On April 2, 2008, Standard&Poor's Ratings Services affirmed its 'BBB-' counterparty credit rating on Argonaut Group Inc. (AGI), a wholly owned subsidiary of Argo Group International Holdings Ltd. (NASDAQ:AGII), and its 'A-' counterparty credit and financial strength ratings on AGI's insurance company affiliates (collectively referred to as Argonaut). The outlook on AGI and Argonaut remains negative. The affirmations follow the announcement that Peleus Reinsurance Ltd. (Peleus), a Bermuda-domiciled subsidiary of AGII, intends to acquire Heritage Underwriting Agency plc, a publicly traded Lloyds syndicate manager, for approximately $279 million. AGII will fund the purchase internally, with AGI providing a significant portion of the funds. It will use cash and investments it currently holds, including the proceeds from the sale
