Regional reinsurer Arab Insurance Group (Arig) has reported a consolidated net profit of $1.6m attributable to shareholders for the first quarter of 2025, a fall of 81% from the $8.3m posted for the first three months of 2024.
This plunge in net profit is mainly due to the recovery of unpaid insurance premiums of $6.0m in 2024 following an adjudication favouring the company.
Arig’s shareholders’ equity stood at $263.3m at 31 March 2025 (31 December 2024: $282.8m) a decrease of 7%, primarily due to the payout of dividends. Total assets amounted to $378.0m as of 31 March 2025, compared to $372.5m as of 31 December 2024, an increase of 1.5%.
Insurance revenue in the first quarter of 2025 stood at $0.3m (1Q2024: $0.4m), a year-on-year decrease of 25%. The insurance service result for the quarter was a loss of $0.7m (1Q2024: loss of $1.5m) mainly due to a decrease in insurance service expenses as compared to 2024.
The consolidated investment income attributable to shareholders and insurance funds for the quarter was $3.2m (1Q2024: investment income $4.1m) primarily due to a shift in allocation from relatively higher-yielding short-term deposits to slightly lower-yielding medium-term US Treasuries to lock into attractive yields over a 3-to-5-year period.