Mena News - Bahrain : Arig's 06 Profits Hit US$30 Million
Source: Middle East Insurance Review | Mar 2007
Arab Insurance Group (Arig) has announced a net profit of US$30.4 million for 2006.
Despite the figure being lower than 2005’s net gain of $48.2 million, last year’s performance is still regarded as strong, after taking into account extraordinary items of $10.4 million in 2006 and $28.9 million in 2005.
A conservative investment policy helped the company to turn in investment gains and avoid the losses seen in other insurers. Arig’s investment earnings increased to $38.4 million in 2006 from $33.2 million in 2005.
Arig, in a statement, said: “Stricter underwriting discipline and portfolio screening resulted in a 4.2% reduction in gross premium written, which is now reported at $166.3 million (2005: $173.7 million). But its profitability-driven approach leaves the company less concerned about absolute volume growth, especially as it has been developing new attractive business fields, which are expected to make a positive contribution to future years’ results.”