Abu Dhabi National Insurance Company (Adnic) has reported a net loss of Dh280 million ($76.2 million) for the year 2014 as compared to net profit of Dh156 million ($42.4 million) during the previous year.

Net Investment Income increased 7 per cent to Dh106 million for the year 2014 compared to Dh100 million in 2013.

“Despite significant challenges in 2014, Adnic has made progress on a number of strategic fronts that will lay the foundations for the future growth of the Company,” said Khalifa Mohamed Al-Kindi, chairman of Adnic.

“Our priority is to ensure that Adnic remains a market leader both in terms of its standing in the insurance market as well as offering unparalleled services and experience for our customers. Adnic’s performance will be driven by a new leadership that will steer the company towards operational, commercial and strategic improvements.”

Adnic’s gross written premium increased by nine per cent to Dh2.63 billion in 2014 from Dh2.41 billion in 2013. Adnic’s net underwriting loss for the year 2014 was Dh157 million, compared to a net underwriting profit of Dh266 million in 2013.

Ahmad Idris, CEO of Adnic, said: “The increase in the company’s 2014 gross written premium was largely driven by the growth in our commercial lines portfolio.”

“However, 2014 was a year, which highlighted important challenges faced by the company. The traditionally profitable property, marine, and aviation lines of business were negatively impacted by losses although low in frequency, but high in value.

“Within consumer lines, while Adnic is taking firm action to realign the motor and medical portfolios, the 2014 results reflect the servicing of the run-off loss making portfolios,” Idris said.

Commenting on the outlook for Adnic in 2015, Idris added: “During 2014, Adnic undertook a series of initiatives, which position the company well to prosper within the emerging economic background and the new regulatory framework in which we operate bringing greater stability, transparency, and healthier competition to a more sustainable UAE insurance industry.”

“Our continued commitment to service, product and innovation remains central to our business strategy. Aligned to our selective and prudent underwriting practices, I am confident that this strategy will return Adnic to sustained profitability and shareholder value in 2015 and beyond,” he concluded. – TradeArabia News Service