Arig net profit surges 41pc to top $12m
Manama, November 14, 2013
Leading insurance firm Arig has registered a 41 per cent increase in net profit to $12.6 million for the first nine months of the year, compared with $9 million for the same period last year.
The growth was achieved on the back of positive returns from its reinsurance activities and investments, the reinsurance major said.
After consideration of its subsidiary, Takaful Re, the group's underwriting result was $6 million for the nine-month period as against $6.2 million last year, according to a report in the Gulf Daily News, our sister publication.
Gross premiums written during the first three quarters of the year reduced slightly to $258.9 million from $260.9 million, reflecting diverse trends at the parent and its subsidiary, Takaful Re.
Investment income for the period under review was $14.9 million as against $16.3 million earlier.
Results were supported by a reduction in expenses and a favourable development in currency exchange values.
The group's combined ratio for its non-life book improved to 90.4 per cent for the first three quarters of the year, as against 92.7 per cent earlier.
Revenues at Arig and its corporate membership at Lloyd's increased by 4 per cent year-on-year, whereas Takaful Re relinquished 31 per cent of its premium during the same period in its continued effort to strengthen bottom line results.
The company's net profit for the third quarter was $7.5 million as against $5.7 million earlier. Gross premiums written for the quarter was $34.6 million as against $37.3 million last time.
"After full consolidation of our subsidiary, Takaful Re, the group's performance continues to strengthen in a highly competitive marketplace," Arig chief executive Yassir Albaharna said.
"At Arig, we believe in a sustainable business model and it is heartening that our continuous efforts are paying off," he added.
The group consolidated its Re-Takaful subsidiary participants' fund accounts during the second quarter of this year, in order to comply with the requirements under the IFRS 10 accounting rules.
Accordingly, all comparative figures of last year quoted here have been restated.
Arig's shareholders' equity was up 3 per cent at $243.1 million on September 30, compared with $235.2 million as at the end of last year. Similarly, the book value per share has risen to $1.23 from $1.19. – TradeArabia News Service