record earnings for the year to March 31, as the bottom line profit improved almost 10 percent over the previous year to $11.49 million.

Argus CEO Gerald Simons said that net premiums for the year rose 20 percent from $34.61 million to $41.56 million.

Argus is a multi-line insurer and the leading provider of employee benefits in Bermuda. It is the first and only Bermudian-owned insurance company to be rated "A'' (Excellent) by international insurance rating agency, A.M. Best Co.

Buoyed by the recovery of local equities quoted on the Bermuda Stock Exchange, investment income proved as beneficial as the prior year. Investment income was $8.2 million (1997: $8.1 million). Commissions, fees and other incomes totaled $9.7 million (1997: $8.5 million) and benefited from a one-off gain of over $1 million as a result of the termination of a large finite risk contract.

Mr. Simons said that this significant gain more than offset the loss of one quarter's management fees from Argus International Management Ltd. (AIM). The business of AIM was sold to a new Liberty Mutual unit at January 1, with Argus purchasing a 20 percent interest in the new company. Total income rose from $51.2 million to $59.5 million. Claims, benefits and claim expenses were $36.8 million (1997: $30 million). Operating expenses and commissions rose from $10.8 million to $11.2 million.

Earnings per share were $2.02, up from $1.85 the prior year. And on a fully diluted basis, earnings per share were $1.98, up from $1.81 for the comparative period.

The company declared cash dividends of $3,959,000 and a stock dividend of $1,124,000. Claims, benefits and claim expenses increased by almost 23 percent in line with expectations.

Mr. Simons said, "We continue to view with concern the ever-rising cost of health care services which again have increased at a rate well above the overall level of inflation.'' He said expenses and commissions were tightly controlled, rising by 3.65 percent, although expressed as a total percentage of total income, dropped from last year's 21 percent to 18 percent.

Total assets of the group, excluding funds managed for clients, now exceed $285 million and shareholders' equity at March 31 stood at over $75 million, both new milestones.