Argo Group International Holdings, Ltd. (NYSE:ARGO) announced that it is mailing a letter to shareholders in connection with its 2022 annual meeting of shareholders urging them to vote the Blue proxy card for all seven of Argo's highly qualified director nominees. The annual meeting will be held on December 15 and shareholders of record as of October 26 are entitled to vote at the meeting. In the letter Argo details the ongoing strategic review process the Argo board of is undertaking to evaluate a range of alternatives, including a potential sale of the whole company.

With assistance from Argo's financial advisor, Goldman Sachs & Co. LLC, the company has conducted outreach to more than 80 parties, including a mix of potential strategic buyers and financial sponsors. The process is being led by the strategic review committee of the board, which comprises directors who have significant experience executing M&A transactions and maximizing shareholder value.

Argo is confident the strategic review process is best overseen by the Argo board of directors and its strategic review committee, not by Capital Returns' nominees. The letter said, "Your Board has taken a series of decisive actions to enhance and unlock the value of the business for shareholders. For example, over the last two years Argo has announced significant divestitures to exit international businesses and focus on its most profitable business lines.

The Company has also re-underwritten its core U.S. specialty business, reduced costs and strengthened the management team, including adding five best-in-class C-suite executives to oversee its transformation and manage the Company in its next phase of growth as a U.S. focused specialty insurer. Argo has also announced two major risk transfer transactions, which together will significantly strengthen the Company's financial position and result in the transfer of approximately $954 million in net reserves. Most recently, in August, the Company announced its entry into a Loss Portfolio Transfer (LPT) with Enstar Group Limited for approximately $746 million, which closed on November 9, 2022.

In September, following the announcement of the LPT and in line with Argo's focused approach to profitable growth, the Company announced its entry into an agreement to sell its Argo Underwriting Agency Limited and its Lloyd's Syndicate 1200 to Westfield Ltd. for total cash proceeds of approximately $125 million, subject to closing-related adjustments. These recent announcements are underpinned by an ongoing strategic analysis of our underwriting results and competitive position in all markets in which Argo operates. In addition, the Company previously divested international businesses, including in Brazil and Malta, and its global Ariel Re business.

Following the recent completion of the LPT transaction and the pending sale of our Syndicate 1200 business to Westfield, your Board remains committed to continuing the review of strategic alternatives, better positioning Argo on a path to greater success. The current Board has been conducting a robust and thorough process, and keeping this Board in place will ensure the process is not disrupted or hindered. Your Board's focus throughout this process is choosing the right path that maximizes value for all shareholders".