ADNIC reports net profit of AED 39 million for Q1 2016
11 May 2016
Abu Dhabi National Insurance Company (ADNIC) announced on Wednesday its financial results for the first quarter, ended March 31st 2016. The Company reported a net profit of AED 39 million for this period, a growth of 670% over the same period of last year. The Company’s net investment income contributed 22.5 million towards the bottom-line profit whereas the net technical profit contributed AED 16.5 million.
Commenting on these results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC has started the year on a strong note with growth in net underwriting income and an overall net profit, driven by corrective measures implemented by the management of the Company over the past year. The Board of Directors, as well as the management team, remain focused on delivering growth and shareholder value.”
Key Financial Highlights:
Gross Premium Written
For the three month period ended March 31st 2016, ADNIC’s Gross Premium Written was AED 1,061.5 million compared to AED 1,066.5 million for the same period in 2015.
Premium Retention
The overall premium retention ratio for the company reached 45.2% for the three month period ended March 31st 2016 compared to 47.7 % for the same period in 2015.
Net Underwriting Income
For the three month period ended March 31st 2016, ADNIC Net Underwriting profit increased by 134% to of AED 66.8 million, against a Net Underwriting Profit of AED 28.6 million for the same period in 2015.
General and Administrative Expenses
General and Administrative Expenses for three month period ended March 31st 2016 stood at AED 50.3 million compared to AED 49.4 million for the same period in 2015.
Net Technical Profit
Being the result of Net Underwriting Income less General and Administrative Expenses, Net Technical Profit for three month period ended March 31st 2016 reached AED 16.5 million compared to a technical loss of AED 20.9 million for the same period last year.
Net Investment Income
ADNIC’s Net Investment and Other Income was AED 22.5 million for the three month period ended March 31st 2016 compared to AED 25.9 million for the same period in 2015.
Net Profit
For the three month period ended March 31st 2016, Net profit increased by 670% to AED 39.0 million, compared to a net profit of AED 5.1 million for the same period in 2015. Net Technical profit represents 42% of the first Quarter 2016 Net profit.
Liquidity Position
ADNIC’s cash and cash equivalents stood at AED 595.4 million as on March 31st 2016, compared to AED 667.2 million as on December 31st 2015.
Total Investments
Total company investments stood at AED 2,662.0 million as on 31st March 2016, compared to AED 2,741.6 million as on December 31st 2015.
Total Assets
The total assets of the company increased by 13% to AED 6,333.5 million as on 31st March 2016, compared to AED 5,603.8 million as on December 31st 2015.
Shareholders’ Equity
The Shareholders’ Equity position stood at AED 1,267.7 million as on 31st March 2016, compared to AED 1,241.2 million as on December 31st 2015.
Gross Technical Reserves
The Gross Technical Reserves increased by 17% to AED 4,063.0 million as on 31st March 2016, compared to AED 3,482.7 million as on December 31st 2015.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per ordinary share stood at AED 0.10 for the three months period ended 31st March 2016 compared to basic and diluted earnings per ordinary share of AED 0.01 for the same period in 2015.
Ahmad Idris, CEO of ADNIC said: “I am pleased to report that ADNIC’s strategy of selective underwriting combined with an unwavering customer service commitment and product development focus has enabled us to achieve a profitable quarter at the start of 2016. Over the past year, the Company has undertaken a series of initiatives, which has now set the foundation for ADNIC to return to its traditional levels of profitability, with greater adaptability and stronger customer relationships.”
