Dubai: Bahrain based Arab Insurance Group (ARIG) slipped into the red, with losses of $3.62 million for the first six months of 2020 against a profit of $9.53 million last year. The latest hit was brought on by investment losses.
The region’s insurance giant was undone by a steep decline in gross written premiums, which went into negative, at $12.61 million against $171.74 million for first-half 2019. That whopping drop was immediately reflected on the bottom-line.
All adding up
Accumulated losses are now at $31.5 million against $28.5 million as of end 2019. This represents 14.3 per cent of paid-up capital.
Another key measure, the net earned premium, more than halved during the period to $47.23 million from $102.78 million, according to ARIG's disclosure on DFM.
With the COVID-19 related costs and claims mounting, insurers could be in for a tough second-half.
“The Board of Director and management has been closely monitoring the impact of COVID-19 development on operations and financial position, including possible loss of revenue, impact on asset valuations, impairment, etc.,” the insurer said in a statement.
“The Group has put in place contingency measures, which include – but are not limited to – enhancing and testing of business continuity plans.”