HAMILTON, Bermuda--(BUSINESS WIRE)--Argo Group International Holdings, Ltd. (NasdaqGS: AGII), announced today the establishment of Harambee Re 2013-1 Ltd (“Harambee Re”) for the 2013 accident year. This is the first sidecar established by Argo Group.
“We are pleased to support our business growth objectives with this new funding vehicle. Harambee Re enables us to grow the size of two of our core businesses without adding materially to the Group’s exposure to the volatility associated with US earthquakes and hurricanes.”
Unlike other sidecars, which typically write either reinsurance or retrocession business, Harambee Re is the first sidecar transaction to support both a reinsurance and an insurance portfolio. Harambee Re provides capacity of approximately 5% of premium income for specific property portfolios that represent two of Argo Group’s core businesses: Argo Re, the Group’s reinsurance operation and Colony Specialty, Argo Group’s Excess and Surplus Lines segment.
Argo Group President and Chief Executive Officer Mark E. Watson III stated, “We are pleased to support our business growth objectives with this new funding vehicle. Harambee Re enables us to grow the size of two of our core businesses without adding materially to the Group’s exposure to the volatility associated with US earthquakes and hurricanes.”
The establishment of Harambee Re continues Argo Group’s utilization of a variety of mechanisms to efficiently capitalize on market opportunities and builds upon the company’s previous insurance-linked securities transactions, Loma Reinsurance 2011-1 and Loma Reinsurance 2011-2.
ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
Argo Group International Holdings, Ltd. (NasdaqGS: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses in four primary segments: Excess & Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Argo Group's insurance subsidiaries are A. M. Best-rated 'A' (Excellent) (third highest rating out of 16 rating classifications) with a stable outlook, and Argo's U.S. insurance subsidiaries are Standard and Poor's-rated 'A-' (Strong) with a stable outlook. More information on Argo Group and its subsidiaries is available at www.argolimited.com.
This press release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally and also may differ materially from actual future experience involving any one or more of such statements. For a more detailed discussion of such risks and uncertainties, see Argo Group's filings with the SEC. The inclusion of a forward-looking statement herein should not be regarded as a representation by Argo Group that Argo Group's objectives will be achieved. Argo Group undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.