Arig posts positive Q1 results

Manama : Arig Group yesterday announced consolidated net profits of US$0.5 million for the first quarter 2017, when compared to US$0.8m in the same quarter a year ago. 

The group’s consolidated investment income rose 40 per cent to reach US$6.3m from US$4.5m recorded in the year ago quarter. 

While Arig’s traditional reinsurance portfolio produced an improved technical result of US$5.6m, up 56pc from US$3.6m in Q1 prior year, Lloyd’s accounts generated a technical loss of US$3.9m, compared to a loss of US$0.2m in Q1 a year earlier, hurt by higher natural catastrophe claims. Gross premiums written decreased to US$172.8m for the Group (Q1 2016: US$202.7m), reflecting negative influence of exchange rate movements coupled with voluntary premium reductions in some under-performing accounts, mainly in the MENA region.

Commenting on the results, Yassir Albaharna, CEO of Arig, said: “The challenging business environment and the effect of Brexit on the value of the British Pound have affected the Group’s first quarter results.”

Arig’s shareholders’ equity reduced to US$251.4m at 31 March 2017 (end of 2016: US$256.6m) after payment of dividend of US$9.9m.  The book value per share was US$1.27 for the same period (end of 2016: US$1.30).