Arig swings into profit zone in Q1

Manama : Following a full-year loss in 2015, the Arig Group rebounded to profitability, announcing a 1st quarter net profit of US$ 0.8 million (Q1 2015: US$ 3.5 m) despite the negative influence of exchange rate developments, lower technical results and volatile equity markets. 

The Group’s improved combined ratio of 74.9 per cent for the quarter is reflective of reductions in operating cost and acquisition expenses against the previous year (Q1 2015: 76.6 pc). 

Consolidated investment income of US$ 4.5 m was generated over the reporting period (Q1 2015: US$ 6.3m). 

Gross written premiums increased to US$ 202.7m for the Group over the quarter (Q1 2015: US$ 166.0m) mainly on account of the increased Lloyd’s portfolio following a dip in 2015.

Yassir Albaharna, CEO of Arig, commented, “We will continue to streamline Arig for better performance and capital efficiency. However we are aware that the state of the global economy, lower investment returns and the abundance of capital in the current reinsurance market are making it more difficult to see immediate results.” 

Arig’s shareholders’ equity stood at US$ 248.7 m on March 31, 2016 (end of 2015: US$ 244.2 m). The book value per share was US$ 1.26 for the same period (end of 2015: US$ 1.23).