ADNIC reports 19.1% growth in net profit for second quarter of 2019, year-over-year

Thursday 01 August 2019
Abu Dhabi - MENA Herald:

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, today announced its financial results for the period ending 30 June 2019. The company reported a net profit of AED 66.0 million for the second quarter of 2019, an increase of 19.1% on the same period in 2018.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “ADNIC has delivered 29.5% growth in gross written premium during the first half of 2019 and 19.1% growth in net profit during the period April to June 2019. As we move into the second half of 2019, the company will remain firmly focused on maintaining robust foundations to drive long-term sustainable growth and maximise value for shareholders, 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: “The company’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 will continue to focus on achieving our strategic targets, 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 business partners for their patronage and our management team and employees for their diligent efforts. I am confident that we will continue to make further accomplishments and maximise shareholder value in the remainder of the year.”

Key Financial Highlights:

Gross Written Premiums

For the six-month period ended 30th June 2019, ADNIC’s gross written premiums increased by 29.5% to AED 2.35 billion, compared to AED 1.81 billion for the same period in 2018.

Premium Retention

The overall premium retention ratio reached 32.6% for the six-month period ended 30th June 2019, compared to 53.2 % for the same period in 2018. 

Net Underwriting Income

For the six-month period ended 30th June 2019, ADNIC’s net underwriting profit is AED 165.4 million, against AED 193.1 million for the same period in 2018.  

General and Administrative Expenses

General and administrative expenses for six-month period ended 30th June 2019 stood at AED 125.9 million, compared to AED 112.3 million for the same period in 2018. 

Net Technical Profit

Net technical profit for the six-month period ended 30th June 2019 is AED 40.7 million, against AED 81.5 million for the same period in 2018.  

Cash Balances

ADNIC’s cash balances stood at AED 774.5 million as of 30th June 2019, compared to AED 611.1 million as of 31st March 2019, and 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 3.75 billion as of 30th June 2019, compared to AED 3.56 billion as of 31st March 2019, and to AED 3.75 billion as of 31st December 2018.

 

Total Assets

Total assets increased by 11.3% to AED 8.07 billion as of 30th June 2019, compared to AED 7.25 billion as of 31st December 2018.

Gross Technical Reserves

Gross technical reserves increased by 13.7% to AED 4.50 billion as of 30th June 2019, compared to AED 3.96 billion as of 31stDecember 2018.

Net Investment Income

ADNIC’s net investment and other income increased by 13.5% to  AED 79.1 million for the six-month period ended 30th June 2019, compared to AED 69.7 million for the same period in 2018.

Net Profit

For the six-month period ended 30th June 2019, net profit is AED 118.6 million, compared to AED 150.5 million for the same period in 2018. For the three-month period ended 30th June 2019, net profit grew by 19.1% to reach AED 66.0 million, compared to AED 55.4 million for the same period in 2018.

Shareholders’ Equity

The shareholders’ equity position is AED 2.14 billion as of 30th June 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 0.21, compared to basic and diluted earnings per share of AED 0.27 for the same period last year.

·         Innovative solutions

In line with its commitment to innovation and technological leadership, ADNIC launched its ‘verified’ WhatsApp Business service to provide an additional and easily accessible channel for customers to contact. Additionally, ADNIC recently partnered with FAB to provide customers with a new easy payment option through payit.

·         CSR

ADNIC continued to demonstrate its commitment to corporate responsibility in the second quarter of 2019 through its numerous long-standing CSR initiatives and the renewal of its partnership with the Beit Al Khair Society and Emirates Down Syndrome Association.

·         Recent Awards

ADNIC is one of the most awarded insurance companies in the region. ADNIC was named the ‘UAE’s most outstanding in corporate insurance services’ by Corporate Livewire. Additionally, ADNIC was recently recognised for the quality of its customer service by winning the Best Call Center of the Year in insurance sector by INSIGHTS Middle East.

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