ADNIC’s first half 2021 net profit increases 31.1% to AED 248.7 million
08 Aug 2021
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, today reported its financial results for the first half ended 30 June 2021.
ADNIC delivered strong performance and growth in the first six months of 2021. Net profit for the six-month period ended 30th June 2021 increased by 31.1% to AED 248.7 million, compared to AED 189.7 million for the same period in 2020, driven by outstanding performance in both underwriting and investment activities. Gross written premiums for the first half of 2021 increased by 4.2% to AED 2.67 billion, compared to AED 2.56 billion in the same period of 2020. ADNIC’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC has maintained its strong financial position and market position in the first half of 2021 through a clear strategy, underwriting discipline, operational excellence and a diversified investment portfolio. Despite the challenges posed by the global pandemic and the disruptions caused to daily life, ADNIC continued to improve its capabilities and managed to emerge even stronger to provide uninterrupted support to its customers. As we move into the second half of the year, we are optimistic about the outlook for the wider economy and the insurance sector in particular. ADNIC will continue to invest in the latest technologies to adapt to current and future market needs.”
“We are grateful for the guidance received by the UAE’s leadership and 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. I want to also thank our employees for their hard work, dedication and their ability to provide a seamless service, and our customers and shareholders for their continued trust in us.”
Ahmad Idris, CEO of ADNIC, said: “ADNIC’s ability to deliver strong profitability and exceptional levels of operational efficiency despite challenges in the wider market has been enabled through ongoing pricing discipline and investments into technology. Our Consumer Lines business performed particularly well, driven by our strong product offering, bancassurance presence and distribution and broker networks. Looking ahead, we will continue to contribute to initiatives that contribute to the betterment of society across the UAE, utilising our sustainability strategy to ensure the long-term benefits for our customers and employees, our local communities, and our environment.”
Financial Summary:
ADNIC performed well across its operations during the first half of 2021. ADNIC’s overall premium retention ratio for the six-month period ended 30th June 2021 was 34.29%, compared to 34.26% for the same period in 2020. Net underwriting profit during H1 2021 increased by 1.5% to AED 280.3 million, against AED 276.3 million for the same period in 2020. ADNIC’s net investment and other income increased by 58.3% to AED 87.3 million for the six-month period ended 30th June 2021, compared to AED 55.1 million for the same period in 2020. General and administrative expenses for the six-month period ended 30th June 2021 stood at AED 118.9 million, compared to AED 141.7 million for the same period in 2020, reflecting the company’s continued focus on operational efficiency and cost management.
Awards recognition and rating:
2021 has been an award-winning year for ADNIC. The company was named ‘UAE Insurer of the Year’ by MENA IR for its overall excellence and its ambitious digital transformations plans to ensure uninterrupted services, ‘Best Insurance Provider of The Year’ at the Shiptek International Awards, and ‘General Insurer of The Year’ at the International Insurance Conference & Golden Shield Award.
ADNIC’s credit rating was upgraded in April 2021 from ‘A-’ to ‘A’ with a stable outlook by ratings agency Standard & Poor’s (S&P). S&P raised its long-term issuer credit and insurer financial strength ratings based on ADNIC’s strong financial performance indicators.
