Arig profits hit by Cyclone Gonu
Third quarter profits at Arab Insurance Group (Arig) were down after the company was hit by a $9mn loss from Cyclone Gonu.
The cyclone hit Oman in June and was the strongest ever recorded in the Arabian Sea. It caused $4bn in economic losses and an estimated $800mn in insured losses.
Arig’s net profit fell to $10.3mn for the quarter, compared to $12.9mn in the prior-year period. Gross written premiums were up 46 percent from the same period last year at $215mn.
It said the growth was largely due to its acquisition of Scottish Re’s Middle East portfolio in July.
The company’s investment income was up from $26.2mn in the third quarter of 2006 to $37.4mn this year.
It said that it was “insulated” from the ongoing US sub-prime crisis by its “prudent and conservative” investment policy.