A.M. Best downgrades Argus credit rating

The Bermuda-based insurer saw a slip of one notch from A- (Excellent) with a negative outlook to B++ (Good) with a stable outlook.

A.M. Best assigns the new rating “to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations”.

Alison Hill, CEO of the Argus Group, said: “Naturally we are disappointed. We are, however, pleased that A.M. Best recognise our strong operating performance and still considers our financial strength rating to be secure, at the same time upgrading us to stable outlook. Argus remains financially strong with core business units that are performing well and producing steady cash flow.

“At September 30, 2010, the company’s half-year shareholders’ equity stood in excess of $107 million, substantially over and above the statutory capital required to conduct the group’s various insurance businesses.

“The Argus Group is extremely well-established in the domestic insurance and pensions markets, having celebrated its 60th year of operations in 2010.

“I remain confident the Argus Group is well-positioned to face the challenges ahead as we continue to build on decades of experience and a healthy capital base.”