Argus Group net income rises
Bermuda domestic insurer Argus Group Holdings, which is bidding to buy a stake in its rival BF&M, said net income rose 7.7% in 2023 although operating earnings edged down.
Argus said net income for the year ended March 31, 2023 was $27.7 million, compared to $25.7 million.
Operating earnings $17.7 million compared to $18.2 million, as claims increased by more than insurance premiums and the company’s combined ratio rose to 78% from 76.7%.
Argus chief executive officer, Alison Hill (pictured), said: “Despite the macro-economic turmoil seen through this fiscal year, we are very pleased with how the Argus Group has continued to show resilience and delivered another year of strong performance.”
Argus said economic activity continued to return to more normal pre-pandemic levels during the year, with gross premiums written within its core insurance businesses increasing by $6 million or approximately 4%.
However, benefit and claims costs across core businesses also rose by $8.5 million or approximately 11%. The Group’s combined ratio for the health and general insurance businesses for the year was 78% compared with 76.7% in 2022 and 70.4% in 2021, when claims levels were depressed by Covid-19.
Combined fee income from continuing operations was $57.8 million, an increase of $1.5 million or approximately 2.7% over the prior year. Fee income from our medical practices continues to grow, offset by market driven declines in pension administration fee income.
Shareholders’ equity at 31 March 2023 was $141.3 million compared to $143 million) as rise in market interest rates resulted in unrealised losses in the Group’s fixed-income bond portfolios which suppressed shareholders’ equity growth, offset by releases in interest rate sensitive life and annuity liabilities.
Hill added: “When viewed over the longer-term, we remain pleased with our shareholders’ equity which has grown by approximately 33% over the past five years. During the same period we have also deployed $3.2 million in share buy-backs and returned $20.5 million to shareholders in dividend payments.
“Our team has made smart, bold decisions by investing in new capabilities and new markets and delivered a series of financially successful acquisitions and post deal integrations. We have built a culture of excellence, ambition and dynamism, attracted brilliant talent and partners and developed an authentic, trusted and loyal business and brand.
“It is also critical as we grow that we never lose sight of who we are - we are a purpose driven organisation. We are on a journey to simplify, transform, and grow our business into a powerful force for sustainable wellbeing.”
Argus is bidding to buy a 37% stake in rival BF&M for $100 million. The purchase is conditional on regulatory approvals.
