15th Feb 2007 13:59
Arab Insurance Group (B.S.C.)15 February 2007 15 February 2007 Press Release Arig posts net profit of US$ 30.4 million for 2006 Manama: Arab Insurance Group (Arig) has shown another year of strongperformance. The company announced a net profit of US$ 30.4 million for its2006 Financial Year (2005: US$ 48.2 million). Despite ending below the previousyear's result, performance in 2006 has in fact exceeded that of 2005 ifextraordinary items of US$10.4 million in 2006 and US$ 28.9 million in 2005 areignored. Consequently, Arig's Board of Directors has recommended a cash dividend of 10%on the company's paid-up capital or 10 cents per share. The dividend remainssubject to clearance by the Central Bank of Bahrain and approval at thecompany's Annual General Meeting to be held on 29th March 2007. Arig managed to further improve on its underwriting results and associated costsfrom reinsurance, in spite of a softening in the terms of trade that impactedthe international reinsurance industry. The company was also able to isolateitself from the downward turn in the regional equity markets. Having reaped thebenefits of its conservative investment policy and a positive performance in theglobal markets, investment earnings increased to US$ 38.4 million (2005: US$33.2 million). Stricter underwriting discipline and portfolio screening resulted in a 4.2%reduction in Gross Premium Written, which is now reported at US$ 166.3 million(2005: US$ 173.7 million). But its profitability driven approach leaves thecompany less concerned about absolute volume growth, especially as it has beendeveloping new attractive business fields, which are expected to make a positivecontribution to future years' results. Arig's Singapore Branch managed toexpand premium income from Far East markets by 54.7% year-on-year, while theGroup's Islamic Takaful Re subsidiary firmly established itself with GrossPremium Written of US$ 15 million in 2006, contributing US$ 2.2 million to theGroup result in its first year of operations. In consolidation of the company's new management team led by CEO YassirAlbaharna, the Board appointed Andreas Weidlich to the position of GeneralManager - Reinsurance with effect from 1st January 2007. He has been overseeingArig's combined reinsurance interests since joining the company in April lastyear. Financial Highlights as at 31 December 2006 (US$'000) Year Year 2006 2005 Gross premiums written 166,304 173,652 Underwriting result 8,066 8,291 Investment income 38,377 33,182 Operating expenses 24,188 22,864 Profit from continuing operations 30,366 19,338 Profit from discontinued operations - 28,859 Net profit 30,366 48,197 Investment assets 674,274 659,426 Net technical provisions 361,219 346,549 Shareholders' equity 293,396 272,383 Total assets 930,176 905,142 Book value per share (US$) 1.36 1.26 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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