Abu Dhabi National Insurance Company (ADNIC) has a track record of strong operating performance, evidenced by a three-year (2023-2025) weighted return-on-equity of 13.4%, notes AM Best.
The company’s earnings are evenly balanced between underwriting and investing activities and benefit from the company’s diverse operations both in the UAE and internationally. ADNIC’s underwriting results for the first half of 2026 remained robust, evidenced by a net-net combined ratio of 94.2% (inclusive of life business), and showed a minimal net impact of losses arising from the conflict in the Middle East owed to the company’s low retention on commercial business.
Ratings affirmed
AM Best has affirmed ADNIC’s Financial Strength Rating of ‘A’ (Excellent) and Long-Term Issuer Credit Rating of ‘a’ (Excellent). The outlook of these credit ratings is stable.
The ratings reflect ADNIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Balance sheet strength
ADNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), at the strongest level. AM Best expects the company’s risk-adjusted capitalisation to remain comfortably at the strongest level, underpinned by sufficient organic capital generation to support projected growth. The company’s balance sheet strength assessment also benefits from its excellent liquidity position and good financial flexibility.
An offsetting factor in the balance sheet strength assessment is ADNIC’s high dependence on reinsurance to write large commercial risks; however, the associated credit risk is mitigated partially by the use of a reinsurance panel of sound financial strength.
Business profile
ADNIC holds a market-leading position in the UAE, where it ranks as the third-largest insurance company by insurance revenue, among publicly traded insurers. ADNIC continues to expand its geographic reach through the opening of a GIFT City India branch and widening international presence, in addition to the acquisition of a 51% shareholding of Allianz Saudi Fransi Cooperative Insurance Company (subsequently renamed as Mutakamela Insurance Company) in 2024. ADNIC writes a well-diversified portfolio by line of business, although the portfolio is weighted to domestic medical business on a net basis.