S&P upgrades Argo to stable

Standard & Poor's (S&P) has revised its outlook on Argo Group US to reflect what it said was improved performance over the past 18 months.

The agency also affirmed the 'BBB-' issuer credit and senior unsecured debt ratings on AGUS, and the 'A-' issuer credit and financial strength ratings on its operating companies.

“The outlook revision reflects Argo's improved operating performance over the past 18 months, as well as management's demonstrated progress towards meeting its stated goals of enhancing the efficiency and profitability of the group's business platform while bettering its enterprise risk management (ERM) capabilities,” said the rating agency.

S&P added that there is little chance for any positive rating actions over the next 24 months but that negative rating actions could be taken if the group's operating results are significantly weaker than its expectations and management's targets; its ERM capabilities deteriorate materially, or are not in line with the group's risk profile; the group experiences significant management turnover; there is material adverse reserve development; or capital adequacy declines significantly.