Argo

S&P said the change reflected uncertainty around Argo’s risk appetite following its $1.1bn acquisition by Brookfield Reinsurance.

The member joined the board in August 2022, two and a half years after ending his activist campaign against the carrier’s management.

The ratings agency has placed under review with developing implications Argo’s A- financial strength ratings, as well as its credit ratings.

The reinsurer said in its Q4 earnings call that Argo’s takeover further diversifies its operations and adds a foundational piece to its expanding P&C activity in the US.

The consideration represents a 48.7% premium to Argo’s share price before the sale of its Lloyd’s business.

The New York-listed carrier has completed its $125mn deal.

Enstar is conducting due diligence around taking on the rest of the Argo back book.

Activist investor Capital Returns had nominated Ron Bobman and David Michelson, but withdrew the nominations on Monday.

The carrier has called this month’s vote ‘a critical moment in Argo’s history’.

The activist investor’s statement comes as a reaction to Argo’s message to investors last Friday ahead of the carrier’s annual shareholder meeting.

The carrier is urging shareholders to appoint all seven of its nominees to the board in an annual meeting next month, amid activist investor pressure.

The Bermudian claimed Ron Bobman and David Michelson’s directorship would ‘diminish’ the board’s capabilities and expertise.