Argonaut Outlook Revised To ?Positive' By S&P
NU Online News Service, Oct. 7, 10:24 a.m. EDT?Standard & Poor's Ratings Services has improved the outlook for Argonaut Group Inc. and its insurance company affiliates to "positive" from "stable."[@@]
At the same time, S&P affirmed its "double-B-plus" counterparty credit rating on the holding company and its "triple-B-plus" counterparty credit and financial strength ratings on Argonaut Group operating companies.
The New York-based S&P said it revised up its outlook in light of a number of encouraging factors, including Argonaut's more diversified business mix, continuously improving underwriting results, and conservative investment strategy.
The ratings agency predicted that Argonaut Group's underwriting results would continue improving this year and next?driven by strong results in excess and surplus lines and a reduction in the earnings drag from legacy issues related to Argonaut's runoff workers' compensation book.
S&P warned, however, that Argonaut Group's capitalization, though much improved, remained "somewhat weak" for the rating at year-end 2003, and noted some drag on earnings from losses on business the company has exited.
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