Abu Dhabi National Insurance Company (Adnic) posted a nine-month (9M) net profit before tax of AED342.5 million ($93.25 million), a 13.5% year on year increase, backed by successful execution of its strategic growth initiatives. 

 

Following Adnic’s successful acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company (ASF) in Saudi Arabia, all financials presented here reflect the full consolidation of ASF’s performance from the transaction’s completion date.

 

As of September 30, 2024, both companies’ consolidated total assets were AED12 billion (growth at 55.6%), with total shareholders’ equity at AED3.4 billion (growth at 16.1%).

 

Emerging opportunities

Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said: “As we are coming towards the end of this very unique and extremely challenging year for our industry, we are positioning Adnic to capitalise on suitable emerging opportunities in the insurance sector. Our international expansion reflects our commitment to delivering sustainable value to shareholders while supporting the ongoing growth of the region's insurance industry as we strive to become the region’s leading insurer.”     

 

Charalampos Mylonas, Chief Executive Officer of Adnic, said: "Adnic continues to deliver exceptional financial results, achieving an all-time record Gross Written Premium (GWP) of AED6.1 billion, representing a growth of 56% compared to the same period last year whilst continuing to deliver simultaneous and consistent operating profit growth in line with our pedigree and strategic objectives. 

 

“Automation and simplicity remain central to our strategy, going beyond product and service creation to ensure accessibility for all. We are committed to fostering transformation at the very heart of our business through innovative solutions. By staying true to our values and embracing innovation, we are confident in delivering long-term value for our stakeholders and solidifying Adnic’s position as a regional market leader."

 

Key financial highlights

Insurance revenue grew 57.2% year on year to reach an all-time high of AED5.2 billion. This reflects continuous excellence in the provision of corporate insurance solutions for mega projects as well as the company’s underlying multi-channel, product line and territory infrastructure and readiness.

 

Insurance service result grew 13.7% year on year to reach AED308.5 million. While the insurance market in UAE was tremendously impacted by the flood events Adnic was the only top tier UAE listed company able to deliver double-digit growth in this critical KPI which reflects the robustness and strong underwriting and analytical discipline in the way our business is managed and produced. 

 

Net investment income grew 27.3% year on year to reach AED202.3 million. It reflects the resilience of Adnic’s underlying asset allocation mix to the emerging market conditions and trends.

 

Net financial result which is the consolidated output of all of the above after incorporation of the IFRS-17 required risk charge and discounting adjustments has grown by 18.4% year on year to reach AED508.7 million.

 

Tax expense for the year is AED34.7 million yielding a profit after tax for the year of AED307.8 million. 

--TradeArabia News Service