OREANDA-NEWS. The Arig Group delivered consolidated net profits of US\$ 3.5 million for the first quarter 2015 (Q1 2014: US\$ 2.8 million). Earnings from the conventional reinsurance book contributed US\$ 7.4 million to the result (Q1 2014: US\$ 3.7 million), whereas Takaful Re, the Group’s Islamic subsidiary, produced a loss of US\$ 3.8 million over the period (Q1 2014: a loss of US\$ 0.8 million).

The Group’s combined ratio of 76.6% for the quarter is reflective of the improved underwriting position against the previous year (Q1 2014: 82.1%).

Consolidated investment income of US\$ 6.3 million was generated over the reporting period (Q1 2014: US\$ 6.8 million), representing an annualized return of 3.5% on investible assets.

Gross written premiums decreased to US\$ 166.0 million for the Group over the quarter (Q1 2014: US\$ 207.4 million) as shifts in Arig’s Lloyd’s portfolio, voluntary premium reductions by Takaful Re and the influence of exchange rate developments contributed to the reduction.

Yassir Albaharna, CEO of Arig, commented: “In a highly challenging business environment, Arig has markedly grown its underwriting profit from the conventional reinsurance portfolio, a pleasing development that was flanked by good investment returns. The losses from the under-performing Re-Takaful book are being addressed with the clear target of achieving a lasting solution so that the full earnings potential of the Group can be realized.”

Arig’s shareholders’ equity stood at US\$ 261.8 million on 31 March 2015 (end of 2014: US\$ 264.5 million) after the distribution of dividend US\$ 0.05 per share. The book value per share was US\$ 1.32 for the same period (end of 2014: US\$ 1.34).

About Arig

Arig is one of the largest Arab-owned, professional reinsurance providers in the Middle East and Africa. Arig is listed on the stock exchanges in Bahrain and Dubai and offers a wide range of reinsurance products and services. Arig’s subsidiaries include Takaful Re (Dubai), Gulf Warranties (Bahrain) and Arig Capital Ltd. (UK).