All profit hit by back taxes

Alliance International Reinsurance Public Co. (ALL) reported sharply lower profit for the first nine months of 2005 due to the payment of back taxes, which the company said are non recurring.

Gross reinsurance premiums written for the period 1 January to 30 September 2005 amounted to CYP 16.13 mln against CYP 14.54 mln for the corresponding period of 2004. Gross reinsurance premiums written for the same period expressed in US$ which is the main currency in which the Company transacts business totaled $ 35.33 mln against $30.78 mln for the corresponding period of 2004, representing an increase of 15%.

Net earned premiums amounted to CYP 9.695.154 against 10.108.340 for the corresponding period of 2004. Net earned premiums for the same period expressed in US$ totaled $ 21.23 mln against $ 21.4 mln a year ago, representing a decrease of 1%.

Net Investment Income for the period amounted to CYP 1.06 mln against CYP 807.708 for the same period of 2004, representing an increase of 31% which is mainly attributed to the high performance of government bonds.

Operational profit for the period amounted to CYP 564.002 against a profit of CYP 931.983 a year ago, representing a decrease of 39%. This is mostly attributable to increased provisions for claims, which may arise as a result of natural catastrophes in the Asian Continent during the period 1 July to 30 September 2005.

Profit before taxation amounted to CYP 492.540 against a profit before tax of CYP 932.150 for the corresponding period of 2004, a decrease of 47%, while Net profit for the period amounted to CYP 27.163 against a net profit of CYP 790.670 for the corresponding period of 2004.

The profit after tax has arisen after the deduction of tax of CYP 465.377 out of which an amount of CYP 400.835 refers to prior year taxation and is non-recurring.

The Company’s book value as at 30 September 2005 was 37,45 cents per share.