Announcement • Nov 29
Argo Group International Holdings, Ltd. Files Form 15 Argo Group International Holdings, Ltd. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. The par value of the company's common stock was $1.00 per share. Announcement • Nov 17
Argo Group International Holdings, Ltd.(NYSE:ARGO) dropped from S&P Global BMI Index Argo Group International Holdings, Ltd.(NYSE:ARGO) dropped from S&P Global BMI Index Reported Earnings • Nov 10
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: US$1.41 loss per share (improved from US$1.47 loss in 3Q 2022). Revenue: US$378.4m (down 15% from 3Q 2022). Net loss: US$49.5m (loss narrowed 3.7% from 3Q 2022). Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Insurance industry in the US. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 08
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: US$0.014 loss per share (improved from US$0.54 loss in 2Q 2022). Revenue: US$364.3m (down 18% from 2Q 2022). Net loss: US$500.0k (loss narrowed 97% from 2Q 2022). Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the Insurance industry in the US. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Jul 26
Argo Group International Holdings, Ltd. to Report Q2, 2023 Results on Aug 07, 2023 Argo Group International Holdings, Ltd. announced that they will report Q2, 2023 results After-Market on Aug 07, 2023 Reported Earnings • May 10
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: US$1.04 loss per share (further deteriorated from US$0.10 loss in 1Q 2022). Revenue: US$401.7m (down 17% from 1Q 2022). Net loss: US$36.4m (loss widened US$32.8m from 1Q 2022). Revenue missed analyst estimates by 8.3%. Earnings per share (EPS) were also behind analyst expectations. Revenue is expected to decline by 1.6% p.a. on average during the next 2 years, while revenues in the Insurance industry in the US are expected to grow by 5.9%. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. Lead Independent Director Bernard Bailey was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: US$5.31 loss per share (further deteriorated from US$0.11 loss in FY 2021). Revenue: US$1.75b (down 18% from FY 2021). Net loss: US$185.7m (loss widened US$181.9m from FY 2021). Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is expected to decline by 4.6% p.a. on average during the next 2 years, while revenues in the Insurance industry in the US are expected to grow by 5.5%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Announcement • Feb 16
Argo Group International Holdings, Ltd. to Report Q4, 2022 Results on Feb 27, 2023 Argo Group International Holdings, Ltd. announced that they will report Q4, 2022 results After-Market on Feb 27, 2023 Announcement • Feb 14
Argo Group International Holdings, Ltd. Announces J. Daniel Plants Steps Down from Board of Directors Argo Group International Holdings, Ltd. (announced that J. Daniel Plants, a member of the Argo Board of Directors and Chairman of its Strategic Review Committee, has notified the company of his intention to step down from the Board, effective immediately. Mr. Plants is Founder and Chief Investment Officer of Voce Capital Management LLC, Argo’s largest shareholder. He was appointed to the Board on August 4, 2022. Announcement • Feb 10
Brookfield Reinsurance Ltd. entered into a definitive agreement to acquire Argo Group International Holdings, Ltd. from Voce Capital Management, LLC and other shareholders for $1.1 billion. Brookfield Reinsurance Ltd. entered into a definitive agreement to acquire Argo Group International Holdings, Ltd. from Voce Capital Management, LLC and other shareholders for $1.1 billion on February 8, 2023. The consideration will be paid in cash. As part of the agreement, each issued and outstanding Argo common share will be converted into the right to receive $30.00 in cash at closing of the merger, funded by existing cash on hand and liquidity available to Brookfield Reinsurance. Under the terms of the merger agreement, Argo has agreed to suspend the payment of dividends on its common shares through the closing of the transaction. The transaction is subject to approval by Argo Group International Holdings, Ltd shareholders and other closing conditions customary for a transaction of this type, including receipt of insurance regulatory approvals in relevant jurisdictions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Brookfield Reinsurance Ltd and Argo Group International Holdings, Ltd boards of directors unanimously approved the merger agreement. The transaction is expected to close in the second half of 2023. Andrew Jamieson, Drew Dutton, Dylan Sanders, Caroline Geiger, Josh Herzka, Michael Bolotin, Eric Juergens, Susan Reagan Gittes, Michael Snypes and Keith Slattery of Debevoise & Plimpton LLP acted as legal advisor to Brookfield Reinsurance Ltd. Goldman Sachs & Co. LLC acted as financial advisor to Argo Group International Holdings, Ltd. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Argo Group International Holdings, Ltd. Upcoming Dividend • Nov 22
Upcoming dividend of US$0.31 per share Eligible shareholders must have bought the stock before 29 November 2022. Payment date: 15 December 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.8%. Within top quartile of American dividend payers (4.3%). Higher than average of industry peers (2.2%). Reported Earnings • Nov 08
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: US$1.47 loss per share (down from US$0.57 profit in 3Q 2021). Revenue: US$444.3m (down 16% from 3Q 2021). Net loss: US$51.4m (down 360% from profit in 3Q 2021). Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 40%. Revenue is expected to decline by 4.1% p.a. on average during the next 3 years, while revenues in the Insurance industry in the US are expected to grow by 5.5%. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Aug 23
Upcoming dividend of US$0.31 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 15 September 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 6.1%. Within top quartile of American dividend payers (4.1%). Higher than average of industry peers (2.3%). Reported Earnings • Aug 10
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: US$0.54 loss per share (down from US$1.93 profit in 2Q 2021). Revenue: US$443.2m (down 19% from 2Q 2021). Net loss: US$18.9m (down 128% from profit in 2Q 2021). Revenue missed analyst estimates by 15%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 1.6%, compared to a 1.7% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jul 08
Price target decreased to US$45.25 Down from US$55.00, the current price target is an average from 4 analysts. New target price is 33% above last closing price of US$34.11. Stock is down 34% over the past year. The company is forecast to post earnings per share of US$2.72 next year compared to a net loss per share of US$0.11 last year. Reported Earnings • Feb 24
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: US$0.14 loss per share (up from US$1.70 loss in FY 2020). Revenue: US$2.13b (up 13% from FY 2020). Net loss: US$4.70m (loss narrowed 92% from FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 76%. Over the next year, revenue is forecast to stay flat compared to a 1.9% decline forecast for the insurance industry in the US. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Feb 10
Consensus forecasts updated The consensus outlook for 2021 has been updated. Expected to report loss instead of -US$0.53 instead of US$4.24 per share profit previously forecast. . Revenue forecast unchanged at US$2.12b Insurance industry in the US expected to see average net income decline 3.3% next year. Consensus price target down from US$70.00 to US$53.75. Share price fell 24% to US$42.82 over the past week. Price Target Changed • Feb 09
Price target decreased to US$53.75 Down from US$66.50, the current price target is an average from 5 analysts. New target price is 20% above last closing price of US$44.76. Stock is up 5.9% over the past year. The company is forecast to post earnings per share of US$3.02 next year compared to a net loss per share of US$1.70 last year. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment deteriorated over the past week After last week's 21% share price decline to US$44.76, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Insurance industry in the US. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$74.17 per share. Buying Opportunity • Jan 19
Now 20% undervalued Over the last 90 days, the stock is up 6.3%. The fair value is estimated to be US$72.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% per annum over the last 3 years. The company has become profitable over the last year. Upcoming Dividend • Nov 22
Upcoming dividend of US$0.31 per share Eligible shareholders must have bought the stock before 29 November 2021. Payment date: 15 December 2021. Trailing yield: 2.1%. Lower than top quartile of American dividend payers (3.5%). In line with average of industry peers (2.3%). Price Target Changed • Nov 04
Price target increased to US$67.50 Up from US$63.00, the current price target is an average from 5 analysts. New target price is 15% above last closing price of US$58.90. Stock is up 61% over the past year. The company is forecast to post earnings per share of US$3.59 next year compared to a net loss per share of US$1.70 last year. Reported Earnings • Nov 03
Third quarter 2021 earnings released: EPS US$0.57 (vs US$0.91 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$528.3m (up 9.3% from 3Q 2020). Net income: US$19.8m (up US$51.4m from 3Q 2020). Profit margin: 3.7% (up from net loss in 3Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 23
Upcoming dividend of US$0.31 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 15 September 2021. Trailing yield: 2.3%. Lower than top quartile of American dividend payers (3.6%). In line with average of industry peers (2.3%). Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS US$1.93 (vs US$0.18 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$547.7m (up 20% from 2Q 2020). Net income: US$67.1m (up US$73.5m from 2Q 2020). Profit margin: 12% (up from net loss in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 04
Price target increased to US$66.50 Up from US$60.00, the current price target is an average from 5 analysts. New target price is 25% above last closing price of US$53.11. Stock is up 60% over the past year. Is New 90 Day High Low • Jan 07
New 90-day high: US$46.12 The company is up 24% from its price of US$37.05 on 08 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$39.26 per share. Is New 90 Day High Low • Dec 05
New 90-day high: US$44.12 The company is up 18% from its price of US$37.31 on 04 September 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$15.25 per share. 
