Arig's first-half income tops $5m
Manama, August 14, 2012
Good underwriting performance and the absence of large natural catastrophes contributed to Arab Insurance Group's (Arig) first half income of $5.2 million compared with a loss of $3.9 million last time.
The regional reinsurance provider saw profitable performance in the first half compared to the net loss of $4.1 million registered for the same period last year.
Arig's underwriting result for the first half produced half year net result of $3.8 million.
Investment income remained largely flat at $8.7 million at the half-year, compared with $8.8 million last year.
Net result for the second quarter was a loss of $1.7 million compared with a loss of $4.8 million for the same period last year.
Tighter risk selection and generally favourable reinsurance results this year translated into a reduced combined ratio of 85.4 per cent from 93.1 per cent for the non-life portfolio.
However, as original premium rates charged by insurers in the Middle East and North Africa remained intensely price competitive and some regional markets succumbed to political turmoil, gross written premiums declined to $171.1 million in the first half from $188.9 million or by 9.4 per cent year-on-year.
Equity markets and alternative investments performed below expectation, while the fixed income portfolio performed at the same level as last year's first-half, contributing to an overall yield of 2.7 per cent on investible assets.
Shareholders' equity increased to $234.4 million at half-year from $222.4 million at the year-end.
Book value per share was recorded at $1.18 compared with $1.12 at the year-end. – TradeArabia News Service
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