Arig shareholders take bonus despite tough markets

MANAMA, Bahrain—Arab Insurance Group's shareholders approved a 10% cash dividend at the company's 26th annual general assembly meeting held in Bahrain this week, that means they will receive a $22 million payout.

This follows a strong performance from one of the region's biggest insurance and reinsurance groups as it posted a net profit of $30.4 million in 2006. This represents a 10.7% average return on equity.

The Arig board said that it was happy to have achieved a "respectable" result, in what it described as a highly competitive marketplace.

The board and management of Arig said that despite the tough market conditions, they are determined to continue to let shareholders participate in the value created from its operations.

Last year, Arig released a 5% cash dividend and 10% of its paid-up capital as bonus shares.