Manama: Arab Insurance Group (Arig) announced a net profit of US$ 7.6 million for the first quarter of the year (Q1 2006: US$ 8.0 million) supported by strong underwriting performance and good investment earnings.

Gross premiums written grew by 10% on the back of significant growth in new business from markets in the Far-East and Sub-Saharan Africa. Arig’s traditional Middle-East and North African markets also recorded reasonable growth despite non-renewal of several underperforming or inadequately priced accounts. The Group’s Islamic subsidiary Takaful Re also continued to expand its market position with Participant’s gross contributions growing to US$ 9.2 million (Q1 2006: US$ 2.3 million).

Shareholder’s equity at the quarter-end was US$ 279.8 million after dividend of US$ 22 million for the year 2006 with the per share book value of US$ 1.30 reflecting a gradual increase over the year-end 2006 post dividend book value.

Financial Highlights as at 31 March 2007