Argus shuffles board of directors
Domestic Bermuda insurer Argus Group has reshuffled its board after cutting the length of time directors can serve.
Shareholders also agreed to reduce the board size to a maximum of nine directors from 12 while introducing nine-year term limits for term limits.
As a result, chief executive officer Alison Hill, Appleby law firm senior lawyer Tim Faries, Peter Burnim and Essent Re chief underwriting officer Paul Wollmann stood down from the board as they would have exceeded the nine-year limit. Hill remains as CEO.
Three new directors, Sergio Munoz, former One Bermuda Alliance leader Cole Simons and Christian Teixidor Andersen have been appointed, subject to regulatory approval by the BMA.
Argus also recently announced its net income for the first half of the year dropped 45% to $5 million from $9.16 million in the six months to September 30, 2022.
The company said operating earnings were $8.7 million compared to $10.2 million for the same period as a result of non-recurring items, including the transition to the new IFRS accounting standard.
While insurance revenue rose to $92.4 million from $84.9 million in the dame period, service expenses also rose, resulting in a decline in insurance profit to $20 million from $21.7 million.
Interest rate increases weakened the companies’ investment income, which dropped to $1.8 million from $3.1 million while other operating expenses rose by $4 million to $40.8 million.
The company also disposed of subsidiary NBHH (Keepsake) Ltd through an amalgamation agreement with a related party which resulted in a net gain of almost $300,000 after the disposal of assets. This appeared to be connected to the Newstead Belmont Hills Hotel development.
Argus noted shareholders’ equity has grown at an annualised growth rate of 7.4 percent over the last 5 years to $154.2 million as of September 30, 2023. During this time, the company also paid $21.2 million to shareholders through dividends.
For the six month period the company’s combined operating ratio was 83.7 percent.
