months, boosted by a combination of the rise in the price of the Island's banks' stock and the implementation of the national pension scheme at the beginning of the year.

The insurance company saw net income at $6.6 million for the six months ending September 30, 2000, compared to $6 million the year before.

A statement from the company said: "Life and pension business continued to do well in what has become a very competitive market. Mandatory pension legislation, which came into effect in January, 2000 provided the opportunity to acquire new business and Argus gained significant market share.'' The company predicted earnings for the year ended March 31, 2001 will be broadly in line with the previous year, when it recorded profits of $14.7 million.

Premiums (net of reinsurance) were boosted by $1.3 million, rising nearly 5 percent from $25.8 million in 1999 to $27.1 million this year.

The statement said: "Argus increased its earnings by 10.5 percent over the corresponding period last year as underwriting results remained strong and investment earnings, boosted by the increase in value of equity holdings in Bermuda's two largest banks, increased by 15.5 percent.'' Investment income rose by nearly a million from $5.2 million last year to $6 million this year.

Commission and management fees rose from $3.9 million to $4.3 million, a jump of ten percent.

The statement added: "Income from commission and management fees again provided a very satisfactory contribution to the group's earnings.'' Claims and benefits went up by nearly five percent during the six months from $21.8 million to $22.8 million.

Commission and operating expenses rose nearly 12 percent from $7.1 million to nearly $8 million.

Earnings per share rose from 98 cents to $1.08 per basic share and from 97 cents to $1.06 per fully diluted share.

Operating expenses have gone up by 12 percent due to investment in computer systems.

The company said in the six months before the end of September, the company had replaced its group health and life computer system, its pension system and its general ledger system.

The company said it had also incurred significant expenses for the implementation of the group's new approach to health insurance.

A statement said: "We are confident however, that this investment in the group's systems and its products will enhance profitability in years to come.

"Given no catastrophic claims and no deterioration of investment markets we expect that earnings for the year ended March 31, 2001 will be broadly in line with those of the previous financial year.'' Argus shares trade on the Bermuda Stock Exchange.

The shares closed unchanged at $17.50. The stock was last traded on December 5. The stock's 52-week low is $15.45 and high is $17.50.