Argus posts full year earnings of $25.7 million
Argus Group Holdings Limited has reported full year results of $25.7 million to the end of March, compared to $10.1 million in the previous year.
Argus chief executive officer, Alison Hill, said the company has evolved into a physical and financial health services organisation that focuses on integrated people-centric experiences, creating enhanced shareholder value.
Return on average equity for the year was 17.6 per cent.
The company reported: "The average annual return on equity over the last four years is 12.3 per cent based on reported net income, and 15.1 per cent on an operating earnings basis.
"Since March 2018, our shareholders’ equity has increased from $105.9 million to $143.0 million as of March 31, 2022.
“During this time, we have returned $19.6 million to shareholders through dividends and a further $2.5 million through share repurchases.
“The decline in shareholders’ equity since March 2021 is primarily due to market value declines in our fixed income portfolios that support our long-term products.
"Key performance metrics have remained strong. For the year ended March 31, 2022 the group’s average combined ratio for the health and general insurance businesses was a healthy 78 per cent which compares well with the three-year average of 79 per cent.
“Economic activity returned to more normal levels during the past year. As a result, benefit and claims costs across our core businesses increased $15.8 million or approximately 27 per cent compared to the prior year.
“Combined fee income was $44.4 million, an increase of $4.7 million or approximately 12 per cent over the prior year. Significantly contributing to this growth were the acquisitions of medical practices in Bermuda and the continued growth of Antes, the group’s insurance brokerage in Malta."
Argus has declared a dividend of eleven cents per share for shareholders of record as of July 29, payable on August 26.
Book value per share stood at $6.69 on March 31, compared with $6.94 a year before.
The share price at March 31 was $6.10 compared with $4.56 on March 31, 2021.
Ms Hill said: “We’ve been pleased to see our share price grow over the past 18 months. We still trade at a discount to our intrinsic value but are heartened that the market has started to take note of the value we’re building.
“We will be steadfast in our focus on addressing the discount to intrinsic value which we believe is below the level warranted by a company with our consistent performance. Our financial strength, together with having the right team in place, at all levels of the organisation, will propel us forward as we grow.”
Ms Hill noted that the company has been preparing for change, concluding: “A closer look at our balance sheet, reveals the work done to prepare for accelerated growth, building scale and diversification.
“A closer look at our growing business footprint reveals a diversified portfolio that can be exported into other integrated communities."