News Column

Arig posts H1 2014 profit on increased investment returns

August 6, 2014

The Arig Group's investment returns were up and underwriting result was lower at the half-year mark 2014 when comparing against the same period of 2013, as Arig delivered net profits of $4.7 million for the first two quarters of the year (six months 2013: $5.2 million).

Claims from the Indian sub-continent and Re-Takaful interest pushed up the Group's combined ratio by 4.8 points to 90.8 per cent, lowering underwriting returns to $0.5 million (six months 2013: $4.2 million). At the same time, increased income from investments of $11.7 million (six months 2013: $9.4 million) assisted in cushioning the impact on the company's net result.

The company's net profit for the second quarter alone was $1.9 million (Q2 2013: $3.0 million).

Gross premium income over the six months increased by 5.6 per cent to $236.8 million (six months 2013: $224.3 million) helped by increased premium derived from Arig's engagement in overseas markets and the parent company's Specialty and Life business. Gross premiums written for the second quarter alone was $29.5 million (Q2 2013: $44.2 million).

Yassir Albaharna, CEO of Arig, commented: "We knew that 2014 would be a challenging period for reinsurers as global over-capacities are showing their effect. On the other hand, Arig is writing a well-balanced portfolio and we are strongly reserved. We remain highly confident on our ability to live up to current conditions."

Arig's shareholders' equity increased to $258.6 million on 30 June 2014 (end of 2013: $249.2 million), with a book value per share of $1.31 for the same period (end of 2013: $1.26).

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Source: CPI Financial

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