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Arig reports half year profits of US$ 18.6 million

Source: Corporate Communications

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

 

 


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