Bahrain-based Arab Insurance Group (Arig) on Thursday said that during the first quarter gross written premium reached $132.1 million (Q1 2010: $ 141.7 million), contributing to a combined ratio of 81.7% for the non-life portfolio. Mixed financial markets generated investment income of $ 5.5 million (Q1 2010: $ 6.5 million) over the quarter.
Starting this year, Arig’s corporate membership at Lloyd’s of London became operational producing complementary income for the Group from territories outside the MENA region.
Global reinsurance markets took a hit during the first quarter when severe earthquakes in Japan and New Zealand as well as floods in Australia caused multi-billion dollar losses to the industry, while lower investments returns were not providing much relief. Closer to home, Arig witnessed recurring flood losses from Saudi Arabia and generally lagging economic performance in the region as the Arab World was rocked by civil unrest. The Group’s quarterly result reflects the difficult industry climate, but remained in positive territory, returning a profit of $600,000 (Q1 2010: $ 4.5 million). At the same time, technical provisions were strengthened against unreported future claims from clients.