ADNIC reports AED 178.5 million net profit for third quarter of 2017

1st Nov 2017 Press Release

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced today 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, Shaikh 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.”

Key Financial Highlights

Gross Written Premium

For the nine month period ended September 30th 2017, 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.

Premium Retention

The overall premium retention ratio reached 46% for the nine month period ended September 30th 2017 compared to 46 % for the same period in 2016. 

Net Underwriting Income

For the nine month period ended September 30th 2017, ADNIC Net Underwriting profit is AED 239.0 million, against a Net Underwriting Profit of AED 252.3 million for the same period in 2016. 

General and Administrative Expenses

General and Administrative Expenses for nine month period ended September 30th 2017 stood at AED 148.7 million compared to AED 180.4 million for the same period in 2016. 

Net Technical Profit

Net Technical Profit for the nine month period ended September 30th 2017 increased by 23% to AED 94.1 million, against a Net Technical Profit of AED 76.6 million for the same period in 2016. 

Net Investment Income

ADNIC’s Net Investment and Other Income increased by 23% to AED 88.2 million for the nine month period ended September 30th 2017 compared to AED 71.6 million for the same period in 2016.

Net Profit

For the nine month period ended September 30th 2017, Net profit 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

Basic and diluted earnings per share increased by 24% to AED 0.31 for the nine-month period ended 30th September 2017 compared to basic and diluted earnings per share of AED 0.25 for the same period last year.

Cash Balances

ADNIC’s cash balances stood at AED 719.6 million as at September 30th 2017, compared to AED 1.03 billion as at December 31st 2016. This is on account of reallocation to other asset classes as per ADNIC’s asset allocation framework.

Investments

Total investments including cash in time deposits, bank accounts and investment properties increased by 5.7% to AED 3.32 billion as at 30th September 2017, compared to AED 3.14 billion as at December 31st 2016.

Total Assets

The total assets increased by 4.3% to AED 6.77 billion as at 30th September 2017, compared to AED 6.49 billion as at December 31st 2016.

Gross Technical Reserves

The Gross Technical Reserves increased by 9.5% to AED 4.03 billion as at 30th September 2017, compared to AED 3.68 billion as at December 31st 2016.

Shareholders’ Equity

The Shareholders’ Equity position increased by 9.0% to AED 1.93 billion as at 30th September 2017, compared to AED 1.77 billion as at December 31st 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 indigitalization and customer service enhancement.”