Arig posts steady 9-months profits

Manama : Arig yesterday announced consolidated net profits of US$4.1 million for the first nine months of 2017 (nine months 2016: US$3.4m) backed by positive technical performance and higher investment earnings.

Income from investments over the nine months was higher year-on-year at US$17.6m (nine months 2016: US$15.4m) as a result of continuing positive equity returns. The Company’s improved combined ratio of 90.6 per cent for the first nine months (nine months 2016: 92.9pc) highlights a stronger underwriting position as compared to the previous year. 

Arig’s net result for the third quarter alone was a break-even (Q3 2016: Profit US$1.7m) and the Company’s gross premiums increased to US$26.7m (Q3 2016: US$21.3m) during the quarter alone.

The Company’s nine months gross premiums written declined to US$216.3m (nine months 2016: US$227.5m), reflecting continued effort to strengthen bottom line results by voluntary non-renewal of underperforming and inadequately priced accounts coupled with downward premium adjustments of our Lloyd’s portfolio. 

Yassir Albaharna, CEO of Arig, commented: “Despite the likely impact of high level of catastrophe losses experienced in the third quarter on the industry’s profitability, we continued to generate an improved positive result in the first nine months of 2017 against the same period of last year. We will continue our efforts to streamline Arig for better performance and enhance the Company’s earnings.” 

Arig’s shareholders’ equity stood at US$257.4m as at 30 September 2017 (end of 2016: US$256.6m) after payment of dividend of US$9.9m. Book value per share was US$1.30 for the same period (end of 2016: US$1.30).