THE ARGUS GROUP REPORTS LOSS

Hamilton, Bermuda - 27 November, 2008 - Argus Group Holdings Limited (AGH.BH) today reported a loss of $42 million for the six months ended 30 September, 2008. This is the first loss in the company's history.

Gerald Simons, President & Chief Executive Officer of the Argus Group, comments: "Changes in accounting rules and unrealized investment losses have produced the Argus Group loss.  The company is well capitalized and has the financial strength to deal with present financial conditions. The company's operating units are performing well and the quarterly dividend of 16 cents per share remains unchanged."

On 1st April 2007 accounting rules were changed to a €˜fair value basis' and at that time the Company was required to increase shareholders equity by $81 million to account for the change in the rules, but was not allowed to reflect that profit in earnings. The effect of the change in accounting rules thereafter was to increase the volatility of earnings  because unrealised gains and losses on all investments that are €˜held for trading' are now recognised in net earnings during the period in which they occur.  During the current six month period under review the change in the value of investments under the new accounting rules was an unrealized loss of $56 million which is a result of the current market conditions.

The Company's operations are performing strongly.  Net premiums earned increased by 5.7 percent. An increase in ordinary investment income was extinguished by the decrease in the value of investments in the six-month period described above.  Commissions, management fees and other income remained stable in the period despite a decrease in the market value of assets under management in the company's various investment-related businesses.

The increase in premiums earned, net of reinsurance, reflects the results of the company's continuing efforts to achieve acceptable underwriting ratios by appropriate adjustments to premiums. The situation has been assisted by the lack of catastrophic events, especially major windstorms.

Operating expenses have increased by eight percent as a result of continuing investment in information systems and additional costs associated with the expansion of the company's international life and annuity division.

In the six months to September 30, 2008, the net unrealized losses recorded as other comprehensive income amounted to $8.9 million and arose from unrealized gains and losses on financial assets classified as "available for sale" together with the foreign-currency translation adjustment of the company's self-sustaining foreign operations.

General account assets of the Argus Group at September 30, 2008, totalled $592 million and segregated funds assets under its control stand at $1.3 billion. In total, the Group now has assets of $1.9 billion under its administration. Shareholder's equity at September 30, 2008, stood at $203 million.

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.

The Argus Group is the largest and most financially secure local insurer in Bermuda, and the second largest domestic company quoted on the Bermuda Stock Exchange.  Argus is rated "A" (excellent) by A. M. Best Company, the most widely recognised insurance rating agency in the world.

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

Media Contacts:

Gerald Simons                                           David Pugh

President and CEO                                    Chief Financial Officer

Telephone             298-0810                       Telephone:        298-0832

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

Elizabeth Tee

Troncossi Public Relations

Telephone:            292-5838

E-mail:              liz@troncossi.bm