Argo Group International Holdings, Ltd. (NASDAQ:AGII)

rorshey (89.46) Submitted: 2/21/2008 12:44:36 PM : Start Price: $35.81 AGII Score: -4.32

PROS:

.89 Capacity Ratio.

1.3B surplus for Internation/Specialty (Re)

Trades less than BV.

High growth prospects.

Merger creates synergy and Peleus adds high growth aspect to stable portion of business.

CONS:

Systematic Risk - mainly subprime issues. Can also be unsystematic, depending on Argo's exposure to subprime market in their investment portfolio.

Weak Re and Insurance pricing. High competition and uncertainty of catastrophic weather events and global warming (how real is it?).