14th May 2014 11:41
14 May 2014
Arig's Revenues And Profits Up For First Quarter
Bahrain: The Arig Group announces consolidated net profits of US$ 2.8 million for the first quarter of 2014 (Q1 2013: US$ 2.2 million). A marginally higher combined ratio of 82.1% (Q1 2013: 82.0%) and lower underwriting returns of US$ 0.5 million (Q1 2013: US$ 0.7 million) were offset by higher income from investments of US$ 6.8 million (Q1 2013: US$ 6.5 million).
Gross premium income increased by 15.2% to US$ 207.4 million (Q1 2013: US$ 180.0 million) over the quarter. Organic growth from Arig's engagement in the Lloyd's market and income from the parent company's Specialty and Life business contributed to the growing portfolio while strategic cutbacks at its consolidated subsidiary Takaful Re moderated an otherwise solid start into the year.
Yassir Albaharna, CEO of Arig, commented: "The strengthening of our reserves following some mid-size losses on the Indian Sub-continent placed a slight blemish on what I would otherwise have called a strong first quarter. But key figures are all pointing into the right direction which gives us confidence in a highly challenging business environment."
Arig's shareholders' equity increased to US$ 254.4 million on 31st of March, 2014 (end of 2013: US$ 249.2 million), with a book value per share of US$ 1.28 for the same period (end of 2013: US$ 1.26).
Financial Highlights as at 31 March 2014 (in US$ million)
As at 31 March | Full Year | |||
2014 | 2013 | 2013 | ||
Gross premiums written | 207.4 | 180.0 | 262.0 | |
Net premiums written | 189.9 | 176.7 | 246.3 | |
Technical result | 2.0 | 2.2 | 20.8 | |
Underwriting result | 0.5 | 0.7 | 13.4 | |
Combined ratio | 82.1% | 82.0% | 97.8% | |
Investment income | 6.8 | 6.5 | 20.4 | |
Operating expenses | 7.7 | 6.8 | 28.9 | |
Net profit | 2.8 | 2.2 | 18.6 | |
Investment assets | 677.0 | 645.7 | 642.2 | |
Net technical provisions | 760.9 | 726.9 | 619.6 | |
Shareholders' equity | 254.4 | 237.2 | 249.2 | |
Total assets | 1,211.3 | 1,146.8 | 1,056.6 | |
Book value per share (US$) | 1.28 | 1.20 | 1.26 | |
About Arig
Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and Africa. Arig is listed on the stock exchanges in Bahrain and Dubai and offers a wide range of reinsurance products and services. Arig's subsidiaries include Takaful Re (Dubai), Gulf Warranties (Bahrain) and Arig Capital Ltd. (UK). Arig is also an equal partner in the joint venture Hardy Arig Insurance Management HAIM (Bahrain). Additional information about Arig can be obtained at www.arig.net
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