ADNIC posts AED227.3mn profit

ABU DHABI / Emirates Business

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced on Wednesday its financial results for the year 2017. The company reported strong results with its net profit of AED227.3 million for 2017, representing an increase of 11 percent over the same period last year.
Commenting on the strong results, His Excellency Sheikh Mohamed bin Saif Al Nahyan, Chairman of ADNIC, said: “The Board of Directors is delighted to announce ADNIC’s strong underwriting results and profitability throughout 2017. ADNIC’s positive full year results reflect the successful delivery of the company’s strategy.
Despite a challenging business environment, ADNIC’s Board of Directors, as well as the management team, remain committed to driving standards of excellence and to delivering sustainable growth in profitability. Our priority is to ensure that ADNIC is positioned amongst the regional market leaders by leveraging on our
innovative capabilities and differentiated offering.”
Ahmad Idris, CEO of ADNIC said: “I am pleased to report that ADNIC has achieved strong results in 2017. While ADNIC has taken a conservative approach in its underwriting strategy, the company achieved premium growth for the year and strengthened its long-term financial and operational
performance.”
In the previous year, ADNIC’s gross written premium increased by 11.3 percent to AED2.64 billion compared to AED2.38 billion in 2016, while the overall premium retention ratio reached 47 percent for the year 2017 compared to 44 percent in 2016.
The company’s net underwriting profit stood at AED304.0 million compared to AED342.6 million in 2016, while net investment and other income increased by 12 percent to AED114.2 million in 2017, compared to AED102.4 million in 2016.
General and administrative expenses decreased to AED191.0 million in the previous year compared to AED239.9 million for 2016 demonstrating ADNIC’s increased operational efficiency.
The company reports an increase of 8.7 percent in net technical profit to AED118.4 million in 2017, against a net technical profit of AED108.9 million for 2016. For the year 2017, net profit increased by 11 percent to AED227.3 million, compared to a net profit of AED 205.0 million for 2016.
ADNIC’s cash balances stood at AED705.4 million in the previous year as compared to AED1.03 billion in 2016. This is due to reallocation to other asset classes, as per ADNIC’s asset allocation framework.
The company’s total investments including cash in time deposits, bank accounts and investment properties increased by 8.0 percent to AED3.39 billion in 2017, compared to AED3.14 billion in 2016, while total assets increased by 3.2 percent to AED6.70 billion in 2017, compared to AED 6.49 billion in 2016.
The shareholders’ equity position increased by 11.9 percent to AED1.98 billion in 2017, compared to AED1.77 billion in 2016, while basic and diluted earnings per share increased by 11 percent to AED0.40 for the year 2017 compared to basic and diluted earnings per share of AED0.36 in 2016.