13th May 2009 18:00
13 May 2009
Arig Records 1Q Profit Backed By Strong Reinsurance Performance
Manama: Following a full-year loss in 2008, Arig returned to profitability posting a 1st Quarter Net Profit of US$ 1.5 million (1Q 2008: US$ 3.0 million) backed by strong Technical Result of US$ 8.6 million (1Q 2008: US$ 3.3 million) across its reinsurance portfolio. Investment returns remained flat with a marginal deficit of US$ 0.3 million reflecting current financial market conditions.
Gross Written Premium was down by 14% due to lower trading volumes in the cyclical Engineering and Marine lines as well as the selective acceptance policy exercised by the Company. The Group's reinsurance portfolio reached US$ 111.8 million for the quarter.
All Life and Non-life classes produced a robust combined ratio of 93.8% (1st Quarter 2008: 101.3%) based on Net Earned Premiums.
Shareholders' Equity increased to US$ 241.0 million on 31 March 2009 (December 2008: US$ 239.6 million). Book value per share stood at US$ 1.14 on 31 March 2009 (December 2008: US$ 1.13).
Financial Highlights as at 31 March 2009
|
(US$'000) |
|||
|
31 March |
Year 2008 |
||
|
2009 |
2008 |
||
|
Gross premium written |
111,812 |
130,730 |
280,694 |
|
Technical Result |
8,576 |
3,297 |
9,585 |
|
Underwriting result |
3,678 |
994 |
(15,867) |
|
Investment income |
(273) |
3,193 |
(26,129) |
|
Operating expenses |
8,472 |
8,180 |
32,394 |
|
Net profit |
1,487 |
2,956 |
(28,568) |
|
Investment assets |
647,637 |
714,339 |
678,507 |
|
Net technical provisions |
581,248 |
536,311 |
524,735 |
|
Shareholders' equity |
241,049 |
281,873 |
239,579 |
|
Total assets |
1,111,059 |
1,142,800 |
1,079,761 |
|
Book value per share (US$) |
1.14 |
1.33 |
1.13 |
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 in 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). Additional information about Arig can be obtained at www.arig.net
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