Argus Group Holdings Ltd. has cut its quarterly dividend by more than a third to 10 cents per share - its lowest level for almost four years.

The local insurer announced the cash dividend yesterday, which is payable on April 15, 2010, to shareholders of record as of March 31, 2010.

Argus said the action was taken by its directors in response to the recent developments at Butterfield Bank, in which the company has a significant stake, with the fall in value of its investment and subsequent dilution of that shareholding necessitating a reduction in the dividend.

The company said that the currently declared dividend rate, which was reduced from a recent quarterly rate of 16 cents per share, was supported by the earnings of its core businesses.

Gerald Simons, president and CEO of the Argus Group, said: "As a major provider of insurance and other financial services in this community, we take seriously our responsibility to balance the interests of all our stakeholders, particularly our customers and shareholders. We believe that this action achieves this goal."