Regional reinsurer Arig has recorded a consolidated net loss of $3.1m attributable to shareholders of the parent company, for the first six months of 2020, compared to a net profit of $9.2m for 1H2019.
The deterioration in the net results was mainly due to investment losses, according to a statement issued by the reinsurer.
Comprehensive loss attributable to shareholders for 1H2020 was $4.8m (1H2019: profit of $20.5m).
Arig’s shareholders’ equity stood at $223.5m at 30 June 2020 (31 December 2019: $228.4m), reflecting a decrease of 2%. Accumulated losses of the company stood at $31.5m at 30 June 2020 (31 December 2019: $28.5m), representing 14.3% of paid-up capital.
Total assets at 30 June 2020 was $888.8m compared to $1,035.8m at the end of December 2019, a reduction of 14%.
The Group reported negative gross premiums of $12.6m for the first six months of 2020 due to a net writeoff of pipeline premiums (1H2019: $171.7m).
Consolidated investment loss attributable to shareholders and insurance funds for the six months was $1.7m (1H2019: profit $17.3m) as a result of market volatility. Arig’s underwriting result was a loss of $0.8m for 1H2020 (1H2019: profit $12.5m).