ADNIC announces first quarter 2019 financial results

Wednesday 01 May 2019
Abu Dhabi - MENA Herald:

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers both for corporates and individuals, today reported its financial results for the first quarter ended 31 March 2019. ADNIC achieved significant gross written premium growth during the first quarter of 2019, with the company performing fairly well in terms of profitability with challenging market conditions. Gross written premiums increased by 42.8% to AED 1.74 billion, compared to AED 1.22 billion for the same period in 2018. ADNIC’s net profit reached AED 52.6 million for the first quarter ended 31 March 2019.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC has delivered significant gross written premium growth in the first quarter of 2019, leaving the company well positioned for further success in the year ahead.  The net profit has been impacted by the performance of the consumer lines. As we move into the second quarter, ADNIC will continue leveraging its scale, expertise and competitive advantage to focus on increasing profitability, consolidating its position as one of the leading regional multi-line insurance providers for corporates and individuals, and creating sustainable value for stakeholders while increasing customer satisfaction and retention.”

He added: “On behalf of the Board of Directors, I would like to extend our sincere gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support.”

Ahmad Idris, CEO of ADNIC, said: “ADNIC’s performance is testament to the strength of our customer service proposition, technical excellence, product and service innovation and commitment to the community. Moving forward, we are focused on achieving our strategic targets over the coming year, including investing in new products and service innovations to create additional value for customers and shareholders.”

He added: “I would like to thank ADNIC’s Board of Directors and shareholders for their continued support, our clients and partners for the trust and confidence they have placed in us, and our management team and employees for their efforts and dedication.”

Key Financial Highlights

Gross Written Premiums

For the first quarter of 2019 ended 31st March 2019, ADNIC’s gross written premiums increased by 42.8% to AED 1.74 billion, compared to AED 1.22 billion for the same period in 2018.

Premium Retention

The overall premium retention ratio is 33% for the first quarter ended 31st March 2019, compared to 52% for the same period in 2018.  

Net Underwriting Income

For the first quarter ended 31st March 2019, ADNIC’s net underwriting profit is AED 84.3 million, against AED 115.5 million for the same period in 2018.   

General and Administrative Expenses

General and administrative expenses for the first quarter ended 31st March 2019 stood at AED 64.0 million, compared to AED 55.3 million for the same period in 2018.  

Net Technical Profit

Net technical profit for the first quarter ended March 31st 2019 is AED 20.4 million, against AED 60.1 million for the same period in 2018.   

Cash Balances

ADNIC’s cash balances stood at AED 611.1 million as of 31st March 2019, compared to AED 854.6 million as of 31st December 2018.

Investments

Total investments including cash in time deposits, bank accounts and investment properties stood at AED 3.56 billion as of 31st March 2019, compared to 3.75 billion as of 31st December 2018.

Total Assets

Total assets increased by 14.0% to AED 8.27 billion as of 31st March 2019, compared to AED 7.25 billion as of 31st December 2018.

Gross Technical Reserves

Gross technical reserves increased by 21.8% to AED 4.82 billion as of 31st March 2019, compared to AED 3.96 billion as of 31st December 2018.

Net Investment Income

ADNIC’s net investment and other income is AED 32.3 million for first quarter ended 31st March 2019, compared to AED 35.0 million for the same period in 2018.

Net Profit

For the first quarter ended 31st March 2019, net profit is AED 52.6 million, compared to AED 95.2 million for the same period in 2018.

Shareholders’ Equity

The shareholders’ equity position is AED 2.07 billion as of 31st March 2019, compared to AED 2.10 billion as of 31st December 2018.

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share is AED 0.09 as a result of achieving a net profit of AED 52.6 million for the first quarter of 2019, compared to basic and diluted earnings per share of AED 0.17 resulting from a net profit of AED 95.2 million for the same period last year.

  • CSR

ADNIC continued to demonstrate its commitment to corporate responsibility in the first quarter of 2019 through its numerous long-standing CSR initiatives and the renewal of its partnership with the Mohammed Bin Rashid Al Maktoum Knowledge Foundation.

  • Awards

ADNIC is one of the most awarded insurance companies in the region. Earlier in 2019, ADNIC received the prestigious Mohammed bin Rashid Al Maktoum Business Excellence Award and was named ‘Insurer of the Year’ by MENA IR. Additionally, ADNIC recently won ‘Best Insurance Provider of the Year’ at the 10th edition of ShipTek International Conference and Awards 2019, which recognises the company’s achievement, innovation and excellence in the maritime industry.

The company customer service excellence was recognised with the ‘Call Center of the Year’ award by INSIGHTS, and was awarded the ISO 10002:2018 certificate for complaints management. ADNIC was also recently selected for the top honours in Excellence in Insurance Digitisation at Finnovex Awards 2019.

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