Manama: Arab Insurance Group (Arig) held its 25th Annual General Assembly Meeting of shareholders at the Sheraton Hotel in Bahrain on 29 March 2006.
The meeting, with 60% of shareholders attending, was presided over by Arig’s Chairman, Mr Khalid Al Bustani and attended by its directors.
Shareholders approved Arig’s 2005 results which registered a significant increase in profits to US$ 48.2 million as compared to US$ 26.5 million for 2004. The profit for 2005 represents 19.5% return on average shareholders’ equity.
The General Assembly meeting approved the proposal of the Board of Directors to resume payment of dividends. This involves the payment of a cash dividend of 5% of paid up capital and the distribution of fully paid bonus shares to the extent of 10% of paid up capital by issue of 1 share for every 10 shares now held by shareholders. Following these distributions, the paid up share capital of Arig will increase to US$ 220 million and total shareholders’ equity will be US$ 261 million.
The Company announced it is making elaborate arrangements to distribute the dividends to shareholders in the various GCC countries through bankers cheques drawn in local currency. Through this, shareholders will not only be able to collect their funds faster through local clearing arrangements, but will also incur considerably lower collection charges. Dividends are expected to be distributed on or before 30 April 2006 after completion of due processes.
At the meeting, shareholders expressed their appreciation to the board for the ongoing success of the Company and in resuming dividend distributions.
Mr Khalid Al Bustani said “we are grateful to our shareholders whose support and confidence helped us to achieve our task. We would like to thank the outgoing CEO of Arig, Mr Udo Krueger, who has been instrumental in successfully spearheading and completing the implementation of various initiatives over the last 6 years. We are also pleased with a smooth and planned transition that is taking place to a new generation of Arig’s managers with Mr Yassir Albaharna, assuming office as CEO from 1 April 2006.”