Middle East News - UAE: ADNIC's 2015 loss widens to US$91 mln
Source: Middle East Insurance Review | Mar 2016
Abu Dhabi National Insurance Company (ADNIC) has reported that its net loss for 2015 has grown to AED334.5 million (US$91 million), from AED280.4 million in 2014.
GWP for 2015 was AED2.29 billion compared to AED2.63 billion in the previous year.
Mr Ahmad Idris, CEO of ADNIC said: “As a result of the implementation of its revised strategy including the re-underwriting of unprofitable business in line with ADNIC’s selective underwriting policy, the gross premium written for 2015 was reduced in comparison with full year 2014. The change in reserving policy has also impacted our earnings for 2015, causing a net loss. ADNIC remains determined to return to its traditional levels of operating performance through prudent underwriting and excellent customer service.”
He added that ADNIC posted a net loss of AED3.4 million for last quarter of 2015, compared to net loss of AED331.1 million reported for the first quarter of that year.
Net underwriting loss for 2015 increased to AED229 million from AED157 million in 2014. Net investment and other income was AED102 million for 2015 compared to AED106 million for 2014.
H.E. Khalifa Mohamed Al-Kindi, Chairman of ADNIC, said: “The Board of Directors acknowledges the strategy put in place by the Executive Management to restore the Company’s traditional levels of profitability, which are supported by ADNIC’s robust liquidity position.”
AED1 = US$0.27