Arig announces results for 2015

Loss events, overcapacities in the reinsurance market and lower investment returns resulted in a US$4.4 million loss to the Arig Group for the year 2015 (2014: profit of US$ 15.6 million). 

Parent company Arig and its corporate member at Lloyd’s generated gains of US$2.1m from underwriting activities (2014: US$14.3m) whereas Takaful Re, a subsidiary of Arig, produced a loss of US$1.3m (2014: loss of US$8.3m) to the Group. Investment returns reached US$14.3m but were down 30 per cent year-on-year (2014: US$20.5m) as markets declined towards the end of 2015. 

The Group’s net result for the fourth quarter 2015 alone was a loss of US$5.8m (Q4 2014: profit of US$6.0m).

Arig’s Gross written premiums decreased to US$220.4m over the year (2014: US$315.3m) as a result of shifts in the Lloyd’s portfolio, cyclical cutbacks and the influence of exchange rate developments. A series of mid-size insurance losses and the reduced premium pool pushed the Group’s combined ratio up to 106.6pc (2014: 101.7pc).

Yassir Albaharna, CEO of Arig, commented: “We are obviously not satisfied with our 2015 result and are streamlining the Group for better performance and capital efficiency. It was therefore decided that Takaful Re, in which we hold a 54pc stake, should cease underwriting. Equally we are revisiting activities that have remained below our expectations while boosting those with strong returns.” 

Arig’s shareholders’ equity stood at US$244.2m on 31 December 2015 (end of 2014: US$264.5m) with a book value per share of US$1.23 (end of 2014: US$1.34).