Argus Group: $7 Million Profit Over Six Months
Argus Group Holdings Limited today [Dec 10] announced a net profit of $7 million for the six months ended September 30, 2012, compared to a net loss of $3.9 million for the corresponding period in 2011.
Alison Hill [pictured] Chief Executive Officer of the Argus Group, comments: “The Board and management believes that this welcome return to profit for the Argus Group represents a significant milestone marking the end of challenging legacy issues in the investment arena.
“While net earnings will continue to be influenced by the strengthening of the Balance Sheet, including investment restructuring activities, the significant investment impairments incurred over the last four years are now consigned to the history books.
“We remain confident of a return to more ‘normal’ times for the Group. This confidence stems from the continued strong performance of the core business operations, strong cash flows and the benefits arising from our sustained efforts to optimise the Balance Sheet and capital structure in a considered and orderly fashion.
“The leadership team is focused on delivering excellent service and satisfaction to our customers and long-term sustainable value to our shareholders, while also fulfilling our commitment to the community. I wish to thank our staff for their hard work and dedication to our clients and thank shareholders for their continued loyalty and support.”
A statement said, “On the Consolidated Balance Sheet [PDF here] Total Assets remained steady at $1.7 billion. Shareholders’ equity attributable to shareholders of the company has increased to $91 million, substantially in excess of the statutory capital required to conduct the Group’s insurance and financial services businesses by the regulatory bodies to whom the Argus Group reports.
“Net premiums earned in the period are in line with the prior year reflecting excellent client retention ratios across all lines of business.
“Net benefits and claims increased by 3 per cent primarily as a result of increasing health care costs both locally and overseas, and were enhanced somewhat by the absence of major windstorms or other catastrophic events in the property and casualty businesses of the Group.
“In the six months under review, investment income, including change in fair value of investments, increased by 64 per cent mainly due to unrealised gains emanating from the Group’s fixed income portfolios as short term interest rates declined and the yield curve flattened.
“Commissions, management fees and other were largely maintained due to increased ceding commissions earned by the Group’s property and casualty operations offset by reduced fees arising from its investment-related businesses.
“Operating expenses increased by 10.2 per cent due to the ongoing investment in the infrastructure of the European operations together with the cost associated with the continued strengthening of the management team.
“As stated at the AGM, shareholders should rest assured that the Board considers the declaration of a dividend each quarter and is determined the dividends will be resumed as soon as the Board considers it prudent to do so.”
Wow a projected 14 million dollar profit over 12 months, maybe if you invested our pension funds as successfully our statements would be almost always negative, and maybe these huge profits are impart due to the fact that we get screwed every year by Argus when they raise the health care rates far beyond CPI and above the minuscule pay rise we get, sorry Argus no hoorah from this camp until you start to something for the people that keep you in business
Health premiums go up because of the amount of claims by each company so the more claims that go in the more it will raise your premium talk to your HR department.
It would be nice to know what percentage of Jose profits come from the management contract with Government. For overseeing the Futurecare dental program!!
those… Not Jose…. Gotta love predictive text!
Good Job Argus!