Middle East - Bahrain: Arig swings back to profits in 1Q 2016
Source: Middle East Insurance Review | Jun 2016
Following a full-year loss in 2015, the Arig Group rebounded to profitability, announcing a first-quarter net profit of US$0.8 million (1Q 2015: $3.5 million) despite the negative influence of exchange rate developments, lower technical results and volatile equity markets.
The Group’s improved combined ratio of 74.9% for the quarter is reflective of reductions in operating cost and acquisition expenses against the previous year (1Q 2015: 76.6%), said Arig.
Consolidated investment income of $4.5 million was generated over the reporting period (1Q 2015: $6.3 million).
GWP increased to $202.7 million for the Group over the quarter (1Q 2015: $166.0 million), mainly on account of the increased Lloyd’s portfolio following a dip in 2015.
Mr Yassir Albaharna, CEO of Arig, said: “We will continue to streamline Arig for better performance and capital efficiency. However we are aware that the state of the global economy, lower investment returns and the abundance of capital in the current reinsurance market are making it more difficult to see immediate results.”
Arig’s shareholders’ equity stood at $248.7 million at 31 March 2016 (31 December 2015: $244.2 million).