Abu Dhabi National Insurance Company (Adnic) has registered solid growth in its core insurance business last year with its gross written premium (GWP) surging 14.3 per cent to Dh1.55 billion ($422 million) when compared to Dh1.36 billion in 2008.

Announcing the results for the year ended December 31, 2009, Adnic chairman Khalifa Mohammad Al Kindi said the net underwriting income soared to Dh234 million from Dh180 million for 2008, representing a growth of 30 per cent.

The company's total assets grew by 10 per cent to reach Dh3.5 billion as at December 31, 2009 compared to Dh3.2 billion during the corresponding period the previous year.

The company, Al Kindi said, has conformed to fundamental International Financial Reporting Standards (IFRS)  requirements by accounting for the full amount of impairments on available for sale investments amounting to Dh307 million in the early part of 2009.

'Despite a difficult first half of 2009 as a result of a significant investment impediment, Adnic was still able to achieve a net profit of Dh52 million for the entire year of 2009, while further strengthening its balance sheet, he noted.   

Al Kindi pointed out that the shareholder equity too increased 12.8 per cent to Dh2.03 billion from Dh1.8 billion in 2008. 'Adnic's liquidity position remains extremely strong with no loans or borrowings on its balance sheet and over Dh 1.2 billion as cash in bank accounts as at December 31, 2009.

'This impressive increase in GWP was achieved by expanding its consumer product suite and distribution network, while the expense ratio was reduced by two per cent despite recent modernization efforts, he stated.

The Adnic board of directors said it planned to recommend a 25 per cent cash dividend to the shareholders at the next Annual General Meeting.

Adnic's growth in core insurance business operations, Al Kindi said, was largely driven by a rejuvenated emphasis to expand product distribution, enhanced investment and risk management, innovation through technology, and the adoption of a customer-centric business model.

'These additional pillars of success have recently supplemented the company’s well-entrenched core operating philosophy which emphasizes reliability in the form of prudent risk underwriting and efficient claims management,' he remarked.

This underwriting effort coupled with sustained support from brokers and partners resulted in a customer retention ratio of 94 per cent for large strategic clients, the official added.

Adnic’s drive to steadily increase its risk retention capability as part of its enhanced risk appetite has further contributed to impressive net underwriting income growth (up 30 per cent).

Walid Sidani, Adnci CEO said the company remained focused on achieving its  “Accelerated evolution plan 2010-2012” by maintaining the inertia we consider crucial in realizing the aggressive and profitable growth expected through our strategic business plan.

'We capitalized on 2009 economic environment to further strengthen our personnel, processes, and products and services, while slowly transitioning our corporate culture to one that is oriented towards continuous performance improvement,' he commented.

This year offers Adnic unparallel opportunity to expand its reach by exploring alternative products and distribution channels on either a direct basis or with the right partners,' he added.-TradeArabia News Service