Arab Insurance Group (Arig), a leading Bahrain insurance company, said its net profit for the first quarter of the year fell to $2.7 million from $5.5 million last year.

However, the reinsurance firm posted an increase of three per cent in gross premiums which hit $164.9 million for the quarter under review when compared with $159.9 million in the corresponding quarter last year, reported the Gulf Daily News, our sister publication.

Arig's non-life combined ratio reached 79.7 per cent for the quarter under review as against 75.2 per cent in the comparable previous period. The underwriting result was lower at $1.6 million as against $3.5 million earlier.

Investments returned $6.4 million as against $10.5 million following uplift in the global equity markets.

"Following our practice of prudent reserving we have catered for some potential claims as a precaution," chief executive Yassir Al Baharna said.

"This has lowered the underwriting result even though it is too early year to say if this would have a lasting effect on our overall performance in 2013," he stated.

Arig's shareholders' equity increased to $249.6 million at the end of first quarter, from $247.1 million at the end of last year, with a book value per share of $1.26 for the period, as against $1.25 at the of end last year.-TradeArabia News Service