ADNIC achieves net profit before tax of AED 342.5 million for the first nine months of 2024
13 Nov 2024
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, continues to deliver outstanding performance, with a net profit before tax of AED 342.5 million for the first nine months of 2024, highlighting the company’s solid financial performance and successful execution of key strategic growth initiatives.
Following ADNIC’s successful acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company (ASF) in Saudi Arabia, all financials presented here reflect the full consolidation of ASF’s performance from the transaction’s completion date.
For the nine-month period ended 30 September 2024, profit before tax has grown by 13.5% year on year to AED 342.5 million.
As of 30 September 2024, both companies consolidated total assets were AED 12 billion (growth at 55.6%), with total shareholders’ equity at AED 3.4 billion (growth at 16.1%).
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “As we are coming towards the completion of this very unique and extremely challenging year for our industry, we are positioning ADNIC to capitalize on suitable emerging opportunities in the insurance sector. Our international expansion reflects our commitment to delivering sustainable value to shareholders while supporting the ongoing growth of the region's insurance industry as we strive to become the region’s leading insurer.”
Charalampos Mylonas, Chief Executive Officer of ADNIC said: "ADNIC continues to deliver exceptional financial results, achieving an all-time record Gross Written Premium (GWP) of AED 6.1 Billion, representing a growth of 56% compared to the same period last year whilst continuing to deliver simultaneous and consistent operating profit growth in line with our pedigree and strategic objectives. Automation and simplicity remain central to our strategy, going beyond product and service creation to ensure accessibility for all. We are committed to fostering transformation at the very heart of our business through innovative solutions. By staying true to our values and embracing innovation, we are confident in delivering long-term value for our stakeholders and solidifying ADNIC’s position as a regional market leader."
Key financial highlights
Insurance Revenue has grown by 57.2% year on year to reach an all time high of AED 5.2 Billion. This reflects our continuous excellence in the provision of corporate insurance solutions for mega projects as well as our underlying multi-channel, product line and territory infrastructure and readiness.
Insurance Service Result has grown by 13.7% year on year to reach AED 308.5 Million. While the insurance market in UAE was tremendously impacted by the flood events ADNIC was the only top tier UAE listed company able to deliver double-digit growth in this critical KPI which reflects the robustness and strong underwriting and analytical discipline in the way our business is managed and produced.
Net Investment Income has grown by 27.3% year on year to reach AED 202.3 Million. It reflects the resilience of our underlying asset allocation mix to the emerging market conditions and trends.
Net Financial Result which is the consolidated output of all of the above after incorporation of the IFRS-17 required risk charge and discounting adjustments has grown by 18.4% year on year to reach AED 508.7 Million.
Profit Before Tax has grown by 13.5% year on year to AED 342.5 Million. Tax expense for the year is AED 34.7 Million yielding a Profit After Tax for the year of AED 307.8 Million.
