Bahrain:Arig posts higher profits in 2024

Arab Insurance Group (Arig) has announced positive financial results for 2024, with net profit amounting to $26.44m attributable to shareholders, almost 90% higher than the $13.98m chalked up for 2023.

The company’s board of directors in a report for the financial year ended 31 December 2024 said that the improved results were due to efforts in managing reserves, favourable investment returns and reduction in operating costs.

The overall insurance service result was a profit of $7.3m (2023: $2.6m) primarily due to favourable claims compared to 2023. The group reported total investment income of $14.7mi in 2024, the same level as in 2023.

The board has recommended a cash dividend of 12.5% or 12.5 US cents per share on the company’s paid-up capital net of treasury shares, which remains subject to approval of the Central Bank of Bahrain and the company’s shareholders.

Arig’s reinsurance position shows that the total insurance contract liabilities stood at $77.8m as of 31 December 2024 compared to $97.0m at the end of 2023, primarily due to reduction of liability for incurred claims and payment of claims.

For background information, Arig’s board resolved at a meeting on 13 May 2019 to recommend to the shareholders the cessation of the company's underwriting activities. In an extraordinary general meeting held on 13 August 2020, the shareholders approved the board’s recommendation, subject to regulatory approval. However, Arig’s management has been preparing the group’s financial statements on a going-concern basis. This is because no formal decision has been taken by shareholders to liquidate the company, according to a report by the company’s independent auditors.

Arig’s 2024 Insurance Revenue