Abu Dhabi National Insurance Company (Adnic), a top multi-line insurance provider, has reported net profit of Dh218.8 million ($59.5 million) for the first nine months of the year, up 22.6 per cent compared with the same period of last year.  

Sheikh Mohamed Bin Saif Al-Nahyan, chairman of Adnic, said: “On behalf of the Board of Directors, I am pleased to report that Adnic has delivered strong performance in the first nine months of 2018. The results stand as testament to the company's continuous efforts to become the insurer of choice for customers, and its target to optimize return on investment for shareholders.

“Adnic’s leading performance across the business is driven by a successful strategy of revenue stream diversification across different insurance segments, new product development, a clear focus on underwriting quality, and greater business efficiency.”

Key financial highlights

Gross Written Premiums

For the nine-month period ended September 30th 2018, Adnic’s Gross Written Premium increased by 12.2 per cent to Dh2.23 billion compared to Dh1.98 billion for the same period in 2017.

Premium Retention
The overall premium retention ratio reached 51.0 per cent for the nine-month period ended September 30th 2018 compared to 46.5 per cent for the same period in 2017.  

Net Underwriting Income

For the nine-month period ended September 30th 2018, Adnic’s Net Underwriting profit increased by 27.5 per cent to Dh304.7 million, against Net Underwriting Profit of Dh239.0 million for the same period in 2017.   

General and Administrative Expenses

General and Administrative Expenses for nine-month period ended September 30th 2018 stood at Dh176.6 million compared to Dh148.7 million for the same period in 2017.  

Net Technical Profit

Net Technical Profit for the nine-month period ended September 30th 2018 increased by 40.6 per cent to Dh132.3 million, against Net Technical Profit of Dh94.1 million for the same period in 2017.   

Net Investment Income

Adnic’s Net Investment and Other Income increased by 2.8 per cent to Dh90.7 million for the nine-month period ended September 30th 2018 compared to Dh88.2 million for the same period in 2017.

Net Profit
For the nine-month period ended September 30th 2018, Net profit increased by 22.6 per cent to Dh218.8 million, compared to net profit of Dh178.5 million for the same period in 2017.

Cash Balances

Adnic’s cash balances increased by 41.8 per cent to Dh1.00billion as at 30th September 2018, compared to Dh705.4 million as at December 31st 2017.

Investments

Total investments including cash in time deposits, bank accounts and investment properties increased by 14.4 per cent to Dh3.88 billion as at 30th September 2018, compared to Dh3.39 billion as at December 31st2017.

Total Assets

Total assets increased by 9.3 per cent to Dh7.32 billion as at 30thSeptember 2018, compared to Dh6.70 billion as at December 31st2017.

Gross Technical Reserves

Gross Technical Reserves increased by 3.9 per cent to Dh4.04 billion as at 30thSeptember 2018, compared to Dh3.88 billion as at December 31st2017.

Shareholders’ Equity

Shareholders’ Equity position increased by 7.0 per cent to Dh2.11 billion as at 30th September 2018, compared to Dh1.98 billion as at December 31st 2017.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share increased by 25.8 per cent to Dh0.39 for the nine-month period ended 30thSeptember 2018, compared to basic and diluted earnings per share of Dh0.31 for the same period last year.

Ahmad Idris, CEO of Adnic said:“I am pleased to report that Adnic has delivered strong set of results for the nine-month period ended 30th September 2018, with continued growth in net profit and gross written premium. This performance is a testament to our sound underwriting discipline, and financial strength. We continue to be focused on driving further innovation across all areas of the business to grow our product and service range significantly.”

“As we approach the end of 2018, I am confident that we will continue to build solid foundations to support our long-term sustainable growth and achieve further milestones. Adnic’s customers are at the heart of our values, and with innovation being the foundation of our growth, we are able to create solutions that deliver value for them,” he added. – TradeArabia News Service