Argo Group International Holdings Ltd has placed a $100 million catastrophe bond, the company announced yesterday.Loma Reinsurance Capital Ltd Series 2011-1, which is listed on the Cayman Islands Stock Exchange (CSX), represents Argo’s first cat bond issuance.The re/insurer is the latest player in the Bermuda market to enter the insurance-linked securities (ILS) market this year, after Alterra, Lancashire and Validus.Argo’s bond provides protection against the occurrence of two or more US hurricanes, US earthquakes, European windstorms, or Japan earthquakes. For activation the bond establishes per occurrence minimum loss amounts and is triggered by a second and subsequent event that meets specific loss criteria.Cat bonds offer attractive rates of return for investors who can lose their principal if the specified events occur. For the re/insurer, they offer retrocessional protection that allows them to write more business.The bond has been rated “BB-” by Standard & Poor’s.Argo Group CEO Mark Watson III said: “The timing was right for Argo to enter the ILS market. With increased demand for our products and potentially increasing prices for the reinsurance protection we purchase, this bond will allow us to pursue our underwriting strategies, taking advantage of the market opportunities, knowing that the risk to the Group is substantially reduced.”Also yesterday, AM Best Co affirmed Argo’s financial strength rating of A (excellent) with a stable outlook.The ratings agency said that despite the $113 million of catastrophe losses recorded in the first quarter, Argo Re remains very well capitalised.Best’s ratings also consider Argo’s first quarter 2011 conservative debt-to-capital ratio of 19.9 percent, strong interest coverage and the diversified insurance and reinsurance platform that Argo Re maintains.