ADNIC Continues its Growth in the Second Quarter 2014
13 Aug 2014
Abu Dhabi National Insurance Company (ADNIC), one of the region’s leading providers of insurance solutions for individuals and corporates, today announced the results of its second quarter 2014 with a growth of 8%.
Gross Written Premium: Gross written premium for the period ended 30th June, 2014 grew by 28% to AED 1.55 billion from AED 1.2 billion during the same period last year. Several anticipated energy and property projects have been now underwritten and reflected in the company’s financial results coupled with positive growth in profitable consumer line segments.
Premium Retention: The overall premium retention ratio decreased to 46% compared to 54% during the same period last year, due to several complex high-value projects underwritten during the first half of 2014.
Net Underwriting Income: ADNIC’s Net Underwriting Income for the period ending 30th June, 2014 is AED 149 million compared to AED 157 million during the same period last year. While ADNIC continues to practice prudent underwriting and implements effective claims processes, it has experienced several low frequency high-value commercial claims in the first half of 2014, particularly in its Property, Marine and Aviation lines. ADNIC is confident that it will bounce back during the 3rd quarter to ensure a strong finish to its fiscal year.
Net Investment Income: For the period ending 30th June 2014, ADNIC’s Net Investment Income increased 58% to AED 60 million from AED 38 million during the same period last year. Strong performance in the UAE equity markets combined with effective asset allocation to higher yielding fixed income, Investment properties and trading portfolios have delivered strong results for ADNIC’s investment portfolio.
Net Profit: ADNIC’s Net Profit increased 8% to AED 104 million compared to AED 97 million during the same period last year. The Company remains focused on sustainable profitability supported by prudent underwriting-particularly through the realignment of its growing medical insurance portfolio for improved performance-effective expense management, and progressive investment allocation measures.
Medical Portfolio Realignment & Utilization of Claims Third Party Administrators (TPAs): ADNIC embarked on a structured re-underwriting exercise of its large-to-Jumbo medical accounts starting May 2014. This process will continue into 2015 as the Company ensures that loss-making clients are proactively engaged and re-priced to achieve sustainable profitability on a stand-alone basis. The Company has also recently introduced a select group of claims TPAs to augment its streamlined in-house claims management services. ADNIC is optimistic that that these strategic activities will ensure that its medical portfolio performance is improved in a holistic manner.
Distribution Channel Expansion: ADNIC has been building on its strategic market partnerships, most recently as it joined hands with Dubai Trade, to offer marine cargo insurance solutions through their Tradeshield insurance e-portal. Furthermore, the establishment of their new full-fledged branch in Musaffah, Abu Dhabi, which will be fully operational in the 3rd quarter of 2014 to augment the Company’s organic growth strategy and further expands its customer reach.
Product Innovation: In line with ADNIC’s strategy to continue introducing innovative products to support ever evolving customer requirements, the Company’s enhanced color coded motor fleet product was launched in June 2014 to enable their motor fleet customers to select from a standard set of innovative insurance solutions.