Last 6 Months: Argus Makes $6.6 Million
Argus Group Holdings Limited today [Nov 2] announces earnings of $6.6 million for the six months ended September 30, 2010.
Gerald Simons, President & Chief Executive Officer of the Argus Group, comments: “In this, our 60th year of operations, the strength of our core businesses continues to give us confidence for the future despite the ongoing lacklustre performance of investment markets in Bermuda and globally.”
Net premiums written increased by 2.6 per cent, while claims incurred and policy and actuarial benefits fell by 7 per cent. Claims received as a result of Hurricane Igor on September 20, 2010 were not as severe as anticipated due, in part, to the fact that Igor decreased in intensity from a Category 3 to a Category 1 storm before it reached Bermuda. The reduction in policy benefits incurred is mainly due to health claims falling to normal levels after last year’s excessively high overseas claims costs.
The change in fair value of investments in the period under review was minimal. By contrast, in the corresponding period for the prior year an increase of $10.2 million was recorded. The Argus Group continues to de-risk the balance sheet in a measured and orderly fashion to mitigate the effect of the volatility experienced in worldwide investment markets in recent years. Investment income increased by 14.4 per cent in the period.
Commissions, management fees and other income increased by three per cent in line with the modest recovery in the value of assets under management in various investment-related businesses.
Operating expenses increased by 10.4 per cent during the period as the operating costs of the newly-acquired Fogg Insurance Agencies in Malta, which has over 20 staff, were consolidated into the Group for the first time. Previously, Argus paid the agency a commission for business produced.
In addition, Argus has recruited a number of specialised staff in Bermuda to ensure that it complies with the ever-increasing demands of regulators in the territories in which it operates.
In the six months to September 30, 2010, Argus recorded net unrealised gains of $4.3 million under other comprehensive income compared to gains of $12.8 million for the corresponding period for the prior year. These unrealised gains arose from market movements on financial assets classified as ‘available for sale’. The foreign currency translation adjustment of the company’s self-sustaining foreign operations amounted to a gain of $653,000 and is also recorded under other comprehensive income.
On the Balance Sheet, total assets have increased since March 31, 2010, by $22.3 million to $541 million, whilst segregated funds assets stand at $1.2 billion. The Argus Group now has assets of $1.7 billion under its administration. Shareholders’ equity at September 30, 2010, rose to $107 million, up from $97.5 million at March 31, 2010.
Mr. Simons comments further: “I am sure that at our Annual General Meeting scheduled for next Monday, November 08, our shareholders will be pleased with these positive results”
The Lighthouse has got it’s light back on!!^^