A primary healthcare practice owned by the Argus Group includes more than 40 per cent of all general practitioners in Bermuda, the organisation’s chairman has revealed.

David Brown was addressing shareholders of the company in its annual report.

Aside from operating in the areas of insurance and pensions, Argus acquired the Island Health Services and Family Practice Group medical practices in Bermuda in 2020.

Mr Brown wrote: “We have focused on expanding our addressable market and managing costs through vertical integration. Of particular note is our Better Health Partnership, a unique and difficult to replicate health ecosystem that embeds cost management structures to better address rising healthcare claims costs that support our attractive returns.”

He added: “Our vertical health integration has built the largest primary healthcare practice in Bermuda with over 40 per cent of the island’s general practitioners, while our in-house overseas network management business is incentivised to minimise claims costs.”

Mr Brown also addressed the recently announced definitive amalgamation agreement, pursuant to which BF&M and Argus will combine in an all-stock transaction.

The transaction is subject to required regulatory approvals and shareholder approval with a planned completion date in the fourth quarter of 2024.

He wrote: “The directors of both companies unanimously support the transaction and believe it represents a compelling opportunity to create a stronger, more efficient and more diversified group.

“This is a unique opportunity to bring together two Bermudian insurers with complementary expertise, product lines and geographic footprints. The combined entities will remain in local shareholders hands and continue to be managed from Bermuda.

“The increased scale of the combined group will support ongoing investment in best-in-class products and services, accelerate our growth plans, and bring greater buying power in the context of ongoing inflationary headwinds.

“This deal is the culmination of nearly two years of hard work by management and the board, and is a transformational step towards achieving our ambitions and commitments.”

Mr Brown said the Argus leadership had transformed the business over the past 15 years.

“They have rebuilt the Argus balance sheet, exiting non-core and underperforming assets and reinvesting profits in a smart and savvy way,” he wrote.

“They have grown insurance revenue by 6 per cent annually since 2021 driving an 8 per cent annualised increase in group total revenue and a five-year average operating ROE [return on equity] of 14.2 per cent.”

The proposed amalgamated entity will be led by Abigail Clifford, who will become group president and chief executive.

Mr Brown paid tribute to Argus Group chief executive Alison Hill, who will not join the amalgamated entity.

He wrote: “I would like to thank Alison Hill our group CEO. Her vision, commitment and leadership has transformed Argus over her 15-year tenure. She has diversified our business lines, grown our markets and delivered impressive shareholder value, growing Argus from a local insurer to a customer-led business that puts the human experience at our very core.

“Alison has been the architect of our people-centric purpose of becoming a powerful force for sustainable wellbeing. She has been unwavering in her commitment to create a rewarding, inclusive, equitable and fun work environment, where colleagues are encouraged to be their authentic selves.

“She has steered Argus to partner and conduct business with others who share the same values of always doing the right thing. To be responsible stewards of our shareholders capital, providing sustainably strong returns in an ethical way.

“Throughout her career, Alison has led with great courage, determination and resilience, with commercial acumen and an entrepreneurial spirit, with curiosity, creativity and empathy.”