ARGUS GROUP RESPONDS TO A.M BEST DOWNGRADING

Hamilton, Bermuda – 01 March, 2011 – Argus Group Holdings Limited (the “Company”; Ticker: AGH.BH) today filed a response to the financial strength rating of the Company by rating agency A.M. Best.

Today, A.M. Best, the rating agency, announced that it has downgraded the financial strength rating of the principal Bermuda based insurance companies of the Argus Group by one notch, from A- (Excellent) with a negative outlook to B++ (Good) with a stable outlook. A.M. Best describes a rating of B++ (Good) as one which it assigns “to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.”

Alison Hill, Chief Executive Officer of the Argus Group, says: “Naturally we are disappointed by today’s news that our ratings agency, A.M. Best, has downgraded its financial strength and issuer credit ratings for Argus Group Holdings Limited and its subsidiaries. We are however pleased that A.M. Best recognise our strong operating performance and still considers our financial strength rating to be secure, at the same time upgrading us to stable outlook.

“Argus remains financially strong with core business units that are performing well and producing steady cash flow. At September 30, 2010, the company’s half-year, Shareholders’ Equity stood in excess of $107 million, substantially over and above the statutory capital required to conduct the Group’s various insurance businesses.

“The Argus Group is extremely well established in the domestic insurance and pensions markets, having celebrated its 60th year of operations in 2010, and continues to offer a diverse and robust range of high quality products and services. I remain confident that the Argus Group is well positioned to face the challenges ahead as we continue to build on decades of experience and a healthy capital base.”

Notes to Editors

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.

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

A.M. Best Co. Ratings

Index:

AGH Argus Group Holding Limited

AICL – Argus Insurance Company Limited

SIIC – Somers Isle Insurance Company Limited

BLIC – Bermuda Life Insurance Limited

Media Contacts:

Alison Hicks/Elizabeth Tee

Troncossi Public Relations

Telephone: 2925838              

Email: alison@troncossi.bm or  liz@troncossi.bm