Arig reports nine-month financial results

Arig yesterday announced financial results for the nine months of 2018 reporting a consolidated net loss of US$22.2 million attributable to shareholders, compared to net profit of US$ 4.1m recorded in the year-ago period. The company attributed the negative result to a provision of US$21m created during second quarter 2018 for likely losses relating to Arig’s subsidiary, Gulf Warranties W.L.L. Earnings per share as at 30 September 2018 was negative US cents 11.2 as compared to positive earnings of US cents 2.0 as at 30 September 2017.

Gross premiums written during the nine months 2018 amounted to US$239.9m (nine months 2017: US$ 216.3m), an increase of 10.9pc compared to the same period in the prior year. Comprehensive loss attributable to shareholders was US$27.4m, compared to income of US$10.7m in the year-earlier period. Samuel Verghese, Acting CEO of Arig, commented: “The positive technical result of the traditional reinsurance portfolio is the silver lining amidst the gloom of negative results for the three quarters”.

Nine-months technical result stood at US$5.4m compared to US$6.9m, a decline of 21.7pc from the year-ago period. Traditional reinsurance portfolio produced a technical result of US$15.3m (nine months 2017: US$17.0m) representing a reduction of 10pc, Lloyd’s accounts incurred a technical loss of US$9.9m (nine months 2017: a loss of US$ 10.1m) representing a reduction of 2pc.

For the third quarter, net profit was US$0.3 million compared to a net loss of US$0.03m in the same quarter a year ago. The earnings per share was positive US cents 0.1 as compared to negative earnings of US cents 0.01 for the same period in 2017. Gross premiums written reached US$52.4m, when compared to US$26.7m, an increase of 96.3pc, in the same quarter last year.