in over two years.

Shareholders of record on December 30 will receive one new share for every ten held, and new shares will be issued on January 14. Argus shares last traded at $11.50.

Argus managing director Mr. John Sainsbury said earnings over the past two to three years had not justified issuing share dividends.

The company also maintained its 12-cent cash dividend for its third quarter.

The company earned $6 million for the 15 month period ending March 31, 1993, up more than 14 percent on earnings in 1991. Per share earnings over the same period jumped 17 cents to $1.40, giving shareholders a ten percent return on investment.

Mr. Sainsbury said stock dividends do little except make more shares, but that it was encouraging.

"We expect things to get better,'' he added. He had earlier warned that uncertainty in the world reinsurance market could affect earnings and could make premium increases necessary.

The company's annual report, issued earlier this year, showed total income came to $43 million and expenses amounted to about $37 million.

The company had assets of $134.5 million and liaiaiblities of $134,513, excluding shareholders' equity.

Its subsidiaries include Argus International Management, Somers Isles Insurance Company, Bermuda Life Insurance Company and Data Communications Ltd.

Its shares last traded on December 23 for $11.50.

Mr. John Sainsbury.