ADNIC announces first quarter 2019 financial results
17 Apr 2019
Abu Dhabi National Insurance Company (ADNIC), one of the leading
regional multi-line insurance providers both for corporates and individuals, today
reported its financial results for the first quarter ended 31 March 2019. ADNIC
achieved significant gross written premium growth during the first quarter of
2019, with the company performing fairly well in terms of profitability with
challenging market conditions. Gross written premiums increased by 42.8% to AED
1.74 billion, compared to AED 1.22 billion for the same period in 2018.
ADNIC’s net profit reached AED 52.6 million for the first quarter ended 31
March 2019.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif
Al-Nahyan, Chairman of ADNIC, said: “ADNIC has delivered significant gross
written premium growth in the first quarter of 2019, leaving the company well
positioned for further success in the year ahead. The net profit has been impacted by the
performance of the consumer lines. As we move into the second quarter, ADNIC
will continue leveraging its scale, expertise and competitive advantage to
focus on increasing profitability, consolidating its position as one of the
leading regional multi-line insurance providers for corporates and individuals,
and creating sustainable value for stakeholders while increasing customer
satisfaction and retention.”
He
added: “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
Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme
Commander of the UAE Armed Forces, for their continued support.”
Ahmad Idris, CEO of ADNIC, said: “ADNIC’s performance is testament to the strength
of our customer service proposition, technical excellence, product and service
innovation and commitment to the community. Moving forward, we are focused on
achieving our strategic targets over the coming year, including investing in
new products and service innovations to create additional value for customers
and shareholders.”
He added: “I would like to
thank ADNIC’s Board of Directors and shareholders for their continued support,
our clients and partners for the trust and confidence they have placed in us,
and our management team and employees for their efforts and
dedication.”
Key Financial Highlights
Gross Written Premiums
For the first quarter of 2019 ended 31st March 2019,
ADNIC’s gross written premiums increased by 42.8% to AED 1.74 billion, compared
to AED 1.22 billion for the same period in 2018.
Premium Retention
The overall premium retention
ratio is 33% for the first quarter ended 31st March 2019,
compared to 52% for the same period in 2018.
Net Underwriting Income
For the first quarter ended 31st March 2019, ADNIC’s net
underwriting profit is AED 84.3 million, against AED 115.5 million for the same
period in 2018.
General and Administrative Expenses
General and administrative expenses for the first quarter ended 31st
March 2019 stood at AED 64.0 million, compared to AED 55.3 million for the same
period in 2018.
Net Technical Profit
Net technical profit for the first quarter ended March 31st 2019
is AED 20.4 million, against AED 60.1 million for the same period in 2018.
Cash Balances
ADNIC’s cash balances stood at AED
611.1 million as of 31st March 2019, compared to AED 854.6 million
as of 31st December 2018.
Investments
Total investments including cash
in time deposits, bank accounts and investment properties stood at AED 3.56
billion as of 31st March 2019, compared to 3.75 billion as of 31st
December 2018.
Total Assets
Total
assets increased by 14.0% to AED 8.27 billion as of 31st March 2019,
compared to AED 7.25 billion as of 31st December 2018.
Gross Technical Reserves
Gross
technical reserves increased by 21.8% to AED 4.82 billion as of 31st
March 2019, compared to AED 3.96 billion as of 31st December 2018.
Net Investment Income
ADNIC’s net investment and other income is AED 32.3 million for
first quarter ended 31st March 2019, compared to AED 35.0 million
for the same period in 2018.
Net Profit
For the first quarter ended 3st March 2019, net profit
is AED 52.6 million, compared to AED 95.2 million for the same period in 2018.
Shareholders’ Equity
The shareholders’ equity position
is AED 2.07 billion as of 31st March 2019, compared to AED 2.10
billion as of 31st December 2018.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per
share is AED 0.09 as a result of achieving a net profit of AED 52.6 million for
the first quarter of 2019, compared to basic and diluted earnings per share of
AED 0.17 resulting from a net profit of AED 95.2 million for the same period
last year.
· CSR
ADNIC continued to demonstrate its commitment to corporate
responsibility in the first quarter of 2019 through its numerous long-standing CSR
initiatives and the renewal of its partnership with the Mohammed Bin Rashid Al
Maktoum Knowledge Foundation.
·
Awards
ADNIC is one
of the most awarded insurance companies in the region. Earlier in 2019, ADNIC
received the prestigious Mohammed bin Rashid Al Maktoum Business Excellence
Award and was named ‘Insurer of the Year’ by MENA IR. Additionally,
ADNIC recently won ‘Best Insurance Provider of the Year’ at the 10th
edition of ShipTek International Conference and Awards 2019, which recognises
the company’s achievement, innovation and excellence in the maritime industry.
The company customer
service excellence was recognised with the ‘Call Center of the Year’ award by
INSIGHTS, and was awarded the ISO 10002:2018 certificate for complaints
management. ADNIC was also recently selected for the top honours in Excellence
in Insurance Digitisation at Finnovex Awards 2019.
