Arab Insurance Group (ARIG) has raised the authorised capital of its UK subsidiarv to $100 million, of which $70 million is paid up. The ARIG Insurance Company, which derives most of its business from the London market, previously had a capital of £25 million ($37.7 million).
A company official says the capital increase would enable further expansion as well as meeting perceptions that £25 million was too low a level of capital.
‘The company had no solvency problems, but market perceptions have changed in the five years since it was set up. Ratings agencies in particular tend to look for a higher level of base capital,’ he said.
The increase is being paid for from the conversion of pre-existing sterling capital and a $15.5 million cash injection from its Bahrainbased parent. The UK company made net profits of £4.7 million ($7.1 million) in 1995.
ARIG plans to double its own paid up capital to $300 million, partly by bringing privatesector investors into the group, which is currently owned by the UAE, Kuwait and Libya.