ADNIC reports AED 227.3 million net profit for 2017
14th Feb 2018 Press Release
Abu Dhabi, 14th February 2018: 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 year 2017. The Company reported strong results
with its net profit of AED 227.3 million for 2017, representing an increase of 11%
over the same period last year.
Commenting on the strong results, His Excellency Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “The Board of Directors is delighted to announce ADNIC’s strong underwriting results and profitability throughout 2017. ADNIC’s positive full year results reflect the successful delivery of the company’s strategy.
Despite a challenging business environment, ADNIC’s Board of Directors, as well as the management team, remain committed to driving standards of excellence and to delivering sustainable growth in profitability. Our priority is to ensure that ADNIC is positioned amongst the regional market leaders by leveraging on our innovative capabilities and differentiated offering.”
Key Financial Highlights
Gross Written Premium
In 2017, ADNIC’s Gross Written Premium increased by 11.3% to AED 2.64 billion compared to AED 2.38 billion in 2016.
IThe overall premium retention ratio reached 47% for the year 2017 compared to 44 % in 2016.
Net Underwriting Income
In 2017, ADNIC Net Underwriting profit stood at AED 304.0 million compared to AED 342.6 million in 2016.
Net Investment Income
Net Investment and Other Income increased by 12% to AED 114.2 million in 2017, compared to AED 102.4 million in 2016.
General and Administrative Expense
General and Administrative Expenses decreased to AED 191.0 million in 2017 compared to AED 239.9 million for 2016 demonstrating ADNIC’s increased operational efficiency.
Net Technical Profit
Net Technical Profit for the year 2017 increased by 8.7% to AED 118.4 million, against a Net Technical Profit of AED 108.9 million for 2016.
For the year 2017, Net profit increased by 11% to AED 227.3 million, compared to a net profit of AED 205.0 million for 2016.
ADNIC’s cash balances stood at AED 705.4 million in 2017, compared to AED 1.03 billion in 2016. This is due to reallocation to other asset classes, as per ADNIC’s asset allocation framework
Total investments including cash in time deposits, bank accounts and investment properties increased by 8.0% to AED 3.39 billion in 2017, compared to AED 3.14 billion in 2016.
The total assets increased by 3.2% to AED 6.70 billion in 2017, compared to AED 6.49 billion in 2016.
The Shareholders’ Equity position increased by 11.9% to AED 1.98 billion in 2017, compared to AED 1.77 billion in 2016.
Basic and Diluted Earnings Per Share and Net Profit
Basic and diluted earnings per share increased by 11 % to AED 0.40 for the year 2017 compared to basic and diluted earnings per share of AED 0.36 in 2016.
Ahmad Idris, CEO of ADNIC said:“I am pleased to report that ADNIC has achieved strong results in 2017. While ADNIC has taken a conservative approach in its underwriting strategy, the company achieved premium growth for the year and strengthened its long-term financial and operational performance.”
About Abu Dhabi National Insurance Company
Abu Dhabi National Insurance Company (ADNIC) PJSC is a composite insurance partner with long standing expertise in providing insurance products to individuals and corporates across the Middle East and North Africa (MENA) region. Founded in the United Arab Emirates (UAE) in 1972, ADNIC has a wide network of branches as well as sales and service centers across the country. ADNIC is publicly owned and listed on the Abu Dhabi Securities Exchange (ADX).
For more information, please contact:
Hassan Al Khuwaildi
Senior Manager - Corporate Communications
Abu Dhabi National Insurance Company
D: +971 2 4080421
F: +971 2 4080625
M: +97156 6855847