A lawsuit was filed on behalf of investors in Argo Group International Holdings, Ltd. (NYSE:ARGO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/04/2022 -- An investor, who purchased shares of Argo Group International Holdings, Ltd. (NYSE: ARGO), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Argo Group International Holdings, Ltd. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Argo Group International Holdings, Ltd. (NYSE: ARGO) have certain options and for certain investors are short and strict deadlines running. Deadline: December 20, 2022. NYSE: ARGO investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Bermuda based Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty markets. On February 8, 2022, Argo Group International Holdings, Ltd. announced that its results for the fourth quarter of 2021 would be "negatively affected by adverse prior year reserve development and non-operating charges." Specifically, Argo Group International Holdings, Ltd. Said that it expected "net adverse prior year reserve development to be in the range of $130 million to $140 million." The Company explained that the largest reserve increases were due to construction defect claims within Argo's U.S. Operations and reserve increases in the run-off segment.
On August 8, 2022, Argo Group International Holdings, Ltd. 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 U.S. casualty insurance reserves. Enstar's subsidiary agreed to provide ground up cover of $746 million of reserves, and an additional $275 million of cover in excess of $821 million, up to a policy limit of $1.1 billion. Argo, however, will retain a loss corridor of $75 million up to $821 million. Furthermore, Argo announced that it anticipated recognizing an after-tax charge of approximately $100 million in connection with the transaction in the third quarter of 2022. During the Company's earnings call on August 9, 2022, an analyst asked about the anticipated $100 million charge and "whether it "assume[s] then that you're booking $75 million loss corridor up to the attachment point of the ADC with Enstar?" Argo's Chief Financial Officer Scott Kirk responded: "No, that does not assume we're booking the $75 million."
On August 10, 2022, based on concerns with the LPT agreement with Enstar, an analyst at Raymond James downgraded Argo to Market Perform from Outperform. The analyst noted: "there are now additional uncertainties associated with the $75M loss corridor retention which could act as overhang on the outlook for the next 12-24 months."
Shares of Argo Group International Holdings, Ltd. (NYSE: ARGO) declined from $61.30 per share on November 09, 2021, to as low as $19.21 per share on September 29, 2022.
The plaintiff claims that between February 13, 2018 and August 9, 2022, the defendants made materially false and/or misleading statements regarding the Company's: (1) ability to set appropriate reserves; (2) changing of its underwriting policies; and (3) writing of policies outside of its "core" business. When the true details entered the market, the lawsuit claims that investors suffered damages.
Those who purchased shares of Argo Group International Holdings, Ltd. (NYSE: ARGO) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.