Bahrain’s ARIG reports a loss of $ 3. 62 million for the first part of 2020

Dubai: Bahrain-based Arab Insurance Group (ARIG) fell into the red, with losses of $ 3. 62 million during the first six months of 2020 compared to a profit of $ 9. 53 million last year, the last hit caused by investment losses.

The region’s insurance giant was offset by a sharp drop in gross written premiums, which turned negative, to $ 12. 61 million from $ 171. 74 million for the first part of 2019. This massive drop without delay affected the bottom line.

Accumulated losses now amount to $ 31. 5 million compared to $ 28. 5 million at the end of 2019. This represents 14. 3% of paid-up capital.

Another key metric, the net premium won, was reduced by more than part of the era to $47. 23 million from $102. 78 million, according to ARIG’s disclosure of DFM.

With rising prices and claims related to COVID-19, insurers may face a difficult time in the middle.

“The Board of Directors and control have been strongly monitoring the effect of COVID-19 progression on operations and monetary status, adding imaginable revenue losses, have an effect on asset valuation, depreciation, etc. ,” the insurer said in a statement.

“The Group has put emergency measures in place, which come with, but are not limited to, trial business continuity plans. “

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