Abu Dhabi National Insurance Company (Adnic) has posted a net profit of Dh5 million ($1.36 million) for the first quarter ended March 31 compared to Dh55 million ($14.9 million) for the same period in 2014.

Commenting on the results, Khalifa Mohamed Al-Kindi, chairman of Adnic, said: “The Board of Directors acknowledges the corrective measures and strategies being executed by the management to ensure Adnic’s sustainable return to profitability in 2015 and beyond.”

Financial highlights for the quarter:

•    Gross Premium Written grew 7 per cent to Dh1.07 billion compared to Dh0.99 billion for the same period in 2014

•    Overall Premium Retention increased to 48 per cent compared to 43 per cent for the same period in 2014.

•    Net Underwriting Income was Dh28.6 million compared to Dh69.7 million in the same period last year

•    Net investment and other income stood at Dh25.9million for the period ending March 31 as compared to Dh35.8 million for the same period in 2014. The main reasons for variance are lower trading income and lower dividend income on the listed equity portfolio. It is expected the dividend income to be made up in Q2’2015. The lack of trading income was a strategic decision to focus more on stable & consistent investment return, a statement said.

•    Liquidity position stood at Dh606 million as at March 31, 2015 against Dh559 million as at December 31, 2014

•    Total Assets increased by 7 per cent to reach Dh5,972 million as at March 31, 2015 compared to Dh5,556 million as at December 31, 2014

Ahmad Idris, CEO of Adnic said: “While the results of our Commercial segment remain stable, the decrease in the performance of our Consumer segment reflects the servicing of the run-off loss making portfolio. We are confident in the corrective actions taken, as the newly written portfolio has seen a marked improvement, and we have made customer service central to our business strategy and are committed to improving our services and product offerings. Together with prudent and selective underwriting, I am confident that our strategy will ensure Adnic sustainable profitability in 2015 and beyond.”

“We would like to announce that both Standard and Poor’s (S&P) and A. M. Best have affirmed Adnic in the (A-) Category. S&P referenced to their decision of affirming our rating to the strategic steps that we have already taken to return to profitability in 2015 and beyond. The rating agency also acknowledged our strong capital and earnings and well-established competitive position as a key factor in their assessment and ultimate rating decision,” he added. – TradeArabia News Service