ADNIC reports AED 74 million net profit for first quarter of 2017
14 May 2017
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 three-month period ending March 31st, 2017. The Company reported a net profit of AED 74 million for the period, an increase of 90% in profitability over the same period last year.
Commenting on the strong results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC continues on the path of sustainable profitability supported by resilient operating strategy. The prudent underwriting has resulted in a robust net profit for the first quarter of this year as well as an increase in gross written premium.”
Key Financial Highlights
Gross Written Premium
For the three month period ended March 31st 2017, ADNIC’s Gross Written Premium increased to AED 1.08 billion compared to AED 1.06 billion for the same period in 2016.
Premium Retention
The overall premium retention ratio for the company reached 42% for the three month period ended March 31st 2017 compared to 45 % for the same period in 2016.
Net Underwriting Income
For the three month period ended March 31st 2017, ADNIC Net Underwriting profit increased by 46% to AED 97.6 million, against a Net Underwriting Profit of AED 66.8 million for the same period in 2016.
General and Administrative Expenses
General and Administrative Expenses for three month period ended March 31st 2017 stood at AED 52.8 million compared to AED 50.3 million for the same period in 2016.
Net Technical Profit
For the three month period ended March 31st 2017, ADNIC Net Technical profit increased by 163% to AED 46.3 million, against a Net Technical profit of AED 17.6 million for the same period in 2016.
Net Investment Income
ADNIC’s Net Investment and Other Income increased by 29% to AED 29.2 million for the three month period ended March 31st 2017 compared to AED 22.6 million for the same period in 2016.
Net Profit
For the three month period ended March 31st 2017, Net profit increased by 90% to AED 74.0 million, compared to a net profit of AED 39.0 million for the same period in 2016.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per share increased by 30% to AED 0.13 compared to basic and diluted earnings per share of AED 0.10.
Return on Shareholders’ Equity
The return on Shareholders’ Equity increased to 4.2% for the three months period ended 31st March 2017, compared to 3.1% for the same period in 2016.
Cash Balances
ADNIC’s cash balances stood at AED 805.0 million as at March 31st 2017, compared to AED 1.03 billion as at December 31st 2016.
Total Investments
Total company investments including cash in time deposits, bank accounts and investment properties increased by 2.4% to AED 3.22 billion as at 31st March 2017, compared to AED 3.14 billion as at December 31st 2016.
Total Assets
The total assets of the company increased by 9.3% to AED 7.09 billion as at 31st March 2017, compared to AED 6.49 billion as at December 31st 2016.
Shareholders’ Equity
The Shareholders’ Equity position increased to AED 1.79 billion as at 31st March 2017, compared to AED 1.77 billion as at December 31st 2016.
Ahmad Idris, CEO of ADNIC said: “ADNIC’s growth in profitability is a testament to our successful business model and our agile strategy. Our selective approach to underwriting has resulted in a modest increase in premium for the period, but has continued to boost the overall capitalization of the company and the performance of our portfolio. I remain confident in the company’s ability to provide high quality service to our valued clients.”
