Diversified competitive position in specialty insurance niches Successful execution of strategy Improved earnings Strong and improved capitalization Conservative financial leverage Strong fixed-charge coverage Renewal rights acquisitions that will increase underwriting leverage and put pressure on the expense ratio in the short term Underwriting results that are not yet as strong as those of some competitors; the sale of the underperforming risk management business should help close the gap Relatively small scale of operations The counterparty credit rating on Argonaut Group Inc. (Argonaut) reflects the company's diversified business mix, successful execution of its strategy, improving earnings, strong and improved capitalization, conservative financial leverage, and strong fixed charge coverage. Partially offsetting factors include the drag on the expense ratio and increased underwriting
