Argo

The expenses were made public in a disclosure to investors on Friday.

AM Best issued a cruel blow to the sense of a new dawn at Argo with a ratings downgrade and a negative outlook, largely citing corporate governance concerns.

The ratings agency said the action follows Argo’s response to a recent SEC subpoena.

Argo kicked off a new era under new leadership as it looked to rebuild bridges with external stakeholders after a bruising 2019, hinting at a bold plan to “simplify, reduce and eliminate”.

The Bermudian has put its corporate jet up for sale in wake of public criticism over expenses.

Argo reported an operating loss of $2.15/sh, including a $114mn underwriting loss that was mainly the result of a $77mn reserve charge tied to its London, Bermuda, and European operations.

Argo continued to drip feed details of its negotiated settlement with activist Voce, with two new board members.

Dr Bernard Bailey and Fred Donner will stand for election at the Argo annual shareholders meeting on 16 April.

Argo announced the widely expected permanent appointment of Kevin Rehnberg to the CEO position. It also announced that former Allied World CFO Tom Bradley had been made chairman of the board.

The leadership moves come after a year of activist investor-driven turmoil at the carrier.

Interim CEO Kevin Rehnberg begins his tenure in time-honored tradition when taking over a P&C company at a “challenging” time: reserve charges, impairment charges and higher loss picks.

Interim CEO Kevin Rehnberg said the results were “clearly unacceptable”.