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.
|Year 2007||Year 2006|
|Gross premiums written||249,968||166,304|
|Net technical provisions||459,104||361,219|
|Book value per share (US$)||1.40||1.36|