Bahrain: Arig's 9-month profits up 21% to $4.1 mln
Source: Middle East Insurance Review | Dec 2017
Arig has reported consolidated net profit of US$4.1 million for the first nine months of 2017, 20.6% higher than the $3.4 million posted for the corresponding period last year. The increase in profits was backed by positive technical performance and higher investment earnings.
Income from investments over the nine months was $17.6 million, 14.3% higher y-o-y, as a result of continuing positive equity returns. The company’s improved combined ratio of 90.6% for the first nine months highlights a stronger underwriting position as compared to the previous year. The combined ratio was 92.9% during the same period last year.
Arig’s nine-month GWP fell by 4.9% to $216.3 million, reflecting the continued effort to strengthen bottomline results by voluntary non-renewal of underperforming and inadequately priced accounts coupled with downward premium adjustments of the Lloyd’s portfolio. The company’s 3Q2017 gross premiums, however, rose to $26.7 million, 25.3% more than the $21.3 million posted for the corresponding quarter last year.
“Despite the likely impact of a high level of catastrophe losses experienced in the third quarter on the industry’s profitability, we continued to generate an improved positive result in the first nine months of 2017 against the same period of last year. We will continue our efforts to streamline Arig for better performance and enhance the company’s earnings,” said Mr Yassir Albaharna, CEO of Arig.
Arig’s shareholders’ equity stood at $257.4 million at 30 September 2017, compared to $256.6 million at end-2106 after payment of dividends of $9.9 million. M
BHD1 = US$2.63