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
|Gross premium written||111,812||130,730||280,694|
|Net technical provisions||581,248||536,311||524,735|
|Book value per share (US$)||1.14||1.33||1.13|
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