On Feb. 24, 2004, Standard&Poor's Ratings Services affirmed its ratings on Argonaut Group Inc. and its insurance company affiliates (collectively Argonaut) and revised the outlook on all ratings to stable from negative. The rating actions reflect Argonaut's substantially improved capital position as of year-end 2003 following a common stock issue that raised $79.9 million. In addition, net income and surplus benefited from a large increase in realized capital gains. The company met Standard&Poor's expectation of continued improvement in underwriting performance in the second half of 2003. Standard&Poor's expects underwriting results will continue to improve in 2004, driven by results in excess and surplus lines and a decrease in the earnings drag from legacy issues
