per share) for the 1995 financial year, up 15.5 percent from 1994's $7,152,000 ($1.50 per share).

The solid performance came in a year which saw a modest rise in premium income, a low property claims environment and the acquisition from LPG of the sole agency and captive management operations of Commercial Union Assurance Company plc for $6,375,000.

Details of the deal, signed 13 months ago, are reported in the company's just published annual results for the year to March 31, 1995.

Argus paid $5.5 million in cash for the agency, and agreed to pay a further $875,000 contingent upon future operations of the agency. The company reports that future operations are likely to meet the required criteria.

Meanwhile, managing director and CEO Mr. John Sainsbury, reported to shareholders that while the financial year was successful, investment markets were difficult, property and health reinsurance was more expensive, and, "in Bermuda, particularly in the retail sector, business sentiment remained subdued due to sluggish tourism, political fractiousness and uncertainty created by the independence debate.'' The company's bottom line was helped by a quiet hurricane season and an excellent performance in the marketing of group pensions and solid performances in all other areas.

Premium income for the group was up 4.8 percent to $30 million, as total claims paid and reserved remained at $25 million, the same level as the year before.

Other income included $5,472,000 in investment income (down marginally from the year before) and $5,969,000 in commissions, management fees, etc. (up more than a million dollars from the year before).

Total income was $41,570,000. Five million dollars was transferred to general reserve and cash dividends totalling $2,578,000 were paid out.

Operating expenses, which increased by 14 percent, said Mr. Sainsbury, reflected greater activity within the group of companies. It included, for the first time, expenses relating to Centurion Insurance Services.

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.

Centurion just signed a new contract this month, with Government paying some $4.5 million in premium for the coming year. Loss limits rose from $50 million to $100 million.

Argus shareholders' equity at year end was $55 million with total assets at $208 million.

The company's annual report stated that while the top 10 stocks on the Bermuda Stock Exchange were trading at, or below, year-ago levels, as a result of the depressed business sentiment, Argus shares have remained relatively stable at around $10.50, with a high and low of $11 and $10 respectively.

"At this level,'' it states, "the shares are trading at about six times earnings, thus providing a total return of 16.5 percent.'' The share price closed at $11 yesterday on a trading volume of 1,000.

The company reported favourable underwriting results for property and casualty business. The heavily reinsured property portfolio saw a 33 percent increase in costs, although there was an underwriting profit due to the absence of major fires or windstorms during the reporting period.

The accident portfolio, largely workmen's compensation, also produced a satisfactory profit. Motor insurance had a marginal result and the small marine account suffered a loss.

The group life and pension operations were marked by success, with pension funds growing by $28 million, including $17 million transferred from other carriers. Argus' Bermuda Life is the primary pension carrier on the Island, with some $90 million in the pensions portfolio.

Mr. John Sainsbury