The Bahrain-based Arab Insurance Group (ARIG) posted net losses of $51.1 million in the first nine months of 2001, compared to $49.9 million in revised net losses during the same period in 2000. A company statement attributed the losses to the September 11 attacks on the United States, severely influencing the performance of the firm’s wholly owned subsidiary ARIG Reinsurance Co.(ARIG Re).
The unit’s reinsurance operations are set to lose an additional $28.2 million from related claims in the aftermath of the attacks, as well as another four million in investments by year’s end, reported Lebinvest. As a result, ARIG has begun withdrawing from its aviation insurance business in an attempt to inject more funds into its capital in order to enhance its balance sheet performance.
ARIG’s total assets dropped to $1.6 billion at the end of September 2001, down 12 percent from $1.32 billion the same time last year. The firm’s shareholders’ equity fell by 31 percent to $197.3 million during the same period. The company’s investment income also fell to $26.6 million from $33.4 million.
Formed in 1980, ARIG is currently the largest reinsurance operation in the Middle East. The company has overseas offices in Tunisia, Kuala Lumpur, Hong Kong and Seoul. The Group operates subsidiaries in Morocco, Jordan, and Egypt and Tunisia.
ARIG expanded its capital to $360 million in 1997 by issuing shares to investors in the Arab world. Kuwait, the United Arab Emirates and Libya each hold a 16.3 percent stake in ARIG, whose shares are traded on the Bahraini, Omani, Kuwaiti and Egyptian stock markets. Its global depository receipts are listed on the London Stock Exchange. — (menareport.com)
© 2001 Mena Report (www.menareport.com )