(Bloomberg) -- Argo Group International Holdings Ltd. said Chief Executive Officer Mark Watson stepped down as the insurer faces a regulatory investigation over compensation practices.
Watson, who is retiring immediately, will be replaced on an interim basis by Kevin Rehnberg, according to a statement Tuesday. Watson will continue to work as an adviser and board member until Dec. 30.
The Securities and Exchange Commission is looking into compensation issues at the Bermuda-based insurer. The company said it's fully cooperating. An activist investor, Voce Capital Management, accused Argo of inappropriate corporate expenses earlier this year and the company previously said the claims reflect “little regard for the truth.”
“The independent directors of the board continue to conduct their review of governance and compensation matters,” the insurer said in Tuesday's statement. “The company continues to believe that the amounts involved are not material.”
Rehnberg was previously chief administrative officer and head of the Americas. Argo said that it would report earnings a day earlier than previously planned, releasing results after the market closes on Nov. 6 with a call on the following day.
To contact the reporter on this story: Katherine Chiglinsky in New York at kchiglinsky@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Dan Reichl, Josh Friedman
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