Schedule II Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2021

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)


BALANCE SHEETS	December 31,
	2021		2020
Assets
Short-term investments	$	14.5	$	0.6
Investment in subsidiaries	1,740.8		1,881.9
Cash	2.0		3.0

Operating lease right-of-use assets	5.3		6.2
Other assets	5.2		14.5
Total assets	$	1,767.8	$	1,906.2


Liabilities and Shareholders' Equity
Junior subordinated debentures	$	28.4	$	28.4

Accrued underwriting expenses and other liabilities	3.6		6.3
Operating lease liabilities	5.3		6.2
Due to subsidiaries	(4.7)		7.5
Total liabilities	32.6		48.4
Shareholders' equity	1,735.2		1,857.8
Total liabilities and shareholders' equity	$	1,767.8	$	1,906.2


STATEMENTS OF INCOME (LOSS)	For the Years Ended December 31,
	2021		2020		2019
Revenue:
Net investment expense	$	—	$	—	$	(2.9)
Net realized investment (loss) gains	—		(8.3)		(0.1)
Total revenue	—		(8.3)		(3.0)
Expenses:
Interest expense	1.2		3.6		6.6
Operating expenses	6.2		20.4		1.3
Other corporate expenses	0.2		4.4		26.8

Total expenses	7.6		28.4		34.7
Net income before equity in earnings of subsidiaries (1)	(7.6)		(36.7)		(37.7)
Equity in undistributed earnings of subsidiaries	14.3		(17.4)		23.6
Net income (loss)	$	6.7	$	(54.1)	$	(14.1)
Dividends on preferred shares	10.5		4.6		—
Net (loss) income attributable to common shareholders	$	(3.8)	$	(58.7)	$	(14.1)

(1)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,
	2021		2020		2019
Cash flows from operating activities:
Net income (loss)	$	6.7	$	(54.1)	$	(14.1)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation	1.5		1.1		1.3
Share-based payments expense	2.3		3.6		8.1
Net realized investment and other losses (gains)	—		8.3		0.1
Loss on disposal of fixed assets	(3.0)		0.1		—
Undistributed (losses) earnings of subsidiaries	(14.3)		17.4		(23.6)
Change in:
Prepaid assets	7.2		(2.2)		2.5
Accrued underwriting expenses	(4.1)		(9.1)		7.3
Due (to) from subsidiaries	(12.1)		(11.1)		16.8
Other, net	(3.9)		(7.8)		(12.1)
Cash used in operating activities	(19.7)		(53.8)		(13.7)
Cash flows from investing activities:
Change in short-term investments	(13.9)		—		3.2
Settlements of foreign currency exchange forward contracts	0.5		0.1		(0.2)
Capital contribution to subsidiaries	—		(145.3)		—
Proceed from sale of Ariel Re	—		30.0		—
Dividend received from subsidiaries	85.0		71.9		52.1


Cash provided by (used in) investing activities	71.6		(43.3)		55.1
Cash flows from financing activities:


Issuance for preferred shares, net of issuance costs	—		144.0		—
Activity under stock incentive plans	1.3		1.8		1.9

Payment of cash dividend to preferred shareholders	(10.5)		(4.6)		—
Payment of cash dividend to common shareholders	(43.7)		(43.0)		(43.1)
Cash (used in) provided by financing activities	(52.9)		98.2		(41.2)
Change in cash	(1.0)		1.1		0.2
Cash, beginning of year	3.0		1.9		1.7
Cash, end of year	$	2.0	$	3.0	$	1.9