Arig swings to $5.5m Q1 profit
Manama, May 15, 2012
Bahrain-based Arab Insurance Group (Arig) rebounded to profitability, in the first quarter with a net profit of $5.5 million on the back of benign claims from its reinsurance book and strong investment returns after a full-year loss in 2011.
The group's underwriting result came in at $3.5 million for the period compared with $1.5 million in the first quarter of 2011.
A recovery in the financial markets and improvement of yields from the fixed income portfolio added investment income of $10.5m over the quarter compared with $5.5 million last time, Arig chief executive Yassir Albaharna said.
Gross premiums written during the first three months of the year reached $119.8 million compared with $132.1 million last time as Arig de-risked its portfolio from certain catastrophe accumulations, parted with under-performing reinsurance programmes and took account of falling premium income amongst some of its regional clientele, he added.
Shareholders' equity increased to $235.3 million on March 31 this year compared with $222.4 million in December last year.
Book value per share was $1.19 at the end of the first quarter compared with $1.12 in December last year.-TradeArabia News Service