Arig profit up on high investments' income
Manama, May 15, 2014
Bahrain-based Arab Insurance Group's (Arig) has reported a consolidated net profit of $2.8 million for the first quarter of the year as against $2.2 million for the same period last year.
The reinsurance firm also reported a marginally higher combined ratio of 82.1 per cent from 82 per cent earlier and lower underwriting returns of $0.5 million ($0.7 million earlier) were offset by higher income from investments of $6.8 million ($6.5 million earlier).
Gross premium income increased by 15.2 per cent to $207.4 million from $180 million earlier over the quarter, reported the Gulf Daily News, our sister publication.
Organic growth from Arig's engagement in the Lloyd's market and income from the parent company's Specialty and Life business contributed to the growing portfolio while strategic cutbacks at its consolidated subsidiary Takaful Re moderated an otherwise solid start into the year, it stated.
Commenting on the results, Arig chief executive Yassir Albaharna said: "The strengthening of our reserves following some mid-size losses on the Indian Subcontinent placed a slight blemish on what I would otherwise have called a strong first quarter."
"Key figures are all pointing to the right direction which gives us confidence in a highly challenging business environment," he added.
Shareholders equity increased to $254.4 million on March 31 from $249.2 million as of the end of last year, with a book value per share of $1.28 as against $1.26 earlier.-TradeArabia News Service