Arig reports strong half-year result based on reinsurance performance and investment returns

The company's reinsurance Underwriting Result, which includes investment income on insurance funds and related operating expenses, was up 67% against the same period last year, producing $6.2m.

In line with recovery trends in the global financial markets, investment results turned the corner during the second quarter of the year producing overall earnings of $15.4m for the six-month period (1st HY 2008: $15.3m).

Life and Non-life classes continued to perform at a robust combined ratio of 94.31% (1st HY 2008: 94.26%).

The Group's reinsurance portfolio reached $163.0m for the 1st HY 2009 (1st HY 2008: $184.0m). The drop in gross premium is the result of lower trading volumes in the cyclical lines of business that would recover in tandem with the economies of the Emerging Markets, which form Arig's core business area. Personal line classes, especially medical business performed strongly, reflecting increased demand for such classes in the regional insurance markets.

Shareholders' Equity amounted to $250.3m on 30 June 2009 (December 2008: $239.6m). Book value per share stood at $1.18 on 30 June 2009 (December 2008: $ 1.13).