Argonaut Group, Inc. Stockholders Approve Merger Agreement with PXRE Group Ltd. at Special Meeting of Stockholders

  
    
  
  
    
      Argonaut Group, Inc. (NasdaqGS:AGII) today announced that, at its 
      Special Meeting of Stockholders held today in San Antonio, shareholders 
      voted to approve the previously announced merger agreement providing for 
      the merger of Argonaut Group and a wholly owned subsidiary of PXRE Group 
      Ltd. (NYSE:PXT). Subject to the satisfaction or waiver of the remaining 
      conditions set forth in the merger agreement, Argonaut Group and PXRE 
      Group expect to complete the proposed merger in early August 2007.
    
    
      The combined entity will do business as Argo Group International 
      Holdings, Ltd. (“Argo Group”). 
      Argo Group will become the Bermuda holding company for PXRE Group’s 
      existing insurance and other subsidiaries, including its newly formed 
      Bermuda reinsurer Peleus Reinsurance Ltd. and Argonaut Group’s 
      existing operations. Argo Group will trade on the NASDAQ Global Select 
      Market under Argonaut Group, Inc.’s existing 
      ticker symbol, AGII.
    
    
      ABOUT ARGONAUT GROUP, INC.
    
    
      Headquartered in San Antonio, Argonaut Group, Inc. (NasdaqGS:AGII) is a 
      national underwriter of specialty insurance products in niche areas of 
      the property and casualty market, with $3.8 billion in assets. Argonaut 
      Group offers a full line of high quality products and services designed 
      to meet the unique coverage and claims handling needs of businesses in 
      three primary segments: Excess and Surplus Lines, Select Markets, and 
      Public Entity. Members of Argonaut Group include Colony, Argonaut 
      Specialty, Rockwood, Great Central, Grocers Insurance, Trident, and 
      Argonaut Insurance. Information on Argonaut Group and its subsidiaries 
      is available at www.argonautgroup.com.
    
    
      FORWARD-LOOKING STATEMENTS
    
    
      This press release contains certain statements that are “forward-looking 
      statements” within the meaning of Section 27A 
      of the Securities Act of 1933 and Section 21E of the Securities Exchange 
      Act of 1934, as amended. Such statements are qualified by the inherent 
      risks and uncertainties surrounding future expectations generally and 
      also may materially differ from actual future experience involving any 
      one or more of such statements. Such risks and uncertainties include: 
      Argonaut Group’s inability to satisfy the 
      conditions to closing the merger and other risk factors as set forth 
      from time to time in Argonaut Group’s filings 
      with the SEC. The inclusion of a forward-looking statement herein should 
      not be regarded as a representation by Argonaut Group that Argonaut Group’s 
      objectives will be achieved. Argonaut Group undertakes no obligation to 
      publicly update forward-looking statements, whether as a result of new 
      information, future events or otherwise.
    
    
      WHERE TO FIND ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER 
      TRANSACTION
    
    
      In connection with the proposed merger transaction between PXRE and 
      Argonaut Group, Inc., PXRE has filed with the SEC a registration 
      statement on Form S-4 which contains a joint proxy statement/prospectus. 
      PXRE and Argonaut Group, Inc. mailed the joint proxy 
      statement/prospectus on or about June 20, 2007 to their respective 
      shareholders of record on June 4, 2007. Investors and shareholders of 
      PXRE and Argonaut Group, Inc. are urged to read the definitive joint 
      proxy statement/prospectus (including any amendments or supplements 
      thereto) and any other relevant materials regarding the proposed merger 
      transactions because they contain important information about PXRE, 
      Argonaut Group, Inc., and the contemplated merger transaction. The 
      definitive joint proxy statement/prospectus and other relevant 
      materials, and any other documents filed by PXRE with the SEC, may be 
      obtained free of charge at the SEC's web site at http://www.sec.gov. 
      In addition, investors and shareholders may obtain free copies of the 
      documents filed with the SEC by PXRE by directing a written request to 
      Argonaut Group, Inc, Attention: Mark W. Haushill, Chief Financial 
      Officer, 10101 Reunion Place, Suite 500, San Antonio, TX 78216 or by 
      calling 210-321-8400. Investors and shareholders are urged to read the 
      definitive joint proxy statement/prospectus and any other relevant 
      materials before making any investment decisions with respect to the 
      proposed merger transaction. This press release shall not constitute an 
      offer to sell or the solicitation of an offer to buy any securities, nor 
      shall there be any sale of securities in any jurisdiction in which such 
      offer, solicitation or sale would be unlawful prior to registration or 
      qualification under the securities laws of any such jurisdiction. No 
      offering of securities shall be made except by means of a prospectus 
      meeting the requirements of Section 10 of the Securities Act of 1933, as 
      amended.
    
    
      PARTICIPANTS IN THE SOLICITATION
    
    
      PXRE and its directors and executive officers and Argonaut Group, Inc., 
      and its directors and executive officers may be deemed to have 
      participated in the solicitation of proxies from the shareholders of 
      PXRE and Argonaut Group, Inc. in connection with the proposed merger 
      transaction. Information regarding the special interests of these 
      directors and executive officers in the proposed merger transaction is 
      included in the joint proxy statement/prospectus referred to above.