The Arig Group announced its consolidated financial results to Bahrain Bourse (BB), reporting net profits of $9.6 million during the nine-month period ending September 30, 2014, compared to $12.6 million in the same period of 2013.

Net profits reached $4.9 million during the third quarter of 2014, compared to $7.5 million in the same period a year earlier.

Arig’s underwriting returns dropped to $1.4 million in the first nine months of 2014, compared to around $6 million during the same period in 2013. The combined ratio for Arig alone reached 95.2% after the third quarter. The lower underwriting result was partially offset by $19.3 million income from investments, compared to $14.9 million during the nine months of 2013.

Furthermore, gross premium income gained 15.1% to around $298 million during the first nine months of 2014, compared to $258.9 million in the corresponding period of 2013. Such rise was largely supported by increased premium derived from Arig’s engagement in overseas markets and the parent company’s Life business. Takaful contributions were further reduced as the market segment continued to under-perform.

The Group’s gross premiums stood at $61.2 million in the third quarter of 2014, against $34.6 million during the same period of 2013.

Shareholders’ equity rose to $262.6 million as at September 30, 2014, against $249.2 million by the end of 2013. A book value per share reached $1.33 by September 30, 2014, compared to $1.26 by the end of 2013.

“The Group experienced a number of risk losses from markets, to which we have since reduced our exposure. In addition, Re-Takaful operations continued to disappoint. On the other hand, the Lloyd’s book and our Life franchise are showing strong results, as did investments. It has been a mixed year for the industry thus far but Arig’s highly diversified portfolio helps shield the Group from greater volatility,” noted Arig CEO Yassir Albaharna.