ARGUS GROUP REPORTS EARNINGS OF $13.2 MILLION

Hamilton, Bermuda, July 21, 2014 – Argus Group Holdings Limited (the “Group” or the “Argus Group”) today announced earnings of $13.2 million for the year ended March 31, 2014, compared to $12.8 million in the prior year. These positive earnings have been achieved against a backdrop of global economic challenges that have lingered for several years and continued volatility in investment markets. In addition, the board has declared an interim dividend of seven cents per share.

Alison Hill, Chief Executive Officer of the Argus Group, comments: “These positive results are underpinned by strong business fundamentals including continued strong performance by our core business operations, high client retention levels despite fiercely competitive markets and efficient management of operating expenses. In addition, we continue to follow strong governance and risk management processes and to optimise the Balance Sheet and capital structure in a considered and orderly fashion.

“The board and management believe that there are signs that the economic downturn in Bermuda and elsewhere may have bottomed out, but economic recovery will be slow. The Group continues to make progress with its strategic goal of focusing on markets where Argus can grow and earn higher returns within acceptable risk tolerances. Accordingly, we remain confident that the Argus Group is well positioned for the future.”

Shareholders’ Equity now stands at $106.9 million, representing an increase from $94.4 million one year ago, which is substantially in excess of the statutory capital required to conduct the Group’s various insurance and investment related businesses. The result for the year represents a return on average Shareholders’ Equity of 13.2 percent compared to 14.5 percent for the previous year. The earnings per share for the year were $0.63 compared to $0.61 last year. As at March 31, 2014, Total Assets including Segregated Fund Assets stood at $2.1 billion.

Net premiums written increased by $3.0 million or two percent, arising from a combination of new business and very high client retention levels.

Net Benefits and Claims decreased by seven percent as the Group experienced a benign claims year in relation to the health and property and casualty portfolios.

Investment income and share of earnings of associates decreased significantly when compared to the prior year. The accounting policy under International Financial Reporting Standards requires the valuation of the majority of investments to be made at fair value, which can and often does lead to significant volatility of financial results, especially in life and annuity businesses. As a result, the Group reported an unrealised loss on its fixed income portfolios of $5.3 million compared to a $2.7 million gain in the prior year. This arose as the increase in interest rates in the year served to decrease the fair value of the Group’s extensive fixed income portfolios.

Commissions, management fees and other revenue fell two percent compared to the prior year due to decreased profit commissions offset by an increase in management fees in line with the rise in assets under management.

Operating expenses have decreased by three percent over the prior year reflecting the tight budgetary control and monitoring processes exercised by management.

Based upon the financial results of the Group for the year ended March 31, 2014, the board has declared an interim dividend of seven cents per share payable on September 15, 2014 for shareholders of record on August 11, 2014.

-Ends-

Notes to Editors

The Argus Group
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. Through its subsidiary Bermuda Life Insurance Company Limited it is the leader in group health insurance and pension plans in Bermuda.

Certain statements in this report 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, visit: www.argus.bm.

Media Contacts:

Alison Hill                                                        David Pugh

Chief Executive Officer                                              Chief Financial Officer

Telephone: 441 298-0725                               Telephone: 441 298-0832

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

Elizabeth Tee/Kavi Saglani

Troncossi Public Relations

Telephone: 292-5838

E-mail: liz@troncossi.bm