Bahrain-based international reinsurer Arab Insurance Group (Arig) reported record net profits in 1995 of $36.6 million, up 82 per cent from the previous year's adjusted 1994 figure of $20.1 million, the group said in a statement. The 1994 profit figure was restated from $12.6 million by Arigs auditors in line with new industry accounting practices, a group spokesman said.
Gross premium income rose to $323 million compared to $317 million in 1994. 'Written premiums from the Arab insurance market rose by 8 per cent during 1995,' the statement said. It quoted Arig chairman Abdul-Wahab al-Tammar as saying the rise in profits was due to 'the favourable market conditions of both reinsurance and investment activities as well as our careful underwriting strategy.' Arig's board will recommend a 1995 dividend of $15 million at the group's annual general meeting on 24 April, up 25 per cent from 1994. The 1994 dividend was the first Arig had paid for five years.
The group's assets grew to $824 million in 1995, up $100 million from the previous year. Cash flow from both reinsurance and investment activities tripled in 1995 to $84.5 million. Declared underwriting profit rose to $33 million from $23 million, Investment income was also sharply higher at $35 million compared to $20.4 million. Shareholders' equity rose to $271 million from $249 million and technical reserves increased by $58 million to $485 million.
'The further strengthening of technical reserves and shareholders' equity will enable Arig to face with confidence the challenges posed by the cyclical nature of the business' the statement said.