The Argus Group Announces Half Year Results

Net loss of $3.9 million reported for six months ended September 30, 2011

Operational earnings remain strong for the period at $7.1 million

Investment-related provision of $11 million taken against Northstar

Shareholders? equity of $79 million substantially in excess of statutory capital requirements.

Hamilton, Bermuda:  December 19, 2011 - Argus Group Holdings Limited (the "Argus Group") today reports a loss of $3.9 million for the six months ended September 30, 2011 compared to a profit of $9.9 million for the corresponding period in 2010. As in recent years, it is investment related losses that have eroded the strong operational earnings of $7.1 million.

Alison Hill, Chief Executive Officer of the Argus Group, comments: "This result, while disappointing, is viewed as a turning point marking the end of challenging legacy issues in the investment arena. The Balance Sheet now faces substantially less exposure to risks arising from non-core investments. We remain confident that the Argus Group is well positioned for the future with core business units producing continued strong performance of $7.1 million for the half year despite the lingering recession."

The investment related provision of $11 million stems from the uncertainty surrounding the ultimate collectability of the Group?s investment in Northstar Group Holdings Limited.

Net premiums earned in the period increased by 9.6 percent, reflecting new business acquisition and the Group?s continuing efforts to achieve acceptable underwriting ratios through the appropriate adjustments to rates. Meanwhile Net policy benefits, claims and adjustment expenses and Net change in contract liabilities have increased by 6.4 percent reflecting the trend of increasing health care costs both locally and overseas.

In the six months under review, Investment income including Change in fair value of investments decreased by 51.5 percent due to the reduction of interest income as a result of lower interest rates on the Group?s bond portfolio combined with the reduction of markets values on its equity portfolios. The Argus Group continues to de-risk the Balance Sheet in a measured and orderly fashion to mitigate the effect of the volatility in worldwide investment markets, as experienced in recent years.

Commissions, management fees and other income increased modestly due to increased ceding commissions earned by the Group?s Property & Casualty operations.

Operating expenses decreased by 11 percent primarily as a result of the reduction in post-employment medical plan liability, following the decision in the prior year to amend the plan whereby eligibility, benefits and cost sharing were modified for current employees.

In the six months to September 30, 2011 Argus recorded net unrealised losses of $598,000 under Other Comprehensive Income compared to gains of $616,000 in the corresponding period for the prior year. These unrealised losses arose from market movements on financial assets classified as „available for sale? and the negative foreign currency translation adjustment of the Group?s self-sustaining foreign operations of $415,000.

On the Balance Sheet, Total General Fund Assets now stand at $510 million, while Segregated Funds Assets have decreased to $1.1 billion. The Argus Group now has assets of $1.6 billion under its administration. Shareholders? equity at September 30, 2011, is recorded at $79 million, which remains substantially in excess of the statutory capital required to conduct the Group?s various insurance businesses.

Alison Hill added: "These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and represent the initial presentation of results and financial position under IFRS. It should be noted that in order to comply with IFRS, it was required that certain comparative figures were restated."

Alison Hill concludes: "In order to maintain a capital base well in excess of minimum statutory requirements, the Board has decided that the payment of a dividend is not prudent at this time while the Group continues to report a net loss."

-Ends-

Notes to Editors

Argus Group Holdings Limited and its subsidiaries, commonly known as the Argus Group, is a multi-line insurance and financial services organisation offering a full range of insurance, pensions and investment products targeted at local and international organisations and individuals. It is the leader in group health insurance and pension plans in Bermuda.

Certain statements in this release may be deemed to include "forward-looking statements" and are based on management?s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors including worldwide economic conditions, success in business retention and obtaining new business and other factors.

For further information, log on to www.argus.bm.

Media Contacts:

Media Contacts:

Alison Hill David Pugh

Chief Executive Officer Chief Financial Officer

Telephone: 441 294-5725 Telephone: 441 298-0832

E-mail: ahill@argus.bm E-mail: dpugh@argus.bm

Alison Hicks/Elizabeth Tee

Troncossi Public Relations

Telephone: 441 292-5838

E-mail: alison@troncossi.bm