The counterparty credit rating on Argonaut Group Inc. (Argonaut) reflects the company's improved business mix, relatively low financial leverage, and improving operating performance. Partly offsetting these factors is the still relatively weak capitalization of the operating companies and some drag on earnings from discontinued operations. The holding company liquidity position is viewed as good. For 2004 Argonaut's insurance subsidiaries may pay dividends up to $43.1 million without seeking regulatory approval. This is more than enough to meet Argonaut's recurring cash obligations. Interest on long-term debt will be somewhat higher for 2004 than the $1.5 million estimate provided in the company's 2003 annual report due to additional issues of junior subordinated debt during the year. Preferred dividend requirements for 2004 will
