ADNIC kicks-off 2018 with AED 95.2 million net profit achieved in the first quarter

3rd May 2018 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 quarter of 2018. The Company reported strong first quarter with net profit increased by 28.6% to AED 95.2 million.

Commenting on the strong results, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “I am delighted that ADNIC’s performance continues to produce positive results. This represents a strong start to 2018. With customer service being the foundation of our growth, we are able to create solutions that deliver value for our customers and strengthen our sustainable business model.”

Key Financial Highlights

Gross Written Premium

For the three-month period ended March 31st 2018, ADNIC’s Gross Written Premium increased by 13% to AED 1.22 billion compared to AED 1.08 billion for the same period in 2017.

Premium Retention

The overall premium retention ratio reached 52% for the three-month period ended March 31st 2018 compared to 42 % for the same period in 2017. 

Net Underwriting Income

For the three-month period ended March 31st 2018, ADNIC Net Underwriting profit increased by 18.3% to AED 115.5 million, against a Net Underwriting Profit of AED 97.6 million for the same period in 2017. 

General and Administrative Expenses

General and Administrative Expenses for three-month period ended March 31st 2018 stood at AED 55.3 million compared to AED 52.8 million for the same period in 2017. 

Net Technical Profit

Net Technical Profit for the three-month period ended March 31st 2018 increased by 32.8% to AED 61.5 million, against a Net Technical Profit of AED 46.3 million for the same period in 2017. 

Cash Balances

ADNIC’s cash balances stood at AED 563.9 million as at March 31st 2018, compared to AED 705.4 million as at December 31st 2017.

Investments

Total investments including cash in time deposits, bank accounts and investment properties stood at AED 3.29 billion as at 31st March 2018, compared to AED 3.39 billion as at December 31st 2017.

Total Assets

The total assets increased by 14.4% to AED 7.66 billion as at 31st March 2018, compared to AED 6.70 billion as at December 31st 2017.

Net Investment Income

ADNIC’s Net Investment and Other Income increased by 20% to AED 35.0 million for the three-month period ended March 31st 2018 compared to AED 29.2 million for the same period in 2017.

Net Profit

For the three-month period ended March 31st 2018, Net profit increased by 28.6% to AED 95.2 million, compared to a net profit of AED 74.0 million for the same period in 2017.

Shareholders’ Equity

The Shareholders’ Equity position increased by 0.7% to AED 1.99 billion as at 31st March 2018, compared to AED 1.98 billion as at December 31st 2017.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share increased by 30.8% to AED 0.17 as a result of achieving a net profit of AED 95.2 million for the three-month period ended 31 March 2018 compared to basic and diluted earnings per share of AED 0.13 resulting from a net profit of AED 74.0 million for the same period last year.

Ahmad Idris, CEO of ADNIC said: “Our strategy has been consistent, putting our customers first. We remain prudent and disciplined in our approach and will continue to seek opportunities that provide value for our stakeholders.”