Argus sees $2m claims from Igor but reports profits of $6.6m

Argus Group Holdings received claims worth $2 million as a result of Hurricane Igor.

But the insurer still reported a profit of $6.6 million for the six months ended September 30, 2010.

The company said the figure was partially impacted by Igor, for which they had about 80 claims.

Net premiums written increased by 2.6 per cent, while claims incurred and policy and actuarial benefits fell by seven per cent.

Claims received as a result of Igor on September 20, 2010, were not as severe as anticipated due in part to Igor being downgraded from a category three to a category one storm before it hit Bermuda. 

The reduction in policy benefits incurred is mainly due to health claims falling to normal levels after last year’s excessively high overseas claims costs.

Gerald Simons, president and CEO of the Argus Group, said: “In this, our 60th year of operations, the strength of our core businesses continues to give us confidence for the future despite the ongoing lacklustre performance of investment markets in Bermuda and globally.”

The change in fair value of investments in the period under review was minimal.

By contrast, in the corresponding period for the prior year an increase of $10.2 million was recorded.

Investment income increased by 14.4 per cent in the period.

Commissions, management fees and other income increased by three per cent in line with the modest recovery in the value of assets under management in various investment-related businesses.

Operating expenses increased by 10.4 per cent during the period as the operating costs of the newly-acquired Fogg Insurance Agencies in Malta, which has more than 20 staff, were consolidated into the group for the first time. 

In addition, Argus has recruited a number of specialised staff in Bermuda to ensure it complies with regulators’ demands.

In the six months to September 30, 2010, Argus recorded net unrealised gains of $4.3 million under other comprehensive income compared to gains of $12.8 million for the corresponding period for the prior year.

On the balance sheet, total assets have increased since March 31, 2010, by $22.3 million to $541 million, while segregated funds assets stand at $1.2 billion.

The Argus Group now has assets of $1.7 billion under its administration.

Shareholders’ equity at September 30, 2010, rose to $107 million, up from $97.5 million at March 31, 2010.