Manama : : Arig reported net profits of US$ 4.1 million for the first half of the year 2017, an increase of 128% year-on-year (half-year 2016: US$ 1.8 million). The company's technical result for the first half-year rose to US$ 8.6 million (half-year 2016: US$ 4.0 million), while
Manama : : Arig reported net profits of US$ 4.1 million for the first half of the year 2017, an increase of 128% year-on-year (half-year 2016: US$ 1.8 million). The company’s technical result for the first half-year rose to US$ 8.6 million (half-year 2016: US$ 4.0 million), while investment income increased to US$ 12.3 million (half-year 2016: US$ 9.9 million). The Group’s combined ratio for the first half of the year improved by 8.1 points to reach 79.1% (half-year 2016: 87.2%).
The Group’s net result for the second quarter alone was US$ 3.6 million (Q2 2016: US$ 1.0 million) and its gross premiums was US$ 16.8 million (Q2 2016: US$ 3.5 million) during the quarter alone.
Group’s half year gross premiums written declined to US$ 189.6 million (half-year 2016: US$ 206.2 million), reflecting 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: "We are pleased to report an improved positive result in the first half of 2017 driven by better reinsurance performance and good investment returns, despite the pricing pressure and challenging market environment during the period. With this positive trend, we will continue to streamline our efforts to maximize the Group’s earnings.”
Arig's shareholders' equity stood at US$ 255.7 million on 30 June 2017 (end of 2016: US$ 256.6 million) after payment of dividend of US$ 9.9 million. Book value per share was US$ 1.29 for the same period (end of 2016: US$ 1.30).
Financial Highlights as at 30 June 2017 (in US$ million)
As at 30 June
Full Year
2017
2016
2016
Gross premiums written
189.6
206.2
245.4
Net premiums written
166.4
177.0
208.4
Technical result
8.6
4.0
14.7
Underwriting result
8.4
1.1
8.3
Combined ratio
79.1%
87.2%
96.8%
Investment income
12.3
9.9
19.3
Operating expenses
12.7
11.8
25.6
Net profit
4.1
1.8
9.2
Investment assets
679.3
717.3
737.4
Net technical provisions
636.0
668.8
589.9
Shareholders’ equity
255.7
251.7
256.6
Total assets
1,131.5
1,153.4
1,114.4
Book value per share (US$)
1.29
1.27
1.30
