Arab Insurance Group's 2007 profit declines 22% to $23.7m

Dubai: Bahrain-based Arab Insurance Group (Arig) announced net profits of $23.7 million for the 2007, a decline of 22 per cent on the previous year.

Its profit in 2006 was $30.4 million, which included "non-recurring income" of $10.4 million.

Arig's board of directors has recommended a cash dividend of 7.5 per cent on the company's paid-up capital, or 7.5 cents per share.

The dividend remains subject to clearance by the Central Bank of Bahrain and approval by the company's annual general meeting to be held on March 30.

"Results include net impact of $9.2 million from Cyclone Gonu, the rare natural event that caused an estimated $800 million of insured losses in the Sultanate of Oman in June 2007," the company said.

Arig said on the back of a large Life reinsurance book acquired from Scottish Re in mid-year and new non-life business written from target markets in East Asia and in Sub-Sahara Africa, its reinsurance portfolio grew by 50 per cent over the year to reach $250 million of gross written premium. The figure for 2006 was $166.3 million.

"Working with an international team of highly experienced underwriters has enabled Arig to assume the role of a regional leader in life reinsurance. We view this as an important milestone in the future positioning of the group and in securing attractive financial returns for our shareholders," said CEO Yassir Al Baharna.

Investment income for the year increased to $53.7 million compared with $38.4 million in 2006.