ADNIC reports first quarter 2023 net profit of AED 99.7 million
10 May 2023
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 three-month period ended 31 March 2023.
As of January 1, 2023, the insurer successfully implemented IFRS 17 Insurance Contracts (IFRS 17), replacing IFRS 4 Insurance Contracts (IFRS 4) along with any corresponding amendments to other standards. The adoption of these standards has brought about substantial transformations in the accounting of insurance and reinsurance contracts. As a result, ADNIC have restated specific comparative figures for the prior year in accordance with the new standard.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “As an outcome of strong underwriting and investment performance, ADNIC has delivered a net profit of AED 99.7 million (17.2 % increase versus prior) and an increase in earnings per share from AED 0.15 to AED 0.17.”
“We continue to invest in key areas that impact our operations and enable sustainable growth. Our efforts to transform our operations through the use of cutting-edge technology and innovative solutions are aimed at improving our customers' experiences, increasing efficiency, and enabling us to better adapt to market changes. We are dedicated to leveraging the latest advancements to provide better service to our clients, and we firmly believe that our investments in digitalisation and innovation will ensure our continued success and help us maintain our position as an industry leader.”
“Sustainability has long been a central operational pillar for us, and we have made significant progress towards creating a positive impact on both the environment and society. Our commitment to sustainability has driven us to implement innovative solutions and adopt best practices, resulting in tangible benefits for the communities we serve.”
Total Insurance revenue
For the three-month period ended 31 March 2023, ADNIC's total insurance revenue stood at AED 1.0 billion, compared to AED 1.1 billion for the same period in 2022.
Net insurance service result
For the three-month period ended 31 March 2023, ADNIC's net insurance service result stood at AED 94.1 million, against AED 98.3 million for the same period in 2022.
Net Income from investment
ADNIC's net income from investment increased by 94.0% to AED 46.3 million for the three-month period ended 31 March 2023, compared to AED 23.9 million for the same period in 2022.
Other operating expenses
Other operating expenses for the three-month period ended 31 March 2023 stood at AED 42.7 million, compared to AED 38.9 million for the same period in 2022.
Profit for the period
For the three-month period ended 31 March 2023, profit for the period increased by 17.2% to AED 99.7 million, compared to AED 85.0 million for the same period in 2022.
Charalampos Mylonas, CEO of ADNIC, said: “During the first quarter of 2023, we continued to effectively leverage our core competencies in a consistent and systematic manner. With a strong and wide capital base, a solvency ratio that boasts a significant surplus, core underwriting excellence, a robust enterprise risk management framework, and market-leading outward reinsurance arrangements, ADNIC has successfully reduced its relative exposure to highly reinsured corporate insurance programmes and focused on maintaining and developing portfolios with strong underwriting income contribution potential.”
He added: “Our investment performance for the quarter significantly improved compared to the prior year, primarily due to changes made in the asset allocation approach. Stable dividend income and investment portfolio mark-to-market gains also contributed positively to the overall result. We are also pleased to announce our transition from IFRS4 to IFRS17, which will provide more consistency in the accounting of insurance contracts, as well as enhance the quality of financial information for investors and other stakeholders.”
