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Global equity downturn affects 2nd Quarter 2010 results

Source: Corporate Communications

Manama: Impacted by the volatile global equity markets, Arig recorded US$ 2.8 million loss for the first half of 2010 (Q2 2009: US$ 8.8 million profit). Returns from reinsurance, Arig’s core business, remain positive with non-life Combined Ratio of 97.3% and Gross Premium Written increased by 8.6% to US$ 177.1 million for the first half year 2010 (Q2 2009: US$ 163 million).

Shareholders’ Equity after the second quarter stood at US$ 245.4 million (December 2009: US$ 267.3 million) following distribution of US$ 13.2 million in dividends on the Financial Year 2009 result and current year’s result. Arig’s share book value registered US$ 1.20 on 30 June 2010 (December 2009: US$ 1.27).

Financial Highlights as at 30 June 2010 (in US$ million)

 

 

 
30 June
Year 2009
2010
2009
Gross premium written 177.1 163.0 279.4
Technical Result 5.0 9.3 16.5
Underwriting result (4.1) 6.2 10.6
Investment income 5.5 15.4 33.7
Operating expenses 19.1 17.7 34.7
Net (loss) profit (2.8) 8.8 21.9
Investment assets 635.5 667.2 663.7
Net technical provisions 620.9 591.9 589.8
Shareholders’ equity 245.4 250.3 267.3
Total assets 1,149.2 1,120.2 1,132.3
Book value per share (US$) 1.20 1.18    1.27

About Arig

Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and North Africa. Arig is listed on the stock exchanges of Bahrain, Dubai and Kuwait and offers a wide range of reinsurance products and services. Arig’s subsidiaries include Takaful Re (Dubai), Gulf Warranties (Bahrain) and ARIMA Insurance Software (Bahrain). Arig is also an equal partner in the joint venture Hardy Arig Insurance Management (HAIM). Additional information about Arig can be obtained at www.arig.net


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