(MENAFN) Bahrain-based Arab Insurance Group (Arig) reported a quarterly profit on improved performance of its reinsurance business and better investment returns, Gulf Daily News reported.

The company said it made USD6.5 million operating profit during the third quarter, versus USD7.4 million loss a year ago.

The company also said it earned USD10.3 million net profit during the first three quarters of 2012, compared to USD11.5 million a year earlier.

Net underwriting returns during the 9-month period stood at USD8.3 million, compared with a net loss of USD7.9 million in the same period last year.

Gross premiums written dropped by 12 percent to USD209.4 million, largely due to lower income from territories subject to UN sanctions or political turmoil, and clients struggling to reach their business targets within a highly price competitive market environment.

Investment income for the January-September period rose to USD16 million, up from USD200,000, representing an annualised average return of 3.3 percent on invested assets.