ADNIC Reports Net Profit of AED 143.5 Million for Third Quarter of 2016
10 Nov 2016
Abu Dhabi National Insurance Company (ADNIC) announced today its financial results for the period ended September 30th 2016. The Company reported a net profit of AED 143.5 million for this period, a significant growth over the same period of last year. The Company’s net technical profit contributed AED 76.6 million towards the bottom-line profit.
Commenting on the strong results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “The Board of Directors is pleased to note that ADNIC has sustained its profitability achieved in the first half 2016 with continued strong underwriting and net profit growth for the third quarter of this year.The realignment of ADNIC’s operational strategy continues to prove effective and has enabled the Company to continue to report positive results. The Board of Directors, as well as the management team, remain confident that ADNIC is on the right path to sustainable growth and to remain one of the market leaders both in terms of its balance sheet strength and its highly advanced product suite.”
Key Financial Highlights
Gross Written Premium
For the nine month period ended 30 September 2016, ADNIC’s Gross Written Premium stood at AED 1.76 billion compared to AED 1.76 billion for the same period in 2015.
The overall premium retention ratio for the company reached 46.4% for the nine-month period ended 30 September 2016, compared to 51.1% for the same period last year.
Net Underwriting Income
For the nine month period ended 30 September 2016, ADNIC’s Net Underwriting Income reached AED 252.3 million, against a Net Underwriting Loss of AED 257.7 million for the same period in 2015.
General and Administrative Expenses
General and Administrative Expenses for the nine month period ended 30 September 2016 stood at AED 180.4 million compared to AED 153.1 million for the same period last year.
Net Technical Profit
The Net Technical Profit, which is arrived at by deducting General and Administrative Expenses related to the insurance operation from Net Underwriting Income, for the nine month period ended 30 September 2016 reached AED 76.6 million compared to a Net Technical Loss of AED 410.8 million for the same period in 2015.
Net Investment Income
ADNIC’s Net Investment and Other Income for the period ended 30 September 2016 was AED 71.6 million, compared to AED 79.7 million for the same period in 2015.
For the nine month period ended 30 September 2016, the Company’s Net Profit was AED 143.5 million, compared to a net loss of AED 331.1 million for the same period in 2015. Net Technical Profit represents 53.4% of Net Profit for the nine-month period ended 30 September 2016.
ADNIC’s bank balances and cash grew by 13.8% to AED 759.6 million as on 30 September 2016, compared to AED 667.2 million as on 31 December 2015.
Total investments increased by 11.3% to AED 3.05 billion as on 30 September 2016, compared to AED 2.74 billion as on 31 December 2015
The total assets of the company grew by 8.3% to AED 6.07 billion as on 30 September 2016, compared to AED 5.60 billion as on 31 December 2015.
The Shareholders’ Equity position increased by 34.5% to AED 1.67 billion as on 30 September 2016, compared to AED 1.24 billion as on 31 December 2015. The issuance of Mandatory Convertible Bonds (MCB) as well as the net profit contributed to the growth in the shareholders’ equity.
Gross Technical Reserves
The Gross Technical Reserves increased by 2.7% to AED 3.58 billion as on 30 September 2016, compared to AED 3.48 billion as on 31 December 2015.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per ordinary share grew to 38 Fils and 32 Fils respectively for the nine months period ended 30 September 2016 compared to basic and diluted loss per ordinary share of 88 Fils for the same period in 2015.
Ahmad Idris, CEO of ADNIC said: “Following a positive first half year 2016, I am pleased to report that ADNIC continued to see positive results in the third quarter of this year. By implementing corrective measures in 2015, in response to increasingly competitive market conditions, ADNIC has remained profitable throughout the nine months of 2016. While the selective underwriting approach resulted in a flat premium for the current period, we see that it has strengthened ADNIC’s financial and operational performance long-term and the ability to maintain greater liquidity levels through prudent underwriting strategy. I am convinced that this will be the right approach to further strengthen our balance sheet and deliver the highest standard of customer service.”