ADNIC Reports Dh227.3 Million Net Profit for 2017

Press release
Published February 15th, 2018 - 06:08 GMT
ADNIC Board Members & CEO
ADNIC Board Members & CEO

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced today its financial results for the year 2017. The Company reported strong results with its net profit of AED 227.3 million for 2017, representing an increase of 11% over the same period last year.

Commenting on the strong results, His Excellency Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said:“The Board of Directors is delighted to announce ADNIC’s strong underwriting results and profitability throughout 2017. ADNIC’s positive full year results reflect the successful delivery of the company’s strategy.

Despite a challenging business environment, ADNIC’s Board of Directors, as well as the management team, remain committed to driving standards of excellence and to delivering sustainable growth in profitability. Our priority is to ensure that ADNIC is positioned amongst the regional market leaders by leveraging on our innovative capabilities and differentiated offering.”

Key Financial Highlights

Gross Written Premium

In 2017, ADNIC’s Gross Written Premium increased by 11.3% to AED 2.64 billion compared to AED 2.38 billion in 2016.

Premium Retention

The overall premium retention ratio reached 47% for the year 2017 compared to 44 % in 2016.

Net Underwriting Income

In 2017, ADNIC Net Underwriting profit stood at AED 304.0 million compared to AED 342.6 million in 2016.

Net Investment Income

Net Investment and Other Income increased by 12% to AED 114.2 million in 2017, compared to AED 102.4 million in 2016.

General and Administrative Expense

General and Administrative Expenses decreased to AED 191.0 million in 2017 compared to AED 239.9 million for 2016 demonstrating ADNIC’s increased operational efficiency.

Net Technical Profit

Net Technical Profit for the year 2017 increased by 8.7% to AED 118.4 million, against a Net Technical Profit of AED 108.9 million for 2016.  

Net Profit

For the year 2017, Net profit increased by 11% to AED 227.3 million, compared to a net profit of AED 205.0 million for 2016.

Cash Balances

ADNIC’s cash balances stood at AED 705.4 million in 2017, compared to AED 1.03 billion in 2016. This is due to reallocation to other asset classes, as per ADNIC’s asset allocation framework.

Total Investments

Total investments including cash in time deposits, bank accounts and investment properties increased by 8.0% to AED 3.39 billion in 2017, compared to AED 3.14 billion in 2016.

Total Assets

The total assets increased by 3.2% to AED 6.70 billion in 2017, compared to AED 6.49 billion in 2016.

Shareholders’ Equity

The Shareholders’ Equity position increased by 11.9% to AED 1.98 billion in 2017, compared to AED 1.77 billion in 2016.

Basic and Diluted Earnings Per Share and Net Profit

Basic and diluted earnings per share increased by 11 % to AED 0.40 for the year 2017 compared to basic and diluted earnings per share of AED 0.36 in 2016.

Ahmad Idris, CEO of ADNIC said: “I am pleased to report that ADNIC has achieved strong results in 2017. While ADNIC has taken a conservative approach in its underwriting strategy, the company achieved premium growth for the year and strengthened its long-term financial and operational performance.”

Background Information

Abu Dhabi National Insurance Company

We at ADNIC are trusted insurance partners with long standing expertise in providing reassurance and support to individuals and corporates to manage unpredictable health, life and general risks.  We are, a leading multi-line insurance provider, has a wide network of branches as well as sales and service centers across the country. With a dedicated team of over 500 insurance professionals, we at ADNIC are committed to providing comprehensive insurance solutions, to provide reassurance to its customers.

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