Argo Sends Letter to Shareholders - Seite 2

Our strategy is delivering strong results with more success to come:

• Strong Returns for Investors: One-, three-, and five-year total shareholder returns² (TSR) of 36%, 89%, and 164%, respectively
• Improving Return on Equity: Annualized GAAP return on average equity (ROAE) of 20.1% and adjusted operating ROAE of 9.1% in 1Q 2019
• Operating Growth Momentum: 10% compound annual growth rate (CAGR) in gross premiums written since 2002 (the formation of the modern Argo Group), an increase of close to five times; strong 1Q 2019 results demonstrate continued momentum
• Consistent Growth in Book Value Per Share: 9% CAGR (inclusive of dividends) since 2002
• Active Capital Management: Returned more than $655 million of capital to shareholders and increased the dividend by approximately 300% since 2010
• Excellent Underwriting Results: 94.8% combined ratio in 1Q 2019 versus peer average of 96.4%³; target of 93% by 2020
• Balanced Investment Portfolio with Consistent Results: Appropriately structured to support our underwriting operations and contribute to long term growth in book value

In the first quarter of 2019, the execution of our strategy continued to deliver growth momentum:

• 100 basis points (bps) increase in adjusted operating ROAE to 9.1% compared to 1Q 2018
• 100bps decrease in the combined ratio to 94.8% compared to 1Q 2018
• Loss ratio, excluding catastrophe losses in the prior year development, improved 60bps to 56.2%
• 7.1% increase in gross premiums to $761 million compared to 1Q 2018

Argo’s well-defined strategy is driving economic value for all shareholders. Your Board and management team have enabled excellent total shareholder return over the past five years and our positive financial outlook supports sustained value creation. There is no reason to disrupt the positive strategic direction of the Company that is serving shareholders so well.

PROTECT THE VALUE OF YOUR INVESTMENT BY VOTING THE WHITE PROXY CARD TODAY

Argo urges shareholders to vote the WHITE proxy card “FOR” all of the Company’s highly qualified director nominees in connection with Argo's Annual Meeting of Shareholders, which is scheduled to be held on May 24, 2019. Argo shareholders of record as of the close of business on March 11, 2019 will be entitled to vote at the Annual Meeting.