Adnic reports net profit of AED99.7mn in first quarter

ABU DHABI / WAM

Abu Dhabi National Insurance Company (Adnic) has reported its financial results for the three-month period ending on March 31. The company reported an increased profit of 17.2% to AED99.7 million, compared to AED85.0 million for the same period in 2022.
Adnic’s total insurance revenue stood at AED1.0 billion, compared to AED1.1 billion for the same period in 2022. The company’s net insurance service result stood at AED94.1 million, against AED98.3 million for the same period in 2022.
The company’s net income from investment increased by 94.0% to AED46.3 million compared to AED23.9 million for the same period in 2022. Other operating expenses stood at AED42.7 million, compared to AED38.9 million for the same period in 2022.
As of January 1, 2023, the insurer successfully implemented IFRS 17 Insurance Contracts (IFRS 17), replacing IFRS 4 Insurance Contracts (IFRS 4) along with any corresponding amendments to other standards.
Adopting these standards has brought about substantial transformations in the accounting of insurance and reinsurance contracts. As a result, Adnic has restated specific comparative figures for the prior year following the new standard.
Commenting on Adnic’s performance, Sheikh Mohamed bin Saif Al-Nahyan, Chairman of Adnic, said, “As an outcome of strong underwriting and investment performance, Adnic has delivered a net profit of AED99.7 million (17.2 % increase versus prior) and an increase in earnings per share from AED0.15 to AED0.17.”
Sheikh Mohamed bin Saif Al-Nahyan, Chairman of Adnic, said, “We continue to invest in key areas that impact our operations and enable sustainable growth.”
“Our efforts to transform our operations through cutting-edge technology and innovative solutions are aimed at improving our customers’ experiences, increasing efficiency, and enabling us to better adapt to market changes. We are dedicated to leveraging the latest advancements to provide better service to our clients. We firmly believe that our investments in digitalisation and innovation will ensure our continued success and help us maintain our position as an industry leader.”
“Sustainability has long been a central operational pillar for us, and we have made significant progress towards creating a positive impact on both the environment and society. Our commitment to sustainability has driven us to implement innovative solutions and adopt best practices, resulting in tangible benefits for the communities we serve.”
Adnic’s CEO, Charalampos Mylonas, has stated that the company continues to leverage its core competencies in the first quarter of 2023, resulting in a strong capital base, solvency ratio surplus, underwriting excellence, enterprise risk management framework, and market-leading outward reinsurance arrangements. Adnic has reduced its exposure to highly reinsured corporate insurance programmes and has focused on developing portfolios with strong underwriting income potential.
The company’s investment performance has significantly improved due to changes in asset allocation approach, and stable dividend income and investment portfolio mark-to-market gains have positively contributed to the overall results.