Abu Dhabi National Insurance Company (Adnic) has reported a net profit of Dh143.5 million ($39 million) for the third quarter compared to a net loss of Dh331 million ($90 million) for the same period last year.

Announcing its financial results for the period ended September 30, 2016, Adnic said its net technical profit, which is arrived at by deducting general and administrative expenses related to the insurance operation from net underwriting income, hit Dh76.6 million compared to a net technical loss of Dh410.8 million for the same period last year.

The company's net underwriting income reached Dh252.3 million, against a net underwriting loss of Dh257.7 million for the same period in 2015, while the written premium stood flat at Dh1.76 billion.

Commenting on the results, Sheikh Mohamed Bin Saif Al Nahyan, the chairman of Adnic, said: "We have sustained the profitability achieved in the first half with continued strong underwriting and net profit growth for the third quarter of this year."

"The realignment of Adnic’s operational strategy continues to prove effective and has enabled the company to continue to report positive results. The board as well as the management team, remains confident that Adnic is on the right path to sustainable growth and to remain one of the market leaders both in terms of its balance sheet strength and its highly advanced product suite," he added.

The overall premium retention ratio for the company reached 46.4 per cent for the nine-month period ended 30 September 2016, compared to 51.1 per cent for the same period last year.

On its liquidity position, Adnic said its bank balances and cash grew by 13.8 per cent to Dh759.6 million as on September 30, 2016, compared to Dh667.2 million as on December 31, 2015.

Ahmad Idris, the chief executive of Adnic said: "Following a positive first half, I am pleased to report that Adnic continues to see positive results in the third quarter as well. By implementing corrective measures in 2015, in response to increasingly competitive market conditions, we have remained profitable throughout the nine months of 2016."

"While the selective underwriting approach resulted in a flat premium for the current period, we see that it has strengthened Adnic’s financial and operational performance long-term and the ability to maintain greater liquidity levels through prudent underwriting strategy," he added.-TradeArabia News Service