Diversified competitive position in specialty insurance niches. Successful execution of strategy. Improved earnings. Strong 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 counterparty credit rating on Argonaut Group Inc. (Argonaut) reflects the company's diversified business mix, successful execution of its strategy, improving earnings, strong capitalization, conservative financial leverage, and strong fixed-charge coverage. Partially offsetting these positive factors are the drag on the expense ratio and increased underwriting leverage because of renewal rights acquisitions as well as underwriting results that, though profitable, are not yet as strong as those
