Bahrain: Arig swings back to net profit of $9.2 mln in 2016
Source: Middle East Insurance Review | Mar 2017
Arig has turned around its operations to deliver a net profit of US$9.2 million for 2016, following a net loss of $4.4 million in 2015. Its reinsurance book and investment income both contributed to the rebound.
The group’s underwriting result was a profit of $8.3 million for 2016, up from $0.8 million in 2015, while its combined ratio improved to 96.8% compared with 106.6% in 2015. Investments yielded gains of $19.3 million for 2016, up 35.0% y-o-y.
GWP increased by 11.3% y-o-y to $245.4 million in 2016, driven mainly by a continued diversification strategy.
In the fourth quarter of 2016 alone, Arig’s net profit hit $5.8 million, compared to a net loss of $5.8 million in the same period in 2015. GWP reached $18.0 million during the quarter against $7.8 million in the corresponding quarter of 2015.
Mr Yassir Albaharna, CEO of Arig, said: “Arig significantly improved its annual result on the back of solid returns from its reinsurance activities and investments despite the challenging market conditions. I am also pleased to say that our recent upgrade of the Group’s Financial Strength Rating to ‘A- (Excellent)’ by A.M. Best reflects Arig’s ability to make strategic decisions and to generate stronger prospective earnings.”
Shareholders’ equity stood at $256.6 million at 31 December 2016, compared to $244.2 million at the end of 2015.