ADNIC reports first half net profit of AED 189.7 mn
ADNIC reports first half net profit of AED 189.7 million
06 Aug 2020
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, reported its financial results for the first half ended 30 June 2020 today.
Despite challenging market conditions, ADNIC delivered a resilient performance with sustained growth across key metrics and recorded a net profit of AED 189.7 million for the six-month period ended 30 June 2020, a 59.9% increase compared to the same period last year. ADNIC’s performance was driven by effective business continuity measures allied to a strong balance sheet and solid market position.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “The impact of the COVID-19 pandemic is an evolving situation and ADNIC will continue to monitor the impact on its business closely and take decisive action as required to support its customers and partners. As a testament to our financial strength, experience and commitment to high level of service delivery, our GWP for the first six months of the year was up by 9.1% to AED 2.56 billion. Particularly strong gains were achieved in the commercial lines with GWP increasing by 17.1%. Despite challenging market conditions, specifically for consumer lines, GWP was maintained almost at the same level as the previous year.”
"Profitability across lines was very strong with Total Underwriting Profits up 67.0% for the first six months to AED 276.3 million. Combined ratio was 80.2% compared to 93.9% for the previous year. The extreme market volatility, particularly in March contributed to investment income through P&L for the first six months being lower by 30.3%. While some stability has returned to securities markets in the second quarter and the total Investment Income including Other Comprehensive Income for the second quarter was higher by 74.7% compared to the second quarter of the previous year. ADNIC’s capitalisation and solvency continue to remain robust. Total Shareholders’ Equity was stable at AED 2.19 billion and loss reserves were maintained at comfortable levels.”
He added: “Everybody has a responsibility in ensuring a quick recovery to normal. A large part of this will be our adherence to following government guidelines to ensure a safe, gradual and smooth return to ADNIC office facilities. ADNIC has embraced the changed brought about by the pandemic to improve its processes and hasten its digitisation efforts and these will continue even after the present circumstances pass.”
“On behalf of the Board of Directors, I would like to extend our sincere gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His Highness Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support. I would also like to take this opportunity to express our sincere gratitude to those on the frontline for their unwavering commitment and care for our nation in fighting against the pandemic. We also thank our customers, business partners, employees and shareholders for their support during this unprecedented time.”
Ahmad Idris, CEO of ADNIC, said: “Our net profit of AED 189.7 million was 59.9% higher than the first half of 2019. This was principally driven by our strong position to navigate challenging environment and to our commitment to a sustainable customer centric model. We have maintained growth across all key metrics including Gross Written Premium and Underwriting income, amidst the unprecedented market conditions. Our prudent underwriting policy and pricing discipline have also resulted in a highly positive technical profit.”
He added: “Our response to the pandemic has achieved the twin objectives of business continuity and maintaining the health and safety of our employees and customers. We have remained fully operational throughout and delivered uninterrupted services to customers. Our customers are at the heart of everything we do, and I am proud that we continued to deliver on our promise of being their reliable insurer as we navigate this difficult time. Part of our efforts will be our adherence to following government guidelines to ensure a safe, gradual and smooth return to ADNIC office facilities.”
Supporting the community during COVID-19
Being a responsible company is fundamental to ADNIC’s long-term sustainability and as we move into the second half of the year, ADNIC will continue to give back to the local community through its wide-ranging and long-standing CSR initiatives and activities. ADNIC does not take its position for granted. To stay competitive in a challenging environment, ADNIC will also continually improve the experience and keep coming out with innovative products and services to meet the changing needs of customers.
ADNIC’s key priorities are to contribute to improving the health and wellbeing of people at home and abroad in partnership with leading charities and organisations, including Ma’an Abu Dhabi, Companies for Good, Bait Al Khair Society, the General Authority of Islamic Affairs and Endowments and Emirates Down Syndrome Association.