Abu Dhabi National Insurance Company (Adnic) has announced a net profit of Dh39 million ($10.61 million) for the first quarter of this year, a growth of 670 per cent over the same period last year.

The company’s net investment income contributed Dh22.5 million towards the bottom-line profit whereas the net technical profit contributed Dh16.5 million, the company said.

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 for the Q1:
•    Adnic’s gross premium written was Dh1,061.5 million for the Q1, compared to Dh1,066.5 million for the same period in 2015.
•    The overall premium retention ratio for the company reached 45.2 per cent for the three month period compared to 47.7per cent% for the same period in 2015.  
•    Adnic’s net underwriting profit increased by 134 per cent to of Dh66.8 million, against a net underwriting profit of Dh28.6 million for the same period in 2015.   
•    General and administrative expenses for the three-month period ended March 31 2016 stood at Dh50.3 million compared to Dh49.4 million for the same period in 2015.  
•    The company’s total investments stood at Dh2.662 billion as on March 31, 2016, compared to Dh2.741 billion as on December 31, 2015.
•    The total assets of the company increased by 13 per cent to Dh6.333 billion as on March 31, 2016, compared to Dh5.603 billion as on December 31, 2015.
•    The shareholders’ equity position stood at Dh1.267 billion compared to Dh1.241 billion as on December 31, 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.”  - TradeArabia News Service