Investments (Tables)

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments

The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and fair value of fixed maturity investments were as follows:


March 31, 2025
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Fixed maturities
U.S. Governments	$	210.5	$	3.0	$	0.3	$	—	$	213.2
Foreign Governments	4.1		0.1		—		—		4.2
Obligations of states and political subdivisions	66.2		1.9		—		—		68.1
Corporate bonds	896.4		23.3		1.2		1.1		917.4
Commercial mortgage-backed securities	305.1		12.6		0.3		—		317.4
Residential mortgage-backed securities	196.7		5.7		—		—		202.4
Asset-backed securities	101.1		3.0		0.1		0.1		103.9
Collateralized loan obligations	86.3		2.9		—		—		89.2
Total fixed maturities	$	1,866.4	$	52.5	$	1.9	$	1.2	$	1,915.8


December 31, 2024
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Fixed maturities
U.S. Governments	$	222.3	$	1.5	$	0.6	$	—	$	223.2
Foreign Governments	7.1		—		—		—		7.1
Obligations of states and political subdivisions	80.1		1.6		—		—		81.7
Corporate bonds	1,033.5		19.4		1.3		0.9		1,050.7
Commercial mortgage-backed securities	276.6		10.0		0.3		—		286.3
Residential mortgage-backed securities	201.0		2.8		0.6		—		203.2
Asset-backed securities	104.9		2.6		0.1		—		107.4
Collateralized loan obligations	107.4		2.1		0.2		—		109.3
Total fixed maturities	$	2,032.9	$	40.0	$	3.1	$	0.9	$	2,068.9

Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of March 31, 2025, by contractual maturity, were as follows:


(in millions)	Amortized Cost		Fair Value
Due in one year or less	$	242.5	$	243.8
Due after one year through five years	778.9		794.1
Due after five years through ten years	136.0		143.0
Due after ten years	19.8		22.0
Structured securities	689.2		712.9
Total	$	1,866.4	$	1,915.8

Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio

Details regarding the carrying value and unfunded investment commitments of Other investments as of March 31, 2025 and December 31, 2024 were as follows:


	March 31, 2025				December 31, 2024
(in millions)	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Investment type
Hedge funds	$	27.0	$	—	$	27.5	$	—
Private equity	258.0		211.9		262.4		214.1

Real estate equity investments	283.4		5.5		282.6		—
Other	5.0		—		4.9		6.8
Total other investments	$	573.4	$	217.4	$	577.4	$	220.9

Schedule of Unrealized Gain (Loss) on Investments

An aging of unrealized losses on our investments in fixed maturities is presented below:


March 31, 2025	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	17.7	$	0.3	$	—	$	—	$	17.7	$	0.3


Corporate bonds	24.1		1.1		2.5		0.1		26.6		1.2
Commercial mortgage-backed securities	28.3		0.2		8.9		0.1		37.2		0.3

Asset-backed securities	13.8		0.1		—		—		13.8		0.1

Total fixed maturities	$	83.9	$	1.7	$	11.4	$	0.2	$	95.3	$	1.9


December 31, 2024	Less Than One Year				One Year or Greater				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities
U.S. Governments	$	17.4	$	0.6	$	—	$	—	$	17.4	$	0.6


Corporate bonds	19.6		1.2		1.7		0.1		21.3		1.3
Commercial mortgage-backed securities	9.7		0.1		8.0		0.2		17.7		0.3
Residential mortgage-backed securities	48.9		0.6		—		—		48.9		0.6
Asset-backed securities	9.9		0.1		—		—		9.9		0.1
Collateralized loan obligations	11.5		0.2		—		—		11.5		0.2
Total fixed maturities	$	117.0	$	2.8	$	9.7	$	0.3	$	126.7	$	3.1

Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the three months ended March 31, 2025 and 2024, respectively:



(in millions)	Corporate bonds		Asset backed securities		Total
Beginning balance, January 1, 2025	$	0.9	$	—	$	0.9

Securities for which allowance was not previously recorded	0.1		0.1		0.2


Additional net increases (decreases) in existing allowance	0.1		—		0.1
Ending balance, March 31, 2025	$	1.1	$	0.1	$	1.2



(in millions)	Foreign Governments		Corporate bonds		Total
Beginning balance, January 1, 2024	$	0.2	$	—	$	0.2

Securities for which allowance was not previously recorded	—		0.1		0.1


Additional net increases (decreases) in existing allowance	(0.2)		0.1		(0.1)
Ending balance, March 31, 2024	$	—	$	0.2	$	0.2

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table presents loans by property type:


	March 31, 2025
(in millions)	Cost		Composition		Loan Count

Apartments	$	109.5	50.2	%	14
Hotel	12.6		5.8	%	1
Industrial	32.8		15.0	%	2
Office	44.1		20.2	%	4
Retail	19.3		8.8	%	2
Total	$	218.3	100.0	%	23


	December 31, 2024
(in millions)	Cost		Composition		Loan Count
Apartments	$	82.5	39.3	%	10
Hotel	12.6		6.0	%	1
Industrial	69.2		32.9	%	3
Office	26.0		12.4	%	1
Retail	19.8		9.4	%	2
Total	$	210.1	100.0	%	17

Schedule of Financing Receivable Credit Quality Indicators

The following table presents our loans by Debt Service Coverage Ratio (“DSCR”):


	March 31, 2025
(in millions)	Cost		Loan Count
Less than 1.00	$	37.4	4
1.00 to 1.50	65.0		8
Greater than 1.5 to 2.0	88.2		6
Greater than 2.0 to 3.0	12.6		1


Total	$	203.2	19


	December 31, 2024
(in millions)	Cost		Loan Count
Less than 1.00	$	12.2	3
1.00 to 1.50	37.1		4
Greater than 1.5 to 2.0	135.7		8
Greater than 2.0 to 3.0	12.6		1


Total	$	197.6	16

DSCR does not include residential mortgage loans, which are included within Apartments property type.

The following table presents loans by Loan To Value:


	March 31, 2025
(in millions)	Cost		Loan Count

Greater than 50.0% to 55.0%	$	22.6	2
Greater than 55.0% to 60.0%	15.1		5
Greater than 60.0% to 70.0%	102.1		8
Greater than 70.0%	78.5		8
Total	$	218.3	23


	December 31, 2024
(in millions)	Cost		Loan Count
Equal to or less than 50.0%	$	1.7	2
Greater than 50.0% to 55.0%	43.2		1
Greater than 55.0% to 60.0%	12.4		1
Greater than 60.0% to 70.0%	47.6		4
Greater than 70.0%	105.2		9
Total	$	210.1	17

Schedule of Financing Receivable, before Allowance for Credit Loss, Maturity

The following table presents loans by maturity:


	March 31, 2025
(in millions)	Cost		Loan Count
One year or less	$	95.4	8
Greater than one year and less than three	48.3		5
Greater than three years and less than five years	17.9		2

Greater than seven years and less than ten years	56.7		8

Total	$	218.3	23


	December 31, 2024
(in millions)	Cost		Loan Count
One year or less	$	34.9	3
Greater than one year and less than three	103.5		7
Greater than three years and less than five years	17.7		2

Greater than seven years and less than ten years	54.0		5

Total	$	210.1	17

Schedule of Company's Investment and Other Gains and Losses

The following table presents our gross realized investment gains and losses:


	For the Three Months Ended March 31,
(in millions)	2025		2024
Realized gains on fixed maturities and other:
Fixed maturities	$	2.2	$	6.8
Other investments, including short-term investments	1.6		2.6

Total realized gains on fixed maturities and other	3.8		9.4

Realized losses on fixed maturities and other:
Fixed maturities	(0.3)		(0.3)
Other investments, including short-term investments	(4.1)		(2.8)

Total realized losses on fixed maturities and other	(4.4)		(3.1)


Other net losses recognized on fixed maturities and other:
Credit losses on fixed maturities	(0.3)		(0.5)
Impairment related to change in intent	(0.2)		—
Other	(2.5)		—
Total other net losses recognized on fixed maturities and other	(3.0)		(0.5)

Equity securities:
Net realized gains (losses) on equity securities	—		0.4
Change in unrealized gains (losses) on equity securities held at the end of the period	13.3		—
Net gains (losses) on equity securities	13.3		0.4

Net investment and other gains (losses) before income taxes	9.7		6.2
Income tax (benefit) provision	2.8		1.6
Net investment and other gains (losses), net of income taxes	$	6.9	$	4.6

Schedule of Changes in Unrealized Appreciation (Depreciation)

Changes in unrealized gains (losses) related to fixed maturity investments are summarized as follows:


	For the Three Months Ended March 31,
(in millions)	2025		2024
Change in unrealized gains (losses)
Fixed maturities	$	9.4	$	(19.9)


Other and short-term investments	(0.2)		(0.4)
Net unrealized investment gains (losses) before income taxes	9.2		(20.3)
Income tax provision (benefit)	2.0		(4.4)
Net unrealized investment gains (losses), net of income taxes	$	7.2	$	(15.9)

Schedule of Fair Value of Foreign Currency Exchange Forward Contracts

The fair value of our foreign currency exchange forward contracts as of March 31, 2025 and December 31, 2024 was as follows:


	March 31, 2025				December 31, 2024
(in millions)	Notional Amount		Fair Value		Notional Amount		Fair Value





Asset manager investment exposure
Open contracts in a gain position	$	—	$	—	$	151.0	$	2.7
Open contracts in a loss position	105.4		(2.3)		—		—
Net open contracts for asset manager investment exposure			(2.3)				2.7
Total			$	(2.3)			$	2.7

Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts

The following table presents our gross realized investment gains and losses on our foreign currency exchange forward contracts:


	For the Three Months Ended March 31,
(in millions)	2025		2024
Realized gains
Operational currency exposure	$	—	$	1.4
Asset manager investment exposure	—		1.2

Gross realized investment gains	—		2.6
Realized losses
Operational currency exposure	—		(2.7)
Asset manager investment exposure	(4.1)		—

Gross realized investment losses	(4.1)		(2.7)
Net realized investment (losses) gains on foreign currency exchange forward contracts	$	(4.1)	$	(0.1)

Schedule of Restricted Assets

The following table presents our components of restricted investments:


(in millions)	March 31, 2025		December 31, 2024
Securities and cash on deposit for regulatory and other purposes	$	167.2	$	180.1
Securities and cash pledged as collateral for letters of credit	42.6		40.1

Total restricted investments	$	209.8	$	220.2

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

Based on an analysis of the inputs, our financial assets and liabilities measured at fair value on a recurring basis have been categorized as follows:


			Fair Value Measurements at Reporting Date Using
(in millions)	March 31, 2025		Level 1		Level 2		Level 3
Fixed maturities
U.S. Governments	$	213.2	$	211.0	$	2.2	$	—
Foreign Governments	4.2		—		4.2		—
Obligations of states and political subdivisions	68.1		—		68.1		—
Corporate bonds	917.4		—		892.6		24.8
Commercial mortgage-backed securities	317.4		—		316.3		1.1
Residential mortgage-backed securities	202.4		—		202.4		—
Asset-backed securities	103.9		—		75.8		28.1
Collateralized loan obligations	89.2		—		85.3		3.9
Total fixed maturities	1,915.8		211.0		1,646.9		57.9
Equity securities	431.3		310.5		—		120.8
Other investments	9.5		—		0.2		9.3
Short-term investments	360.6		360.5		0.1		—
Derivatives	21.5		—		21.5		—
Total assets	$	2,738.7	$	882.0	$	1,668.7	$	188.0

Derivatives	2.9		—		2.9		—
Total liabilities	$	2.9	$	—	$	2.9	$	—


			Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2024		Level 1		Level 2		Level 3
Fixed maturities
U.S. Governments	$	223.2	$	221.0	$	2.2	$	—
Foreign Governments	7.1		—		7.1		—
Obligations of states and political subdivisions	81.7		—		81.7		—
Corporate bonds	1,050.7		—		1,028.0		22.7
Commercial mortgage-backed securities	286.3		—		286.3		—
Residential mortgage-backed securities	203.2		—		203.2		—
Asset-backed securities	107.4		—		93.5		13.9
Collateralized loan obligations	109.3		—		109.3		—
Total fixed maturities	2,068.9		221.0		1,811.3		36.6
Equity securities	413.0		297.5		—		115.5
Other investments	4.7		—		0.2		4.5
Short-term investments	209.1		208.9		0.2		—
Derivatives	24.2		—		24.2		—
Total assets	$	2,719.9	$	727.4	$	1,835.9	$	156.6

Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3

A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Unobservable Inputs (Level 3)


(in millions)	Fixed Maturities		Equity Securities		Other Investments		Total
Beginning balance, January 1, 2025	$	36.6	$	115.5	$	4.5	$	156.6
Transfers into Level 3	14.1		—		4.3		18.4
Transfers out of Level 3	(0.7)		—		—		(0.7)
Total gains or losses (realized/unrealized):
Included in net income	(1.0)		2.0		—		1.0
Included in other comprehensive income	1.9		—		—		1.9
Purchases, issuances, sales, and settlements:
Purchases	7.0		3.3		1.0		11.3

Sales	—		—		(0.5)		(0.5)
Settlements	—		—		—		—
Ending balance, March 31, 2025	$	57.9	$	120.8	$	9.3	$	188.0
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held as of March 31, 2025	$	—	$	2.8	$	—	$	2.8


(in millions)	Fixed Maturities		Equity Securities		Other Investments		Total
Beginning balance, January 1, 2024	$	50.4	$	6.4	$	—	$	56.8
Transfers into Level 3	0.7		—		—		0.7
Transfers out of Level 3	(10.1)		—		—		(10.1)
Total gains or losses (realized/unrealized):					—		—
Included in net income	1.5		28.3		—		29.8
Included in other comprehensive loss	(0.7)		—		—		(0.7)
Purchases, issuances, sales, and settlements:					—		—
Purchases	2.5		80.9		8.3		91.7

Sales	—		(0.1)		(1.6)		(1.7)
Settlements	(7.7)		—		(2.2)		(9.9)
Ending balance, December 31, 2024	$	36.6	$	115.5	$	4.5	$	156.6
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held as of December 31, 2024	$	—	$	28.4	$	—	$	28.4

Schedule of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value

The Company holds certain investments at cost, less an allowance for expected credit losses, on the Condensed Consolidated Balance Sheets. The fair value of the Company’s investments is estimated using a discounted cash flow analysis. Due to the level of unobservable inputs factored into the estimation of fair value, the valuation would be categorized as Level 3. The cost and estimated fair value of these investments were:



	March 31, 2025				December 31, 2024
(in millions)	Cost		Fair Value		Cost		Fair Value
Mortgage loans	$	218.3	$	218.0	$	210.1	$	214.2
Private loans	617.8		624.3		577.3		597.2
Total	$	836.1	$	842.3	$	787.4	$	811.4

A summary of our financial instruments whose carrying value did not equal fair value is shown below:


	March 31, 2025				December 31, 2024
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures:
Trust preferred debentures	$	162.3	$	162.8	$	162.0	$	163.9
Subordinated debentures	81.4		81.3		81.2		81.3
Total junior subordinated debentures	243.7		244.1		243.2		245.2
Senior unsecured fixed rate notes	129.0		119.1		128.8		128.6

	$	372.7	$	363.2	$	372.0	$	373.8

Argo Group International Holdings, Inc. 10-Q