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Arig Records 1Q Profit Backed By Strong Reinsurance Performance

Source: Corporate Communications

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)
 
31 March
Year 2008
2009
2008
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


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