Argus Group Reports 2011 Results
Argus Group Holdings Limited Friday [July 15] announced a net loss of $5.7 million for the year ended March 31, 2011, compared to a net loss of $18.4 million in the prior year.
Alison Hill, Chief Executive Officer of the Argus Group, comments: “Every one of our seven business units recorded excellent results for the period, generating earnings in the region of $20 million against the backdrop of a continued recession. We were disappointed that a further deterioration in the value of certain of our investments, primarily in Bermuda, resulted in a net loss of $5.7 million for the year ended March 31, 2011.”
“Shareholders’ Equity stood at $82 million, substantially in excess of the statutory capital required to conduct the Group’s various insurance businesses. All business units continue to deliver strong performance, are producing steady cash flows and are well placed to capture growth as the local and global economies start to recover.”
“At September 30, 2010, the half year, we reported net earnings of $6.6 million and we were optimistic of meeting our annual earnings target. However, in the second half of the year the further diminution in value of $9 million to our equity portfolio, principally in local investments and $17.5 million against potential non-performing investments in the hospitality sector and local mortgages, have combined to produce negative earnings. The balance sheet now faces substantially less exposure to material risks arising from non-core investments and enables Argus to build on its history of over 60 years of service to Bermuda.”
“Without these investment-related losses the earnings would have produced net income in the region of $20 million for the year, generated through the achievement of very high client retention levels and substantially exceeding our new business targets across all business lines.”
“The reduction in value of local investments over recent years has led to the diminution in surplus capital available for distribution to shareholders as a dividend. In light of this and to ensure that we continue to maintain a capital base that is well in excess of minimum statutory requirements, the dividend payment to shareholders will be temporarily suspended.”
“During the year Shareholders’ Equity was reduced to $82 million by the net loss of $5.7 million, cash dividends of $8.4 million and Other Comprehensive Loss of $1 million.”
“Net premiums written increased by 4 percent, arising from new business and our continuing efforts to achieve acceptable underwriting ratios through appropriate adjustments to premiums. Overall, Claims, Policy and Actuarial benefits decreased by 6 percent over the prior year due to lower than anticipated claims experience in overseas health care costs and our property and casualty businesses, partially offset by the trend of increasing local healthcare costs.”
“Revenues from commissions, management fees and other income rose by 6.3 percent compared to 2010, primarily reflecting the increase in the market value of assets under management in our various investment-related businesses and the continued growth of ceding and profit commissions earned by our property and casualty operations.”
“The containment of Operating expenses is a key strategic objective for management and the increase for the year was 1.9 percent, well below inflation.”
“At March 31, 2011, total General Fund Assets of the Argus Group are $522 million. The Group now has $1.7 billion under its administration.”
This is scary!
Argus has been robbing me for years. Snakes!