Arig nine-month net 9  Friday, November 13, 2015 profit at $1.4 million
Global overcapacities, earthquake losses from Nepal and a swing in the equity markets have jointly pushed the Arig Group’s nine months 2015 net profits down to US$1.4 million from US$9.6m recorded in the same period of 2014, the company said in a statement yesterday.
Arig and its Corporate Member at Lloyd’s contributed a profit of US$5.5m (nine months 2014: US$11.8m) while its Islamic subsidiary Takaful returned to a loss of US$3.9m (nine months 2014: a loss of US$2.2m).
For the third quarter, net result alone was a loss of U$4.8m, when compared to third quarter 2014 profit of US$4.9m. The Group’s underwriting result was US$2.6m for the period based on a combined ratio of 97.1 per cent. Income from investments was lower year-on-year at US$10.1m (nine months 2014: US$19.3m) following a world- wide swing in share prices during the third quarter of 2015.
Gross premium income over the nine month period decreased to US$212.6m from US$298m in the prior year period, as shifts in Arig’s Lloyd’s portfolio, voluntary premium cutbacks by Takaful Re and the influence of exchange rate developments contributed to the reduction.
The group wrote gross premiums of US$26.5m during the third quarter, when compared to US$61.2m in the third quarter a year ago.
Yassir Albaharna, CEO of Arig, commented: “The recent turmoil in financial markets has been a challenge to many, but we continue to follow a conservative investment policy. On another front, a special shareholders’ meeting for Takaful Re is being called next month since Arig did not receive unanimous approval to the offer made to purchase the minority shares. This is an important move towards enhancing the group’s earnings potential.”
Arig’s shareholders’ equity stood at US$253.0m on 30 September 2015 (end of 2014: US$264.5m). Book value per share was US$1.28 at the end of the third financial quarter 2015 (end of 2014: US$1.34).
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