Arig net profit up 41% to $12.6m in nine months

Arig recorded net profits of US$ 12.6 million for the first three quarters of 2013 (nine months 2012: US$ 9.0 million) on the back of positive returns from its reinsurance activities and investments. After consideration of its subsidiary, Takaful Re, the Group’s underwriting result of US$ 6.0 million for the nine-month period was similar to last year’s (nine months 2012: US$ 6.2 million), while investment income for the same period reached US$ 14.9 million for the Group (nine months 2012: US$ 16.3 million). Results were supported by a reduction in expenses and a favorable development in currency exchange values.

The company’s net profit for the third quarter alone was US$ 7.5 million (Q3 2012: US$ 5.7 million).

Gross premiums written during the first three quarters of the year reduced slightly to $258.9 million, nine months 2012 US$ 260.9 million, reflecting diverse trends at the parent and its subsidiary, Takaful Re. At Arig and its corporate membership at Lloyd’s, revenues increased by 4% year-on-year, whereas Takaful Re relinquished 31% of its premium during the same period in its continued effort to strengthen bottom line results.

Gross premiums written for the third quarter alone was US$ 34.6 million (Q3 2012: US$ 37.3 million).

The Group’s combined ratio for its non-life book improved to 90.4 % for the first three quarters of the year (nine months 2012: 92.7 %).

“After full consolidation of our subsidiary, Takaful Re, the Group’s performance continues to strengthen in a highly competitive market place. At Arig, we believe in a sustainable business model and it is heartening that our continuous efforts are paying off,” Yassir Albaharna, CEO of Arig, said.

The Group consolidated its Re-Takaful subsidiary participants’ fund accounts during the second quarter of this year, in order to comply with the requirements under the IFRS 10 accounting rules. Accordingly, all comparative 2012 figures quoted have been restated.

Arig’s shareholders’ equity was up 3% at US$ 243.1 million on 30 September 2013 for the first nine months (end of 2012: US$ 235.2 million), with a book value per share of US$ 1.23 (end of 2012: US$ 1.19).