ADNIC Announces Q2, 2015 Financial Results
13 Aug 2015
Abu Dhabi National Insurance Company (ADNIC) announced today its financial results for the second quarter ended June 30th 2015.
Commenting on these results, H.E. Khalifa Mohamed Al-Kindi, Chairman of ADNIC, said: “The Board of Directors supports the corrective actions taken by the management, and is confident that these steps along with the enhancement of the company’s reserving policy will stir ADNIC in the right direction going forward.”
Key Financial Highlights
Gross Premium Written
For the six month period ended June 30, 2015, ADNIC’s Gross Premium Written reduced by 9.4% to AED 1.40 billion compared to AED 1.55 billion for the same period in 2014.
The overall premium retention ratio for the company increased to 51% for the first half of 2015 compared to 46% for the first half of 2014.
Net Underwriting Result
For the first half of 2015, ADNIC reported a Net Underwriting Loss of AED 248 million compared to a Net Underwriting Profit of AED 149 million for the same period last year.
Net Investment Income
ADNIC’s Net Investment and Other Income was AED 56 million for the first half of 2015 compared to AED 60 million for the same period last year.
General and Administrative Expense
As result of further strengthening the doubtful debt provision, the company reported General and Administrative Expense of AED 107 million for the first half of 2015 compared to AED 105 million for the same period last year.
The company has reported a net loss of AED 299 million for the first half of 2015 compared to a net profit of AED 104 million for the same period in 2014.
Liquidity Position – ADNIC’s cash and cash equivalents stood at AED 550 million as at June 30th 2015, compared to AED 559 million as at December 31st 2014.
Total Investments – Total company investments including cash in time deposits, bank accounts and investment properties increased by 2% to AED 2,784 million as at June 30th 2015, compared to AED 2,731 million as at December 31st 2014.
Total Assets – The total assets of the company increased by 5% to AED 5,829 million as at June 30th 2015, compared to AED 5,556 million as at December 31st 2014.
Ahmad Idris, CEO of ADNIC said: “We have taken appropriate measures to return ADNIC to its usual operating performance.
The company has conducted a comprehensive review of its technical reserves, which led ADNIC to increase its reserves. ADNIC will follow the appropriate reserving standards in a strict manner. The change in reserving policy has impacted our earnings for the period, causing a net loss.
ADNIC remains determined to return to our traditional levels of operating performance through prudent underwriting and excellent customer service.