increased profit.

The latest good news shows that the company has come of age as a well diversified insurer, shedding its past status of being predominantly a health insurer.

Just released figures show earnings at $9,720,000 ($1.77 per share) for the year to March 31, a 12.2 percent improvement over last year.

Of particular note is that funds held for deposit administration pension plans grew by over 80 percent in the last two years, as a result of the introduction of Bermuda Life's highly successful Capital Accumulator Pension Plan.

Pension funds amounting to $17 million last year and $10 million this year have been transferred from other carriers.

Investment income rose 23 percent to $6,751,000, while commissions and other income also grew 23 percent to $7,340,000.

Shareholders' equity was more than $60 million, compared to $55 million in 1995, while total group assets, not including managed funds, exceeded $200 million for the first time to reach $208,759,000, compared to $178,126,000 in 1995.

Managing director and CEO E. John Sainsbury said in an interview yesterday that the figures bode well for the future.

"Argus is confident of its core strengths, its sound capital base and its effective growth strategies.'' As a result of the inclusion of a full year of costs for Centurion Insurance Services Ltd., operating expenses rose to $9,053,000, a higher-than-usual 16.3 percent increase.

Added costs were also incurred through the development of Bermuda Life's successful new pension product, including a new computer system.

Centurion is the company through which Argus deals with the Commercial Union agency providing property and liability cover for the Bermuda Government's public buildings.

Government is set to pay Centurion $4,070,000 in premiums for buildings and contents worth $775 million, excluding the Base lands, and Wedco and the Housing Corporation properties.

The government has paid premiums of $350,000 to Centurion for $40 million worth of general umbrella coverage and $367,500 for $10 million worth of public liability cover.

The Centurion subsidiary, purchased during the last fiscal year as part of the break-up of the LPG Group of companies for nearly $6.4 million, has now developed some brokerage business.

Mr. Sainsbury and president James A.C. King commented that while overall premium income was relatively flat for the second consecutive year, income from investments, commissions and management fees improved by $2.7 million.

Claims paid and reserved increased roughly in line with net premiums.

The company was happy with its share price increase in market value from $9.50 to $10.50, considering the inactivity on the Bermuda Stock Exchange. They still see the stock as undervalued and will prudently continue to buy back shares at appropriate intervals.