Abu Dhabi - MENA Herald: Abu Dhabi National Insurance Company (ADNIC) announced on Tuesday its financial results for the first six months ended on June 30th 2016. The Company reported a net profit of AED 107.4 million for this period, a significant growth over the same period of last year. The Company’s net technical profit contributed AED 59.9 million towards the bottom-line profit.
Commenting on these results, Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “Following the positive financial performance in the first quarter of this year, the results for the first six months of 2016 indicates ADNIC’s return to sustainable profitability. The results, which have been achieved on the back of strong underwriting and net profit performance, validate the strategic realignment implemented by the Company’s management over the past year-and-a-half. The Board of Directors, as well as the management team, are confident of ADNIC’s ability to continue delivering growth and shareholder value.”
Key Financial Highlights
Gross Written Premium
For the six month period ended June 30th 2016, ADNIC’s Gross Written Premium grew by 3% to AED 1,437.1 million compared to AED 1,401.8 million for the same period in 2015.
Premium Retention
The overall premium retention ratio for the Company reached 46% for the six month period ended June 30th 2016, compared to 51% for the same period in 2015.
Net Underwriting Income
For the six month period ended June 30th 2016, ADNIC’s Net Underwriting Income reached AED 165.9 million, against a Net Underwriting Loss of AED 247.8 million for the same period in 2015.
General and Administrative Expenses
General and Administrative Expenses for six month period ended June 30th 2016, stood at AED 108.5 million compared to AED 106.5 million for the same period in 2015.
Net Technical Profit
The Net Technical Profit, which is arrived at by deducting General and Administrative Expenses related to the insurance operation from Net Underwriting Income, for the six month period ended June 30th 2016, reached AED 59.9 million compared to a net technical loss of AED 354.3 million for the same period last year.
Net Investment Income
ADNIC’s Net Investment and Other Income for the six month period ended June 30th 2016 was AED 50.1 million, compared to AED 55.6 million for the same period in 2015.
Net Profit
For the six month period ended June 30th 2016, the Company’s Net Profit was AED 107.4 million, compared to a net loss of AED 298.8 million for the same period in 2015. Net Technical Profit represents 56% of Net Profit for the six month period ended June 30th 2016.
Liquidity Position
ADNIC’s bank balances and cash grew by 39% to AED 928.0 million as on June 30th 2016, compared to AED 667.2 million as on December 31st 2015.
Total Investments
Total investments increased by 10% to AED 3,003.9 million as on June 30th 2016, compared to AED 2,741.6 million as on December 31st 2015.
Total Assets
The total assets of the company grew by 12% to AED 6,249.6 million as on 30th June 2016, compared to AED 5,603.8 million as on December 31st 2015.
Gross Technical Reserves
The Gross Technical Reserves increased by 9% to AED 3,785.0 million as on 30th June 2016, compared to AED 3,482.7 million as on December 31st 2015.
Shareholders’ Equity
The Shareholders’ Equity position increased by 33% to AED 1,644.7 million as on 30th June 2016, compared to AED 1,241.2 million as on December 31st 2015.
Basic and Diluted Earnings Per Share and Net Profit
Basic and diluted earnings per ordinary share grew to 29 fils and 27 fils respectively for the six months period ended 30th June 2016 compared to basic and diluted loss per ordinary share of 80 fils for the same period in 2015.
On 15th June 2016, ADNIC issued AED 390 million three-year Mandatory Convertible Bonds (MCB) bearing 7.5% annual coupon. The MCB was issued as a private placement for ADNIC shareholders and was oversubscribed by 10%. The MCB has been listed on ADX with effect from 23rd June 2016. The purpose of the issuance was to maintain ADNIC’s rating at A-, which has been affirmed by S&P with a Stable outlook. Our capital adequacy has strengthened further and is viewed “Extremely Strong” by S&P.
Ahmad Idris, CEO of ADNIC said: “The continued profitability of ADNIC in 2016 is driven by the holistic realignment of the Company’s operational strategy in 2015 and its selectivity in underwriting. The strength of our balance sheet and the quality of our newly underwritten business provide us greater liquidity and adaptability to innovate and solidify further the customer relationships. The strong response from shareholders to ADNIC’s bond issuance bears testimony to our robust capital base and financial security.”
