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Schedule II Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Schedule II Condensed Financial Information of Registrant
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
BALANCE  SHEETS
December 31,
 
2019
 
2018
Assets
 
 
 
Short-term investments
$
0.6

 
$
3.8

Investment in subsidiaries
1,916.7

 
1,852.7

Cash
1.9

 
1.7

Goodwill and other intangible assets, net
40.6

 
41.9

Operating lease right-of-use assets
7.1

 
—

Other assets
7.8

 
15.7

Total assets
$
1,974.7

 
$
1,915.8

Liabilities and Shareholders' Equity
 
 
 
Junior subordinated debentures
$
28.4

 
$
28.4

Other indebtedness
125.0

 
125.0

Accrued underwriting expenses and other liabilities
13.6

 
7.2

Operating lease liabilities
7.3

 
—

Due to subsidiaries
19.3

 
8.5

Total liabilities
193.6

 
169.1

Shareholders' equity
1,781.1

 
1,746.7

Total liabilities and shareholders' equity
$
1,974.7

 
$
1,915.8

STATEMENTS OF (LOSS) INCOME
For the Years Ended December 31,
 
2019
 
2018
 
2017
Revenue:
 
 
 
 
 
Net investment income (expense) (1)
$
49.2

 
$
33.8

 
$
(4.5
)
Net realized investment (loss) gains
(0.1
)
 
2.5

 
0.4

Total revenue
49.1

 
36.3

 
(4.1
)
Expenses:
 
 
 
 
 
Interest expense
6.6

 
6.2

 
4.3

Operating expenses
1.3

 
11.3

 
14.3

Other corporate expenses
26.8

 
—

 
—

Foreign currency exchange loss
—

 
—

 
0.1

Total expenses
34.7

 
17.5

 
18.7

Net income before equity in earnings of subsidiaries (2)
14.4

 
18.8

 
(22.8
)
Equity in undistributed earnings of subsidiaries
(22.8
)
 
44.8

 
73.1

Net (loss) income
$
(8.4
)
 
$
63.6

 
$
50.3

(1) 
For the year ended December 31, 2019 and 2018, net investment income includes intercompany dividends of $52.1 million and $36.5 million, respectively.
(2) 
Argo Group 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,
 
2019
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
 
Net (loss) income
$
(8.4
)
 
$
63.6

 
$
50.3

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
Amortization and depreciation
1.3

 
1.4

 
1.3

Share-based payments expense
8.1

 
7.0

 
3.3

Net realized investment and other gains
0.1

 
(2.5
)
 
(0.4
)
Undistributed earnings of subsidiaries
22.8

 
(44.8
)
 
(73.1
)
Change in:
 
 
 
 
 
Prepaid assets
2.5

 
(2.3
)
 
(0.3
)
Accrued underwriting expenses
7.3

 
(4.4
)
 
(2.3
)
Due to subsidiaries
16.8

 
57.6

 
48.1

Other, net
(12.1
)
 
(3.2
)
 
(6.1
)
Cash provided by operating activities
38.4

 
72.4

 
20.8

Cash flows from investing activities:
 
 
 
 
 
Change in short-term investments
3.2

 
(3.4
)
 
1.5

Settlements of foreign currency exchange forward contracts
(0.2
)
 
(0.5
)
 
0.9

Acquisition of subsidiaries, net of cash
—

 
—

 
(235.3
)
Purchases of fixed assets and other, net
—

 
(0.1
)
 
(0.1
)
Cash provided by (used in) investing activities
3.0

 
(4.0
)
 
(233.0
)
Cash flows from financing activities:
 
 
 
 
 
Additional borrowings
—

 
—

 
125.0

Borrowings under intercompany note payable, net
—

 
—

 
120.0

Activity under stock incentive plans
1.9

 
1.6

 
1.4

Repurchase of Company's common shares
—

 
(31.7
)
 
(0.1
)
Payment of cash dividend to common shareholders
(43.1
)
 
(37.5
)
 
(33.2
)
Cash (used in) provided by financing activities
(41.2
)
 
(67.6
)
 
213.1

Change in cash
0.2

 
0.8

 
0.9

Cash, beginning of year
1.7

 
0.9

 
—

Cash, end of year
$
1.9

 
$
1.7

 
$
0.9