Net premiums for the year rose by 13.19% from $45.14 million to $51.10 million. The increase in investment income of $3.19 million was mainly attributable to realized gains of US Dollar equities. Apart from these gains, investment results were flat with an under-performing bond market and Bermuda equity values little changed from the previous year. Interest rates on fixed income securities remained low for most of the year. Commissions, fees and other income were down by $1.08 million in the year reflecting lower commissions earned by pension plans due to competitive pressures in this market.
Claims, benefits and claims expenses increased by just over 6 % over the previous year, a welcome reduction from increases in excess of 10% per annum seen in recent years. "We have worked very hard to put in place a meaningful managed care programme and the reduced level of overseas claims this year is very encouraging" Mr. Simons said. Operating expenses increased considerably this year because of additional staff to implement a new computer system for the Group's "new approach to health care" and to cope with the new business generated by the new pension legislation. A switch to a new IBM 400 computer platform also increased overheads. "We are confident that our new products and administration systems will result in improved earnings in the years ahead thus justifying these expenditures," Mr. Simons concluded.
Total general account assets of the Group now exceed $246 million, separate account assets under management are $313 million and shareholders' equity at March 31, 2000 stands at $91 million, all 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.
Argus also announced a special quarterly dividend of $0.50 per share to shareholders of record on June 30, 2000. The dividend will be paid on July 14, 2000 and is commensurate with record earnings achieved in the fiftieth year of operations of the Company.
Argus also advised that today the Company acquired and retired 100,000 of its own shares. Following this transaction the number of shares in issue will be 5,573,824.
Contacts: Gerald Simons 298-0810
David Pugh 298-0832