THE ARGUS GROUP ANNOUNCES HALF YEAR EARNINGS OF $6.6 MILLION

Hamilton, Bermuda – 02 November, 2010 – In a filing to the Bermuda Stock Exchange (BSX) Argus Group Holdings Limited (the “Company”; Ticker: AGH.BH) today announces earnings of $6.6 million for the six months ended 30 September, 2010.

• Earnings of $6.6 million for six months ended 30 September, 2010
• Core operations remain strong
• Shareholder‟s equity rose to $107 million up from $97.5 million at 31 March, 2010

Gerald Simons, President & Chief Executive Officer of the Argus Group, comments: “In this, our 60th year of operations, the strength of our core businesses continues to give us confidence for the future despite the ongoing lacklustre performance of investment markets in Bermuda and globally.”

Net premiums written increased by 2.6 per cent, while claims incurred and policy and actuarial benefits fell by 7 per cent. Claims received as a result of Hurricane Igor on 20 September, 2010 were not as severe as anticipated due, in part, to the fact that Igor decreased in intensity from a Category 3 to a Category 1 storm before it reached Bermuda. The reduction in policy benefits incurred is mainly due to health claims falling to normal levels after last year’s excessively high overseas claims costs.

The change in fair value of investments in the period under review was minimal. By contrast, in the corresponding period for the prior year an increase of $10.2 million was recorded. The Argus Group continues to de-risk the balance sheet in a measured and orderly fashion to mitigate the effect of the volatility experienced in worldwide investment markets in recent years. Investment income increased by 14.4 per cent in the period.

Commissions, management fees and other income increased by three per cent in line with the modest recovery in the value of assets under management in various investment-related businesses.

Operating expenses increased by 10.4 per cent during the period as the operating costs of the newly-acquired Fogg Insurance Agencies in Malta, which has over 20 staff, were consolidated into the Group for the first time. Previously, Argus paid the agency a commission for business produced.

In addition, Argus has recruited a number of specialised staff in Bermuda to ensure that it complies with the ever-increasing demands of regulators in the territories in which it operates.

In the six months to 30 September, 2010, Argus recorded net unrealised gains of $4.3 million under other comprehensive income compared to gains of $12.8 million for the corresponding period for the prior year. These unrealised gains arose from market movements on financial assets classified as “available for sale”. The foreign currency translation adjustment of the company’s self-sustaining foreign operations amounted to a gain of $653,000 and is also recorded under other comprehensive income.

On the Balance Sheet, total assets have increased since 31 March, 2010, by $22.3 million to $541 million, whilst segregated funds assets stand at $1.2 billion. The Argus Group now has assets of $1.7 billion under its administration. Shareholders‟ equity at 30 September, 2010, rose to $107 million, up from $97.5 million at 31 March, 2010.

Mr. Simons comments further: “I am sure that at our Annual General Meeting scheduled for next Monday, 08 November, our shareholders will be pleased with these positive results”

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:

Gerald Simons                                        David Pugh

President & Chief Executive Officer        Chief Financial Officer

Telephone: 441 298-0810                      Telephone: 441 298-0832

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

Elizabeth Tee

Troncossi Public Relations

Telephone: 441 292-5838

E-mail: liz@troncossi.bm