14th Feb 2008 15:19
Arab Insurance Group (B.S.C.)14 February 2008 Press Release 14 February 2008 Arig posts profits of US$ 23.7 million for 2007 Manama: Arab Insurance Group (B.S.C.) (Arig) announced net profits of US$ 23.7million for the 2007 Financial Year (2006: US$ 30.4 million that includednon-recurring income of US$ 10.4 million). Arig's Board of Directors has recommended a cash dividend of 7.5% on thecompany's paid-up capital, or 7.5 cents per share. The dividend remains subjectto clearance by the Central Bank of Bahrain and approval by the company's AnnualGeneral Meeting to be held on 30th March 2008. Results include net impact of US$ 9.2 million from Cyclone 'Gonu', the rarenatural event that caused an estimated US$ 800 million of insured losses in theSultanate of Oman in June 2007. On the back of a large Life reinsurance book acquired from Scottish Re inmid-year and new non-life business written from target markets in the Far Eastand in Sub-Sahara Africa, Arig's reinsurance portfolio grew by 50% over the yearto reach US$ 250 million of Gross Written Premium (2006: US$ 166.3 million).Yassir Albaharna, CEO, commented: "Working with an international team of highlyexperienced underwriters has enabled Arig to assume the role of a regionalleader in Life reinsurance. We view this as an important milestone in the futurepositioning of the Group and in securing attractive financial returns for ourshareholders". Investment income for the year increased to US$ 53.7 million (2006: US$ 38.4million). The Group has no exposure to the US sub-prime mortgage market. Shareholder's equity stood at US$ 298.4 million and the book value per share wasUS$ 1.40 at the end of December 2007. Financial Highlights as at 31 December 2007 (US$'000) Year Year 2007 2006 Gross premiums written 249,968 166,304 Underwriting result 270 8,066 Investment income 53,693 38,377 Operating expenses 29,170 24,188 Net profit 23,655 30,366 Investment assets 711,658 674,274 Net technical provisions 459,104 361,219 Shareholders' equity 298,438 293,396 Total assets 1,049,808 930,176 Book value per share (US$) 1.40 1.36 About Arig Arab Insurance Group (Arig) is one of the largest Arab-owned, professionalreinsurance providers in the Middle East and North Africa. Arig is listed on thestock exchanges in Bahrain, Dubai and Kuwait and offers a wide range ofreinsurance 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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