Argo Group Opens Bond Unit Headed By Thomas

Bermuda-based Argo Group International Holdings Ltd. said it has created a bond insurance unit with Robert F. Thomas as president.

The company said its new Argo Surety operation will be based in Houston and be part of Argo Group's existing Commercial Specialty segment.

Argo Group, which underwrites specialty insurance and reinsurance products in niche areas of the property-casualty market, said it plans Argo Surety branches in California and on the East Coast by 2009.

Mark E. Watson III, president and chief executive officer of Argo Group, said that “with the dislocations in the credit and financial markets, we see an opportunity for surety to immediately contribute to Argo Group's expansion and growth plans of our specialty products,” adding that the firm is excited about expanding into this class of business led by Mr. Thomas.

Mike Arledge, president of Argo Group's Commercial Specialty segment, to whom Mr. Thomas will report, said the firm has “confidence that under his guidance, our new surety business unit will realize not only top line growth, but more importantly, contribute to the Group's bottom line.”

Argo Group said Mr. Thomas has 21 years of experience in both the insurance and reinsurance markets, and before taking his new post held several executive level positions simultaneously at HCC Insurance Holdings.

At Houston-based specialty carrier HCC Insurance Mr. Thomas served as president and CEO of its Surety Group, CEO of its Credit Group and president of HCC Risk Management, the organization's ceded reinsurance administration arm.

Prior to his work with HCC Insurance Holdings, Mr. Thomas held the position of president and CEO of American Contractors Indemnity Company, a California mono-line surety that was acquired by HCC in 2004.

“We see real growth potential for Argo Group in the surety business,” said Mr. Watson. “Despite a downturn in housing and commercial construction, our focus for contract surety will be opportunistic undertakings that are fairly robust yet considerably less vulnerable than the general marketplace,” he said.

“Surety bonds are always going to be a necessity for completion of commercial projects, such as construction of schools, hospitals, community roads and other types of infrastructure.”

He added that Argo Surety would pursue “a diverse commercial surety portfolio serving many industries and forms of business commerce.”

Argo Group is the combined international holding company resulting from the Aug. 7, 2007 merger of Argonaut Group Inc. and PXRE Group, Ltd.