The Argus Group’s record earnings of $17.3 million for the six months ended September 30, 2006, represents a 32 percent increase over the results for the corresponding period in 2005.

Gerald Simons, President & Chief Executive Officer, the Argus Group, comments:
“These results reflect our continuing efforts to produce profitable lines of business in each of our insurance operations. Thanks to appropriate adjustments to premiums and increased deductibles, we have achieved acceptable underwriting ratios in all business areas, including the motor account. Additionally, we have been very fortunate to have been spared any major windstorm damage and have experienced lower than expected levels of medical claims during this period.”

Total premiums earned, net of reinsurance, rose by 8.4 percent. Investment income in the six months under review, improved slightly compared with the corresponding period in 2005 which enjoyed realised investment gains of $2.8 million from the sale of an overseas equity investment. This year’s gain to date was primarily as a result of increased returns from the Argus Group’s portfolio of local investments.

Increased investment in information systems and business analysts impacted operating expenses which, together with commissions, rose by 12.4 percent in this period and are equivalent to 22.8 percent of the Argus Group’s total income, compared to 22.0 percent in the corresponding period last year.

In the absence of unforeseen catastrophic events, the Argus Group would expect profits for the year ending March 31, 2007, to exceed those of the prior year.