ARGUS GROUP REPORTS EARNINGS OF $1.6 MILLION

Hamilton, Bermuda – 16 December, 2013 – Argus Group Holdings Limited (the “Group” or the “Argus Group”; Ticker: AGH.BH) today announced a net profit of $1.6 million for the six months ended September 30, 2013, compared to a net profit of $7.1 million for the corresponding period in 2012.

•               Argus records $1.6 million profit

•               Continued strong performance from core business operations of $7.5 million profit

•               Shareholders’ Equity has increased to $96.1 million

•               Total assets remained steady at $1.9 billion

•               Dividend declared of six cents per share

Alison Hill, Chief Executive Officer of the Argus Group, comments: “Although modest, this profit is supported by strong performance from our core business operations of $7.5 million as a result of achieving high client retention levels in a competitive environment and managing operating expenses. 

“The recent uncertainty in fixed income investment markets worldwide resulted in the Group incurring unrealised investment losses. The losses are regarded by management as a short-term setback to the otherwise positive development of Group Net Earnings.

“The efforts towards Balance Sheet strengthening, including investment restructuring activities, continue to focus upon the longer term by closely matching the Group’s liabilities with appropriate assets in a considered and orderly fashion.

 “The leadership team is focused on delivering excellent products and services to our customers, on delivering long-term sustainable value to our shareholders and delivering on our commitment to the community.”

On the Consolidated Balance Sheet, Total Assets remained steady at $1.9 billion. Shareholders’ equity attributable to shareholders of the company has increased to $96.1 million, substantially in excess of the statutory capital required to conduct the Group’s insurance and financial services businesses by the regulatory bodies to whom the Argus Group reports.

Net premiums earned in the period fell by 7 per cent compared with the year prior reflecting the lingering recession in Bermuda as clients continue to seek ways in which to reduce costs.

Net benefits and claims decreased by 18 per cent primarily due to lower than anticipated claims both locally and overseas, and were enhanced by the absence of major windstorms or other catastrophic events in the property and casualty businesses of the Group.

In the six months under review, the Group reported an Investment loss of $3.2 million due mainly to unrealised losses emanating from its fixed income portfolios.

Commissions, management fees and other increased in the period due to increased ceding commissions earned by our property and casualty operations and improved fees arising from its investment-related businesses.

Operating expenses decreased by 4 per cent as certain cost containment measures implemented recently by management took effect.

The Board has declared a dividend of six cents per share payable on February 28, 2014 for shareholders of record on January 15, 2014. This represents a final dividend based upon the audited financial statements of the Group for the year ended March 31, 2013.

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:

Alison Hill                                                       

Chief Executive Officer                                             

Telephone:      441 298-0725                         

E-mail:             ahill@argus.bm                                              

David Pugh

Chief Financial Officer

Telephone:      441 298-0832

E-mail:             dpugh@argus.bm

Natasha Beynon                                                        

Troncossi Public Relations                                       

Telephone:      441 292-5838                         

E-mail:             natasha@troncossi.bm