Seeking Alpha: Can Argo Group Self-Improve Enough?

I try to spend most of my investment research time on companies that I believe are well-run, or at least run better than the Street believes, but I can't deny that there can be significant rewards from investing in inferior companies in the process of getting better. That brings me to Argo Group (AGII). Argo has just not been a particularly good specialty insurance company, as its combined ratio and underwriting profitability have lagged its peer group for most of the past decade.

Management is trying to fix the situation, and with three straight quarters of underwriting profitability there may be some reasons for hope. The Street certainly thinks so, as the shares are up more than 30% over the past year. I do have my doubts as to whether management can hit the goal of 10% returns on equity, but the shares don't really seem overpriced today and there should be further upside if these self-improvement efforts bear more fruit.

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Can Argo Group Self-Improve Enough?