Business
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Argo Group International Holdings, Ltd. - ARGO
New York, New York--(Newsfile Corp. - November 30, 2022) - Pomerantz LLP is investigating claims ...
About this update from Argo Graphene Solutions Corp.
[{"type":"text","content":"SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Argo Group International Holdings, Ltd. - ARGONew York, New York--(Newsfile Corp. - November 30, 2022) - Pomerantz LLP is investigating claims on behalf of investors of Argo Group International Holdings, Ltd. (\"Argo\" or the \"Company\") (NYSE: ARGO). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.The investigation concerns whether Argo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On February 8, 2022, Argo issued a press release announcing that its fourth quarter results for 2021 would be negatively impacted by $130 to $140 million worth of adverse prior year reserve development and non-operating charges. Argo also announced additional non-operating charges of $60 million to $70 million resulting in part from the Company's \"ongoing strategic review.\" On 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 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: \"th...