Arig net profits up

Middle East

The Arab Insurance Group ( Arig) increased its net profits by 34% from US$6.4mn to US$8.6mn for the first six months of 2006. This is despite the fact that Arig, the largest indiginous reinsurer in the region, only increased its gross premium income marginally (by 0.7%) to US$107.5mn and saw reductions in both its investment and underwriting incomes by 10% to US$14.5mn and 24% to US$2.7mn respectively. The key to the increase in the group’s half year profitability was the absence of a provision for which amounted to US$4.3mn in 2005.