ADNIC Reports 11.1% Sequential Growth in the Third Quarter of 2019
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, today announced its financial results for the period ending 30 September 2019. The company reported 11.1% net profit growth during the third quarter of 2019 compared to the same quarter of last year.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “After a successful start to the year, ADNIC continues to deliver consistent profitability with growth that outpaces the industry average, and remains focused on delivering its strategic objectives despite economic challenges. ADNIC offers a wide range of insurance coverage with prudent risk management, and the management continues to focus on having a well-diversified portfolio of insurance offerings. This year, we were also able to further improve our geographical footprint as well as acquire prestigious accounts.”
Sheikh Mohamed Bin Saif Al-Nahyan added: “Additionally, ADNIC’s top-line results for the first nine months of 2019 show strong growth in written premiums, which increased by more than a third compared to the same period last year. The company also delivered its second consecutive quarter of bottom-line growth, with net profit increasing by 11.1% in the third quarter of 2019. ADNIC’s achievements were made possible by the deep support of our customers, partners and shareholders, as well as the exceptional contributions of our employees, and we will continue to use our strength and competitive advantage to protect the interest of all stakeholders, and we will continue to enhance our services.”
Ahmad Idris, CEO of ADNIC, said: “ADNIC delivered a solid top-line performance in the first nine months of 2019 with growth in underwritten premium, demonstrating the fundamental strength of the company as we continue to cement our position as one of the region’s preferred insurers. ADNIC’s performance was driven by our sustained business momentum, strong balance sheet, and solid market position, which have combined to deliver strong performance and lay strong foundations for future growth. Additionally, our resilient business model and operating strategy have contributed to growth in profit, which will support our efforts to invest in further product innovation and enhanced customer service.”
He added: “I would like to thank ADNIC’s Board of Directors and shareholders for their continued support, our clients and partners for the trust and confidence they have placed in us, and our management team and employees for their hard work and dedication. Looking forward to the remainder of 2019, we will remain firmly focused on maintaining the strong upwards growth trajectory, as we continue to meet the needs of our customers and the expectations of our shareholders.”
Key Financial Highlights:
Gross Written Premiums
For the nine-month period ended 30th September 2019, ADNIC’s gross written premiums increased by 34.0% to AED 2.98 billion, compared to AED 2.23 billion for the same period in 2018.
The overall premium retention ratio is 30.8% for the nine-month period ended 30th September 2019, compared to 51.0 % for the same period in 2018.
Net Underwriting Income
For the nine-month period ended 30th September 2019, ADNIC’s net underwriting profit is AED 274.1 million, against AED 304.7 million for the same period in 2018.
General and Administrative Expenses
General and administrative expenses for the nine-month period ended 30th September 2019 stood at AED 186.0 million, compared to AED 176.6 million for the same period in 2018.
Net Technical Profit
Net technical profit for the nine-month period ended 30th September 2019 is AED 89.5 million, against AED 129.2 million for the same period in 2018.
ADNIC’s cash balances increased by 4.5% to AED 893.1 million as of 30th September 2019, compared to AED 854.6 million as of 31st December 2018.
Total investments including cash in time deposits, bank accounts and investment properties increased by 3.7% to AED 3.88 billion as of 30th September 2019, compared to 3.75 billion as of 31st December 2018.
Total assets increased by 8.4% to AED 7.86 billion as of 30th September 2019, compared to AED 7.25 billion as of 31st December 2018.
Gross Technical Reserves
Gross technical reserves increased by 9.4% to AED 4.33 billion as of 30th September 2019, compared to AED 3.96 billion as of 31st December 2018.
Net Investment Income
ADNIC’s net investment and other income increased by 17.3% to AED 106.4 million for nine-month period ended 30th September 2019, compared to AED 90.7 million for the same period in 2018.
For the nine-month period ended 30th September 2019, net profit is AED 194.4 million, compared to AED 218.8 million for the same period in 2018.
The shareholders’ equity increased by 5.1% to AED 2.21 billion as of 30th September 2019, compared to AED 2.10 billion as of 31st December 2018.
Basic and Diluted Earnings Per Share
Basic and diluted earnings per share is AED 0.34 for the nine-month period ended 30th September 2019, compared to basic and diluted earnings per share of AED 0.39 for the same period last year.
Abu Dhabi National Insurance Company - ADNIC
Abu Dhabi National Insurance Company (ADNIC) PJSC is a composite insurance partner with long-standing expertise in providing insurance products to individuals and corporates across the Middle East and North Africa (MENA) region. Founded in the United Arab Emirates (UAE) in 1972, ADNIC has a wide network of branches as well as sales and service centers across the country. ADNIC also has a representative office in London, under the name ADNIC International Ltd. ADNIC is a publicly listed company on Abu Dhabi Securities Exchange (ADX).