BAHRAIN: Arig recorded consolidated net profit of US$ 9.2 million attributable to shareholders for the first half of year 2019 ended June 30, 2019 as against loss of US$ 22.4 million reported in the corresponding period last year.
Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and Africa and its shares are listed on the stock exchanges in Bahrain and Dubai and offers a wide range of reinsurance products and services.
Consolidated investment income for the half year was higher at US$ 17.3 million (half year 2018: US$ 8.8 million), an increase of 97% as a result of positive global markets.
Reinsurance business also reported higher technical profit of US$ 7.0 million for the period (half year 2018: profit US$ 2.7 million) mainly due to loss reduction in the Lloyd’s accounts.
Arig’s underwriting result stood at US$ 12.5 million for the half year 2019 (half year 2018: US$ 0.7 million), an increase of 1686%. Arig’s underwriting profit for the second quarter 2019 was US$ 12.0 million compared to US$ 0.7 million for second quarter 2018, an increase of 1614%.
Gross premiums written during the half year 2019 reached US$ 171.7 million for the Group (half year 2018: US$ 187.5 million), a decrease of 8% compared to the same period in the previous year primarily due to decrease in the non-Lloyds portfolio.
Arig’s net profit for the second quarter alone was US$ 7.4 million (Q2 2018: net loss of US$ 22.9 million). Arig also recorded negative gross premiums of US$ 1.4 million against gross premium of US$ 18.4 million for the same period in 2018.
Earnings per share as at 30 June 2019 was US cents 4.6 compared to a loss of US cents 11.3 as at 30 June 2018. Earnings per share for the second quarter 2019 was US cents 3.8 compared to a loss of US cents 11.6 for the same period in 2018.
Arig’s comprehensive income attributable to shareholders for the half year 2019 was a profit of US$ 20.5 million (half year 2018: loss of US$ 28.4 million). Comprehensive income attributable to shareholders for the second quarter was a profit of US$ 12.2 million (half year 2018: loss of US$ 25.4 million).
Arig’s shareholders’ equity stood at US$ 216.9 million at 30 June 2019 (end of 2018: US$ 196.4 million) an increase of 10%. The book value per share was US$ 1.10 at the end of the same period (end of 2018: US$ 0.99).
The total assets at 30 June 2019 were US$ 1,122.7 million compared to US$ 1,130.3 million in the previous year for the same period.