ADNIC Reports Full Year 2020 Net Profit of AED371 Million
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, reported its financial results for the full year ended 31 December 2020 today.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: “Against the uncertain backdrop of 2020, ADNIC demonstrated strong results with a full-year net profit of AED 371 million, a 30.5% increase compared to the previous year. ADNIC’s technical abilities in prudent risk selection continue to be the bedrock on which this performance is based. These results are also due in part to the long-term investments we have made in technology over recent years and our ability and expertise to put the customer first and provide them with platforms that function 24/7. As a customer centric company, we will continue to pursue our digital transformation journey across all customer channels and consumer lines products.”
“This was a year when our readiness to support clients was crucial. The years of experience of insuring risks in over 70 countries came to the fore and has helped us further diversify our book of business. We measure our success both in the number of new client wins and the long-term relationships and partnerships that we maintain year after year. That said, I am proud of what we have achieved in such adverse conditions in 2020. We consider ADNIC to be an integral part of our communities and we will continue to support the government’s plans and participate in several CSR and charitable initiatives.”
He added: “We are grateful for the guidance received from the UAE’s leadership, and I would like to extend our sincere gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support.”
Ahmad Idris, CEO of ADNIC, said: “In a time of so much uncertainty, ADNIC delivered a strong performance and sustained growth across key metrics. ADNIC demonstrated strength throughout the year and quickly adapted to a rapidly changing environment, enabling us to support our customers, employees and communities in navigating unprecedented times. With a customer- first mindset, ADNIC accelerated the execution of its ambitious digital transformation plans to ensure uninterrupted services to our customers and the delivery of exceptional expertise and advice to customers.”
He added: “Looking ahead, we remain firmly committed to maximising shareholder returns, supporting our employees and customers, and we will continue to be engaged in numerous initiatives that contribute to the betterment of society from tackling environmental challenges to enhancing safety.”
Looking at some key financial highlights, ADNIC’s gross premium income for commercial lines for 2020 recorded 13.1% growth. Consumer lines finished the year flat on the account of the overall business segment economic slowdown brought about by the pandemic and the resulting competitive pressure. The company’s overall gross written premium grew by 6.8% to AED 4.012 billion against AED 3.755 billion in the previous year.
General and administrative expenses excluding provision for doubtful debts for the twelve-month period ended 31 December 2020 decreased by 5.3% to AED 231.7 million compared to AED 244.6 million in 2019, reflecting improvement in the overall operational efficiency. Total investment income for the year to date (including other comprehensive income) was down by AED 65.97 million compared to 2019 as a result of the market volatility experienced in the first quarter.
Helped customers, employees and the community navigate COVID-19 uncertainty
ADNIC maintained its status as the region’s largest commercial lines insurer due to treaty capacity, international reputation, professional expertise and client relationships. ADNIC had a dynamic response to the pandemic and long-term investment into technology ensured seamless operations throughout 2020. Additionally, successful home-office working model safeguarded employees and delivered uninterrupted service.
ADNIC will also continue to give back to the community through a wide range of CSR initiatives, including its partnership with Al Bayt Mitwahid, the Mohammed Bin Rashid Al Maktoum Knowledge Foundation, Beit Al Khair Society Emirates Down Syndrome Association and General Authority of Islamic Affairs and Endowments.
ADNIC won UAE Insurer of the Year by MENA IR. ADNIC was recognised for its customer-first mindset and the acceleration of its ambitious digital transformations plans to ensure uninterrupted services to its customers during these uncertain times.
The company was also awarded the most Innovative Insurance Product by Global Banking & Finance Awards and claimed the Corporate Social Responsibility Award at the Golden Shield Excellence Awards 2020 held at Insuretek Middle East.
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).