UAE: ADNIC sees 1H net profit surge 60%
Source: Middle East Insurance Review | Sep 2020
Abu Dhabi National Insurance Company (ADNIC) said its net profit for the six-month period ended 30 June 2020 climbed by 59.9% to AED189.7m ($51.7m) compared to a net profit of AED118.6m for the corresponding period in 2019.
Profitability across the key lines was very strong with total underwriting profits up 67.0% for 1H2020 to AED276.3m. Combined ratio was 80.2% compared to 93.9% for the previous year.
GWP for the first six months of the year was up by 9.1% to AED2.56bn. Particularly strong gains were achieved in the commercial lines with GWP increasing by 17.1%. Specifically for consumer lines, GWP was maintained almost at the same level as the previous year despite challenging market conditions.
The overall premium retention ratio reached 34.3% for the first half of this year compared to 32.6% for the same period in 2019.
Net investment and other income was AED55.1m for 1H2020 compared to AED79.1m for the same period in 2019, because of volatility in the stock market.
Total shareholders’ equity was stable at AED2.19bn at 30 June and loss reserves were maintained at comfortable levels.
COVID-19
Referring to the current global pandemic, ADNIC said, “The impact of the COVID-19 pandemic is an evolving situation and ADNIC will continue to monitor the impact on its business closely and take decisive action as required to support its customers and partners.“
The insurer added that it has embraced the changes brought about by the pandemic to improve its processes and hasten its digitisation efforts, and these will continue even after the present circumstances pass. M
AED1 = $0.27