ADNIC reports AED 150.5 million net profit for the first half of 2018

1st Aug 2018 Press Release

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced its financial results for the first half of 2018 today. ADNIC reported a net profit of AED 150.5 million for the period, up 17.1% year-on-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 pleased to report that ADNIC has delivered strong performance in the first half of 2018, reflecting solid growth throughout the second quarter as we continued to make good progress towards achieving our strategic objectives. ADNIC’s customers are at the heart of our strategy, and as we move into the second half of the year, we remain fully committed to delivering value for both our clients and shareholders, and to driving the sustainable growth of our business.

Key Financial Highlights

Gross Written Premiums

For the six-month period ended 30 June 2018, ADNIC’s gross written premiums increased by 14.7% to AED 1.81 billion, compared to AED 1.58 billion for the same period in 2017.

Premium Retention

The overall premium retention ratio reached 53.2% for the six-month period ended 30 June 2018, compared to 43.7% for the same period in 2017. 

Net Underwriting Income

For the six-month period ended 30 June 2018, ADNIC’s net underwriting profit increased by 20.1% to AED 193.1 million, against AED 160.8 million for the same period in 2017. 

General and Administrative Expenses

General and administrative expenses for the six-month period ended 30 June 2018 stood at AED 112.3 million, compared to AED 94.5 million for the same period in 2017. 

Net Technical Profit

Net technical profit for the six-month period ended 30 June 2018 increased by 21.3% to AED 83.6 million, against AED 68.9 million for the same period in 2017. 

Net Investment Income

ADNIC’s net investment and other income increased by 12.1% to AED 69.7 million for the six-month period ended 30 June 2018, compared to AED 62.2 million for the same period in 2017.

Net Profit

For the six-month period ended 30 June 2018, net profit increased by 17.1% to AED 150.5 million, compared to AED 128.5 million for the same period in 2017.

Cash Balances

ADNIC’s cash balances increased by 8.4% to AED 764.9 million as at 30 June 2018, compared to AED 705.4 million as at 31 December 2017.

Investments

Total investments including cash in time deposits, bank accounts and investment properties increased by 3.3% to AED 3.50 billion as at 30 June 2018, compared to AED 3.39 billion as at 31 December 2017.

Total Assets

Total assets increased by 11.5% to AED 7.47 billion as at 30 June 2018, compared to AED 6.70 billion as at 31 December 2017.

Gross Technical Reserves

Gross technical reserves increased by 12.9% to AED 4.38 billion as at 30 June 2018, compared to AED 3.88 billion as at 31 December 2017.

Shareholders’ Equity

Shareholders’ equity increased by 2.5% to AED 2.03 billion as at 30 June 2018, compared to AED 1.98 billion as at 31 December 2017.

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share increased by 17.4% to AED 0.27, compared to AED 0.23 for the same period last year.

Ahmad Idris, CEO of ADNIC said: “I’m pleased to report that ADNIC delivered strong growth in both net profit and gross written premiums for the first half of 2018. This performance is a testament to our sound underwriting strategy, financial strength and market-leading position. Moving to the remainder of the year, we are looking forward to continuing to leverage our innovative capabilities to meet the ever growing needs of our clients and to achieve sound return to our shareholders.”