Alliance International Reinsurance Pcl (ALL) reported a sharp jump in 9M 2006 profit to EUR 1.44 mln from EUR 47k a year ago in the same period. Gross premiums written for the period 1 January to 30 September 2006 amounted to CYP 18.502.838 against CYP 16.133.481 for the corresponding period of 2005. Gross premiums written for the same period expressed in US$ which is the main currency in which the Company transacts business totaled $ 40.180.762 against $ 35.333.938 for the corresponding period of 2005, representing an increase of 14%.
Premiums earned amounted to CYP 10.594.963 against 9.695.154 for the corresponding period of 2005. Premiums earned for the same period expressed in US$ totaled $ 23.008.021 against $ 21.233.358 for the corresponding period of 2005, representing an increase of 8%.
Net Investment Income for the period amounted to CYP 1.137.456 against CYP 1.061.480 for the same period of 2005, representing an increase of 7% which is mainly attributed to the higher yields of government bonds and equities.
Operational profit for the period amounted to CYP 1.208.875 against a profit of CYP 564.002 for the corresponding period of 2005, representing an increase of 114%. This is mostly attributable to the expansion of the Company’s business and the higher yields of its investment portfolio.
Profit before tax for the period amounted to CYP 950.551against a profit before tax of CYP 492.540 for the corresponding period of 2005, an increase of 93%, while net profit for the period amounted to CYP 832.215 or EUR 1.44 mln against a net profit of CYP 27.163 for the corresponding period of 2005. The Company’s book value as at 30 September 2006 was 39,55 Cyprus cents per share or 0.69 euro cents.Â
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Acquisition
The Board of Directors of Alliance International Reinsurance Pcl approved the acquisition of 100% of the share capital of LP Holdings Ltd., which is the holder of 100% of the share capital of Limassol Power Plant Limited, owner of a prime land in Limassol. The shareholders of LP Holdings Ltd have no direct or indirect relation with Alliance International Reinsurance Public Company Limited or its Board members.
The consideration for the acquisition of the shares of LP Holdings Ltd has been agreed at CYP 4.91 mln or EUR 8.5 mln, which will be paid in two installments the first installment on the 15th of November 2006 and the second on the 10th of January 2007, when all the terms of the agreement are fulfilled.
It is noted that no goodwill is resulting from the acquisition since the market value of the land amounts to CYP4.91 mln, according to two independent valuations. After taking into account the market value of the land, Limassol Power Plant’s net assets are equal to the sum that will be paid for the purchase of shares of LP Holdings Ltd.
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