ADNIC announces full year 2015 unaudited financial results
15 Feb 2016
Abu Dhabi National Insurance Company (ADNIC) announced today its unaudited financial results for the year 2015.
Commenting on these results, H.E. Khalifa Mohamed Al-Kindi, Chairman of ADNIC, said: “The Board of Directors acknowledges the strategy put in place by the Executive Management to restore the Company’s traditional levels of profitability, which are supported by ADNIC’s robust liquidity position.”
Key Financial Highlights
Gross Premium Written
For the year 2015, ADNIC’s Gross Premium Written was AED 2.29 billion compared to AED 2.63 billion last year.
The overall premium retention ratio for the company reached 48% for the year 2015 compared to 54 % for 2014.
Net Underwriting Result
For the year 2015, ADNIC reported a Net Underwriting Loss of AED 229 million, against a Net Underwriting Loss of AED 157 million for 2014.
Net Investment Income
ADNIC’s Net Investment and Other Income was AED 102 million for 2015 compared to AED 106 million for 2014.
General and Administrative Expense
General and Administrative Expenses decreased by 9.8% to AED 208 million for 2015 compared to AED 230 million for 2014.
The company has reported a net loss of AED 334.5 million for 2015, compared to a net loss of AED 280.4 million for 2014.
ADNIC’s cash and cash equivalents stood at AED 667 million as on December 31st 2015, compared to AED 559 million last year.
Total company investments including cash in time deposits, bank accounts and investment properties increased by 0.4% to AED 2,742 million as on December 31st 2015, compared to AED 2,731 million as on December 31st 2014.
The total assets of the company increased by 0.9% to AED 5,604 million as on December 31st 2015, compared to AED 5,556 million as at December 31st 2014.
Ahmad Idris, CEO of ADNIC said: “As a result of the implementation of its revised strategy including the re-underwriting of unprofitable business in line with ADNIC’s selective underwriting policy, the gross premium written for 2015 was reduced in comparison with full year 2014. The change in reserving policy has also impacted our earnings for 2015, causing a net loss. ADNIC remains determined to return to its traditional levels of operating performance through prudent underwriting and excellent customer service.”
He Added: “ADNIC reported a Net Loss of AED 3.4 million for the period October to December 2015 as compared to Net Loss of AED 331.1 million reported for the period January to September 2015.”