Net premiums for the year rose by 8.6% from $41.56 million to $45.14 million. The increase in investment income of $1.42 million was mainly attributable to realized gains on US Dollar equities. Apart from these gains, investment results were flat in a very difficult year for investors which featured turbulence in the world's equity markets and low interest rates on fixed income securities. Commissions, fees and other income were down by $0.79 million in the year but this year's income does not include nine months of management fees from Argus International Management Limited (AIM) following the sale of its business; nor does it have the benefit of the one off gain of over $1 million enjoyed the previous year. Omitting these two factors, this source of income shows a healthy increase.
Claims, benefits and claims expenses increased by almost 11.50% following a 23% increase in the previous year. Mr. Simons commented that "We remain concerned about the ever-rising cost of health care services which continues to grow at a rate well above the overall level of inflation".
Expenses and commissions were again well under control and actually reduced by 4.5%. Some of this reduction is, of course, attributable to the removal of nine months' expenses relating to AIM.
Total assets of the Group now exceed $320 million and shareholders' equity at March 31, 1999 stands at $82 million, both new milestones for the Group.
The Argus Group is a multi-line insurance organization 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.