ADNIC reports AED 205 million net profit based on its preliminary financial results for full-year 2016
13th Feb 2017
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced today its preliminary financial results for full-year 2016. The Company reported a net profit of AED 205 million for this year, a significant turnaround back into strong profit.
Commenting on the strong results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “The Board of Directors is pleased to note that ADNIC hassustained its profitability throughout 2016 with continued strong underwriting and net profit growth for the last quarter of this year. The realignment of ADNIC’s operational strategy has delivered positive results and has enabled the Company to report a strong financial performance.”
Key Financial Highlights
Gross Premium Written
For the year 2016, ADNIC’s Gross Premium Written was AED 2.38 billion compared to AED 2.29 billion last year.
The overall premium retention ratio for the company reached 44% for the year 2016 compared to 48% for 2015.
Net Underwriting Result
For the year 2016, ADNIC reported a Net Underwriting profit of AED 342.6 million, against a Net Underwriting Loss of AED 228.9 million for 2015.
Net Investment Income
ADNIC’s Net Investment and Other Income was AED 102.4 million for 2016 compared to AED 102.0 million for 2015.
General and Administrative Expense
General and Administrative Expenses was AED 239.9 million for 2016 compared to AED 207.6 million for 2015.
The company has reported a net profit of AED 205.0 million for 2016, compared to a net loss of AED 334.5 million for 2015.
ADNIC’s cash balances increased by 54.4% to AED 1.030 billion as on December 31st 2016, compared to AED 667 million last year.
Total company investments including cash in time deposits, bank accounts and investment properties increased by 14.6% to AED 3.14 billion as on December 31st 2016, compared to AED 2.74 billion as on December 31st 2015.
The total assets of the company increased by 15.8% to AED 6.49 billion as on December 31st 2016, compared to AED 5.60 billion as at December 31st 2015.
The Shareholders’ Equity position increased by 42.2% to AED 1.7655 billion as on 31st December 2016, compared to AED 1.2412 billion as on 31st December 2015. The issuance of Mandatory Convertible Bonds (MCB) as well as the net profit contributed to the growth in the shareholders’ equity.
Ahmad Idris, CEO of ADNIC said: “I am pleased to report that ADNIC has achieved strong results in 2016. The implementation of prudent underwriting strategy has resulted in premium growth for the year and also has strengthened ADNIC’s long term financial and operational performance. The management team is thankful to our customers, business partners and shareholders, who have supported the continuous development of ADNIC”