Arab Insurance 2009 profits fall to $22m

17 Feb 2010

(MENAFN) Arab Insurance Group (Arig) posted a net profit of $21.9 million last year, compared to $28.6 million in 2008, as its reinsurance book and investment income both contributed to the rebound, Gulf Daily News reported.

Net earnings for the fourth quarter of last year alone amounted to $4.9 million compared to $17.7 million in 2008, Arig said.

Arig’s reinsurance performance was aided by the absence of large loss events, generating a 98.7 percent combined ratio for the year, compared to 99.8 percent, on its non-life book of business as well as a turnaround of its underwriting result to $10.6 million, compared to $15.3 million in 2008.

Recoveries in the global financial markets allowed the company to book $33.7 million of investment income at year end, or a 5 percent average return on invested assets compared to $26 million in 2008 in a sharp reversal from the previous year when performance was marred by mostly unrealized losses, it said.

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