5th May 2006 12:00
Arab Insurance Group (B.S.C.)05 May 2006 5 May 2006Press Release Arig continues to grow operating profits Manama: Close on the heels of registering record results for 2005, ArabInsurance Group (Arig) today announced that it had closed the first quarter for2006 with a net profit of US$ 8.0 million, an increase of 31% from US$ 6.1million for the same period in the previous year (excluding US$ 6.5 million ofprofits from discontinued operations). The quarterly result represents anannualised return of 11.8% on average shareholders' equity. The improved results were contributed by higher underwriting profits of US$ 4.1million for the quarter as compared to US$ 3.1 million for the same period in2005. Investment income also improved from US$ 9.2 million for first quarter2005 to US$ 11.4 million for first quarter 2006. Shareholders' equity at the end of the first quarter amounted to US$ 269.1million - almost at the same level as year end 2005 after considering thepayment of US$ 10 million in dividends. With the issue of bonus shares for 2005,Arig's paid up capital is now at US$ 220 million and its adjusted book valueamounts to US$ 1.24 per share. The market value of the Arig share is at aroundUS$ 1.00 per share. In line with Arig's strategy of maintaining strict underwriting disciplineparticularly in a soft market environment, gross premium writings have beenscaled down with several non-profitable treaty accounts not being renewed. As aresult, gross premiums declined to US$ 84.5 million as compared to US$ 91.0million for the same period in 2005. The reduction in treaty premiums was partlyoffset by increase in facultative business and premiums from the ASEAN regionwhich grew by 23%, mainly supported by the commencement of operations inSingapore. Mr. Yassir Albaharna, Arig's new Chief Executive Officer, said, "We have had agood start this year - where we have continued to implement and build on ourstrategic initiatives for achieving growth and profitability. Our effortscontinue to be focused on closely monitoring and managing our technicalprofitability and investment returns in order to add shareholder value andreturns." Financial Highlights at 31 March 2006 (US$'000)31 March Year 2006 2005 2005 Gross premiums written 84,504 91,030 173,652Underwriting result 4,096 3,070 8,151Investment income 11,445 9,238 33,042Operating expenses 5,001 6,107 22,864Profit from continuing operations 8,015 6,098 19,338Profit from discontinued operations - 6,461 28,859Net profit 8,015 12,559 48,197Investment assets 659,879 1,129,048 659,426Net technical provisions 391,111 953,989 346,549Shareholders' equity 269,108 231,852 272,383Total assets 950,622 1,639,101 902,228Book value per share (US$) 1.24 1.07 1.26 ***************** For further information or enquiries, please contact Deepak Kanulkar Head of Corporate Communications on Email: [email protected], Tel: +973 17 544 321, Fax: +973 17 531155, Mobile: +9733933 9263. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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