On Nov. 16, 2004, Standard&Poor's Ratings Services affirmed its 'BB+' counterparty credit rating on holding company Argonaut Group Inc. (NASDAQ:AGII). At the same time, Standard&Poor's affirmed its 'BBB+' counterparty credit and financial strength ratings on AGII's insurance company affiliates (collectively referred to as Argonaut; see ratings list). The outlook remains positive. The ratings reflect Argonaut's more diversified business mix, continuously improving 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. Included in our analysis is the effect on statutory capital of a retroactive reinsurance contract in force
