14th Nov 2007 10:32
Arab Insurance Group (B.S.C.)14 November 2007 14 November 2007 Press Release Arig reports profits of US$ 10.3 million for 3rd Quarter 2007 Manama: Arab Insurance Group (Arig) announced a net profit of US$ 10.3 millionfor the third quarter ended September 2007, compared to a profit of US$ 12.9million for the same period last year. The results during the quarter were significantly affected by claims arising outof Cyclone Gonu, the strongest tropical cyclone on record in the Arabian Seathat hit Oman on 6 June 2007. The cyclone caused about US$ 4 billion economicloss and resulted in estimated insured losses in excess of US$800 million.Arig's net loss is estimated at US$ 9 million, which includes a significant partremaining outstanding. The magnitude of the loss, which not only impacted localOmani insurance companies but also spread to other regional companies, affirmsArig's prominent market position and its commitment to alleviate the financialconsequences of this calamity. The Group also reported a 46% increase in gross written premiums to US$ 215million, compared to last year mainly due to significant new business growthfrom the Far-East and Sub-Saharan Africa on the non-life business and theacquisition of Scottish Re's Middle East portfolio on the life business. Theintegration of the Scottish Re portfolio that was taken over by Arig effective 1July 2007 has been progressing remarkably well with over 80% of business beingsuccessfully transferred in favour of Arig. Investment income for the 3rd quarter 2007 was reported at US$ 34.7 million,which is a significant improvement from the income of US$ 26.2 for the sameperiod in the previous year. The investment portfolio was insulated from theongoing US sub-prime woes due to prudent and conservative investment policy. Shareholder's equity at the period-end was US$ 284.3 million and the book valueper share as at end September 2007 was US$ 1.33. Financial Highlights as at 30 September 2007 (US$'000) 30 September Year 2007 2006 2006 Gross premiums written 214,978 146,822 166,304Underwriting result (3,676) 2,652 8,066Investment income 34,687 26,236 38,377Operating expenses 20,556 17,880 24,188Net profit 10,286 12,940 30,366 Investment assets 698,395 649,168 674,274Net technical provisions 483,979 381,102 361,219Shareholders' equity 284,285 275,847 293,396Total assets 1,073,332 931,503 930,176Book value per share (US$) 1.33 1.28 1.36 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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