BAHRAIN: Arab Insurance Group (Arig) recorded a consolidated net profit of US$ 3.6 million, attributable to shareholders, for the third quarter of 2019 (Q3 2018: net profit of US$ 0.3 million), an increase of 1100% mainly due to higher underwriting results and lower operating expenses.
Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and Africa and its shares are listed on the stock exchanges in Bahrain and Dubai and offers a wide range of reinsurance products and services.
Arig’s consolidated net profit attributable to shareholders for the nine months of year 2019 was of US$ 12.8 million (nine months 2018: loss US$ 22.2 million). Earnings per share for the third quarter 2019 was US cents 1.8 compared to US cents 0.1 for the same period in 2018. Earnings per share for the nine months of 2019 was US cents 6.5 compared to a loss of US cents 11.2 for the same period in 2018.
Gross premiums written for the third quarter of 2019 declined by 93% to US$ 3.7 million (Q3 2018: US$ 52.4 million). Gross premiums written during the nine months of 2019 declined by 27% to US$ 175.4 million for the Group (nine months 2018: US$ 239.9 million), due to decrease in the non-Lloyds portfolio.
Consolidated investment income attributable to shareholders and insurance funds for the third quarter of 2019 was US$ 3.3 million (Q3 2018: US$ 4.5 million), a decrease of 27%. Consolidated investment income attributable to shareholders and insurance funds for the nine months was higher at US$ 20.7 million (nine months 2018: US$ 13.3 million), an increase of 55% as a result of positive global markets.
Arig’s underwriting profit for the third quarter of 2019 was US$ 3.5 million compared to US$ 1.8 million for third quarter 2018, an increase of 94%. Arig’s underwriting profit stood at US$ 16.1 million for the nine months 2019 (nine months 2018: US$ 2.5 million), an increase of 544%.
Comprehensive income attributable to shareholders for the third quarter of 2019 was a profit of US$ 5.5 million (Q3 2018: profit of US$ 1.0 million), an increase of 450%. Comprehensive income attributable to shareholders for the nine months 2019 was a profit of US$ 26.0 million (nine months 2018: loss of US$ 27.4 million).
Arig’s shareholders’ equity stood at US$ 222.4 million at 30 September 2019 (end of 2018: US$ 196.4 million) an increase of 13%. The book value per share was US$ 1.12 at the end of the same period (end of 2018: US$ 0.99).
The total assets at 30 September 2019 was US$ 1,048.8 million compared to US$ 1,052.6 million at the end of December 2018.