Abu Dhabi National Insurance Company (Adnic) has reported a net loss of Dh334.5 million ($91.07 million) for 2015, compared to a net loss of Dh280.4 million ($76.2 million) for 2014.  

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.”

Adnic’s gross premium written for 2015 was Dh2.29 billion ($623 million) compared to Dh2.63 billion ($716.04 million) last year.

The overall premium retention ratio for the company reached 48 per cent for the year 2015 compared to 54 per cent for 2014.  

For the year 2015, Adnic reported a net underwriting loss of Dh229 million ($62.3 million), against a net underwriting loss of Dh157 million ($42.7 million) for 2014.   

Adnic’s net investment and other income was Dh102 million ($27.7 million) for 2015 compared to Dh106 million ($28.86 million) for 2014.

General and administrative expenses decreased by 9.8 per cent to Dh208 million ($56.6 million) for 2015 compared to Dh230 million ($62.6 million) for 2014.  

Adnic’s cash and cash equivalents stood at Dh667 million ($181.6 million) as on December 31st 2015, compared to Dh559 million ($152.1 million) last year.

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 said.

“The company has reported a net loss of Dh3.4 million ($925,686) for the period October to December 2015, as compared to net loss of Dh331.1 million ($90.15 million) reported for the period January to September 2015,” he added. – TradeArabia News Service