NEW YORK, Oct. 30, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in Argo Group International Holdings, Ltd. (“Argo” or the “Company”) (NYSE: ARGO). Those investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, extension 7980.

The investigation concerns whether Argo and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

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On February 8, 2022, Argo issued a press release announcing that its fourth quarter 2021 results were negatively impacted by an adverse development in reserves in the prior year and non-operating costs of $130 million to $140 million. Argo also announced additional non-operating costs of $60 million to $70 million resulting in part from the company’s “ongoing strategic review.”

As a result of this news, Argo’s stock price fell $7.11 per share, or 13.7%, to close at $44.76 per share on February 9, 2022.

On August 8, 2022, Argo announced that it had entered into a loss portfolio transfer (“LPT”) agreement with a wholly owned subsidiary of Enstar Group Limited (“Enstar”) covering a majority of Argo’s US liability insurance reserves. Enstar’s subsidiary agreed to provide $746 million in reserves and an additional $275 million in coverage of over $821 million up to a $1.1 billion policy limit. However, Argo will maintain a loss corridor of $75 million to $821 million. In addition, Argo announced that it will accrue an after-tax charge of approximately $100 million related to the transaction in the third quarter of 2022. During the company’s Aug. 9, 2022 conference call, an analyst asked about the expected $100 million charge and “if it” takes it[s] that you then post a loss corridor of $75 million with Enstar to the ADC’s tie point?” …