Argus Group Announces Operating Results

June 24, 2024 | 0 Comments

Argus Group today announced net income for the year ended 31 March 2024 of $7.3 million, compared to $15.6 million in the previous year as restated for IFRS 17

A spokesperson said, “This IFRS reported net income was impacted by one-off adjustments from the transition to IFRS 9 and 17, and exceptional project costs. Net operating earnings for the year, reflecting the performance of the business excluding non-recurring expenses, were $18.5 million compared to $19.3 million in the prior year.”

Argus Chief Executive Officer, Alison Hill, stated: “The transformations to our business in recent years, from operating model changes to revenue source diversification, have provided significant benefits this year. Our multifaceted sources of revenues largely mitigated the continued increase in health claim costs, allowing us to continue reporting strong operating earnings.”

Argus Allison Hill Bermuda June 2024

The company added, “Insurance revenue for the year was $193.2 million, rising 12.9 per cent compared to the prior year [$171.1 million], driven by increased health insurance revenues. Fee revenue was $52.4 million, an increase of $8.3 million or approximately 18.8 per cent over the prior year, driven by the continued growth in our medical practices.

“Accordingly operating cash flows were strong, with a net operating cash inflow for the year of $22.4 million, compared to $15.6 million last year.

“Insurance service expenses increased by $20.8 million or 17.6 per cent compared to the prior year, mainly from increasing health claims costs higher utilisation of stop loss claims for self-funded clients, prescription drugs and diagnostic claims. We had a successful annual renewal of our health business and have won a number of attractive new clients, which will support our insurance performance looking forward.

“Shareholders’ equity at 31 March 2024 was $156.2 million, an increase of 17.2 per cent over 31 March 2023 of $133.3 million, restated for IFRS 17. The main driver of the increase was a redesignation of our Interest Accumulator investment portfolio to amortised cost, to better match the accounting treatment of the associated liabilities, resulting in a one-time reversal of unrealised losses held.

“The Company’s share price on 31 March 2024 was $6.30 compared with $5.55 on 31 March 2023. Book value per share was $7.16 at 31 March 2024 compared with $6.19 at 31 March 2023 restated for IFRS 17.

“Based on the Group’s financial strength and performance, Argus has declared a dividend of twelve cents per share for shareholders of record as of 26 July 2024, payable on 30 August 2024.”

Alison Hill added, “We are proud to have built a robust and diversified business platform delivering health, wealth and protection products into connected communities. We have focused on expanding our addressable market and managing costs through vertical integration, Of particular note is our Better Health Partnership, an unrivalled health eco-system that is making a meaningful difference to our clients’ and patients’ lives. A system that embeds cost management structures to better address rising healthcare claims costs and help to counteract health cost inflation.”

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