ADNIC reports AED 218.8 million net profit for the first nine months of 2018
31 Oct 2018
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers both for corporates and individuals, announced its financial results for the first nine months of the year today. ADNIC reported net profit of AED 218.8 million for the period, up 22.6% compared with the same period of last year.
Commenting on the strong results, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “On behalf of the Board of Directors, I am pleased to report that ADNIC has delivered strong performance in the first nine months of 2018. The results stand as testament to the company’s continuous efforts to become the insurer of choice for customers, and its target to optimize return on investment for shareholders. ADNIC’s leading performance across the business is driven by a successful strategy of revenue stream diversification across different insurance segments, new product development, a clear focus on underwriting quality, and greater business efficiency.”
Key Financial Highlights
Gross Written Premiums
For the nine-month period ended September 30th 2018, ADNIC’s Gross Written Premium increased by 12.2% to AED 2.23 billion compared to AED 1.98 billion for the same period in 2017.
Premium Retention
The overall premium retention ratio reached 51.0% for the nine-month period ended September 30th 2018 compared to 46.5% for the same period in 2017.
Net Underwriting Income
For the nine-month period ended September 30th 2018, ADNIC’s Net Underwriting profit increased by 27.5% to AED 304.7 million, against Net Underwriting Profit of AED 239.0 million for the same period in 2017.
General and Administrative Expenses
General and Administrative Expenses for nine-month period ended September 30th 2018 stood at AED 176.6 million compared to AED 148.7 million for the same period in 2017.
Net Technical Profit
Net Technical Profit for the nine-month period ended September 30th 2018 increased by 40.6% to AED 132.3 million, against Net Technical Profit of AED 94.1 million for the same period in 2017.
Net Investment Income
ADNIC’s Net Investment and Other Income increased by 2.8% to AED 90.7 million for the nine-month period ended September 30th 2018 compared to AED 88.2 million for the same period in 2017.
Net Profit
For the nine-month period ended September 30th 2018, Net profit increased by 22.6% to AED 218.8 million, compared to net profit of AED 178.5 million for the same period in 2017.
Cash Balances
ADNIC’s cash balances increased by 41.8% to AED 1.00 billion as at 30th September 2018, compared to AED 705.4 million as at December 31st 2017.
Investments
Total investments including cash in time deposits, bank accounts and investment properties increased by 14.4% to AED 3.88 billion as at 30th September 2018, compared to AED 3.39 billion as at December 31st 2017.
Total Assets
Total assets increased by 9.3% to AED 7.32 billion as at 30th September 2018, compared to AED 6.70 billion as at December 31st 2017.
Gross Technical Reserves
Gross Technical Reserves increased by 3.9% to AED 4.04 billion as at 30th September 2018, compared to AED 3.88 billion as at December 31st 2017.
Shareholders’ Equity
Shareholders’ Equity position increased by 7.0% AED 2.11 billion as at 30th September 2018, compared to AED 1.98 billion as at December 31st 2017.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per share increased by 25.8% to AED 0.39 for the nine-month period ended 30th September 2018, compared to basic and diluted earnings per share of AED 0.31 for the same period last year.
Ahmad Idris, CEO of ADNIC said: “I am pleased to report that ADNIC has delivered strong set of results for the nine-month period ended 30th September 2018, with continued growth in net profit and gross written premium. This performance is a testament to our sound underwriting discipline, and financial strength.
We continue to be focused on driving further innovation across all areas of the business to grow our product and service range significantly.
He added: “As we approach the end of 2018, I am confident that we will continue to build solid foundations to support our long-term sustainable growth and achieve further milestones. ADNIC’s customers are at the heart of our values, and with innovation being the foundation of our growth, we are able to create solutions that deliver value for them.
