ARGONAUT ACQUIRES FRONT ROYAL

In a move to expand its specialty insurance services, Argonaut Group Inc. signed a definitive agreement to acquire Morrisville, N.C.-based Front Royal Inc. for $165 million in cash. Argonaut stated the purchase should add to its earnings per share from the first year. The transaction has been approved by the boards of directors of both companies and is expected to be completed during the third quarter of 2001. Front Royal wrote $147.1 million in premiums as of Dec. 31, 2000, and its total assets as of that date were $464.9 million.