Argus is the first indigenous Bermudian insurance company to be rated by A.M. Best. The company is publicly traded on The Bermuda Stock Exchange ("The BSX") and is the fourth largest locally traded Bermudian company in terms of market capitalization, behind the two Bermuda Banks and a Bermuda public utility. Argus has consistently had excellent operating results, strong capitalization, superior leverage and liquidity ratios. It also benefits from advanced underwriting and claims technology.
During its fiscal year (ended March 31, 1997), the group achieved growth in shareholders equity, earnings per share and assets. The group also increased its market share in motor insurance, launched a new pension product and created an Internet site to give customers access to on-line motor insurance quotations.
In spite of the depressed Bermuda stock market, Argus' share price rose 14% in its 1997 fiscal year. Combined with a 5.7% dividend, this share price increase provided shareholders with a total return of nearly 20%.
These positive factors are offset by the small customer base in Bermuda, which has approximately 60,000 permanent residents. However, despite the limitations of the Bermuda market, Argus' pension plans grew by 15% in fiscal year 1997, providing $17.5 million in deposits. The newly redesigned pension plans reflect modern investment strategies and pending changes in Bermuda pension legislation. Total group net premium income grew to over $34.6 million, and management continues to explore marketing opportunities overseas.
A.M. Best believes these types of initiatives will solidify Argus' competitive position therefore, the long-term rating outlook is stable.
A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source.