Argus Chief Executive Officer, Alison Hill, stated: “There was good momentum in our business in the first half of the year, with insurance revenue increasing by 9 per cent, fee revenues rising by 16 per cent, and very strong operating cashflows. The business continues to deliver solid net operating earnings, even as claims costs continue to revert to longer term trend levels.”
Accordingly operating cash flows were strong, with a net operating cash inflow for the six months of $22.4 million, compared to net inflow of $10.5 million over the same period last year.
Net operating earnings for the period, reflecting the performance of the business excluding non-recurring expenses, were $8.7 million compared to $10.2 million for the comparative period in the prior year.
for the period, compared to $9.2 million in the prior year as This IFRS reported net income was impacted by one-off adjustments from the transition to IFRS 9 and 17, and exceptional costs arising from our proposed acquisition of a stake in BF&M.
Revenue for the period was $92.5 million, rising 9 per cent compared to the comparative period
in the prior year ($84.9 million), driven by increases in both insurance revenue and fee
revenues. Insurance revenue increased by $7.5 million or 9 per cent. Fee revenue was $24.8
million, an increase of $3.5 million or approximately 16.4 pre cent over the prior year, driven by the continued growth in our medical practices.
Insurance service expenses increased by $10.3 million or 19.2 per cent compared to the prior
year, mainly from increasing health claims costs which have continued to return to longer term
trend levels. We had a successful annual renewal of our health business and have won a
number of attractive new clients, which will support our insurance performance looking forward. Reported IFRS net income was $5.0 million restated for IFRS 17.M was redesignation of our Interest Accumulator portfolio to amortised cost, resulting in a one- time reversal of unrealised losses held.
Based on the Group’s financial strength and performance, Argus has declared an increased
interim dividend of twelve cents per share for shareholders of record as of 29 December 2023,
Alison Hill added: “Argus has changed dramatically over the past five years – we have successfully grown from being a focused insurer which offered protection products, to what is now a much broader customer-led business driving wellbeing of body and mind, of health and wealth. We will continue to focus resolutely on driving down costs whilst driving up quality of care in our health businesses, and more broadly, on acting as a powerful force for the wellbeing of our customers and community.”
Shareholders’ equity at September 2023 was $154.2 million, an increase of 15.6 per cent
over 31 March 2023 of $133.4 million, restated for IFRS 17. The main driver of the increase
The Company’s share price on September 202
was $6.05 compared with $5.55 on March 2023. Book value per share $7.13 at compared with $6.20 at March 2023 restated for IFRS 17.
payable on 26 January 2024. This reflects a 9 per cent increase in the dividend compared to
the same period in the prior year.
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