11 Feb 2020
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, reported its financial results for the full year ended 31 December 2019 today.
ADNIC delivered a strong set of results, with net profit up 20.7% year-on-year to AED 284.3 million. Gross written premium increased by 29% year-on-year to AED 3.76 billion
and net technical profit increased by 1.6% to AED 143.7 million. ADNIC’s strong performance in 2019 has enabled the Board of Directors to recommend the distribution of a cash dividend of 30 fils per share.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “We are pleased to report Abu Dhabi National Insurance Company’s financial results for the year ended 31st December 2019. ADNIC recorded a robust set of financial metrics which are a testament to the company’s fundamental strengths and the commitment of its employees.
Reflecting on the year gone by, ADNIC increased its market share achieving a 29% increase in GWP and growth in both consumer and commercial lines of business. ADNIC’s cost efficiency has increased over time and its administrative cost to GWP ratio went down to 6.7% in 2019 compared to 7.9% in 2018. ADNIC will continue to focus on continuously optimising its cost base.
Prudent underwriting and cost discipline led to an increase in Net Underwriting Income to AED 393.2 million, an increase of 6.4% compared to 2018. ADNIC’s strong financial position is one of the core factors that enables it to underwrite more complex risks.
Investment returns in 2019 have been substantially higher and P&L investment income has gone up by 48.3% to AED 142.2 million. The securities portfolio is well diversified by asset class and going forward, it will be further diversified geographically particularly in risk assets.
In 2019, ADNIC’s Mandatory Convertible Bonds were converted into new shares, increasing capital to AED 570 million from AED 375 million Total Shareholders’ Equity at the end of 2019 was higher by 9.3% to AED 2.3 billion compared to AED 2.1 billion in 2018, indicating an extremely strong capital position and financial strength. Standard & Poors also maintained the rating at A- with a stable outlook. ADNIC focuses strongly on shareholder value and Return on Equity was 12.9% in 2019 and basic and diluted EPS was AED 0.50. The board intends to recommend a dividend of 30% (AED 0.30 per share), totaling AED 144.6 million, subject to approval by the shareholders at the annual general meeting.
During 2019, ADNIC continued its commitment of giving back to the local community, through its wide range of long-standing CSR initiatives and activities across communities and organisations, such as our partnerships with Al Bayt Mitwahid Association, the UAE Genetic Diseases Association and Mohammed Bin Rashid Al Maktoum Knowledge Foundation. In 2020, we look forward to strengthening our partnerships and renewing our commitment to foundations and initiatives across the UAE.
Building capabilities for the future is a key strategic imperative. To this end, ADNIC will continue to invest in digitisation initiatives and new technologies that have multiple strategic and financial spinoffs in future years. We are confident that this will generate sustainable and higher shareholder value going forward.
He added: “On behalf of the Board of Directors, I would like to extend our sincere gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support. I would also like to thank our customers, partners and shareholders for their support. We also appreciate the dedication and hard work of our employees.”
Ahmad Idris, CEO of ADNIC, said: “The year 2019 marked another successful year for ADNIC, characterised by strong growth across key lines of business. This performance is testament to the company’s unwavering commitment towards prudent underwriting of risks and sound investment portfolio management. The strength of our customer service proposition, technical excellence, product and service innovation and commitment to the community have yielded very good results year after year.”
He added: “I would like to thank ADNIC’s Board of Directors and shareholders for their continued support, our clients and business partners for their patronage and our management team and employees for their exceptional contributions and hard work. We are confident that in 2020 we will continue to achieve our long-term strategic priorities and continue to support our customers’ evolving needs.”
Key Financial Highlights:
Gross Written Premiums
For the year 2019, ADNIC’s gross written premiums increased by 29% to AED 3.76 billion compared to AED
2.91 billion for2018.
Premium Retention
The overall premium retention ratio is 32.1% for the year 2019 compared to 46.1% for 2018.
Net Underwriting Income
For the year 2019, ADNIC’s net underwriting profit increased by 6.4% to AED 393.2 million, against net underwriting profit of AED 369.5 million for 2018.
General and Administrative Expenses
General and administrative Expenses for 2019 stood at AED 251.1 million compared to AED229.7 million for 2018.
Net Technical Profit
Net technical profit for the year 2019 increased by 1.6%to AED 143.7 million against AED 141.4 millionfor 2018.
Net Investment Income
ADNIC’s net investment and other income increased by 48.3% to AED 142.2 million for 2019 compared to AED 95.9 million for 2018.
Net Profit
For the year 2019, net profit increased by 20.7%to AED 284.3 million, compared to net profit of AED 235.6 million for 2018.
· CSR
During 2019, ADNIC continued its commitment of giving back to the local community, through its wide range of long-standing CSR initiatives and activities across communities and organisations, such as our partnerships with Al Bayt Mitwahid Association, the UAE Genetic Diseases Association and Mohammed Bin Rashid Al Maktoum Knowledge Foundation. In 2020, we look forward to strengthening our partnerships and renewing our commitment to foundations and initiatives across the UAE.
·Recent Awards
ADNIC continues to be one of the most awarded insurance companies in the region. The company was recognised for numerous achievements by the industry during 2019, and Mohammed Bin Rashid Al Maktoum Business Award. Also, the “UAE Insurer Award” by MENA IR Awards, and the “Corporate Social Responsibility Award” by Insuretek Middle East 2020.
Abu Dhabi National Insurance Company (ADNIC) is one of the leading regional multi-line insurance company in Sharjah, Dubai, Abu Dhabi & across UAE offering both corporate/business insurance and personal insurance. Contact us today.
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