The Argus Group Announces Earnings Of $36.9 Million - Releases Preliminary Results For The Year Ended March 31, 2007

Hamilton, Bermuda:  June 7, 2007  - Argus Group Holdings Limited today announced earnings for the year ended March 31, 2007 of $36.9 million up 36.8 percent from the previous year representing a 24.8 percent return on opening shareholders' equity.

Gerald Simons, President and Chief Executive Officer of the Argus Group, comments:

"We are pleased to report that the Group's strategy of focusing on growth by building upon the strong foundations of our core businesses - life, pensions, health and property & casualty insurance - has yielded satisfactory results in all our business areas. This, together with enhanced commission income and the maintenance of strong investment returns have combined to produce record earnings for the year ended March 31, 2007."

The increase in premiums earned, net of reinsurance, reflects new business acquired and the results of our continuing efforts to achieve acceptable underwriting ratios by appropriate adjustments to premiums. These efforts, combined with stricter selection of risks, have now begun to produce results as all insurance lines have improved performance. The situation has been assisted by the lack of catastrophic events, especially major windstorms, and a lower than anticipated level of overseas medical claims.

The pension division experienced growth in the year with assets increasing by 14 percent due to a combination of investment performance and significant new business. 

International life and annuity operations were significantly enhanced by the acquisition in the year of Tremont International Insurance Ltd.

Thanks to generally favorable investment markets, investment income increased by 7.1 percent to $32.7 million.

Commissions, management fees and other income rose by 34.6 percent reflecting the fees earned on additional assets under management and ceding commission received on increased reinsurance premium ceded by our property & casualty operations reflecting growth in gross premiums written.

The Group reported that operating expenses and commissions increased by 12.6 percent in the year primarily as a result of additional investment in information systems and the hiring of related specialist staff as the need to keep our computer systems up-to-date becomes ever more important in our growing businesses.

General account assets of the Argus Group at March 31, 2007 totalled $533 million and separate account assets under its control increased to just over $1 billion.  In total the Group now has assets of $1.535 billion under its administration.  Shareholders' equity at year-end had risen to $177 million, up from $148 million one year before.

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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.