Argus Group president and chief executive officer Gerald Simons yesterday said earnings for the year ended March 31 climbed $1,924,000 to $14.4 million, compared to $12,473,000 for the year-ago period.

Mr. Simons said that following a 12.3 percent drop in earnings in 2002, the company returned to the level achieved in 2001.

He said the group's investment earnings continued to be the strongest contributor to earnings with the $4.1 million gain resulting from the sale of an investment in an insurance company more than offsetting losses realised on the sale on the sale of other, poorly performing equity holdings.

"We have now sold all equity investments which have performed at less than acceptable levels and, where appropriate, full provision has been made against all equity investments which have suffered a permanent decline in value,'' Mr. Simons said.

Underwriting losses incurred during the year in the group's health insurance portfolio were not repeated as a result of a significant increase in premiums effective May 1, 2002.

The company's motor portfolio continued to perform poorly and again suffered an underwriting loss. Health insurance premiums were siginificantly increased at the May 1 renewal date to reflect spiralling claims' costs.

Mr. Simons said motor premiums will also be significantly increased in the near future.

Bermuda life, with its reliance on fixed income investments to support its long-term liabilities, had disappointing results partly due to the current low interest rate environment. Income from the administration of pension plans has also suffered since it is largely asset based and the value of the assets - mainly from mutual fund investments - which support the company's pension plans have declined over the last two-and-a-half years of turmoil in the world's investment markets.

Bermuda Life Worldwide Limited made a strong contribution to earnings and Centurion Insurance Service also had a solid year.

The company's insurance operations made a profit, but accounted for only 11.5 percent of the group's total earnings.

Investment income declined from $19.1 million to $17.9 million reflecting the poor performance of equity markets. With the exception of one of the island's bank shares, Bermuda equities retained their value but the portfolio of local stocks declined by $3.4 million.

Total income declined from $124,248,000 in the year-ago period to $100,668,000. Earnings per share (basic) were $2.20 compared to $1.91 and on a fully diluted basis were $2,17 compared to $1.88.