ARGUS GROUP HOLDINGS LIMITED BECOMES PARENT COMPANY OF THE ARGUS GROUP

Hamilton, Bermuda: 28 November, 2005 - Argus Group Holdings Limited (AGH.BH) has replaced Argus Insurance Company Limited (formerly ARGUS.BH) as the parent company of the Argus Group and now owns all the subsidiary companies of the Group such as Somers Isles Insurance Company Limited and Bermuda Life Insurance Company Limited.  Argus Insurance Company Limited will continue to write property and casualty insurance in its own name and has now become a wholly-owned subsidiary of Argus Group Holdings.

The reorganisation of the Argus Group has taken place under a Scheme of Arrangement in accordance with the Companies Act 1981.  The scheme was agreed by current shareholders on Thursday, November 24 and approved by the Supreme Court and lodged with the Registrar of Companies on Friday, November 25.  All shares of Argus Insurance Company Limited have been cancelled and current shareholders have been allocated new shares of Argus Group Holdings Limited. 

As a result of the reorganisation, trading in shares of Argus Insurance Company Limited on the Bermuda Stock Exchange has ceased.  For each cancelled share of Argus Insurance Company Limited (par value $2.40) shareholders will be allocated 2.4 shares of Argus Group Holdings Limited (par value $1.00 each).  Trading in shares of Argus Group Holdings Limited will commence on Tuesday, November 29, 2005 at an expected opening price of around $11.20.

Gerald Simons, President & Chief Executive Officer of the Argus Group, explains the benefits of restructuring:

"As a result of the reorganisation the parent company of the Argus Group will no longer write insurance in its own name.  The holding company structure is similar to that used by other large Bermudian companies.   The reorganisation will be a positive step given the recent growth of the Argus Group."

The reorganisation will not alter the underlying assets, business or financial position of the companies of the Argus Group.