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Arig posts profits of US$ 23.7 million for 2007

Source: Corpoate Communications

Manama: Arab Insurance Group (B.S.C.) (Arig) announced net profits of US$ 23.7 million for the 2007 Financial Year (2006: US$ 30.4 million that included non-recurring income of US$ 10.4 million).

Arig�s Board of Directors has recommended a cash dividend of 7.5% on the company�s paid-up capital, or 7.5 cents per share. The dividend remains subject to clearance by the Central Bank of Bahrain and approval by the company�s Annual General Meeting to be held on 30th March 2008.

Results include net impact of US$ 9.2 million from Cyclone �Gonu�, the rare natural event that caused an estimated US$ 800 million of insured losses in the Sultanate of Oman in June 2007.

On the back of a large Life reinsurance book acquired from Scottish Re in mid-year and new non-life business written from target markets in the Far East and in Sub-Sahara Africa, Arig�s reinsurance portfolio grew by 50% over the year to reach US$ 250 million of Gross Written Premium (2006: US$ 166.3 million). Yassir Albaharna, CEO, commented: “Working with an international team of highly experienced underwriters has enabled Arig to assume the role of a regional leader in Life reinsurance. We view this as an important milestone in the future positioning of the Group and in securing attractive financial returns for our shareholders”.

Investment income for the year increased to US$ 53.7 million (2006: US$ 38.4 million). The Group has no exposure to the US sub-prime mortgage market.

Shareholder�s equity stood at US$ 298.4 million and the book value per share was US$ 1.40 at the end of December 2007.

Financial Highlights as at 31 December 2007

US$�000

Year 2007 Year 2006
Gross premiums written 249,968 166,304
Underwriting result 270 8,066
Investment income 53,693 38,377
Operating expenses 29,170 24,188
Net profit 23,655 30,366
Investment assets 711,658 674,274
Net technical provisions 459,104 361,219
Shareholders� equity 298,438 293,396
Total assets 1,049,808 930,176
Book value per share (US$) 1.40 1.36

© 2022 Arab Insurance Group (B.S.C.) is a reinsurance firm regulated by the Central Bank of Bahrain