...- Argo Group International Holdings Ltd (Argo), parent of Argo Group U.S. Inc. (Argo US), recently disclosed receiving a subpoena from the SEC seeking information on disclosure of certain compensation-related perquisites, which we now understand led its board to broaden a concurrent review of the governance and compensation-related matters simultaneously. - The subpoena's scope seems to be narrow and the company's assessment of related financial impact is modest, although we will continue to closely monitor future developments. - In addition, the company's operating performance in the first half of 2019 suggests that anticipated improvement in profitability measures could be on a slower trajectory than that assumed when we initially revised the outlook to positive. - Therefore, we are revising our outlook on Argo US and its core operating subsidiaries to stable from positive, reflecting a combination of increased governance risk, and execution risks related to performance improvement initiatives....
