performance for the first six months of the financial year ended September 30.

The company yesterday announced earnings of $5.128 million for the six months, a drop of 3.7 percent over the same period in the previous financial year.

Argus president and chief executive officer Gerald Simons noted that Argus had managed to maintain about the same level of earnings despite the downturn in world stock markets and downward pressure on property premium rates.

"Health insurance claims costs generally, and major medical in particular, continue to rise at rates far in excess of the cost of living and this has negatively affected earnings,'' he stated in a press release.

Premiums for the six months were $22.236 million, a gain of 17 percent over the comparable six months in 1997. Investment income was $4.017 million, while commissions and management fees were $4.611 million. Meanwhile claims and benefits were $19.958 million, a rise of 23.3 percent.

The company continued to do well in the life and pension business in what Mr.

Simons described as a "very competitive'' market. He stated that earnings for the full year are expected to be in line with the last financial year, when the company had record earnings of $11.49 million.

Argus is a multi-line insurer and the leading provider of employee benefits in Bermuda.