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Arig reports profits of US$ 10.3 million for 3rd Quarter 2007

Source: Corporate Communications

Manama: Arab Insurance Group (Arig) announced a net profit of US$ 10.3 million for the third quarter ended September 2007, compared to a profit of US$ 12.9 million for the same period last year.

The results during the quarter were significantly affected by claims arising out of Cyclone Gonu, the strongest tropical cyclone on record in the Arabian Sea that hit Oman on 6 June 2007. The cyclone caused about US$ 4 billion economic loss and resulted in estimated insured losses in excess of US$800 million. Arig’s net loss is estimated at US$ 9 million, which includes a significant part remaining outstanding. The magnitude of the loss, which not only impacted local Omani insurance companies but also spread to other regional companies, affirms Arig’s prominent market position and its commitment to alleviate the financial consequences of this calamity.

The Group also reported a 46% increase in gross written premiums to US$ 215 million, compared to last year mainly due to significant new business growth from the Far-East and Sub-Saharan Africa on the non-life business and the acquisition of Scottish Re’s Middle East portfolio on the life business. The integration of the Scottish Re portfolio that was taken over by Arig effective 1 July 2007 has been progressing remarkably well with over 80% of business being successfully transferred in favour of Arig.

Investment income for the 3rd quarter 2007 was reported at US$ 34.7 million, which is a significant improvement from the income of US$ 26.2 for the same period in the previous year. The investment portfolio was insulated from the ongoing US sub-prime woes due to prudent and conservative investment policy.

Shareholder’s equity at the period-end was US$ 284.3 million and the book value per share as at end September 2007 was US$ 1.33.

Financial Highlights as at 30 September 2007

(US$’000)
30 September Year2006
2007 2006
Gross premiums written

214,978

146,822

166,304

Underwriting result

(3,676)

2,652

8,066

Investment income

34,687

26,236

38,377

Operating expenses

20,556

17,880

24,188

Net profit

10,286

12,940

30,366

Investment assets

698,395

649,168

674,274

Net technical provisions

483,979

381,102

361,219

Shareholders’ equity

284,285

275,847

293,396

Total assets

1,073,332

931,503

930,176

Book value per share (US$)

1.33

1.28

1.36

 

 


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