Bahrain: Arig reports $7.2 million net profit despite tough conditions
Source: Middle East Insurance Review | Mar 2018
Arig has posted a positive net result of US$7.2 million for 2017 to shareholders, representing a drop of 21.7% compared to the previous year’s $9.2 million, despite a high claims record of natural catastrophe losses experienced during the year combined with a major fire loss in the UAE which was one of the costliest claims in the MENA region.
Both technical performance and investment earnings contributed to the positive results. The reinsurer recorded an underwriting profit of $5.8 million, a reduction of 30.1% y-o-y, while investment income grew by 15.5% y-o-y to $22.3 million.
The company’s GWP declined by 8.1% to $225.6 million as a result of voluntary non-renewal of underperforming and inadequately priced accounts, in line with its prudent underwriting approach, coupled with the negative influence of exchange rate movements and downward premium adjustments of its Lloyd’s portfolio.
“There is no doubt that 2017, similar to 2011, was an exceptionally difficult year for most reinsurers worldwide due to the spate of catastrophe losses such as HIM (Hurricanes Harvey, Irma and Maria). Despite these challenging conditions, Arig continues to produce positive results thanks to a successful investment strategy and a diversified reinsurance book,” said Mr Yassir Albaharna, CEO of Arig.
Arig’s shareholders’ equity stood at $256.9 million at 31 December 2017, compared to $256.6 million at the end of 2016, with a book value per share of $1.30, the same as at 31 December 2016. M