Abu Dhabi National Insurance Company (ADNIC) has reported a net loss of AED299 million (US$81.4 million) for the first half of 2015 compared to a net profit of AED104 million for the corresponding period in 2014.
For the six months ended 30 June 2015, ADNIC’s gross premiums fell by 9.4% to AED1.40 billion, the company said in a statement. The overall premium retention ratio for the company increased to 51% for the first half of 2015, compared to 46% for the first half of 2014.
For the first half of 2015, ADNIC reported a net underwriting loss of AED248 million compared to a net underwriting profit of AED149 million for the same period last year. Net investment and other income stood at AED56 million for the first half of 2015, compared to AED60 million for the same period last year.
As result of higher doubtful debt provisions, the insurer reported general and administrative expenses of AED107 million for the first half of 2015, compared to AED105 million for the same period last year.
Total assets increased by 5% to AED5,829 million as at 30 June 2015, compared to AED5,556 million at 31 December 2014.
Mr Ahmad Idris, CEO of ADNIC, said: “We have taken appropriate measures to return ADNIC to its usual operating performance. The company has conducted a comprehensive review of its technical reserves, which led ADNIC to increase its reserves. ADNIC will follow the appropriate reserving standards in a strict manner. The change in reserving policy has impacted our earnings for the period, causing a net loss.”
“ADNIC remains determined to return to our traditional levels of operating performance through prudent underwriting and excellent customer service,” Mr Idris added.
The company posted a net loss of AED280 million in 2014 compared to a net profit of AED156 million for 2013.
AED1 = US$0.27