months ending March 31, 1993 -- up by 14.5 percent ($763,000) compared with the previous 12 months.

Total income for the group went up by 28.4 percent ($9.53 million) to $43.04 million, while total expenses increased by 31 percent ($8.77 million) to $3.017 million.

Premiums, net of reinsurance, for the 15-month period, extended by three months so Argus could changes its year-end, went up by 28 percent ($6.87 million) to $31.43 million.

Of the total premiums, general and health net premiums went up by 27 percent ($6.08 million) to $28.58 million and life and annuity net premiums increased by 38 percent ($784,000) to $2.85 million.

Investment income went up by 40 percent ($1.87 million) to $6.59 million and commissions, management fees and other income increased by 18.8 percent ($796,000) to $5.03 million.

On the expenses side, general and health insurance benefits went up by 32.3 percent ($6.15 million) to $25.2 million, life and annuity benefits increased by 25.5 percent ($701,000) to $3.45 million, commissions went up by 157 percent ($278,000) to $455,000 and operating expenses went up by 26.2 percent ($1.64 million) to $7.9 million.

Net income per share for the 15-month period came to $1.40, compared with $1.23 for fiscal 1991.

Retained earnings at March 31, 1993, were $4.11 million, up by 12.1 percent ($445,000) compared with December 31, 1991.

Total assets went up by 1.76 percent ($3.1 million) to $179.53 million, while liabilities remained virtually unchanged at $134.5 million.

Shareholders' equity went up by 8.5 percent ($3.53 million) to $45,02 million.

Argus president Mr. Thaddeus Trott said the group's results were "very satisfactory''.

"The group's investment portfolio and the life and pension operations, which returned to profitability after unusually high group life claims experienced in 1991, were the major sources of the group's earnings,'' he said. "Non-life underwriting results, particularly for health insurance, suffered as claims escalated and the recessionary conditions, coupled with intense competition, kept premiums at low levels.'' Mr. Trott said the major problem facing the insurance industry was "the turmoil in the world reinsurance market''.

"The property insurers of Bermuda issued a joint statement in January, 1993, detailing the profound effects that the contraction of the reinsurance market would have upon commercial and residential property policies,'' he said.

"Significant rate increases are occurring at renewal and, in addition, compulsory deductibles are being applied in respect of windstorm peril. "In some cases, windstorm cover is no longer readily available. It may well be that further increases will be necessary in late 1993 or early 1994.'' Mr.

Trott said that the company's life division, Bermuda Life, had enjoyed its best spell ever over the 15-month period. But the erosion of underwriting profit in the group's health insurance subsidiary, Somers Isles was of "major concern''.

"Claims costs continue to soar as the price of treatment increases and usage of facilities and services escalates,'' he said.

"This is particularly true in the case of overseas claims, although local treatment costs show a similar trend.'' 1993 RESULTS PROFIT $6.03m NET PREMIUMS $31.43m TOTAL INCOME $43.04m TOTAL EXPENSES $37.01m ASSETS $179.53m LIABILITIES $134.51m.