Schedule II Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2022

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)


BALANCE SHEETS	December 31,
	2022		2021
Assets
Short-term investments	$	1.8	$	14.5
Investment in subsidiaries	1,281.7		1,740.8
Cash	5.2		2.0

Operating lease right-of-use assets	4.6		5.3
Other assets	6.7		5.2
Total assets	$	1,300.0	$	1,767.8


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

Accrued underwriting expenses and other liabilities	10.0		3.6
Operating lease liabilities	4.6		5.3
Due to subsidiaries	14.0		(4.7)
Intercompany notes payable	10.1		—
Total liabilities	67.1		32.6
Shareholders' equity	1,232.9		1,735.2
Total liabilities and shareholders' equity	$	1,300.0	$	1,767.8


STATEMENTS OF INCOME (LOSS)	For the Years Ended December 31,
	2022		2021		2020
Revenue:
Net investment expense	$	—	$	—	$	—
Net realized investment (loss) gains	—		—		(8.3)
Total revenue	—		—		(8.3)
Expenses:
Interest expense	1.6		1.2		3.6
Operating expenses	(0.6)		6.2		20.4
Non-operating expenses	26.2		0.2		4.4

Total expenses	27.2		7.6		28.4
Net loss before equity in earnings of subsidiaries (1)	(27.2)		(7.6)		(36.7)
Equity in undistributed earnings of subsidiaries	(148.0)		14.3		(17.4)
Net (loss) income	$	(175.2)	$	6.7	$	(54.1)
Dividends on preferred shares	10.5		10.5		4.6
Net (loss) income attributable to common shareholders	$	(185.7)	$	(3.8)	$	(58.7)

(1)Argo Group is not subject to taxation.

See the Report of the Independent Registered Public Accounting Firm.

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)


STATEMENTS OF CASH FLOWS	For the Years Ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net (loss) income	$	(175.2)	$	6.7	$	(54.1)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation	1.5		1.5		1.1
Share-based payments expense	2.8		2.3		3.6
Net realized investment and other losses (gains)	—		—		8.3
Loss on disposal of fixed assets	(3.5)		(3.0)		0.1
Undistributed earnings of subsidiaries	148.0		(14.3)		17.4
Change in:
Prepaid assets	(1.8)		7.2		(2.2)
Accrued underwriting expenses	6.0		(4.1)		(9.1)
Due to subsidiaries	28.8		(12.1)		(11.1)
Other, net	4.7		(3.9)		(7.8)
Cash provided by (used in) operating activities	11.3		(19.7)		(53.8)
Cash flows from investing activities:
Change in short-term investments	12.7		(13.9)		—
Settlements of foreign currency exchange forward contracts	(2.0)		0.5		0.1
Capital contribution to subsidiaries	—		—		(145.3)
Proceed from sale of Ariel Re	—		—		30.0
Dividend received from subsidiaries	33.3		85.0		71.9


Cash (used in) provided by investing activities	44.0		71.6		(43.3)
Cash flows from financing activities:


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

Payment of cash dividend to preferred shareholders	(10.5)		(10.5)		(4.6)
Payment of cash dividend to common shareholders	(43.4)		(43.7)		(43.0)
Cash provided by (used in) financing activities	(52.1)		(52.9)		98.2
Change in cash	3.2		(1.0)		1.1
Cash, beginning of year	2.0		3.0		1.9
Cash, end of year	$	5.2	$	2.0	$	3.0

See the Report of the Independent Registered Public Accounting Firm.