Adnic’s H1 net profit soars 31.1% to Dh248.7 million

Abu Dhabi National Insurance Company (Adnic) announced on Monday a 31.1 per cent jump in 2021 first-half net profit to Dh248.7 million year-on-year.

The leading regional multi-line insurance provider said in a statement that the profit growth was driven by “outstanding performance in both underwriting and investment activities.”

Gross written premiums for the first half of 2021 increased by 4.2 per cent to Dh2.67 billion, compared to Dh2.56 billion in the same period of 2020.

“Adnic’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio,” the company said.

Sheikh Mohamed bin Saif Al Nahyan, chairman of Adnic, said the company maintained its strong financial position and market position in the first half of 2021 “through a clear strategy, underwriting discipline, operational excellence and a diversified investment portfolio.”

He said despite the challenges posed by the global pandemic and the disruptions caused to daily life, Adnic continued to improve its capabilities and managed to emerge even stronger to provide uninterrupted support to its customers.

“As we move into the second half of the year, we are optimistic about the outlook for the wider economy and the insurance sector in particular. Adnic will continue to invest in the latest technologies to adapt to current and future market needs.”

Ahmad Idris, CEO of Adnic, said the insurance major’s ability to deliver strong profitability and an exceptional level of operational efficiency despite challenges in the wider market was enabled through ongoing pricing discipline and investments into technology.

“Our Consumer Lines business performed particularly well, driven by our strong product offering, bancassurance presence and distribution and broker networks. Looking ahead, we will continue to contribute to initiatives that contribute to the betterment of society across the UAE, utilising our sustainability strategy to ensure the long-term benefits for our customers and employees, our local communities, and our environment,” said Idris.

Adnic said it performed well across its operations during the first half of 2021. Overall premium retention ratio for the six-month period ended 30th June 2021 was 34.29 per cent, compared to 34.26 per cent for the same period in 2020.

Net underwriting profit during the first half increased by 1.5 per cent to Dh280.3 million, against Dh276.3 million for the same period in 2020. Net investment and other income increased by 58.3 per cent to Dh87.3 million for the six-month period compared to Dh55.1 million for the same period in 2020, Adnic said.

General and administrative expenses for the period stood at Dh118.9 million, compared to Dh141.7 million for the same period in 2020, reflecting the company’s continued focus on operational efficiency and cost management.

Adnic’s credit rating was upgraded in April 2021 from ‘A-’ to ‘A’ with a stable outlook by ratings agency Standard & Poor’s (S&P). S&P raised its long-term issuer credit and insurer financial strength ratings based on Adnic’s strong financial performance indicators.

-- issacjohn@khaleejtimes.com