Arig Records 1Q Profit Backed By Strong Reinsurance Performance
Manama: Following a full-year loss in 2008, Arig returned to profitability posting a 1st Quarter Net Profit of US$ 1.5 million (1Q 2008: US$ 3.0 million) backed by strong Technical Result of US$ 8.6 million (1Q 2008: US$ 3.3 million) across its reinsurance portfolio. Investment returns remained flat with a marginal deficit of US$ 0.3 million reflecting current financial market conditions.
Gross Written Premium was down by 14% due to lower trading volumes in the cyclical Engineering and Marine lines as well as the selective acceptance policy exercised by the Company. The Group’s reinsurance portfolio reached US$ 111.8 million for the quarter.
All Life and Non-life classes produced a robust combined ratio of 93.8% (1st Quarter 2008: 101.3%) based on Net Earned Premiums.
Shareholders’ Equity increased to US$ 241.0 million on 31 March 2009 (December 2008: US$ 239.6 million). Book value per share stood at US$ 1.14 on 31 March 2009 (December 2008: US$ 1.13).
Financial Highlights as at 31 March 2009
(US$’000) |
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31 March |
Year 2008 |
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2009 |
2008 |
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| Gross premium written | 111,812 | 130,730 | 280,694 |
| Technical Result | 8,576 | 3,297 | 9,585 |
| Underwriting result | 3,678 | 994 | (15,867) |
| Investment income | (273) | 3,193 | (26,129) |
| Operating expenses | 8,472 | 8,180 | 32,394 |
| Net profit | 1,487 | 2,956 | (28,568) |
| Investment assets | 647,637 | 714,339 | 678,507 |
| Net technical provisions | 581,248 | 536,311 | 524,735 |
| Shareholders’ equity | 241,049 | 281,873 | 239,579 |
| Total assets | 1,111,059 | 1,142,800 | 1,079,761 |
| Book value per share (US$) | 1.14 | 1.33 | 1.13 |
About Arig
Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and North Africa. Arig is listed on the stock exchanges in Bahrain, Dubai and Kuwait and offers a wide range of reinsurance products and services. Arig’s subsidiaries include Takaful Re (Dubai), Gulf Warranties (Bahrain) and ARIMA Insurance Software (Bahrain). Additional information about Arig can be obtained at www.arig.net
