20 Dec 2023

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 nine-month period ended 30 September 2023.

ADNIC’s net profit reached AED 301.9 million for the nine-month period ended 30 September 2023, representing a 16.2% increase compared to the same period in the previous year, which is a direct outcome of its market leading underwriting and investment performance.

The company is looking to expand its footprint as it explores new markets and deliver on its strategic objectives. In October, ADNIC announced its plan to acquire a 51% stake in Allianz Saudi Fransi Cooperative Insurance Co. to strengthen its position in one of the fastest growing insurance markets in the GCC.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC continued to deliver a robust performance as we pave the way for our next stage of growth. We demonstrated a strong underwriting performance with a combined ratio of 87.9% which is reflected in the net insurance service results of AED 271.4 million. This is a testament to our effective risk selection and claims management.”

“Our progressing acquisition of the 51% stake in the Allianz Saudi Fransi Cooperative Insurance Company in Saudi Arabia demonstrates ADNIC’s future-looking ambitions for wider growth across the region. Geographical inorganic growth is one of our diverse range of strategic initiatives, which also include digital transformation, operational excellence, and reinsurance optimisation. We will continue to monitor various insurance markets, including the UAE, for possible strategic partnerships.”

“We are eager to support the government’s ambitions through its many plans and visions and are committed to participating in COP28 to collaborate with our peers to advance the industry’s sustainability actions.”

Total Insurance revenue

For the nine-month period ended 30 September 2023, ADNIC's total insurance revenue stood at AED 3.33 billion, compared to AED 3.41 billion for the same period in 2022. We have now completed the cycle of reducing our relative exposure to highly reinsured corporate insurance programs and are in position to deliver clear risk retention growth going forward.

 

Net insurance service result

For the nine-month period ended 30 September 2023, ADNIC's net insurance service result stood at AED 271.4 million, against AED 291.4 million for the same period in 2022. This is aligned with the overall market cycle and the applicable stage of the necessary financial reporting transition due to the newly introduced IFRS17 standard requirements.

 

Net Income from investment

ADNIC's net income from investment increased to AED 158.9 million for the nine-month period ended 30 September 2023, compared to AED 93.8 million for the same period in 2022. This comes as the continued impact of several key factors including higher interest and coupon incomes and successful strategic changes in the underlying asset allocation.

 

Other operating expenses

Other operating expenses for the nine-month period ended 30 September 2023 stood at AED 127.8 million, compared to AED 121.8 million for the same period in 2022. This reflects our ongoing commitment to successful delivery of operational excellence and digital transformation strategic initiatives.

 

Profit for the period

The consolidated outcome of the above financial streams for the nine-month period ended 30 September 2023, is a profit for the period increase of 16.2% to AED 301.9 million, compared to AED 259.8 million for the same period in 2022. We remain confident and committed that this trend will continue well into the last quarter of this year and beyond.

Charalampos Mylonas, CEO of ADNIC, said: “We are excited about the next phase of our growth, particularly given our field presence in the two largest and fastest growing markets in the Middle East. ADNIC’s results and future plans reflect our financial strength, shareholder vision and guidance, the available capital resources and our constant quest to lead and evolve.”

He added: “We remain committed to engaging with all stakeholders on our various sustainability initiatives, which will continue to be a core operational focus at ADNIC. We recently signed the UAE Climate Responsible Companies Pledge to further embed sustainable practices in our operations and inspire our customers and partners to embrace sustainable action for a brighter, net-zero future.”

 

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