	$	410.9	$	—	$	30.2	$	—	$	380.7
Foreign Governments	35.6		0.3		6.7		0.8		28.4
Obligations of states and political subdivisions	109.9		0.4		10.1		0.4		99.8
Corporate bonds	1,394.8		0.9		160.0		1.6		1,234.1
Commercial mortgage-backed securities	337.4		—		52.0		—		285.4
Residential mortgage-backed securities	320.0		0.2		50.2		—		270.0
Asset-backed securities	153.4		—		14.2		—		139.2
Collateralized loan obligations	254.4		0.3		16.8		—		237.9
Total fixed maturities	$	3,016.4	$	2.1	$	340.2	$	2.8	$	2,675.5

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 March 31, 2023, by contractual maturity, were as follows:

(in millions)	Amortized Cost		Fair Value
Due in one year or less	$	84.1	$	83.0
Due after one year through five years	1,276.3		1,179.1
Due after five years through ten years	509.4		435.5
Due after ten years	48.0		38.9
Structured securities	1,052.0		927.9
Total	$	2,969.8	$	2,664.4

Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio

Details regarding the carrying value and unfunded investment commitments of other investments as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023
(in millions)	Carrying Value		Unfunded Commitments
Investment Type
Hedge funds	$	54.7	$	—
Private equity	263.7		107.3
Other	4.6		—
Total other investments	$	323.0	$	107.3

December 31, 2022
(in millions)	Carrying Value		Unfunded Commitments
Investment Type
Hedge funds	$	54.0	$	—
Private equity	264.6		108.9
Other	4.6		—
Total other investments	$	323.2	$	108.9

Unrealized Gain (Loss) on Investments

An aging of unrealized losses on our investments in fixed maturities is presented below:

March 31, 2023	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	$	17.3	$	0.4	$	370.1	$	24.2	$	387.4	$	24.6
Foreign Governments	13.1		2.4		7.3		4.8		20.4		7.2
Obligations of states and political subdivisions	23.3		1.0		66.4		7.3		89.7		8.3
Corporate bonds	169.9		11.1		1,027.8		129.6		1,197.7		140.7
Commercial mortgage-backed securities	29.1		2.6		255.6		47.8		284.7		50.4
Residential mortgage-backed securities	26.9		1.5		238.7		44.6		265.6		46.1
Asset-backed securities	43.8		1.9		93.1		10.2		136.9		12.1
Collateralized loan obligations	48.4		2.8		177.0		13.2		225.4		16.0
Total fixed maturities	$	371.8	$	23.7	$	2,236.0	$	281.7	$	2,607.8	$	305.4

December 31, 2022	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	$	271.0	$	18.1	$	109.8	$	12.1	$	380.8	$	30.2
Foreign Governments	16.7		4.9		2.6		1.8		19.3		6.7
Obligations of states and political subdivisions	67.4		4.1		24.3		6.0		91.7		10.1
Corporate bonds	695.1		68.3		519.6		91.7		1,214.7		160.0
Commercial mortgage-backed securities	144.2		18.6		141.2		33.4		285.4		52.0
Residential mortgage-backed securities	88.7		8.8		178.8		41.4		267.5		50.2
Asset-backed securities	93.3		7.5		45.9		6.7		139.2		14.2
Collateralized loan obligations	181.1		13.3		44.2		3.5		225.3		16.8
Total fixed maturities	$	1,557.5	$	143.6	$	1,066.4	$	196.6	$	2,623.9	$	340.2

Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the three months ending March 31, 2023 and 2022, respectively:

(in millions)	Foreign Governments		Obligations of states and political subdivisions		Corporate bonds		Asset backed securities		Total
Beginning balance, January 1, 2023	$	0.7	$	0.4	$	1.6	$	0.1	$	2.8
Securities for which allowance was not previously recorded	—		—		0.2		—		0.2
Securities sold during the period	—		—		(0.3)		—		(0.3)
Reductions for credit impairments	—		—		—		—		—
Additional net increases (decreases) in existing allowance	0.1		—		(0.1)		—		—
Ending balance, March 31, 2023	$	0.8	$	0.4	$	1.4	$	0.1	$	2.7

(in millions)	Foreign Governments		Obligations of states and political subdivisions		Corporate bonds		Asset backed securities		Total
Beginning balance, January 1, 2022	$	0.2	$	—	$	2.2	$	0.1	$	2.5
Securities for which allowance was not previously recorded	0.1		—		0.4		—		0.5
Securities sold during the period	—		—		(0.6)		—		(0.6)
Additional net increases (decreases) in existing allowance	—		0.4		0.1		—		0.5
Ending balance, March 31, 2022	$	0.3	$	0.4	$	2.1	$	0.1	$	2.9

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table presents loans by property type:

	March 31, 2023
(in millions)	Cost		Composition		Loan Count
Apartments	$	87.4	54.7	%	16
Hotel	25.0		15.6	%	4
Industrial	26.0		16.3	%	4
Retail	21.5		13.4	%	4
Total	$	159.9	100.0	%	28

	December 31, 2022
(in millions)	Cost		Composition		Loan Count
Apartments	$	87.4	54.5	%	16
Hotel	25.0		15.6	%	4
Industrial	26.0		16.3	%	4
Retail	21.5		13.6	%	4
Total	$	159.9	100.0	%	28

Financing Receivable Credit Quality Indicators

The following table presents our loans by Debt Service Coverage Ratio (“DSCR”):

	March 31, 2023
(in millions)	Cost		Loan Count
1.00 to 1.50	$	30.4	6
Greater than 1.5 to 2.0	71.7		12
Greater than 2.0 to 3.0	32.0		6
Greater than 3.0 to 4.0	25.8		4
Greater than 4.0	0.0		0
Total	$	159.9	28

	December 31, 2022
(in millions)	Cost		Loan Count
1.00 to 1.50	$	10.4	2
Greater than 1.5 to 2.0	60.4		10
Greater than 2.0 to 3.0	52.0		10
Greater than 3.0 to 4.0	25.8		4
Greater than 4.0	11.3		2
Total	$	159.9	28

The following table presents loans by Loan To Value (“LTV”):

	March 31, 2023
(in millions)	Cost		Loan Count
Equal to or less than 50.0%	$	36.7	6
Greater than 50.0% to 55.0%	9.1		2
Greater than 55.0% to 60.0%	42.6		8
Greater than 60.0% to 70.0%	61.5		10
Greater than 70.0%	10.0		2
Total	$	159.9	28

	December 31, 2022
(in millions)	Cost		Loan Count
Equal to or less than 50.0%	$	36.7	6
Greater than 50.0% to 55.0%	9.1		2
Greater than 55.0% to 60.0%	42.6		8
Greater than 60.0% to 70.0%	71.5		12
Total	$	159.9	28

Financing Receivable, before Allowance for Credit Loss, Maturity

The following table presents loans by maturity:

	March 31, 2023
(in millions)	Cost		Loan Count
One Year or Less	$	10.0	2
Greater than One Year and Less than Three	44.8		8
Greater than Three Years and Less than Five Years	33.8		6
Greater than Five Years and Less than Seven Years	20.4		4
Greater than Seven Years and Less than Ten Years	50.9		8
Total	$	159.9	28

	December 31, 2022
(in millions)	Cost		Loan Count
Greater than One Year and Less than Three	$	54.8	10
Greater than Three Years and Less than Five Years	33.8		6
Greater than Five Years and Less than Seven Years	20.4		4
Greater than Seven Years and Less than Ten Years	50.9		8
Total	$	159.9	28

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

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

	For the Three Months Ended March 31,
(in millions)	2023		2022
Realized gains on fixed maturities and other:
Fixed maturities	$	0.2	$	11.2
Other investments, including short-term investments	7.8		1.5
Other assets	—		—
Total realized gains on fixed maturities and other	8.0		12.7
Realized losses on fixed maturities and other:
Fixed maturities	(22.4)		(16.6)
Other investments, including short-term investments	(5.8)		(6.8)
Other assets	—		—
Total realized losses on fixed maturities and other	(28.2)		(23.4)
Other net losses recognized on fixed maturities and other:
Credit losses on fixed maturities	(0.6)		(1.0)
Impairment related to change in intent	—		—
Other(1)	(3.6)		(28.5)
Total other net losses recognized on fixed maturities and other	(4.2)		(29.5)
Equity securities:
Net realized gains (losses) on equity securities	0.3		(1.0)
Change in unrealized gains (losses) on equity securities held at the end of the period	6.2		6.7
Net gains (losses) on equity securities	6.5		5.7
Net investment and other gains (losses) before income taxes	(17.9)		(34.5)
Income tax (benefit) provision	(5.1)		(0.7)
Net investment and other gains (losses), net of income taxes	$	(12.8)	$	(33.8)

(1) For the three months ended March 31, 2022, refer to the sale Argo Seguros in Note 1, “Business and Significant Accounting Policies” for additional information.

Schedule of Changes in Unrealized Appreciation (Depreciation)

Changes in unrealized gains (losses) related to fixed maturity investments are summarized as follows:

	For the Three Months Ended March 31,
(in millions)	2023		2022
Change in unrealized gains (losses)
Fixed maturities	$	55.5	$	(177.9)
Other and short-term investments	(0.1)		0.1
Net unrealized investment gains (losses) before income taxes	55.4		(177.8)
Income tax provision (benefit)	9.9		(33.9)
Net unrealized investment gains (losses), net of income taxes	$	45.5	$	(143.9)

Schedule of Fair Value of Foreign Currency Exchange Forward Contracts

The fair value of our foreign currency exchange forward contracts as of March 31, 2023 and December 31, 2022 was as follows:

	March 31, 2023				December 31, 2022
(in millions)	Notional Amount		Fair Value		Notional Amount		Fair Value
Operational currency exposure	$	125.7	$	1.7	$	148.2	$	5.8
Asset manager investment exposure	42.1		(0.9)		135.0		(0.6)
Total	$	167.8	$	0.8	$	283.2	$	5.2

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

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

	For the Three Months Ended March 31,
(in millions)	2023		2022
Realized gains
Operational currency exposure	$	4.1	$	2.5
Asset manager investment exposure	—		1.1
Gross realized investment gains	$	4.1	3.6
Realized losses
Operational currency exposure	(3.1)		(8.8)
Asset manager investment exposure	(0.3)		—
Gross realized investment losses	(3.4)		(8.8)
Net realized investment (losses) gains on foreign currency exchange forward contracts	$	0.7	$	(5.2)

Schedule of Restricted Assets

The following table presents our components of restricted assets:

(in millions)	March 31, 2023		December 31, 2022
Securities on deposit for regulatory and other purposes	$	142.8	$	149.3
Securities pledged as collateral for letters of credit and other	120.9		169.8
Securities on deposit supporting Lloyd’s business (1)	173.9		171.4
Total restricted investments	$	437.6	$	490.5

(1) Argo Group is required to maintain Funds at Lloyd’s (“FAL”) to support its business for Syndicate 1200 and Syndicate 1910. At March 31, 2023 the amount of securities pledged for FAL was $173.9 million, which was provided by Argo Re, Ltd. The Company expects the FAL to be released in the second quarter of 2023, due to the sale of AUA, subject to regulatory approval. Refer to the sale of AUA in Note 1, “Business and Significant Accounting Policies” for additional information.

Financial Assets Measured at Fair Value on Recurring Basis

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

			Fair Value Measurements at Reporting Date Using
(in millions)	March 31, 2023		Level 1 (1)		Level 2 (2)		Level 3 (3)
Fixed maturities
U.S. Governments	$	387.9	$	385.8	$	2.1	$	—
Foreign Governments	28.2		—		28.2		—
Obligations of states and political subdivisions	100.9		—		100.9		—
Corporate bonds	1,219.5		—		1,197.5		22.0
Commercial mortgage-backed securities	284.8		—		284.8		—
Residential mortgage-backed securities	268.2		—		268.2		—
Asset-backed securities	137.1		—		118.9		18.2
Collateralized loan obligations	237.8		—		237.8		—
Total fixed maturities	2,664.4		385.8		2,238.4		40.2
Equity securities	44.2		36.0		—		8.2
Other investments	0.3		—		0.3		—
Short-term investments	694.6		694.3		0.3		—
Derivatives	0.8		—		0.8		—
Total assets	$	3,404.3	$	1,116.1	$	2,239.8	$	48.4

(1) Quoted prices in active markets for identical assets

(2) Significant other observable inputs

(3) Significant unobservable inputs

			Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2022		Level 1 (1)		Level 2 (2)		Level 3 (3)
Fixed maturities
U.S. Governments	$	380.7	$	378.7	$	2.0	$	—
Foreign Governments	28.4		—		28.4		—
Obligations of states and political subdivisions	99.8		—		99.8		—
Corporate bonds	1,234.1		—		1,212.1		22.0
Commercial mortgage-backed securities	285.4		—		285.4		—
Residential mortgage-backed securities	270.0		—		270.0		—
Asset-backed securities	139.2		—		120.5		18.7
Collateralized loan obligations	237.9		—		237.9		—
Total fixed maturities	2,675.5		378.7		2,256.1		40.7
Equity securities	43.9		28.4		—		15.5
Other investments	0.3		—		0.3		—
Short-term investments	449.6		449.3		0.3		—
Derivatives	5.2		—		5.2		—
Total assets	$	3,174.5	$	856.4	$	2,261.9	$	56.2

(1) Quoted prices in active markets for identical assets

(2) Significant other observable inputs

(3) 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 Unobservable Inputs (Level 3)

(in millions)	Credit Financial		Equity Securities		Total
Beginning balance, January 1, 2023	$	40.7	$	15.5	$	56.2
Transfers into Level 3	—		—		—
Transfers out of Level 3	—		(7.6)		(7.6)
Total gains or losses (realized/unrealized):
Included in net income	—		0.3		0.3
Included in other comprehensive income	—		—		—
Purchases, issuances, sales, and settlements:
Purchases	—		—		—
Issuances	—		—		—
Sales	—		—		—
Settlements	(0.5)		—		(0.5)
Ending balance, March 31, 2023	$	40.2	$	8.2	$	48.4
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2023	$	—	$	—	$	—

(in millions)	Credit Financial		Equity Securities		Total
Beginning balance, January 1, 2022	$	2.8	$	14.7	$	17.5
Transfers into Level 3	36.1		1.5		37.6
Transfers out of Level 3	—		—		—
Total gains or losses (realized/unrealized):
Included in net income	(0.4)		(0.7)		(1.1)
Included in other comprehensive loss	(4.8)		—		(4.8)
Purchases, issuances, sales, and settlements:
Purchases	9.0		1.0		10.0
Issuances	—		—		—
Sales	(2.0)		(1.0)		(3.0)
Settlements	—		—		—
Ending balance, December 31, 2022	$	40.7	$	15.5	$	56.2
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2022	$	—	$	(4.4)	$	(4.4)

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

The Company holds investments in commercial mortgage loans reported at cost, less an allowance for expected credit losses, on the Balance Sheet. The cost and estimated fair value of the investments in commercial mortgage loans were:

	March 31, 2023				December 31, 2022
(in millions)	Cost		Fair Value		Cost		Fair Value
Commercial mortgage loans	$	159.9	$	152.3	$	159.9	$	150.7

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

	March 31, 2023				December 31, 2022
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures:
Trust preferred debentures	$	172.7	$	157.8	$	172.7	$	165.8
Subordinated debentures	86.0		83.9		85.9		88.1
Total junior subordinated debentures	258.7		241.7		258.6		253.9
Senior unsecured fixed rate notes	140.5		127.5		140.5		112.7
Floating rate loan stock (1)	—		—		54.7		52.5
	$	399.2	$	369.2	$	453.8	$	419.1

(1) Floating rate loan stock reclassified to liabilities held-for-sale. See Note 1, “Business and Significant Accounting Policies” for additional information.