Bahrain: Arig's reports 32% rise in profits to US$6 mln in 1H
Source: Middle East Insurance Review | Oct 2015
Improved underwriting performance and higher investment returns supported a 32% increase in the Arig Group’s half-year net profit of US$6.2 million, compared to $4.7 million for the first six months of last year, according to a statement.
Earnings from the conventional reinsurance book contributed a net income of $9.2 million (1H2014: $7.4 million), whereas Takaful Re, the Group’s Islamic subsidiary, produced a loss of $2.7 million over the period (1H2014: a loss of $2.6 million). The results include exchange rate effects and an impairment provision of $4.9 million for office property held by Takaful Re.
Gross premiums written during the first half of this year decreased by 21% to $186.1 million for the Group (1H2014: $236.8 million), reflecting Arig’s selective underwriting policy in a soft market environment, shifts in its Lloyd’s portfolio and exchange rate effects.
The Group’s combined ratio for the first half was 90.2%, compared to 90.8% in the same period in 2014.
Mr Yassir Albaharna, Arig CEO, said: “Arig significantly improved its half-year result despite losses from the Nepal earthquake and the Far East, an increase in our technical provisions and a one-off impairment taken on our subsidiary’s property holding. I am pleased to say that the Group continues to operate on very solid financials.”