Argus Group Holdings Ltd yesterday reported a net profit of $7 million for the first half of this year compared to a net loss of $3.9 million for the same period last year.The company says the return to profit is a significant milestone marking the end of “challenging legacy issues” in the investment arena.“While net earnings will continue to be influenced by the strengthening of the balance sheet, including investment restructuring activities, the significant investment impairments incurred over the last four years are now consigned to the history books,” said Alison Hill, CEO of Argus Group.“We remain confident of a return to more ‘normal’ times for the Group. This confidence stems from the continued strong performance of the core business operations, strong cash flows and the benefits arising from our sustained efforts to optimise the balance sheet and capital structure in a considered and orderly fashion,” she said.While total assets for the company remained steady at $1.7 billion, shareholders’ equity attributable to shareholders of the company increased to $91 million. The company says that is substantially in excess of the statutory capital required to conduct the group’s insurance and financial services businesses by the regulatory bodies to whom the Argus Group reports.Net premiums earned in the period were in line with the prior year reflecting client retention ratios across all lines of business.Net benefits and claims increased by three percent primarily as a result of increasing healthcare costs both locally and overseas, and were enhanced somewhat by the absence of major windstorms or other catastrophic events in the property and casualty businesses of the company.For the six months ending on September 30, 2012, investment income increased by 64 percent mainly due to unrealised gains emanating from the company’s fixed income portfolios as short-term interest rates declined and the yield curve flattened.Commissions and management fees were largely maintained due to increased ceding commissions earned by the Argus’s property and casualty operations offset by reduced fees arising from its investment-related businesses.Operating expenses increased by 10.2 percent due to the ongoing investment in the infrastructure of the European operations together with the cost associated with the continued strengthening of the management team.The company says that its board of directors considers the declaration of a dividend each quarter and is determined the dividends will be resumed as soon as the board considers it prudent to do so.