Arig swings back to $9.2 m net profit

Manama : Arig delivered net profits of US$ 9.2 million for the year 2016 compared to a net loss of $4.4 m in 2015. The Company’s reinsurance book and investment income both contributed to the rebound. The underwriting result for the Group recorded a profit of $ 8.3 m (2015: profit of $ 0.8 million), while the Group’s combined ratio improved to 96.8 percent compared with 106.6pc in 2015. Investments yielded $ 19.3 m (2015: $ 14.3 m).

Arig’s net profit for the fourth quarter 2016 alone was $ 5.8 m (Q4 2015: net loss of $ 5.8 m), while the Group wrote Gross premiums of $ 18.0 m (Q4 2015: $ 7.8 m) during the period.

The Group’s Gross written premiums increased to $ 245.4 m over the year (2015: $ 220.4 m) mainly, driven by the Company’s continued diversification strategy.

Yassir Albaharna, CEO of Arig, commented, “Arig significantly improved its annual result on the back of solid returns from its reinsurance activities and investments, despite the challenging market conditions. I am also pleased to say that our recent upgrade of the Group’s Financial Strength Rating to ‘A- (Excellent)’ by A.M. Best reflects Arig’s ability to take strategic decisions and to generate stronger prospective earnings.” 

Arig’s Board of Directors has recommended a cash dividend of 5pc on the Company’s paid-up capital, or 5 cents per share. The dividend remains subject to clearance by the Central Bank of Bahrain and shareholders’ approval at the Company’s Annual General Meeting to be held on 20th March 2017.

Arig’s Shareholders’ equity stood at $ 256.6 m on 31 December 2016 (end of 2015: $ 244.2 m) with a book value per share of $ 1.30 (end of 2015: $ 1.23).