On Oct. 4, 2004, Standard&Poor's Ratings Services revised its outlook on Argonaut Group Inc. (NASDAQ:AGII) and its insurance company affiliates (collectively referred to as Argonaut) to positive from stable. At the same time, Standard&Poor's affirmed its 'BB+' counterparty credit rating on the holding company and its 'BBB+' counterparty credit and financial strength ratings on the operating companies. The outlook was revised because of Argonaut's more diversified business mix, continuously improving in underwriting results, and conservative investment strategy. Offsetting factors include capitalization that, though much improved, remained somewhat weak for the rating at year-end 2003 as well as some drag on earnings from losses on business the company has exited. Standard&Poor's expects underwriting results to
