Argus Group Holdings Limited has reported full-year net income of $10.1 million, down $4.1 million from the previous year.

Its total comprehensive income for the year, which includes unrealised gains, was $30.7 million, compared with $3.6 million a year ago.

The Bermudian-based insurance and financial services group said the decrease in its net earnings for the financial year, which ended on March 31, was primarily attributable to market-driven volatility in the annuity business, but it had been offset by other comprehensive income that largely reflected improvements in the capital markets during the second half of 2020.

The group’s combined ratio for the property and casualty as well as health insurance business written improved to 70.4 per cent from 80.8 per cent a year ago.

Combined fee income was $39.7 million, an increase of $14.5 million. This was driven by the acquisition of two medical practices in Bermuda last June and a brokerage business in Malta in September 2019.

Reduced claims activity, reflecting pandemic-related changes in travel and healthcare patterns, resulted in a decrease in payments from $95 million to $80 million. Because of this “unique dynamic” in claims, Argus said it offered a premium rebate to all qualifying health clients.

Alison Hill, group CEO, said: “In a remarkably difficult year, these strong results underscore the power of our growth strategy as well as the ability of our Argus teams to rise to any challenge.

“Throughout the economic, social and environmental upheaval that defined the last 12 months, we were undeterred from our goal of building a profitable, sustainable global company hallmarked by an inclusive, engaging culture.

“We implemented a new organisational structure that further empowers our regional businesses; leveraged the acquisition of Bermuda’s two largest medical practices to build an integrated healthcare model; laid the groundwork for product and geographic diversification from our European base in Gibraltar; and continued the ongoing digitisation of many of our products and services.”

She added: “Throughout, we stayed true to our ‘everyone wins’ philosophy, making sure our employees as well as our customers had the support they needed to navigate unprecedented personal and professional demands.

“While our overall results are commendable, the robust improvement in our share price is notable. It is heartening to see the market recognising Argus’ value.

“I couldn’t be prouder of what we’ve accomplished this year and extend my sincere appreciation and gratitude to our shareholders, customers and employees for their continued belief in Argus’ potential”.

As of March 31, Argus shareholders’ equity was $149.7 million, compared with $122.1 million a year ago.

Argus is to initiate a buyback of 415,000 of its shares during the coming year, starting from July 1. The book value of its shares at March 31 was $6.94, compared to $5.73 at the end of March 2020.

Argus has declared a dividend of ten cents per share for shareholders of record as of July 28, payable on August 27.