Argonaut Group Inc., a specialty underwriter, and PXRE Group Ltd , a Bermuda-based property reinsurer, announced on Wednesday plans to merge, and the combined entity will do business as Argo Group International Holdings Ltd.

The companies said Argo Group will become the Bermuda holding company for PXRE's existing insurance subsidiaries, Argonaut Group's U.S. operations, and a newly formed Bermuda reinsurer named Peleus Reinsurance Ltd.

At closing, about 73 percent of Argo Group's common stock will be owned by former holders of Argonaut Group and approximately 27 percent will be owned by former holders of PXRE's stock and convertible voting preferred shares.

See tomorrow's Royal Gazette for the full story.