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Schedule II Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II Condensed Financial Information of Registrant
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
BALANCE  SHEETS
December 31,
 
2018
 
2017
Assets
 
 
 
Short-term investments
$
3.8

 
$
0.4

Investment in subsidiaries
1,852.7

 
1,940.0

Cash
1.7

 
0.9

Goodwill and other intangible assets, net
41.9

 
43.2

Other assets
15.7

 
9.2

Total assets
$
1,915.8

 
$
1,993.7

Liabilities and Shareholders' Equity
 
 
 
Junior subordinated debentures
$
28.4

 
$
28.4

Other indebtedness
125.0

 
125.0

Accrued underwriting expenses and other liabilities
7.2

 
8.9

Due to subsidiaries
8.5

 
11.7

Total liabilities
169.1

 
174.0

Shareholders' equity
1,746.7

 
1,819.7

Total liabilities and shareholders' equity
$
1,915.8

 
$
1,993.7

STATEMENTS OF INCOME
For the Years Ended December 31,
 
2018
 
2017
 
2016
Revenue:
 
 
 
 
 
Net investment income (expense) (1)
$
33.8

 
$
(4.5
)
 
$
37.2

Net realized investment gains
2.5

 
0.4

 
0.6

Total revenue
36.3

 
(4.1
)
 
37.8

Expenses:
 
 
 
 
 
Interest expense
6.2

 
4.3

 
1.4

Other expenses
11.3

 
14.3

 
12.8

Foreign currency exchange loss
—

 
0.1

 
—

Total expenses
17.5

 
18.7

 
14.2

Net income before equity in earnings of subsidiaries (2)
18.8

 
(22.8
)
 
23.6

Equity in undistributed earnings of subsidiaries
44.8

 
73.1

 
123.1

Net income
$
63.6

 
$
50.3

 
$
146.7

(1) 
For the year ended December 31, 2018 and 2016, net investment income includes intercompany dividends of $36.5 million and $41.0 million, respectively.
(2) 
Argo Group International Holdings, Ltd. is not subject to taxation.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
 
2018
 
2017
 
2016
Cash flows from operating activities:
 
 
 
 
 
Net income
$
63.6

 
$
50.3

 
$
146.7

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
Amortization and depreciation
1.4

 
1.3

 
0.2

Share-based payments expense
7.0

 
3.3

 
4.2

Net realized investment and other gains
(2.5
)
 
(0.4
)
 
(0.6
)
Undistributed earnings of subsidiaries
(44.8
)
 
(73.1
)
 
(123.1
)
Change in:
 
 
 
 
 
Prepaid assets
(2.3
)
 
(0.3
)
 
(0.2
)
Accrued underwriting expenses
(4.4
)
 
(2.3
)
 
0.9

Due to subsidiaries
57.6

 
48.1

 
(0.6
)
Other, net
(3.2
)
 
(6.1
)
 
(1.0
)
Cash provided by operating activities
72.4

 
20.8

 
26.5

Cash flows from investing activities:
 
 
 
 
 
Change in short-term investments
(3.4
)
 
1.5

 
(0.9
)
Settlements of foreign currency exchange forward contracts
(0.5
)
 
0.9

 
—

Acquisition of subsidiaries, net of cash
—

 
(235.3
)
 
—

Purchases of fixed assets and other, net
(0.1
)
 
(0.1
)
 
—

Cash used in investing activities
(4.0
)
 
(233.0
)
 
(0.9
)
Cash flows from financing activities:
 
 
 
 
 
Additional borrowings
—

 
125.0

 
—

Borrowings under intercompany note payable, net
—

 
120.0

 
—

Activity under stock incentive plans
1.6

 
1.4

 
1.0

Repurchase of Company's common shares
(31.7
)
 
(0.1
)
 
—

Payment of cash dividend to common shareholders
(37.5
)
 
(33.2
)
 
(26.6
)
Cash (used in) provided by financing activities
(67.6
)
 
213.1

 
(25.6
)
Change in cash
0.8

 
0.9

 
—

Cash, beginning of year
0.9

 
—

 
—

Cash, end of year
$
1.7

 
$
0.9

 
$
—