With Hurricane Fabian well behind it, local insurer Argus yesterday announced its net income for the first half of its financial year jumped 77 percent.

The Argus Group said its net income for the six months ending September 30 rose $3.8 million to $8.7 million from $4.9 million in the same period in 2003.

Premiums rose by 18 percent to $44.7 million after reinsurance compared to $37.9 million in 2003 while claims and benefits increased by $2.1 million to $39.93 million from $37.8 million. “We are delighted to have returned to normal levels of earnings after suffering the effects of Hurricane Fabian last year,” Argus chief executive officer Gerald Simons said.

“With increased new business, careful claims management particularly in health insurance, the lack of major windstorms and a sound investment portfolio, Argus is in a strong position going into 2005.”

The company saw income from commissions and management fees jump 31 percent to $6.28 million.

The additions in premiums, commissions and fees were attributed to new business and premium adjustments.

These changes enabled all of the company's divisions to meet their targets for underwriting ratios, except motor insurance, which it said continued to “perform poorly”.

Argus' pension division made a “small contribution to earnings” as assets under management increased.

However, the company's investment income fell by four percent to $9.05 million “due to the lacklustre performance of international markets. This was offset by the continued strong performance of the company's large local investment portfolio”.

Additions of staff and operating systems to support new business drive operating expenses up 21 percent to $11.4 million from $9.4 million. Argus forecast higher earnings for the full financial year compared to last year.