SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Argo Group International Holdings, Ltd. - ARGO
NEW YORK, Nov. 21, 2022 /PRNewswire/ -- 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.
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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: "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."
On this news, Argo's stock price fell $9.12 per share, or 28.3%, to close at $23.10 per share on August 10, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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