Arig (Ticker: ARIG), recorded a consolidated net profit of US$ 2.1 million attributable to shareholders
for the first quarter 2023 (first quarter 2022: net profit of US$ 7.5 million), a decrease of 72% due to lower
insurance revenue following the decision taken by the shareholders of the Company on 13 August 2020, to
cease underwriting activities. Earnings per share for the first quarter of 2023 was US cents 1.1 compared to
US cents 3.8 for the same period in 2022. Comprehensive income attributable to shareholders for the first
three months of the year 2023 was positive US$ 3.1 million (first quarter 2022: US$ 1.1 million), an increase
of 182% mainly due to lower volatility on fixed income securities as compared to previous year.
Arig has produced its first set of financial statements compliant with the new requirements of IFRS 17
Standard. The transition date was set as 01 January 2022, and the company has calculated the impact of
implementing the new standard on the shareholders’ equity as at that date. The comparatives for the year
2022 were restated in accordance with the new standard. The company has adopted PAA (Premium Allocation
Approach) measurement model for all lines except long-term life business, where GMM (General
Measurement Model) was applied.
Arig’s shareholders’ equity stood at US$ 279.8 million at 31 March 2023 (end of 2022: US$ 286.6 million) a
decrease of 2%, primarily due to payout of dividends of 5%. The total assets as at 31 March 2023 was US$
421.9 million compared to US$ 421.4 million as at 31 December 2022, an increase of 0.1%. Retained earnings
of the Company stood at US$ 34.5 million at the period-end (end of 2022: retained earnings US$ 39.8 million),
representing 15.7% of paid-up capital.
Insurance revenue for the first quarter of 2023 stood at US$ 0.6 million (first quarter 2022: US$ 2.7 million) a
decrease of 78% largely due to cessation of underwriting business. The insurance service result for the quarter
was a profit of US$ 0.9 million (first quarter 2022: US$ 6.5 million) a reduction of 86% mainly due to positive
claims experience in 2022.
Consolidated investment income attributable to shareholders and insurance funds for the quarter was US$ 3.3
million (first quarter 2022: investment loss US$ 2.8 million) due to better performance of fixed income portfolio
and higher interest earned on deposits.
Book value per share was US$ 1.41 at the end of the period (end of 2022: US$ 1.45).
