Bahrain-based Arab Insurance Group (ARIG) announced on Friday, March 30, a net loss of $90.9 million for the year 2000, mostly as a result of unstable global financial markets and a weak reinsurance market.
"With the full impact of the December 1999 storms registering an impact of $11.5 million last year and the spate of large loss events arising during the year, particularly in aviation, the reinsurance operations continued to be affected negatively by high claims costs," said the group’s ECO, Udo Krueger, to the Gulf Daily News. He added that “steps have been taken to correct the portfolio imbalance by reducing net exposures to such volatile business lines as aviation and marine energy."
In 1999, ARIG also posted a net loss of $98 million—its first year of losses since the 1991 Gulf War. The insurance group is the largest in the Arab world, which was converted to a public shareholding company at the end of 1997, with 7,500 stockholders. The company is listed in the stock markets of Bahrain, Kuwait, Oman and Egypt. — (Albawaba-MEBG)
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