Adnic reports full year 2020 net profit of Dh371m

Abu Dhabi National Insurance Company (Adnic) has reported its financial results for the full year ended December 31, 2020, with a net profit of Dh371 million.

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 Dh371 million, a 30.5 per cent 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,” he said.

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.”

Adnic’s gross premium income for commercial lines for 2020 recorded 13.1 per cent 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 per cent to Dh4.012 billion against Dh 3.755 billion in the previous year.

General and administrative expenses excluding provision for doubtful debts for the twelve-month period ended December 31, 2020 decreased by 5.3 per cent to Dh231.7 million compared to Dh244.6 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 Dh65.97 million compared to 2019 as a result of the market volatility experienced in the first quarter.

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.

business@khaleejtimes.com