Arig eyes prudent approach
Manama, March 26, 2014
Bahrain-based Arab Insurance Group's (Arig) top management is eyeing a prudent approach this year as the reinsurance major expects a testing trading environment ahead.
Chairman Khalid Al Bustani told shareholders at the company's annual general meeting yesterday that he expects main regional markets to remain underpriced and oversupplied, reported the Gulf Daily News, our sister publication.
"Investment yields are expected to remain comparatively low with an increasing risk of a correction in the equity markets," he said.
"Our corporate strategy over the next 12-month period will remain focused on achieving sustainable bottom-line results rather than forcing growth in challenging market conditions," stated Al Bustani.
The chairman said he believed the company had built a highly diversified reinsurance portfolio with good inherent risk balance, supported by strong management tools and controls.
According to him, while net profit last year proved the company's resilience, it also represented a compromise.
"Any higher return on capital would inevitably expose our shareholders' capital to more risk and volatility. We believe this is not the time to be aggressive... preserving our strength now means we will be prepared to pounce ahead and grasp future opportunities," he noted.
"The Arig group has set itself prudent targets for the current year," he added.-TradeArabia News Service