Adnic posts Dh267.6 million net profits in first nine months of 2022

Abu Dhabi National Insurance Company (Adnic), one of the leading regional multi-line insurance providers for both corporates and individuals, on Tuesday said its net profit to Dh267.6 million in the first nine-month period of 2022 compared to Dh333.7 million for the same period in 2021

In a statement, the Abu Dhabi-based insurance provider said its gross written premiums increased by 32.4 per cent to Dh4.29 billion during the January-September 2022 compared to Dh3.24 billion for the same period in 2021. The company said net underwriting income stood at Dh370.2 million during the first 9 months of 2022 as against Dh388.8 million for the same period in 2021.

It further said that premium retention ratio lowered to 29.2 per cent for the nine-month period ended on September 30, 2022 compared to 33.5 per cent for the same period in 2021.

Sheikh Mohamed bin Saif Al Nahyan, Chairman of Adnic, said Adnic has delivered solid top-line growth with gross written premiums growing by 32.4 per cent to Dh4.29 billion with strong net profit reaching Dh267.6 million for the nine months ending September 30, 2022.

"The performance was driven by robust growth in the commercial division of 50.7 per cent, and stable growth in consumer lines of 10 per cent despite pricing pressure and strong competition,” he said.

Adnic said its general and administrative expenses for the nine-month period ended on September 30, 2022 rose to Dh196.4 million from Dh181 million for the same period in 2021.

“Our expense management continues to be robust and growth in expenses of 12.2 per cent is lower than premium growth. We continue to make investments in new technologies and capabilities in the digital space. Sustainability will remain a key pillar of ADNIC’s strategy moving forward, and we will continue to ensure sustainable operation and practices across our business, community and the environment in which we operate,” Al Nahyan said.

Adnic said its net technical profit for the nine-month period ended on September 30, 2022 declined to Dh173.8 million from Dh207.8 million in the same period last year. It also said net investment income and other income also dropped to Dh93.8 million from Dh125.8 million in the same nine-month period of 2021.

“We remain committed to engaging strongly with all stakeholders with our various initiatives in areas including Emiratisation, health & wellbeing, climate change and giving back to the local community. The Adnic team is developing strategies to contribute to Abu Dhabi and the UAE’s transition to net-zero by 2050,” Ahmad Idris, CEO of Adnic, said.

"Our hard work is reflected by various recognitions and ratings assigned to the company in the past period. AM Best affirmed the Financial Strength Rating of “A” (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Adnic with a stable outlook. Adnic is also rated “A” with stable outlook by Standard & Poor’s,” he said.

Financial highlights

Net profit dropped to Dh267.6 million in the first nine-month period of 2022 compared to Dh333.7 million for the same period in 2021

Gross written premiums increased by 32.4 per cent to Dh4.29 billion from Dh3.24 billion for the same period in 2021

Premium retention ratio is 29.2 per cent for the nine-month period ended on September 30, 2022 compared to 33.5 per cent for the same period in 2021

Net underwriting income stood at Dh370.2 million during the first 9 months of 2022 as against Dh388.8 million for the same period in 2021

General and administrative expenses for the nine-month period ended on September 30, 2022 stood at Dh196.4 million compared to Dh181 million for the same period in 2021

Net technical profit for the nine-month period ended on September 30, 2022 was Dh173.8 million as against Dh207.8 million for the same period in 2021

Net investment income and other income was Dh93.8 million for the nine-month period ended on September 30, 2022 compared to Dh125.8 million for the same period in 2021

— muzaffarrizvi@khaleejtimes.com