indication of increasing competitiveness among domestic insurers.

Argus is now offering free car insurance -- valued at up to $500 -- for new clients who bring their residential property insurance to the firm. Argus' home-owners policies are also about to undergo rate reductions. The insurer writes fire, windstorm, burst pipe, explosion and other property perils.

A revised home insurance policy involves improved features, including extended cover for the possessions of students who are studying abroad. And upon renewal, existing clients will be offered the opportunity to increase their sums insured -- up to 25 percent -- on their buildings and contents at no charge in the first year of the increase.

The new pro-active marketing strategy is the latest change in policies from a company that never even sought out motor insurance business until this decade.

Colonial Insurance and BF&M have been the dominant motor insurers in Bermuda for some time. There are some 21,000 motor cars and many more motorbikes on Bermuda roads. There is also as many as 26,000 homes. But Argus now has the Bank of Butterfield selling auto insurance for them. Argus CEO Gerald Simons said, "The Bank agreed to provide home insurance through Argus and two other insurers and marine insurance through Argus and one other insurer. But when it comes to cars, the only insurer they deal with is the Argus Group.

"In such circumstances, the bank is compensated for policy sales, like any other salesperson.'' He added, "We made a decision some years ago to move into the motor business.

And in addition to the new initiative with the Bank of Butterfield, which we began this summer, we've been in the garages and car dealerships where the cars are sold, to let them know we are in the business.

"Previously, we only offered motor insurance to people who walked in our door. And normally, it was people who had some prior connection with the company, such as other insurance business.

"We offered motor insurance as an accommodation to our existing clients, staff and shareholders. That was the case until 1993 or 1994. But now we are doing more active marketing.'' Even today, motor insurance premiums mark a very small percentage of the firm's total earnings. Argus' strength has always been employee benefits, including group health, group pension and group life, where they have been a market leader.

The company does insure a number of significant commercial property risks, but like motor insurance, the group is looking to grow residential property insurance premiums. In the year to March 31, Argus declared a ten percent improvement on the prior year's record profits to $11.5 million, after a 29 percent increase in pension business, and an overall increase in premiums of 20 percent.