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Arig registers profits of $ 8.6 m for half year 2006

Source: Corporate Communications

Manama: Arab Insurance Group (Arig) today announced net profits of US$ 8.6 million for the first half year 2006. This represents an increase of 34% over the net profit of US$ 6.4 million registered for the same period in the previous year (excluding US$ 28.9 million of profits from discontinued operations).

Gross premium writings during the half year were US$ 107.5 million, up from the US$ 106.8 million registered for the same period in 2005 despite the significant scaling down of treaty business where several non-profitable treaty accounts were not renewed as part of Arig’s strategy of maintaining strict underwriting discipline in the prevailing soft market. The increase in business was largely due to strong growth in facultative premiums by 25%. Also, commencement of operations in Singapore led to premiums from the ASEAN region growing by 46%.

The sharp correction in global financial markets towards the later part of the second quarter saw investment income decline to US$ 14.5 million for first half year 2006 from US$ 16.2 million for the same period last year.

Shareholders’ equity at the end of the half year amounted to US$ 269.5 million which is almost at the same level as at year end 2005 notwithstanding the payment of US$ 10 million in dividends for 2005. The book value of Arig’s share now amounts to US$ 1.24 per share and its market value at 30 June was US$ 0.94 per share.

Commenting on the results, Mr. Yassir Albaharna, Arig’s Chief Executive Officer, said, “We continue our focus on underwriting discipline and the profitable growth of our core reinsurance business which assumes critical importance especially in soft market conditions. Further, in keeping with the strategy of focusing on reinsurance, we recently completed the sale of our residual holdings in Arab Lebanese Insurance Group, Lebanon, to a group of regional investors.”

Mr. Albaharna also announced the departure of Mr. Mathews John, the Company’s Chief Financial Officer who leaves Arig shortly. “I take this opportunity to thank Mathews for his significant contribution to Arig over the many years that he served the Company with distinction and wish him well on his imminent relocation to N. America.”

Financial Highlights at 30 June 2006

(US$’000)
30 June Year 2005
2006 2005
Gross premiums written

107,474

106,786

173,652

Underwriting result

2,727

3,583

8,151

Investment income

14,527

16,152

33,042

Operating expenses

11,435

11,173

22,864

Profit from continuing operations

8,648

6,442

19,338

Profit from discontinued operations

28,859

28,859

Net profit

8,648

35,301

48,197

Investment assets

646,697

577,509

659,426

Net technical provisions

383,202

373,745

346,549

Shareholders’ equity

269,523

252,092

272,383

Total assets

929,489

844,723

902,228

Book value per share (US$)

1.24

1.16

1.26

 

 


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