ADNIC reports first quarter 2021 net profit of AED 133.6 million
03 May 2021
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 quarter ended 31 March 2021 today.
ADNIC delivered solid performance and growth across key financial metrics, with a net profit of AED 133.6 million, a 9% increase compared to the same quarter last year. ADNIC’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “Amid challenging market conditions, ADNIC delivered solid results for the first quarter of 2021, with net profit increasing 9% to AED 133.6 million compared to the same quarter of last year. ADNIC’s robust financial performance is testament to the company’s strong foundations and market position. ADNIC has continuously supported its customers and partners through this challenging period, implementing measures to ensure the seamless delivery of services. This aligns with the company’s contribution to the wider community through its backing of government initiatives and multiple CSR and charitable initiatives.”
“We are grateful for the guidance received by the UAE’s leadership and 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 Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. I want to thank our customers, partners, and shareholders for their continued trust in us. I also wish to thank our employees for working hard through these challenging times to support our business.”
Ahmad Idris, CEO of ADNIC, said: “Our solid first quarter financial performance resulted from our ability to adapt to challenging market conditions, our digital-first mindset, and the fundamental strength of our company. We also continued to deliver on our promise of being our customers’ reliable insurer. Looking ahead, we will also continually evolve our operations and offering to deliver on our purpose and meet the needs of our stakeholders.”
He added: “To support the people and communities we serve, ADNIC has continued to implement prudent safety measures in response to the COVID-19 pandemic and partnered with numerous CSR and charitable initiatives that contribute to the betterment of society.”
Looking at some of the key financial highlights, underwriting discipline was maintained and ADNIC delivered solid underwriting income with 17.2% growth, compared to same quarter last year. The growth in underwriting income was due to the high client retention ratio and to winning new business whilst maintaining our prudent underwriting approach. Investment income through P&L was up 8.5% compared to prior year and total investment return has recovered strongly with normalisation in financial market conditions.
ADNIC remains focused on delivering high level of service and improving efficiencies through judicious investments in technology. The net profit for the first quarter represents an earnings per share of AED 0.23.
Awards recognition and rating:
ADNIC was awarded the ‘UAE Insurer of the Year’ by MENA IR for its overall excellence and .
ADNIC’s credit rating has also been recently upgraded from ‘A-’ to ‘A’ with a stable outlook by ratings agency Standard & Poor’s (S&P). S&P raised its long-term issuer credit and insurer financial strength ratings based on ADNIC’s strong financial performance indicators.
ADNIC has built a strong track record of positive underwriting performance while maintaining its market share over the past five years. According to S&P, the company’s capital adequacy will remain at the 'AAA' benchmark in its model.