Mubasher: Arab Insurance Group (ARIG) on Sunday said it suffered losses in the first six months of 2018 following a large provision for one of its subsidiaries.
ARIG logged $22.4 million in net losses attributable to shareholders between January and June versus $4.1 million in net profit in the same period of 2017.
The company, which is listed in Bahrain and Dubai, ascribed its losses to the creation of a provision of $21 million for its subsidiary Gulf Warranties W.L.L., where it expects it may suffer losses from "alleged fraud committed by employees of Gulf Warranties W.L.L."
ARIG's technical results for the six-month period stood at $2.47 million, down 68.6% year-on-year from $8.6 million, while its traditional reinsurance portfolio registered $11.3 million in H1-18, down 18.7% from $13.9 million in the year-ago period.
ARIG's consolidated investment income fell 29.6% to $8.8 million in H1-18 from $12.5 million in the same period of 2017, the company said in a bourse filing.
Gross written premiums slipped 1.1% year-on-year to $187.5 million in H1-18 from $189.6 million.
ARIG's losses per share (LPS) as at 30 June 2018 were 11.3 cents against earnings per share (EPS) of 2.1 cents as at 30 June 2017.
As for the second quarter of the year, ARIG suffered a net loss of $22.9 million versus $3.7 million in net profit for the corresponding period of 2017, while its gross written premiums increased 9.5% to $18.4 million from $16.8 million in Q2-17.
LPS for Q2-18 was 11.6 cents against an EPS of 1.8 cents in the same period of 2017.
