Bahrain: Arig reports improved 1H profits from underwriting and investment
Source: Middle East Insurance Review | Sep 2017
Arig reported net profit of US$4.1 million for the first half of 2017, a surge of 128% y-o-y. Its technical result in the first half increased to $8.6 million from $4.0 million during the same period last year, while investment income grew by 24.2% y-o-y to $12.3 million.
The Group’s combined ratio for the first half of the year improved by 8.1 percentage points to 79.1%. It reported a combined ratio of 96.8% for the full year 2016.
Its net result for the second quarter alone was $3.6 million as against $1.0 million in the same period last year.
Arig’s half-year gross premiums declined by 8.1% y-o-y to $189.6 million, reflecting voluntary non-renewal of underperforming and inadequately priced accounts coupled with downward premium adjustments of our Lloyd’s portfolio. Gross premiums for the second quarter reached $16.8 million, compared to $3.5 million in the first quarter of 2016.
Mr Yassir Albaharna, CEO of Arig, said: “We are pleased to report an improved positive result in the first half of 2017 driven by better reinsurance performance and good investment returns, despite the pricing pressure and challenging market environment during the period. With this positive trend, we will continue to streamline our efforts to maximise the Group’s earnings.”
Arig’s shareholders’ equity stood at $255.7 million on 30 June 2017, compared to $256.6 million at the end of last year, after payment of dividend of $9.9 million. Book value per share was $1.29 for the same period as against $1.30 at end-2016. M