Bahrain-based Arig Group, a leading reinsurance provider, has reported a net profit of $4.7 million for the first half of this year as against $5.2 million for the same period last year.

The group’s investment returns were up and underwriting result was lower at the half-year mark, said a report in the Gulf Daily News (GDN), our sister publication.

Claims from the Indian Sub-continent and re-takaful interest pushed up the groupÕs combined ratio by 4.8 points to 90.8 per cent, lowering underwriting returns to $0.5 million, as against $4.2 million for the same period last year.

At the same time, increased income from investments of $11.7 million in the first half this year, as against $9.4 million for the same period last year, assisted in cushioning the impact on the company’s net result.

Net profit for the second quarter alone was $1.9 million as against $3 million for the same quarter a year ago.

Gross premium income over the six months increased by 5.6 per cent to $236.8 million when compared with $224.3 million earlier helped by increased premium derived from Arig’s engagement in overseas markets and the parent company’s speciality and life business.

Gross premiums written for the second quarter alone were $29.5 million, as against $44.2 milion in the corresponding quarter a year ago.

“We knew that this year would be a challenging period for reinsurers as global over-capacities are showing their effect,” Arig chief executive Yassir Albaharna said.

“On the other hand, Arig is writing a well-balanced portfolio and we are strongly reserved.

“We remain highly confident on our ability to live up to current conditions,” he added.

Arig’s shareholders’ equity increased to $258.6 million on June 30, from $249.2 million as of the end of last year, with a book value per share of $1.31 for the same period, as against $1.26 as of end of last year.

Arig is listed on stock exchanges in Bahrain, Dubai and Kuwait. - TradeArabia News Service