Abu Dhabi National Insurance Company (ADNIC), a leading regional multi-line insurance provider, has delivered a strong set of financial results for the full year ended 31 December 2019, with net profit up 20.7% year-on-year to AED284.3m ($77.4m).
Net technical profit increased by 1.6% to AED143.7m in 2019. Gross written premium increased by 29% to AED3.76bn in 2019 compared to 2018.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan (see photo), chairman of ADNIC, said, “ADNIC increased its market share, achieving a 29% increase in GWP and growth in both consumer and commercial lines of business. ADNIC’s cost efficiency has increased over time and its administrative cost to GWP ratio went down to 6.7% in 2019 compared to 7.9% in 2018. ADNIC will continue to focus on continuously optimising its cost base.
“Prudent underwriting and cost discipline led to an increase in net underwriting income to AED393.2m, an increase of 6.4% compared to 2018. ADNIC’s strong financial position is one of the core factors that enables it to underwrite more complex risks.”
Investment income surged by 48.3% to AED142.2m. The securities portfolio is well diversified in terms of asset classes, and going forward, it will be further diversified geographically particularly in risk assets.
In 2019, ADNIC’s Mandatory Convertible Bonds were converted into new shares, increasing the company's capital to AED570m from AED375m. Total shareholders’ equity was higher by 9.3%, reaching AED2.3bn at the end of 2019 compared to AED2.1bn in 2018, indicating an extremely strong capital position and financial strength. Return on equity was 12.9%.
The board of directors intends to recommend a dividend of 30% (AED0.30 per share), totalling AED144.6m, subject to approval by shareholders at the annual general meeting.
Building capabilities for the future is a key strategic imperative. To this end, ADNIC will continue to invest in digitisation initiatives and new technologies that have multiple strategic and financial spinoffs in future years.