Arig losses held as rights issue planned

16 August 2002

Bahrian-based Arab Insurance Group (Arig) has posted first-half losses of $8.3 million, a deterioration on the loss of $3.2 million in the same period of last year, but a potentially considerable improvement on the 2001 full-year loss of $88.3 million.

Heavy provisioning has been the main cause of the interim loss. Some $3.9 million has been set aside as cover for claims on its UK subsidiary under run-off. Another $3.8 million of tax-related provisions have been made for Moroccan subsidiary Compagnie Nord-Africaine & Intercontinentale d'Assurance (CNIA), and $5.5 million of provisioning has been made for reinsurance recoveries in respect to a failed Japanese aviation reinsurer.

Arig's Bahrain-based reinsurance operations generated an underwriting profit of $2.1 million, and investment income was up 5 per cent year on year.

The improved operational performance will be noted by shareholders on the eve of Arig's $100 million rights issue (MEED 12:7:02). The issue will run from 1 September to 15 September, with trading in the company's stock suspended from 25 August. Ahli United Bankis acting as the receiving bank for the rights issue.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.