Arab Insurance reports falling profits

by David Masters

Story link: Arab Insurance reports falling profits

Arab Insurance Group (Arig) has seen its profits fall 60% in the first half of 2008.

The company reported net profits of $11.4 million for the first half of this year, compared to net profits of $18.6 million in the first half of 2008.

Although Arig’s core reinsurance business performed better on year during the period, the current recession in the global economy lowered the company’s investment income.

The company’s reinsurance portfolio increased 39% on year for the period with Gross Written Premiums accounting for $184 million.

Arig’s investment portfolio is highly diversified and conservatively managed, balancing the risk from reinsurance against capital market risk.

Shareholder equity now stands at $289.4 million with a book value per share of $1.37.

Africa and Asia both continue to be strong markets for the company despite increased competition from international players.