Argus Group Holdings Ltd has reported net income for the year ended March 31 of $7.3 million, which compares with $15.6 million in the previous year as restated for IFRS 17.

The company said this IFRS reported net income was impacted by one-off adjustments from the transition to IFRS 9 and 17, and exceptional project costs.

Net operating earnings, reflecting the performance of the business excluding non-recurring expenses, were $18.5 million compared with $19.3 million in the prior year.

Argus chief executive officer Alison Hill said: “The transformations to our business in recent years, from operating model changes to revenue source diversification, have provided significant benefits this year.

“Our multifaceted sources of revenues largely mitigated the continued increase in health claim costs, allowing us to continue reporting strong operating earnings.”

Insurance revenue was $193.2 million, rising 12.9 per cent compared with the prior year ($171.1 million), driven by increased health insurance revenues.

Fee revenue was $52.4 million, an increase of $8.3 million, or approximately 18.8 per cent, over the prior year, driven by the continued growth in the company’s medical practices.

Net operating cash inflow was $22.4 million compared with $15.6 million in the prior year.

Insurance service expenses increased by $20.8 million or 17.6 per cent compared with the prior year, mainly from increasing health claims costs higher utilisation of stop loss claims for self-funded clients, prescription drugs and diagnostic claims.

Shareholders’ equity at March 31 was $156.2 million, an increase of 17.2 per cent over March 31, 2023, of $133.3 million, restated for IFRS 17.

Argus said the main driver of the increase was a redesignation of its interest accumulator investment portfolio to amortised cost, to better match the accounting treatment of the associated liabilities, resulting in a one-time reversal of unrealised losses held.

The company’s share price on March 31 was $6.30 compared with $5.55 on March 31 2023. Book value per share was $7.16 compared with $6.19 at March 31 2023 restated for IFRS 17.

Argus declared a dividend of 12 cents per share for shareholders of record as of July 26, payable on August 30.