May 24, 2019

Arig may cease underwriting

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The Board of Directors of Arab Insurance Group (ARIG) has passed a decision at a recent meeting to cease the underwriting activities of the Group subject to regulatory authorities and shareholders’ approval.

The decision was conveyed in the Group’s condensed consolidated interim financial statement submitted to the Dubai Financial Market. The statement reads, “The Board in its meeting held on 13 May 2019 resolved to cease its underwriting activities after obtaining necessary approvals from the Central Bank of Bahrain and Shareholders in an Extraordinary General Meeting.”

Arig reported consolidated net loss of USD22.4 million attributable to shareholders for the first half of the year 2018, (half-year 2017: net profit of USD4.1 million).

The negative result is mainly due to the creation of a provision of USD21 million related to Arig’s subsidiary, Gulf Warranties W.L.L. This provision has been made for likely losses arising out of alleged fraud committed by employees of Gulf Warranties W.L.L.

The organisation has been in the regional market for over 36 years and is a publicly traded company owned by over 6,000 private and institutional investors and listed on the stock exchanges of Bahrain and Dubai.

 

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