Argo Group International Holdings Ltd. has increased its loss estimates for Hurricane Ike by $15 million, following a string of Bermuda-based insurers who have done the same thing.

On Friday, the company also announced the formation of a Casualty and Professional Risks division within Argo Re, its Bermuda-based reinsurance operation.

The increase in loss estimate from what may prove to be the third costliest storm in insurance industry history was mainly allocated to Argo Group's International Specialty segment which accounted for $12.1 million. The balance was incurred by Argo's reinsurance segment.

Argo Group had previously announced pre-tax losses attributed to Ike and Gustav including reinstated premiums and net of estimated insurance recoveries of $60 million for the third quarter in 2008.

Argo also said the fourth quarter of 2008 will result in a net realised loss on a pre-tax basis of $16.7 million associated with its investment portfolio.

Other Bermuda-based insurance companies hard hit by hurricane Ike include Arch Capital Group, which last week increased its loss estimate for Ike by $160 million after having stated in September that they thought Ike and Gustav would cost the company $105 million to $180 million.

XL is reported to have to pay $221 million in claims related to Ike and Gustav while PartnerRe's claims related to Ike are estimated at $305 million. The corresponding figure for Axis is $371 million.

Nigel Mortimer will head Argo Re's new Casualty and Professional Risk division which will write lines including general and product liability, product recall, excess directors' and officers' liability, with capacity limits of up to $25 million.

As chief underwriting officer for the Casualty and Professional Risk division Mr. Mortimer will report to Argo Re President Andrew Carrier. He will lead a team of underwriters including Mark Peeters, Glenn Burles, Timothy Hadler and Deirdre Lohan.

Mr Mortimer explained that he saw his new role as a great opportunity to connect a strong balance sheet with one of the best underwriting teams in the industry. Argo has great infrastructure and expertise which can capitalise on the current dislocation in the market place, he said. Mr Mortimer joins Argo Re with nearly two decades of experience in the casualty sector. Most recently he was director of product development for XL Insurance worldwide.

Argo Group also announced that the president of its US operations, Dale Pilkington, will be leaving the company as of May 1, 2009.

Chief executive officer Mark E. Watson III and chief financial officer Jay Bullock will jointly assume Mr. Pilkington's responsibilities until a successor is named.

Argo Group expects to release its year end and fourth-quarter results on February 12.