Argo Group Announces $30 Million of Share Repurchases

Argo Group International Holdings, Ltd. (NasdaqGS: AGII), an international underwriter of specialty insurance and reinsurance products, announced today it has entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. for $17.5 million of its common stock. In addition, Argo Group recently repurchased approximately $12.5 million of its common stock, representing approximately 430,000 common shares.

The $30.0 million of common stock repurchases have been made under, and are consistent with, Argo Group’s previously announced $150,000,000 stock repurchase program authorized by its board of directors in November 2007. As of December 31, 2009, Argo Group had approximately 31.0 million shares of common stock outstanding. After executing these repurchases, Argo Group’s common stock outstanding is expected to be reduced by approximately 1.0 million shares.

These share repurchases follow Argo Group’s reinstatement of a quarterly cash dividend on the company’s common stock of $0.12 per share, announced on February 19, 2010.

Argo Group CEO Mark E. Watson III said, "The repurchase of our stock at today’s market levels represents a prudent use of capital and a compelling trade for our shareholders. Together with our board’s recent quarterly dividend authorization announced in mid-February, we are pleased to be in a position to return capital to shareholders.”

ABOUT ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

Argo Group International Holdings, Ltd. (NasdaqGS: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of high-quality products and services designed to meet the unique coverage and claims handling needs of businesses in four primary segments: Excess & Surplus Lines, Commercial Specialty, Reinsurance, and International Specialty. Information on Argo Group and its subsidiaries is available at www.argolimited.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain statements that are "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally and also may differ materially from actual future experience involving any one or more of such statements. For a more detailed discussion of such risks and uncertainties, see Argo Group's filings with the SEC. The inclusion of a forward-looking statement herein should not be regarded as a representation by Argo Group that Argo Group's objectives will be achieved. Argo Group undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.