HCC to Purchase $34.6M of Argonaut

Argonaut Group Inc. (Nasdaq:AGII) announced yesterday that it had signed a definitive agreement with HCC Insurance Holdings Inc. (NYSE:HCC) to lead a private placement of $58 million in new equity capital in the form of convertible preferred stock. This investment will enable Argonaut to increase the statutory surplus of their insurance company subsidiaries and their Risk Based Capital. The agreement calls for HCC to purchase at least $34.6 million of Argonaut Group preferred stock, which is convertible at the option of the holder at any time into Argonaut Group common stock (9.9% of the f...