A.M. Best Affirms Ratings of Argo Group International Holdings, Ltd. and Its Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit ratings (ICR) of "a" of Argo Re Ltd. (Argo Re) (Hamilton, Bermuda)
and its U.S. subsidiaries. A.M. Best also has affirmed the ICR of "bbb" of the
parent holding company, Argo Group International Holdings, Ltd. (Argo Group)
(Hamilton, Bermuda) [NASDAQ: AGII]. The outlook for all ratings is stable. (See
below for a detailed listing of the companies and ratings.)

These ratings reflect Argo Re`s supportive capitalization, experienced
management team, and the historical profitability of its U.S. subsidiaries. The
specialty U.S. operations, which represent the core business of the Argo Group,
are managed holistically as respects to capital, investment strategy and market
presence. Argo Re, as the lead insurer, also assumes risk via a quota share
reinsurance agreements with its U.S. subsidiaries. The ratings also reflect the
favorable results to date of Argo Re`s growing book of unaffiliated, third-party
reinsurance business comprised of short-tail coverages, mainly property
catastrophe reinsurance. The ratings of the former Argonaut Insurance Group,
Colony Insurance Group and Rockwood Casualty Group have been withdrawn.

The FSR of A (Excellent) and ICRs of "a" has been affirmed for Argo Re, Ltd. and
its following subsidiaries:

* Argonaut Great Central Insurance Company
* Argonaut Insurance Company
* Argonaut Limited Risk Insurance Company
* Argonaut-Midwest Insurance Company
* Argonaut-Southwest Insurance Company
* Colony Insurance Company
* Colony National Insurance Company
* Colony Specialty Insurance Company
* Rockwood Casualty Insurance Company
* Select Markets Insurance Company
* Somerset Casualty Insurance Company

The FSRs of A (Excellent) and ICRs of "a" have been withdrawn and a category
NR-5 (Not Formally Followed) has been assigned to the FSRs and an "nr" to the
ICRs of Argonaut Insurance Group, Colony Insurance Group, and Rockwood Casualty
Group.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Duncan McColl, 908-439-2200, ext. 5826
duncan.mccoll@ambest.com
OR
Joseph Roethel, 908-439-2200, ext. 5630
joseph.roethel@ambest.com
OR
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
OR
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009