Schedule II Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2023

ARGO GROUP INTERNATIONAL HOLDINGS, INC.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)


	As of
BALANCE SHEETS	December 31,
	2023		2022
Assets
Short-term investments	$	—	$	1.8
Investment in subsidiaries	1,363.3		1,281.7
Cash, restricted cash and cash equivalents	2.2		5.2

Operating lease right-of-use assets	—		4.6
Other assets	0.9		6.7
Total assets	$	1,366.4	$	1,300.0


Liabilities and Stockholders' Equity
Junior subordinated debentures	$	14.3	$	28.4

Accrued underwriting expenses and other liabilities	2.2		10.0
Operating lease liabilities	—		4.6
Due to subsidiaries	21.3		14.0
Intercompany notes payable	31.1		10.1
Total liabilities	68.9		67.1
Stockholders' equity	1,297.5		1,232.9
Total liabilities and stockholders' equity	$	1,366.4	$	1,300.0


STATEMENTS OF INCOME (LOSS)	Successor		Predecessor
	Period from		Period from		For the Years Ended December 31,
	November 16, 2023 through December 31, 2023		January 1, 2023 through November 15, 2023		2022		2021
Revenue:
Net investment expense	$	(0.1)	$	—	$	—	$	—

Total revenue	(0.1)		—		—		—
Expenses:
Interest expense	0.4		2.3		1.6		1.2
Operating expenses	(1.3)		6.8		(0.6)		6.2
Non-operating expenses	2.7		21.3		26.2		0.2

Total expenses	1.8		30.4		27.2		7.6
Net loss before equity in earnings of subsidiaries (1)	(1.9)		(30.4)		(27.2)		(7.6)
Equity in undistributed earnings of subsidiaries	2.8		(180.0)		(148.0)		14.3
Net (loss) income	$	0.9	$	(210.4)	$	(175.2)	$	6.7
Dividends on preferred stock	—		10.5		10.5		10.5
Net (loss) income attributable to common stockholders	$	0.9	$	(220.9)	$	(185.7)	$	(3.8)

(1)Argo Group is not subject to taxation.

See the Report of the Independent Registered Public Accounting Firm.

ARGO GROUP INTERNATIONAL HOLDINGS, INC.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)


	Successor		Predecessor
STATEMENTS OF CASH FLOWS	Period from		Period from		For the Years Ended December 31,
	November 16, 2023 through December 31, 2023		January 1, 2023 through November 15, 2023		2022		2021
Cash flows from operating activities:
Net (loss) income	$	0.9	$	(210.4)	$	(175.2)	$	6.7
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation	—		—		1.5		1.5
Share-based payments expense	—		1.0		2.8		2.3

Loss on disposal of fixed assets	—		—		(3.5)		(3.0)
Undistributed earnings of subsidiaries	(2.8)		180.0		148.0		(14.3)
Change in:
Prepaid assets	—		0.2		(1.8)		7.2
Accrued expenses	(8.0)		10.6		6.0		(4.1)
Due to subsidiaries	5.6		22.7		28.8		(12.1)
Other, net	(2.2)		5.1		4.7		(3.9)
Cash provided by (used in) operating activities	(6.5)		9.2		11.3		(19.7)
Cash flows from investing activities:
Change in short-term investments	—		(3.8)		12.7		(13.9)
Settlements of foreign currency exchange forward contracts	—		2.0		(2.0)		0.5


Dividend received from subsidiaries	—		—		33.3		85.0


Cash provided by (used in) investing activities	—		(1.8)		44.0		71.6
Cash flows from financing activities:



Activity under stock incentive plans	—		0.7		1.8		1.3

Payment of cash dividend to preferred stockholders	—		(10.5)		(10.5)		(10.5)
Payment of cash dividend to common stockholders	—		0.3		(43.4)		(43.7)
Cash used in financing activities	—		(9.5)		(52.1)		(52.9)
Change in cash	(6.5)		(2.1)		3.2		(1.0)
Cash, beginning of period	8.7		5.2		2.0		3.0
Cash, end of year	$	2.2	$	3.1	$	5.2	$	2.0

See the Report of the Independent Registered Public Accounting Firm.