Bahrain-based Arig, a leading reinsurance provider in the Middle East and North Africa, has returned to profitability posting a first quarter net profit of $1.5 million (Q1 2008: $3 million).

The results, which follow a full-year loss in 2008, are backed by strong technical result of $8.6 million (Q1 2008: $3.3 million) across its reinsurance portfolio, a statement said.

Investment returns remained flat with a marginal deficit of $0.3 million reflecting current financial market conditions.

Gross written premium was down by 14 per cent 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 $111.8 million for the quarter.

All life and non-life classes produced a robust combined ratio of 93.8 per cent (Q1 2008: 101.3 per cent) based on net earned premiums.

Shareholders’ Equity increased to $241 million on March 31, 2009 (December 2008: $239.6 million). Book value per share stood at $1.14 on March 31, 2009 (December 2008: $1.13), the statement said. -TradeArabia News Service