THE ARGUS GROUP REPORTS 2009 RESULTS

Hamilton, Bermuda - 03 July, 2009 - Argus Group Holdings Limited (AGH.BH) announced a net loss of $115.7 million for the year ended 31 March, 2009. This is the first ever loss in the company's nearly 60year history.

· Core business units continue strong performance

· Argus remains heavily capitalized to support operations

· Unrealized investment losses reflected in results

· Dividend maintained

Gerald Simons, President & Chief Executive Officer of the Argus Group, comments: "First and foremost the Argus Group remains a very strong company. This year's earnings have been severely impacted by this most difficult of financial climates from which none appear to be immune. It is reassuring that, despite this, all of our core business units continue to perform well. Most importantly, the Group retains strong cash flow and more than adequate capital to support its businesses, holding well in excess of the minimum statutory requirements. The Board of Directors has maintained the uarterly dividend of 16 cents per share.

"The majority of investment losses reported in 2009 and 2008 are unrealized losses, which should reduce as markets normalise."

The company attributes these losses primarily to the instability in worldwide investment markets and the global economic recession. The anticipated greater level of volatility in investment earnings resulting from the adoption of new accounting rules in 2008, was exacerbated by unprecedented instability in financial markets.

The company's core businesses continue to perform strongly. This situation has been assisted by the lack of catastrophic events, especially major windstorms. Gross premiums earned increased by 6 percent 2 reflecting the Group's continuing efforts to achieve acceptable underwriting ratios by appropriate adjustments to premiums. Claims, benefits and claims expenses rose by 14.6 percent over the prior year, reflecting a return to more normal underwriting results, particularly in the area of health claims. In

addition it was necessary to strengthen actuarial reserves as investment values fell during the year.

Property and Casualty remains strong

The Property and Casualty division of the Argus Group enjoyed another successful year with all main insurance classes producing positive underwriting results. Premium income increased due to the Group's ability to achieve high levels of customer retention through quality service backed by tailored insurance solutions. The outlook for the division remains strong, with a focus on profitability, maintaining disciplined underwriting and pricing, as well as increasing customer choice with the planned introduction of new products.

A Satisfactory year for Group Insurance

The health insurance division achieved results in line with expectations. Claims volumes returned to relatively normal levels, after the unusually low levels experienced last year. Medical cost inflation has continued to outpace the general rate of inflation due to increasing customer expectations, new medical technologies, more reliance on expensive drugs and an ageing population.

Pensions well positioned for the year ahead

The pension division continued to attract new local and international business, whilst retaining its existing portfolio of clients despite turbulence in the financial markets. During 2009, the Argus Select Funds, used by a large number of pension clients, performed well compared to other similar funds in the Bermuda pension market through an emphasis on capital preservation and downside risk protection.

Commissions, management fees and other income remained stable despite the decrease in fees based on market values of assets under management in our various investment related businesses, which was 3 partially offset by enhanced ceding and profit commissions earned by our property and casualty operations.

Included in Amortisation, depreciation and impairment is the write down of intangible assets which has increased as the Group recognized a $7.5 million reduction in the value attributed to the acquisition of Tremont International Insurance Ltd (now renamed

Argus International Life Bermuda Limited), as the Madoff fraud came to light. The Argus Group continues to pursue all aspects of potential recovery available to the Group and policyholders.

Careful management of the operating expenses of our core businesses ensured that cost growth was contained below inflation over the period.

Total General Fund Assets of the Argus Group have reduced by $115 million in the year to $529 million. The Group now has assets of $1.5 billion under its administration. Shareholders' equity at year end stood at $114.8 million.

About Argus Group

Argus Group Holdings Limited and its subsidiaries, commonly known as the Argus Group, is a multiline 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 "forwardlooking 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 Contact:

Gerald Simons

President and Chief Executive Officer          Telephone 298-0810

Email:              gsimons@argus.bm

David Pugh

Chief Financial Officer                                   Telephone: 298-0832

Email:              dpugh@argus.bm

Elizabeth Tee/Alison Hicks

Troncossi Public Relations                             Telephone: 292-5838

Email:              alison@troncossi.bm