Bahrain-based Arab Insurance Group (Arig) reported improved performance under its reinsurance portfolio and healthy investment returns which it said resulted in a net profit position of $10.3 million nine months 2012, Q3 2011: net loss of $ 11.5 million.
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 $8.3 million for the 9-month period (Q3 2011: net loss of $7.9 million). At the same time, gross premiums written reduced by 12% to $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 $16 million for the three quarters was sharply up against the previous year (Q3 2011: $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 $ 6.5 million (Q3 only 2011: net loss of $ 7.4 million).
Over the reporting period, shareholders’ equity increased to $ 241.9 million (2011 year end position: $ 222.4 million), while book value per share climbed to $ 1.22 (2011 year end: $ 1.12).