Net premiums for the year rose by 20% from $34.61 million to $41.56 million. Investment income, buoyed by the recovery of local equities quoted on the Bermuda Stock Exchange, matched the excellent performance of the previous year. Commissions, fees and other income benefitted from a one-off gain of over $1 million as a result of the termination of a large finite risk contract. This significant gain more than offset the loss of one quarter's management fees from Argus International Management Limited (AIM). The business of AIM was sold to a new Liberty Mutual company effective January 1, 1998 with Argus purchasing a 20% interest in the new company.
Claims, benefits and claims expenses increased by almost 23% in line with expectations. "We continue to view with concern the ever-rising cost of health care services which again have increased at a rate well above the overall level of inflation" Mr. Simons said. Expenses and commissions were tightly controlled rising by 3.65% but, expressed as a percentage of total income, dropped from last year's 21% to 18.8%.
Total assets of the Group, excluding funds managed for clients, now exceed $285 million and shareholders' equity at March 31, 1998 stands at over $75 million, both new milestones for the Group.
Argus Group is a multi-line insurance organisation and the leading provider of employee benefits in Bermuda. Argus is the first and only Bermudian owned insurance company to be rated "A" (Excellent) by A.M. Best the international insurance rating agency.
Contacts:
Gerald Simons 298-0810
299-0769 (pager)
David Carruthers 298-0818