ADNIC reports AED178.5mn Q3 net 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 first nine months of 2017. The company reported a net profit of AED 178.5 million for the period, an increase of 24% over the same period last year.
Commenting on the strong results, His Highness Sheikh Mohamed bin Saif Al Nahyan, Chairman of ADNIC, said: “On behalf of the Board of Directors, I am delighted that ADNIC has reported strong growth throughout the first nine months of 2017. Prudent underwriting and constant commitment to customer service have resulted in maintaining a healthy portfolio. A positive third quarter of 2017 is testimony to ADNIC’s successful realignment of its operating strategy, with a robust increase in both gross written premium and net profit.
The Board of Directors, as well as the management team, are confidently looking ahead to a continuous path of excellent business results and sustainable
profitability.”
For the nine month period ended September 30, ADNIC’s Gross Written Premium increased by 12.5% to AED 1.98 billion compared to AED 1.76 billion for the same period in 2016.
The overall premium retention ratio of the company reached 46% for the nine month period ended September 30 as compared to 46% for the same period in 2016, however Net Underwriting profit reached AED 239.0 million, against a Net Underwriting Profit of AED 252.3 million for the same
period in 2016.
General and Administrative Expenses of the company for nine month period ended
September 30 stood at AED 148.7 million compared to AED 180.4 million for the same period in 2016. Net Technical Profit increased by 23% to AED 94.1 million, against a Net Technical Profit of AED 76.6 million for the same period in 2016.
ADNIC’s Net Investment and Other Income increased by 23% to AED 88.2 million for the nine month period ended September 30 compared to AED 71.6 million for the same period in 2016. Net profit of the company increased by 24% to AED 178.5 million, compared to a net profit of AED 143.5 million for the same period in 2016
Basic and diluted earnings per share increased by 24% to AED 0.31 for the nine-month period ended September 30 compared to basic and diluted earnings per share of AED 0.25 for the same period last year. ADNIC’s cash balances stood at AED 719.6 million as on September 30, compared to AED 1.03 billion as at December 31, 2016. This is on account of reallocation to other asset classes as per ADNIC’s asset allocation framework.
Total investments of the company including cash in time deposits, bank accounts and investment properties increased by 5.7% to AED 3.32 billion as on September 30, compared to AED 3.14 billion as at December 31, 2016, whereas total assets increased by 4.3% to AED 6.77 billion, compared to AED 6.49 billion as at December 31, 2016.
The Gross Technical Reserves increased by 9.5% to AED 4.03 billion as on September 30, compared to AED 3.68 billion as at December 31, 2016. The Shareholders’ Equity position increased by 9.0% to AED 1.93 billion during the period, compared to AED 1.77 billion as at December 31, 2016.
Ahmad Idris, CEO of ADNIC said: “Our resilient business model and operating strategy have led to strong growth in both technical and net profits. We remain one of the market leaders in terms of financial strength, which will support ADNIC’s strategy to continue investing in digitalization and customer service enhancement.”