Argo faces AGM rebellion
Bermuda-based re/insurer Argo Group International Holdings faces a rebellion by minority shareholders at its upcoming annual general meeting (AGM).
Shareholders led by Capital Returns Master seek to place two independent members on its board of directors, shake up executive compensation and name the next auditor, draft resolutions to the AGM show.
Capital Returns Master, one of the largest actively managed fund investors in Argo, said it lacks confidence in the ability of current leadership to achieve profitable growth.
“In light of the company’s poor financial and longstanding stock price underperformance under the oversight of the current board, we strongly believe that the board could use additional skills and expertise,” it said in a note to fellow shareholders.
Overall, the core group behind the resolution owns about 305,000 shares, just under 0.9% of the outstanding common shares at the end of 2021.
The group has named president at Capital Returns Management Ronald Bobman and former National Interstate CEO David Michelson as its candidates. The two bring “extensive transactional and operational insurance industry experience, critically needed skill sets and a shared objective of enhancing value for the benefit of all Argo shareholders”, it said.
Capital Returns Master is also encouraging shareholders to vote against management proposals for executive compensation and to appoint EY as an independent auditor for the coming year.
