Arig’s GWP during 2018 amounted to $262.8m, an increase of 16.5% compared to previous year. For the fourth quarter alone, GWP was $22.9m, compared to $9.3m in the same period in 2017.
However, the Bahrain-based reinsurer reported a consolidated net loss of $55.3m attributable to shareholders for the year 2018, compared to a net profit of $7.2m a year ago. Net result for the 2018 fourth quarter alone was a net loss of $33.1m against a net profit of $3.2m. The negative result was mainly due to technical losses of $28.3m in 2018, up from a loss of $19.6m in 2017, from its operations through Lloyd’s syndicates and a provision of $21.5m for likely losses relating to Arig’s subsidiary, Gulf Warranties WLL.
The comprehensive loss attributable to shareholders last year was $60.6m, compared to an income of $10.2m in 2017, Arig said in a statement. For the fourth quarter alone, the comprehensive loss was $33.2m compared to a loss of $0.5m for the same period in 2017.
For the full year ended 31 December 2018, Arig’s technical result was a loss of $19.4m, against a profit of $5.5m in 2017, as a result of losses on Lloyd’s accounts. Its traditional reinsurance portfolio produced a technical profit of $9m, down 64.1% y-o-y.
The reinsurer posted an underwriting loss of $26.7m in 2018 against a profit of $5.8m a year ago. In the fourth quarter, the underwriting result was a loss of $29.2m compared to an underwriting loss of $2.3m for the same period in 2017.
The consolidated investment income for the year amounted to $10.0m, down 55.6% y-o-y, impacted by the downturn in global markets in the last quarter of 2018.
Earnings per share (EPS) as at 31 December 2018 was negative 27.9 cents, compared to a positive earnings of 3.6 cents as at 31 December 2017, while in the fourth quarter, EPS was negative 16.7 cents against a positive earnings of 1.6 cents for the same period 2017.
Arig’s shareholders’ equity stood at $196.4m as at end-December 2018, a decline of 23.6%. Book value per share fell to $0.99 as at end-December 2018 from $1.30 a year ago. Total assets at the end of 2018 was $1,052.6m, down slightly from $1,086.1m in the previous year.
“This has been a very difficult year for Arig, but we are confident that we will weather the storm. As a first step, we have taken certain measures to reorganise the Lloyd’s book of business which contributed significantly to the negative results for the year,” said Mr Samuel Verghese, acting CEO of Arig. M