Arab Insurance Group AGRD 3rd Quarter Results

  Arab Insurance Group (AGRD) - 3rd Quarter Results

RNS Number : 8305Q
Arab Insurance Group (B.S.C.)
11 November 2012

                                                              11 November 2012


Arig Announces Net Profits Of US$ 10.3 Million After Three Quarters


Bahrain: Improved  performance under  its  reinsurance portfolio  and  healthy 
investment returns resulted in a net  profit position of US$ 10.3 million  for 
Arig nine months into its 2012 Financial  Year (Q3 2011: net loss of US$  11.5 

The comparatively benign  current-year claims experience  under the  company's 
non-life book  and  a  corresponding  combined ratio  of  92.4%  produced  net 
underwriting returns of US$ 8.3 million  for the 9-month period (Q3 2011:  net 
loss of US$ 7.9 million). At the same time, gross premiums written reduced  by 
12% to  US$  209.4  million, mostly  as  a  result of  decreased  income  from 
territories  subject  to  UN  sanctions  or  political  turmoil,  and  clients 
struggling to reach their business  targets within a highly price  competitive 
market environment.

Investment income of  US$ 16  million for the  three quarters  was sharply  up 
against the  previous  year  (Q3  2011:  US$  0.2  million),  representing  an 
annualised average return of 3.3% on invested assets.

Arig's net operating  result for the  third quarter 2012  alone represented  a 
profit of US$ 6.5 million (Q3 only 2011: net loss of US$ 7.4 million).

Over the reporting period, shareholders' equity increased to US$ 241.9 million
(2011 year  end position:  US$  222.4 million),  while  book value  per  share 
climbed to US$ 1.22 (2011 year end: US$ 1.12).

Financial Highlights as at 30 September 2012 (in US$ million)

                         As at 30 September              Full Year
                                   2012                2011               2011
Gross premiums         209.4    239.0   247.5
Technical result       16.5   6.1  1.4
Underwriting result   8.3  (7.9)  (14.5)
Non-life combined                 92.4%               97.2%             108.6%
Investment income      16.0   0.2  4.0
Operating expenses     24.0    24.8   31.5
Net profit (loss)     10.3   (11.5)  (19.1)
Investment assets      655.4    652.1   652.8
Net technical          584.4    601.9   564.8
Shareholders' equity   241.9    232.8   222.4
Total assets            1,063.7     1,075.1    1,024.3
Book value per share   1.22    1.18   1.12

About Arig

Arig is one of the  largest Arab-owned, professional reinsurance providers  in 
the Middle East and  North Africa. Arig  is listed on  the stock exchanges  in 
Bahrainand Dubai  and  offers  a  wide  range  of  reinsurance  products  and 
services. Arig's  subsidiaries include  Takaful  Re (Dubai),  Gulf  Warranties 
(Bahrain), ARIMA Insurance Software (Bahrain)  and Arig Capital Ltd, UK.  Arig 
is also an equal partner in the joint venture Hardy Arig Insurance  Management 
(HAIM). Additional information about Arig can be obtained at

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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