Argus Group Holdings Limited ? the parent company of Argus Insurance Company ? recorded a 52 percent increase in earnings due mostly to strong performance of various investment portfolios including local equities.

The group earned $27 million for the year ended March 31, 2006 compared to $17.7 million in the previous year.

Gerald Simons, president and chief executive officer of the Argus Group, said: "This year has been a time of consolidation and continued growth for all operating areas of the Argus Group.

"All of the group's investment portfolios, especially local equities, performed strongly, easily surpassing last year's contribution to the overall results."

Argus Financial Limited, a new majority-owned Argus subsidiary, made a small contribution to earnings after being launched in July, 2005.

While the company initially focused on streamlining and rationalising assets under administration already within the group, services will be extended this year to provide private investors as well as local and international businesses with a range of managed investment opportunities, the company said in its earnings statement.

The Argus Group's local property and casualty book of business continued to see improvement as a result of refinements in the selection and rating of the portfolio as well as the absence of severe storms.

The group continued to express concerns of over the cost of claims relative to premium volume after the motor account again did not produce an adequate return.

The Gibraltar and Malta portfolios both made satisfactory contributions to the results.

The health insurance division performed in line with expectations with claims volumes returning to more typical levels, the company said. Argus cited proactive management, especially in the area of neonatal care, as the reason that premium increases in 2006-2007 were held at the lowest levels in several years.

In addition, 25 percent of customers insured with Argus are benefiting from its new wellness programme designed to tackle rising health insurance premiums due to increased costs and utilisation of healthcare services.

Assets in the pension division increased 20 percent during the year as a result of improved investment performance and significant new business.

Recruitment of additional specialist staff and implementation of new technology helped boost international life operations.

Investment income increased by 55 percent to $30.5 million during the period compared to $19.7 million at 2005 year end, making up the bulk of the company's consolidated earnings. The company said both international and Bermuda investments performed strongly during the period, as equity markets worldwide and rates on fixed interest securities improved in the year.

Commissions, fees and other income rose by 13 percent as the increased fees earned in the pension division offset the loss of commission income from the property and casualty division as the Bermuda-based agency business moved in-house following its acquisition last year.

Operating expenses and commissions increased by 39 percent to $31.1 million due mostly to expansion of local operations and the absorption of as expenses for the full year of Gibraltar operations.

General account assets of the Argus Group at March 31, 2006 totalled $470 million and separate account assets under its control were $966 million.

The group now has assets of $1.4 billion under administration. Shareholders' equity at year-end rose to $148.6 million compared to $131.6 million the previous year. Basic earnings per share for the year was 1.57 versus 1.02 in 2005.