XML 112 R40.htm IDEA: XBRL DOCUMENT v3.24.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments
The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and fair value in fixed maturity investments were as follows:
December 31, 2023    
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
Fixed maturities
U.S. Governments$357.7 $4.5 $— $— $362.2 
Foreign Governments27.9 2.6 — 0.2 30.3 
Obligations of states and political subdivisions92.4 2.0 — — 94.4 
Corporate bonds1,185.0 28.9 0.8 — 1,213.1 
Commercial mortgage-backed securities270.9 10.1 0.5 — 280.5 
Residential mortgage-backed securities235.2 13.6 — — 248.8 
Asset-backed securities140.4 1.7 0.1 — 142.0 
Collateralized loan obligations212.0 2.1 — — 214.1 
Total fixed maturities$2,521.5 $65.5 $1.4 $0.2 $2,585.4 

December 31, 2022    
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
Fixed maturities    
U.S. Governments$410.9 $— $30.2 $— $380.7 
Foreign Governments35.6 0.3 6.7 0.8 28.4 
Obligations of states and political subdivisions109.9 0.4 10.1 0.4 99.8 
Corporate bonds1,394.8 0.9 160.0 1.6 1,234.1 
Commercial mortgage-backed securities337.4 — 52.0 — 285.4 
Residential mortgage-backed securities320.0 0.2 50.2 — 270.0 
Asset-backed securities153.4 — 14.2 — 139.2 
Collateralized loan obligations254.4 0.3 16.8 — 237.9 
Total fixed maturities$3,016.4 $2.1 $340.2 $2.8 $2,675.5 
Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity
The amortized cost and fair values of fixed maturity investments as of December 31, 2023, by contractual maturity, were as follows:
(in millions)Amortized
Cost		Fair
Value
Due in one year or less$290.2 $290.8 
Due after one year through five years1,019.7 1,037.4 
Due after five years through ten years322.1 337.7 
Due after ten years30.9 34.1 
Structured securities858.6 885.4 
Total$2,521.5 $2,585.4 
Schedule of Carrying Value Redemption Characteristics and Unfunded Investment Commitments of Other Invested Assets Portfolio
Details regarding the carrying value and unfunded investment commitments of other investments as of December 31, 2023 and 2022 were as follows:
December 31, 2023  
(in millions)Carrying
Value		Unfunded
Commitments
Investment Type  
Hedge funds$56.2 $— 
Private equity250.3 93.4 
Other4.5 — 
Total other investments$311.0 $93.4 
December 31, 2022  
(in millions)Carrying
Value		Unfunded
Commitments
Investment Type  
Hedge funds$54.0 $— 
Private equity264.6 108.9 
Other4.6 — 
Total other investments$323.2 $108.9 
Schedule of Aging of Unrealized Losses
An aging of unrealized losses on our investments in fixed maturities is presented below:
December 31, 2023Less Than One YearOne Year or GreaterTotal
(in millions)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Fixed maturities      
U.S. Governments$— $— $— $— $— $— 
Foreign Governments0.1 — — — 0.1 — 
Obligations of states and political subdivisions0.5 — — — 0.5 — 
Corporate bonds38.7 0.8 — — 38.7 0.8 
Commercial mortgage-backed securities32.2 0.5 — — 32.2 0.5 
Residential mortgage-backed securities2.9 — — — 2.9 — 
Asset-backed securities11.4 0.1 — — 11.4 0.1 
  Collateralized loan obligations21.4 — — — 21.4 — 
Total fixed maturities$107.2 $1.4 $— $— $107.2 $1.4 
December 31, 2022Less Than One YearOne Year or GreaterTotal
(in millions)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Fixed maturities      
U.S. Governments$271.0 $18.1 $109.8 $12.1 $380.8 $30.2 
Foreign Governments16.7 4.9 2.6 1.8 19.3 6.7 
Obligations of states and political subdivisions67.4 4.1 24.3 6.0 91.7 10.1 
Corporate bonds695.1 68.3 519.6 91.7 1,214.7 160.0 
Commercial mortgage-backed securities144.2 18.6 141.2 33.4 285.4 52.0 
Residential mortgage-backed securities88.7 8.8 178.8 41.4 267.5 50.2 
Asset-backed securities93.3 7.5 45.9 6.7 139.2 14.2 
Collateralized loan obligations 181.1 13.3 44.2 3.5 225.3 16.8 
Total fixed maturities$1,557.5 $143.6 $1,066.4 $196.6 $2,623.9 $340.2 
Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss
The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the months ending December 31, 2023 and 2022, respectively:
Predecessor
Foreign GovernmentsObligations of states and political subdivisionsCorporate bondsAsset backed securitiesTotal
Balance, January 1, 2022$0.2 $— $2.2 $0.1 $2.5 
Securities for which allowance was not previously recorded0.4 — 1.8 — 2.2 
Securities sold during the period(0.1)— (0.7)— (0.8)
Reductions for credit impairments— — (1.4)— (1.4)
Additional net increases (decreases) in existing allowance0.2 0.4 (0.3)— 0.3 
Balance, December 31, 2022$0.7 $0.4 $1.6 $0.1 $2.8 
Additions-initial adoption of accounting standard— — — — — 
Securities for which allowance was not previously recorded 0.1 0.5 2.1 — 2.7 
Securities sold during the period — — (0.7)— (0.7)
Reductions for credit impairments— — — — — 
Additional net increases (decreases) in existing allowance 0.3 (0.4)(0.4)— (0.5)
Balance, November 15, 2023
$1.1 $0.5 $2.6 $0.1 $4.3 
Successor
Balance, November 16, 2023$— $— $— $— $— 
Additional net increases (decreases) in existing allowance— — 0.2 — 0.2 
Balance, December 31, 2023$— $— $0.2 $— $0.2 
Schedule of Loans by Property Type The following table presents loans by property type:
December 31, 2023
(in millions)CostCompositionLoan Count
Apartments$76.1 52.6 %16
Hotel22.415.4 %4
Industrial26.018.0 %4
Retail20.314.0 %4
Total$144.8 100.0 %28 

December 31, 2022
(in millions)CostCompositionLoan Count
Apartments$87.4 54.5 %16
Hotel25.015.6 %4
Industrial26.016.3 %4
Retail21.513.6 %4
Total$159.9 100.0 %28 
Schedule of Loans by Debt Service Covenant Ratio
The following table presents our loans by Debt Service Coverage Ratio (“DSCR”):
December 31, 2023
(in millions)CostLoan Count
Less than 1.00$36.2 8
1.00 to 1.5029.4 6
Greater than 1.5 to 2.030.96
Greater than 2.0 to 3.036.06
Greater than 3.0 to 4.012.32
Total$144.8 28

December 31, 2022
(in millions)CostLoan Count
1.00 to 1.50$10.4 2
Greater than 1.5 to 2.060.410
Greater than 2.0 to 3.052.010
Greater than 3.0 to 4.025.84
Greater than 4.011.32
Total$159.9 28
The following table presents loans by Loan To Value (“LTV”):
December 31, 2023
(in millions)CostLoan Count
Equal to or less than 50.0%$12.3 2
Greater than 50.0% to 55.0%9.12
Greater than 55.0% to 60.0%18.94
Greater than 60.0% to 70.0%37.36
Greater than 70.0%67.2 14
Total$144.8 28

December 31, 2022
(in millions)CostLoan Count
Equal to or less than 50.0%$36.7 6
Greater than 50.0% to 55.0%9.12
Greater than 55.0% to 60.0%42.68
Greater than 60.0% to 70.0%71.512
Total$159.9 28
Schedule of Loans by Maturity
The following table presents loans by maturity:
December 31, 2023
(in millions)CostLoan Count
One Year or Less$19.7 4 
Greater than One Year and Less than Three34.9 6 
Greater than Three Years and Less than Five Years32.46
Greater than Five Years and Less than Seven Years17.24
Greater than Seven Years and Less than Ten Years40.68
Total$144.8 28

December 31, 2022
(in millions)CostLoan Count
Greater than One Year and Less than Three$54.8 $10 
Greater than Three Years and Less than Five Years33.86
Greater than Five Years and Less than Seven Years20.44
Greater than Seven Years and Less than Ten Years50.98
Total$159.9 28
Schedule of Company's Gross Realized Investment Gains (Losses)
The following table presents our gross realized investment gains and losses:
SuccessorPredecessor
Period from Period from For the Years Ended December 31,
(in millions)November 16, 2023 through December 31, 2023January 1, 2023 through November 15, 202320222021
Realized gains on fixed maturities and other:   
Fixed maturities$0.1 $0.6 $20.5 $30.6 
Other investments, including short-terms5.4 14.9 34.8 9.8 
Other assets— — — 3.3 
5.5 15.5 55.3 43.7 
Realized losses on fixed maturities and other:
Fixed maturities— (25.7)(29.9)(11.8)
Other investments, including short-terms(5.4)(11.3)(51.1)(18.5)
Other assets— — — (12.5)
(5.4)(37.0)(81.0)(42.8)
Other net losses recognized on fixed maturities and other:
Credit gains (losses) on fixed maturities(0.2)(2.2)(4.6)0.6 
Impairment related to change in intent(1)
— (2.9)(34.2)— 
Other(2)
— (8.4)(55.1)(6.3)
(0.2)(13.5)(93.9)(5.7)
Equity securities
Net realized gains (losses) on equity securities— 6.8 1.2 71.5 
Change in unrealized gains (losses) on equity securities held at the end of the period(0.2)5.5 3.1 (34.1)
Net gains (losses) on equity securities(0.2)12.3 4.3 37.4 
Net investment and other gains (losses) before income taxes(0.3)(22.7)(115.3)32.6 
Income tax (benefit) provision(0.1)(6.8)(10.0)6.2 
Net investment and other gains (losses), net of income taxes$(0.2)$(15.9)$(105.3)$26.4 
(1) Refer to the Loss Portfolio Transfer - U.S. in Note 2, “Recent Acquisitions, Disposals & Other Transactions” for the year ended December 31, 2022.
(2) Refer to the sale of AGSE and Argo Seguros in Note 2, “Recent Acquisitions, Disposals & Other Transactions” for the year ended December 31, 2022.
Schedule of Changes in Unrealized Appreciation (Depreciation)
Changes in unrealized gains (losses) related to investments are summarized as follows: 
 SuccessorPredecessor
Period from Period from For the Years Ended December 31,
(in millions)November 16, 2023 through December 31, 2023January 1, 2023 through November 15, 202320222021
Change in unrealized gains (losses)   
Fixed maturities$64.2 $41.2 $(383.7)$(105.9)
Other and short-term investments0.4 2.0 (0.8)(1.0)
Net unrealized investment gains (losses) before income taxes64.6 43.2 (384.5)(106.9)
Income tax provision (benefit)13.5 7.4 (71.7)(21.5)
Net unrealized investment gains (losses), net of income taxes$51.1 $35.8 $(312.8)$(85.4)
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts
The fair value of our foreign currency exchange forward contracts as of December 31, 2023 and 2022 was as follows:
As of
(in millions)December 31, 2023December 31, 2022
Operational currency exposure$1.8 $5.8 
Asset manager investment exposure(0.5)(0.6)
Total$1.3 $5.2 
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts
The following table presents our gross investment realized gains and losses on our foreign currency exchange forward contracts:
SuccessorPredecessor
Period from Period from For the Years Ended December 31,
(in millions)November 16, 2023 through December 31, 2023January 1, 2023 through November 15, 202320222021
Realized gains   
Operational currency exposure$4.5 $12.0 $30.0 $16.5 
Asset manager investment exposure— 1.5 3.9 3.7 
Total return strategy— — — 13.0 
Gross realized investment gains4.5 13.5 33.9 33.2 
Realized losses
Operational currency exposure(2.9)(11.4)(46.3)(28.9)
Asset manager investment exposure(0.7)(1.0)(0.9)(1.0)
Total return strategy— — — (12.0)
Gross realized investment losses(3.6)(12.4)(47.2)(41.9)
Net realized investment gains (losses) on foreign
   currency exchange forward contracts		$0.9 $1.1 $(13.3)$(8.7)
Schedule of Restricted Assets The following table presents our components of restricted assets:
As of
(in millions)December 31, 2023December 31, 2022
Securities and cash on deposit for regulatory and other purposes$153.4 $149.3 
Securities pledged as collateral for letters of credit and other109.2 169.8 
Securities on deposit supporting Lloyd’s business (1)
— 171.4 
Total restricted investments$262.6 $490.5 
(1) Argo Group was required to maintain Funds at Lloyd’s (“FAL”) to support its business for Syndicate 1200 and Syndicate 1910. At December 31, 2022 the amount of securities pledged for FAL was $171.4 million, which was provided by Argo Re, Ltd. FAL of $123.7 million held by Syndicate 1200 and 1910 was reclassified to Assets held-for-sale. During the second quarter 2023, the funds at Lloyd’s (FAL) previously used to support the activities of AUA and its subsidiaries, were released to the Company. See Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information.
Financial Assets Measured at Fair Value on Recurring Basis
Based on an analysis of the inputs, our financial assets and liabilities measured at fair value on a recurring basis have been categorized as follows:
  Fair Value Measurements at Reporting Date Using
(in millions)December 31, 2023
Level 1 (1)
Level 2 (2)
Level 3 (3)
Fixed maturities    
U.S. Governments$362.2 $360.1 $2.1 $— 
Foreign Governments30.3 — 30.3 — 
Obligations of states and political subdivisions94.4 — 94.4 — 
Corporate bonds1,213.1 — 1,180.5 32.6 
Commercial mortgage-backed securities280.5 — 280.5 — 
Residential mortgage-backed securities248.8 — 248.8 — 
Asset-backed securities142.0 — 124.2 17.8 
Collateralized loan obligations214.1 — 214.1 — 
Total fixed maturities2,585.4 360.1 2,174.9 50.4 
Equity securities10.7 4.3 — 6.4 
Other investments0.2 — 0.2 — 
Short-term investments429.5 429.0 0.5 — 
Derivatives1.3 — 1.3 — 
Total assets$3,027.1 $793.4 $2,176.9 $56.8 
(1) Quoted prices in active markets for identical asset
(2) Significant other observable inputs
(3) Significant unobservable inputs
  Fair Value Measurements at Reporting Date Using
(in millions)December 31, 2022
Level 1 (1)
Level 2 (2)
Level 3 (3)
Fixed maturities    
U.S. Governments$380.7 $378.7 $2.0 $— 
Foreign Governments28.4 — 28.4 — 
Obligations of states and political subdivisions99.8 — 99.8 — 
Corporate bonds1,234.1 — 1,212.1 22.0 
Commercial mortgage-backed securities285.4 — 285.4 — 
Residential mortgage-backed securities270.0 — 270.0 — 
Asset-backed securities139.2 — 120.5 18.7 
Collateralized loan obligations237.9 — 237.9 — 
Total fixed maturities2,675.5 378.7 2,256.1 40.7 
Equity securities43.9 28.4 — 15.5 
Other investments0.3 — 0.3 — 
Short-term investments449.6 449.3 0.3 — 
Derivatives5.2 — 5.2 — 
Total assets$3,174.5 $856.4 $2,261.9 $56.2 
(1) Quoted prices in active markets for identical asset
(2) Significant other observable inputs
(3) Significant unobservable inputs
Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:
Fair Value Measurements Using Observable Inputs (Level 3)
(in millions)Credit FinancialEquity
Securities		Total
Beginning balance, January 1, 2023$40.7 $15.5 $56.2 
Transfers into Level 35.6 — 5.6 
Transfers out of Level 3(5.6)(7.6)(13.2)
Total gains or losses (realized/unrealized):
Included in net income (0.1)(0.4)(0.5)
Included in other comprehensive income0.8 — 0.8 
Purchases, issuances, sales, and settlements:
Purchases10.6 — 10.6 
Issuances— — — 
Sales(0.5)(1.1)(1.6)
Settlements(1.1)— (1.1)
 Ending balance, December 31, 2023$50.4 $6.4 $56.8 
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2023$— $(0.8)$(0.8)
(in millions)Credit FinancialEquity
Securities		Total
Beginning balance, January 1, 2022$2.8 $14.7 $17.5 
Transfers into Level 336.1 1.5 37.6 
Transfers out of Level 3— — — 
Total gains or losses (realized/unrealized):
Included in net income(0.4)(0.7)(1.1)
Included in other comprehensive loss(4.8)— (4.8)
Purchases, issuances, sales, and settlements:
Purchases9.0 1.0 10.0 
Issuances— — — 
Sales(2.0)(1.0)(3.0)
Settlements— — — 
 Ending balance, December 31, 2022$40.7 $15.5 $56.2 
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2022$— $(4.4)$(4.4)
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value As of December 31, 2023, the cost and estimated fair value of the investments in commercial mortgage loans were:
As of
December 31, 2023December 31, 2022
(in millions)CostFair ValueCostFair Value
Commercial Mortgage Loans$144.8 $148.8 $159.9 $150.7 
A summary of our financial instruments whose carrying value did not equal fair value is shown below:
December 31,
 20232022
(in millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Junior subordinated debentures:
Trust preferred debentures$160.8 $165.9 $172.7 $165.8 
Subordinated debentures80.4 83.3 85.9 88.1 
Total junior subordinated debentures241.2 249.2 258.6 253.9 
Senior unsecured fixed rate notes128.0 132.7 140.5 112.7 
Floating rate loan stock (1)
— — 54.7 52.5 
$369.2 $381.9 $453.8 $419.1 
(1) Floating rate loan stock reclassified to liabilities held-for-sale in 2022. See Note 2, “Recent Acquisitions, Disposals & Other Transactions”.
Based on an analysis of the inputs, our financial instruments measured at fair value on a recurring basis have been categorized as follows:
 Fair Value Measurements at Reporting Date Using
(in millions)December 31, 2023
Level 1 (1)
Level 2 (2)
Level 3 (3)
Junior subordinated debentures:    
Trust preferred debentures$165.9 $— $165.9 $— 
Subordinated debentures83.3 — 83.3 — 
Total junior subordinated debentures249.2 — 249.2 — 
Senior unsecured fixed rate notes132.7 132.7 — — 
$381.9 $132.7 $249.2 $— 
(1)Quoted prices in active markets for identical assets
(2)Significant other observable inputs
(3)Significant unobservable inputs
 Fair Value Measurements at Reporting Date Using
(in millions)December 31, 2022
Level 1 (1)
Level 2 (2)
Level 3 (3)
Junior subordinated debentures:    
Trust preferred debentures$165.8 $— $165.8 $— 
Subordinated debentures88.1 — 88.1 — 
Total junior subordinated debentures253.9 — 253.9 — 
Senior unsecured fixed rate notes112.7 112.7 — — 
Floating rate loan stock52.5 — 52.5 — 
$419.1 $112.7 $306.4 $— 
(1)Quoted prices in active markets for identical assets
(2)Significant other observable inputs
(3)Significant unobservable inputs