Argus Group has reported record earnings with a full year profit of $36.9 million, up 36.8 percent from last year.

Those earnings represent a 24.8 percent return on opening shareholders' equity.

As with other insurance companies the benign 2006 hurricane season assisted the company's financial situation as did a lower than anticipated level of overseas medical claims.

The company also operated stricter selection of risks resulting in improved performance in insurance lines."We are pleased to report that the Group's strategy of focusing on growth by building upon the strong foundations of our core businesses - life, pensions, health and property & casualty insurance - has yielded satisfactory results in all our business areas," said Gerald Simons, president and chief executive officer, as the company released its full year statement for the year ended March 31.

"This, together with enhanced commission income and the maintenance of strong investment returns have combined to produce record earnings for the year."

An increase in premiums earned, net of reinsurance, reflected new business acquired and efforts to achieve acceptable underwriting ratios by adjustments to premiums, the company said.

The pension division experienced growth with assets increasing 14 percent due to a combination of investment performance and significant new business.

International life and annuity operations were enhanced by the acquisition of Tremont International Insurance.

Generally favourable investment markets, investment income increased by 7.1 percent to $32.7 million, the company said, adding that commissions, management fees and other income rose by 34.6 percent reflecting the fees earned on additional assets under management and ceding commission received on increased reinsurance premium ceded by its property and casualty operations reflecting growth in gross premiums written.

Operating expenses and commissions increased by 12.6 percent as a result of additional investment in computer systems and the hiring of related specialist staff.

General account assets of the Argus Group totalled $533m and separate account assets under its control increased to just over $1 billion.

Argus Group now has assets of $1.535bn under its administration. Shareholders' equity at year-end had risen to $177m, up from $148m one year before.

*The Board of Argus Group Holdings Limited has declared a quarterly dividend of 14 cents per share. This dividend is payable on July 13, 2007 to shareholders of record on June 29, 2007.