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The Argus Group Announces Earnings Of $15.5 Million
Hamilton, Bermuda, July 4, 2008 - Argus Group Holdings Limited today announced earnings for the year ended March 31, 2008 of $15.5 million.
Gerald Simons, President and Chief Executive Officer of the Argus Group, comments: "After years of putting systems and procedures in place, each of our operating units has achieved better results than ever before. This has been offset by a sharp reduction in investment income precipitated by the adoption of new accounting rules, turbulence in world equity markets and provisions against mortgage loans."
Net premiums earned increased by 5.7 percent reflecting the Group's continuing efforts to achieve acceptable underwriting ratios by appropriate adjustments to premiums. Claims experience has benefitted from increased deductibles and, in certain specific areas, declinations to cover. We are pleased to note that success has been achieved in this regard, as almost all lines of business have demonstrated improved results. This 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 under management increasing by almost 8 percent due to new and continued business.
The Group's health insurance division produced solid results during the year with the overall contribution being better than expected due to lower than anticipated claims.
International life and annuity operations were significantly enhanced by the acquisition in the year of MassMutual Bermuda Ltd, which further improves the position of Argus as a leading offshore insurance provider in this field.
Commissions, management fees and other income increased by 27.1 percent reflecting the fees earned on additional assets under management and ceding or profit commissions earned by our property & casualty operations.
Total General Fund Assets of the Argus Group have increased by $108 million in the year to $644 million. The Group now has assets of over $2 billion under its administration. Shareholders' equity at year-end rose to $260.7 million, an increase of $83 million, or 47 percent, over the prior year, a large part of which is derived from the recognition of significant unrealised gains required to be booked under the new accounting rules in recognition of the investment fair values at the beginning of the year.