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Argus Group Announces Half-Year Results to September 2005
Hamilton, Bermuda: 15th December 2005 - The Argus Group, today announced earnings of $13.1 million for the six months ended September 30, 2005 compared to $8.7 million for the corresponding period in 2004.
The Argus Group's record earnings of $13.1 million for the six months ended September 30, 2005 represent a 50% increase over the results for the corresponding period in 2004. Gerald Simons, President & Chief Executive Officer, for the Argus Group, says "These results reflect the satisfactory results experienced by almost all of our insurance operations combined with significantly enhanced investment returns in the period. We were very fortunate that, in a year of unprecedented storm activity, Bermuda was spared any significant windstorm damage."
Total premium income, net of reinsurance, rose by 29%. Approximately half of this increase was due to the inclusion in the current period of the underwriting results of our two property and casualty acquisitions made at the beginning of the calendar year. The remainder reflects continuing efforts to achieve our targeted underwriting ratios by appropriate adjustments to premiums, especially in the Group Insurance and Property and Casualty divisions. This approach has proved to be successful in all business areas apart from our motor account, which stubbornly remains unprofitable.
Investment income in the six months under review improved by 56%, primarily as a result of increased returns from our portfolio of local equity investments and a gain of $2.8 million from the sale of an overseas equity investment.
Operating expenses and commissions rose by 26% in this period compared to the corresponding period in 2004 due to the aforementioned acquisitions together with necessary additions to staff and computer systems as our businesses continue to grow.
Investment income in the six months under review improved by 56%, primarily as a result of increased returns from our portfolio of local equity investments and a gain of $2.8 million from the sale of an overseas equity investment.
Operating expenses and commissions rose by 26% in this period compared to the corresponding period in 2004 due to the aforementioned acquisitions together with necessary additions to staff and computer systems as our businesses continue to grow.
In the absence of unforeseen catastrophic events, we would expect profits for the year ending March 31, 2006 to exceed those of the prior year.
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UNAUDITED SUMMARY OF CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 (in Bda$ 000's)
2005 2004
Premiums (net of reinsurance) $ 42,844 $ 33,238
Investment income 14,086 9,047
Commissions & management fees 7,982 7,791
64,912 50,076
Claims & benefits 37,518 30,011
Operating expenses & commissions 14,287 11,331
51,805 41,342
Earnings for the period $ 13,107 $ 8,734
Earnings per share
- basic $ 1.80 $ 1.21
- fully diluted $ 1.79 $ 1.18
Restatement to reflect the conversion of $2.40 par value shares in Argus Insurance Company Limited to $1.00 par value shares in Argus Group Holdings Limited following the approval in November 2005 of the Scheme of Arrangement under Section 99 of the Companies Act 1981.
- basic 0.75 0.50
- fully diluted 0.74 0.49
Notes to Editors
Argus Group Holdings Limited and its subsidiaries (The Argus Group) is the largest Bermuda-owned insurance organisation. The first company in the Group was founded in 1950. Argus writes most classes of insurance through specialised property, life and health insurance companies, it is the leader in group health insurance and pension plans in Bermuda. The Argus Group is rated "A" Excellent by the insurance rating agency, A. M. Best.
For further information, log on to www.argus.bm.
Media Contacts: Gerald D. E. Simons David W. Pugh
President & Chief Executive Officer Chief Financial Officer
Tel: (441) 298-0810 Tel: (441) 298-0832
# # #
For more information on the Bermuda Stock Exchange (BSX), contact Joanne DeRoza at 1-441-292-7212 or info@bsx.com. Information is also available at www.bsx.com, on Bloomberg at BSX , and on Reuters at THE BSX.
The BSX was founded in 1971 and is the world's leading fully electronic offshore securities market. The BSX list equities, mutual funds and bonds, as well as depository receipts. The BSX is a full member of the World Federation of Exchanges (WFE) and an affiliate member of IOSCO. In addition, the BSX is recognized by the U.S. Securities & Exchange Commission (SEC) as a Designated Offshore Securities Market under Regulation S, The Financial Services Authority in the UK as a Designated Investment Exchange, The Bermuda Monetary Authority as a Recognised Investment Exchange and an Approved Stock Exchange under Australia's Foreign Investment Funds (FIF) taxation rules.
___________________________________________________________
UNAUDITED SUMMARY OF CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 (in Bda$ 000's)
2005 2004
Premiums (net of reinsurance) $ 42,844 $ 33,238
Investment income 14,086 9,047
Commissions & management fees 7,982 7,791
64,912 50,076
Claims & benefits 37,518 30,011
Operating expenses & commissions 14,287 11,331
51,805 41,342
Earnings for the period $ 13,107 $ 8,734
Earnings per share
- basic $ 1.80 $ 1.21
- fully diluted $ 1.79 $ 1.18
Restatement to reflect the conversion of $2.40 par value shares in Argus Insurance Company Limited to $1.00 par value shares in Argus Group Holdings Limited following the approval in November 2005 of the Scheme of Arrangement under Section 99 of the Companies Act 1981.
- basic 0.75 0.50
- fully diluted 0.74 0.49
Notes to Editors
Argus Group Holdings Limited and its subsidiaries (The Argus Group) is the largest Bermuda-owned insurance organisation. The first company in the Group was founded in 1950. Argus writes most classes of insurance through specialised property, life and health insurance companies, it is the leader in group health insurance and pension plans in Bermuda. The Argus Group is rated "A" Excellent by the insurance rating agency, A. M. Best.
For further information, log on to www.argus.bm.
Media Contacts: Gerald D. E. Simons David W. Pugh
President & Chief Executive Officer Chief Financial Officer
Tel: (441) 298-0810 Tel: (441) 298-0832
# # #
For more information on the Bermuda Stock Exchange (BSX), contact Joanne DeRoza at 1-441-292-7212 or info@bsx.com. Information is also available at www.bsx.com, on Bloomberg at BSX , and on Reuters at THE BSX.
The BSX was founded in 1971 and is the world's leading fully electronic offshore securities market. The BSX list equities, mutual funds and bonds, as well as depository receipts. The BSX is a full member of the World Federation of Exchanges (WFE) and an affiliate member of IOSCO. In addition, the BSX is recognized by the U.S. Securities & Exchange Commission (SEC) as a Designated Offshore Securities Market under Regulation S, The Financial Services Authority in the UK as a Designated Investment Exchange, The Bermuda Monetary Authority as a Recognised Investment Exchange and an Approved Stock Exchange under Australia's Foreign Investment Funds (FIF) taxation rules.