Specialty reinsurer Argo has had its outlook revised from stable to negative by S&P Global Ratings amid ongoing governance-related issues.
S&P says the recent retirement of Chief Executive Officer Mark Watson could suggest potential shortcomings in the company’s governance framework, including the effectiveness of board oversight.
President of Argo Group US Kevin J. Rehnberg has since been named as Interim CEO with Watson set to continue as a member of the board and as an advisor.
As part of its decision to downgrade Argo S&P cites the potential impact from an ongoing SEC investigation into compensation practices for executives.
S&P says it could revise Argo’s outlook to stable its believes the governance framework and related policies and practices are adequate, internal controls are strong, and the board is independent, effective, and transparent.
Equally, Argo could see its outlook boosted if the SEC investigation concludes without any material adverse findings.
