ADNIC reports AED 128.5 million net profit for first half of 2017
14 Aug 2017
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced today its financial results for the first half of 2017. The Company reported a net profit of AED 128.5 million for the period, an increase of 20% in profitability over the same period last year.
Commenting on the strong results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “On behalf of the Board of Directors, I’m pleased to report that ADNIC has continued its growth momentum in 2017, achieving strong net profit for the first half of 2017. This has been achieved through prudent underwriting and consistent focus on unwavering commitment to customer service. The Board of Directors as well as the management team are confident that ADNIC remains one of the market leaders in terms of its balance sheet strength and a comprehensive suite of products.”
Key Financial Highlights
Gross Written Premium
For the six month period ended June 30th 2017, ADNIC’s Gross Written Premium increased by 9.9% to AED 1.58 billion compared to AED 1.44 billion for the same period in 2016.
Premium Retention
The overall premium retention ratio for the company reached 44% for the six month period ended June 30th 2017 compared to 46 % for the same period in 2016.
Net Underwriting Income
For the six month period ended June 30th 2017, ADNIC Net Underwriting profit is AED 160.8 million, against a Net Underwriting Profit of AED 165.9 million for the same period in 2016.
General and Administrative Expenses
General and Administrative Expenses for six month period ended June 30th 2017 stood at AED 94.5 million compared to AED 108.5 million for the same period in 2016.
Net Technical Profit
Net Technical Profit for the six month period ended June 30th 2017 increased by 15% to AED 68.9 million, against a Net Technical Profit of AED 59.8 million for the same period in 2016.
Net Investment Income
ADNIC’s Net Investment and Other Income increased by 24% to AED 62.2 million for the six month period ended June 30th 2017 compared to AED 50.1 million for the same period in 2016.
Net Profit
For the six month period ended June 30th 2017, Net profit increased by 20% to AED 128.5 million, compared to a net profit of AED 107.4 million for the same period in 2016.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per share increased by 21% to AED 0.23 for the six-month period ended 30 June 2017 compared to basic and diluted earnings per share of AED 0.19 for the same period last year.
Cash Balances
ADNIC’s cash balances stood at AED 753.5 million as at June 30th 2017, compared to AED 1.03 billion as at December 31st 2016. This is on account of reallocation to other asset classes as per ADNIC’s asset allocation framework.
Investments
Total company investments including cash in time deposits, bank accounts and investment properties increased by 3.7% to AED 3.26 billion as at June 30th 2017, compared to AED 3.14 billion as at December 31st 2016.
Total Assets
The total assets of the company increased by 7% to AED 6.94 billion as at June 30th 2017, compared to AED 6.49 billion as at December 31st 2016.
Gross Technical Reserves
The Gross Technical Reserves increased by 11.9% to AED 4.12 billion as at June 30th 2017, compared to AED 3.68 billion as at December 31st 2016.
Shareholders’ Equity
The Shareholders’ Equity position increased by 5.1% to AED 1.86 billion as at June 30th 2017, compared to AED 1.77 billion as at December 31st 2016.
Ahmad Idris, CEO of ADNIC said: “ADNIC has maintained its earnings trajectory in 2017, and I am pleased to advise that the company has achieved strong results in the first half of 2017. This marks our six consecutive profitable quarters. ADNIC’s continuing profitability bears testimony to its inherent resilience and its adaptive strategy. ADNIC achieved strong growth in both technical and net profits, indicating the healthy position of our portfolio and its robust profitability. Our liquidity levels remain highly favorable, enabling us to continue investing in digitalization and customer service enhancement.”
