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.
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