Abu Dhabi National Insurance Company (ADNIC) has reported a net profit of AED143.5 million (US$39.1 million) for the nine months ending 30 September, compared to a net loss of AED331 million for the same period in 2015.
The insurer’s net technical profit, which is arrived at by deducting general and administrative expenses related to the insurance operation from net underwriting income, hit AED76.6 million compared to a net technical loss of AED410.8 million for the same period last year.
ADNIC’s net underwriting income reached AED252.3 million, against a net underwriting loss of AED257.7 million for the same period in 2015, while GWP remained flat at AED1.76 billion. In addition, net investment and other income for the period ended 30 September 2016 was AED71.6 million, compared to AED79.7 million for the same period in 2015.
Overall premium retention ratio reached 46.4% for the nine-month period ended 30 September 2016, compared to 51.1% for the same period in 2015. In terms of its liquidity position, ADNIC’s bank balances and cash grew by 13.8% to AED759.6 million as on 30 September, compared to AED667.2 million as on 31 December 2015.
Commenting on the results, Sheikh Mohamed Bin Saif Al Nahyan, Chairman of ADNIC, said the company has sustained the profitability achieved in the first half with continued strong underwriting and net profit growth for the third quarter of this year. “The realignment of ADNIC’s operational strategy continues to prove effective and has enabled the company to continue to report positive results. The board as well as the management team, remains confident that ADNIC is on the right path to sustainable growth and to remain one of the market leaders both in terms of its balance sheet strength and its highly advanced product suite,” he added.
Mr Ahmad Idris, CEO of ADNIC said: “Following a positive first half, I am pleased to report that ADNIC continues to see positive results in the third quarter as well. By implementing corrective measures in 2015, in response to increasingly competitive market conditions, we have remained profitable throughout the nine months of 2016. While the selective underwriting approach resulted in a flat premium for the current period, we see that it has strengthened Adnic’s financial and operational performance long-term and the ability to maintain greater liquidity levels through prudent underwriting strategy.”
AED1 = US$0.27