KNSL - Argo Group's Turnaround Story Seems Credible And Worth Considering

• After a surge in adverse reserve developments and activist investor involvement, Argo has changed its management team and its strategy, refocusing on what it has always done well.
• The U.S. specialty insurance business, long the franchise's crown jewel, will be the centerpiece and focus of the business, with management looking to maintain strong businesses and grow promising areas.
• The international operations have been dramatically downsized and management is targeting only 10% of premiums from non-U.S.-domiciled risk.
• Expenses have long been too high at Argo, and management is tackling this problem head on.
• Conservative expectations relative to management targets and past results from the U.S. E&S business support near-term upside past $60, and even more if management delivers on the turnaround.

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