1/0

Dear Shareholders,

From our base in Gibraltar and working closely with our colleagues in Malta, we’ve spent the past year evaluating the manner in which Argus’ new operating model can be leveraged to its full advantage. As Alison has noted in her report, regional autonomy is a hallmark of the model. This construct has provided us with the opportunity to closely scrutinise our books of business as well as our operational structure, make some impressive key hires and to upgrade our systems and other platforms. As the member of the Argus Group charged with propelling the Company’s growth as a global business, we have exciting plans for Europe. As a result, we made it a priority during the last 12 months to make sure we’re fit for purpose.

quote background image

From our base in Gibraltar and working closely with our colleagues in Malta, we’ve spent the past year evaluating the manner in which Argus’ new operating model can be leveraged to its full advantage.

text block image

As the member of the Argus Group charged with propelling the Company’s growth as a global business, we have exciting plans for Europe. As a result, we made it a priority during the last 12 months to make sure we’re fit for purpose.

While we were ensuring that our foundation for growth is sound, that the business on our books is good, and that we continue to enhance our current operations, we continued to look forward. Planning for the product and distribution diversification is a priority component of our strategic plan.

As with every member company of the Argus Group, this was done during the most trying of times. Gibraltar and Malta weren’t left unscathed by the global pandemic – far from it.

The pandemic coincided with Brexit, which presented its own set of challenges for our businesses. While Malta remained a member of the EU, there have been regulatory, legislative and tax implications for Gibraltar, given the shift in its relationship to the EU by virtue of its status as a British Overseas Territory. We’re diligently working our way through the issues presented by Brexit, taking advantage of the good partnership we have with the local governments and regulatory bodies.


2/0

A Year of Solid Performance

Even though we were balancing current imperatives and future plans, we produced strong results for the year ended March 31, 2021. These include a 44 percent increase in net earnings, year over year.

Our two Maltese brokers, Island Insurance Brokers and FirstUnited Insurance Brokers, continued to provide their clients with the attentive, responsive service for which Argus is known as we laid the groundwork for their merger during the current fiscal year of 2022. Once this merger is completed, we will have formed the largest and fastest growing broker in Malta.

This initiative is part of our strategy of leveraging our existing broking capabilities in the Maltese market to further diversify, expand and strengthen our international presence in Europe.

Why Malta?

As Alison noted in her report, our goal is to become a professional, customer-obsessed, digitally-enabled, risk advisory broker in existing and new markets. Malta, in particular, has exactly the right characteristics for a target market for Argus​:

  • It’s one of the fastest growing countries in the EU in terms of both GDP and population growth.
  • It has significant potential in the non-life insurance market, exhibited by its strong growth in GDP and property and casualty insurance premiums
  • ​It’s demonstrated that it’s crisis-resilient, making it one of the best countries to do business in​.
  • It had an explosion of 33,000 new businesses added to the Maltese registry between 2012 and 2017.
  • In 2019, Malta had an unemployment rate of 4.1 percent, compared to the EU average of 7.2 percent, and its average annual inflation rate is 1.2 percent.
text block image

3/0

Building Value

At the same time that we’re developing our European broker proposition, we’re also enhancing our carrier capabilities in Gibraltar and Malta, making it easier for our partners and clients to do business with us.

We have a three-pronged strategy for building value in Argus Europe:

We’ll enhance the customer experience by:

  • developing a white label product to be offered by our Argus carrier​
  • leveraging our specialist expertise in target segments​
  • promoting quality risk advisory services​
  • expanding our network of partners to increase the choice of products and services​

We’ll improve operational excellence​ by:

  • embedding a mindset, toolset and skillset that puts the customer at the heart of our decision-making
  • focusing on delivering value for our customers, eliminating waste and continuously improving our processes and performance​. We’ll deliver digital capabilities​ by:
  • establishing a firm foundation with our new broker platform​
  • digitising personal and Small and Medium-sized Enterprise products, including the home and motor personal lines, offered by our carrier

I am so proud of the whole team in Europe. They’ve adapted quickly and nimbly to the new ways of working forced upon them by the pandemic while staying client focused throughout. They’re a testament to Argus’ people-centric culture and are poised, like the rest of the Argus Group, to go further, faster.

TYRONE MONTOVIO
CEO,
ARGUS EUROPE

Download the full report


Download the full report including the full financial statement.

Download the report
Prism background image