Manama: Arab Insurance Group (Arig) announced a net profit of US$ 18.6 million for the half year 2007. Profits grew by 115% compared to half year 2006 profits of US$ 8.6 million. Strong underwriting and investment performance contributed to this positive result.
Gross premiums written grew by 23% buoyed by significant new business growth from the Far-East and Sub-Saharan Africa. Arig’s traditional Middle-East and North African markets also recorded reasonable growth despite non-renewal of several underperforming and inadequately priced accounts.
Shareholder’s equity at the period-end was US$ 288.7 million after dividend distribution of US$ 22 million for the year 2006. The book value per share as at end June 2007 was US$ 1.35.
On 29 June 2007, Arig acquired Scottish Re Limited’s Middle East Life Reinsurance portfolio amounting to approximately US$ 22 million in annual premiums. Financial impact of the acquisition will be included in the third quarter accounts.
Financial Highlights as at 30 June 2007
(US$’000) | |||
30 June | Year2006 | ||
2007 | 2006 | ||
Gross premiums written |
132,457 |
107,474 |
166,304 |
Underwriting result |
6,953 |
2,727 |
8,066 |
Investment income |
27,445 |
14,527 |
38,377 |
Operating expenses |
12,480 |
11,435 |
24,188 |
Net profit |
18,591 |
8,648 |
30,366 |
Investment assets |
677,184 |
646,697 |
674,274 |
Net technical provisions |
417,520 |
383,202 |
361,219 |
Shareholders’ equity |
288,709 |
269,523 |
293,396 |
Total assets |
997,286 |
929,489 |
930,176 |
Book value per share (US$) |
1.35 |
1.24 |
1.36 |