Abu Dhabi National Insurance Company (Adnic), a leading regional multi-line insurance provider, has posted a first-quarter 2022 net profit of AED84.7 million ($23.06 million) while gross written premiums rose by 20.2% to AED2.28 billion.

 

Adnic’s underwriting income stood at AED125.9 million  and net technical profit reached a solid level, at AED60.8 million.

 

The overall premium retention ratio reached 25.1% for the three-month period ended March 31, 2022 compared to 32.9% for the same period in 2021. Adnic’s net investment and other income stood at AED23.9 million, compared to AED38 million for the same period in 2021. General and administrative expenses for the first quarter stood at AED65.1 million.

 

Expense discipline

Commenting on Adnic’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said: “As the economy continues its post pandemic recovery, Adnic continues to deliver strong financial results combined with expense discipline. We are satisfied with our resilient financial performance this quarter and continue to grow market share through flexibility, efficiency and cost control. We will continue to develop our operational structure and invest in new technical capabilities.”

 

“Adnic’s financial strength, brand recognition and our global reinsurance partnerships contributed in 20.2% rise in premiums to AED2.28 billion. Net underwriting income was healthy at AED125.9 million, compared to AED177.2 million for the same period in 2021, and overall expenses were flat compared to strong growth in top-line. The company’s effective management of the receivable portfolio has allowed for significantly lower bad debt charge as compared to the same quarter of last year. 

 

“The balance sheet strength continues to remain a competitive advantage with total assets growing to AED10 billion with solvency well in excess of regulatory and rating agencies’ minimum requirements.”

 

Capturing market share

“Adnic continues to make investments in areas, which will allow us to capture market share in new geographies and product areas. We are also developing new sales and services capabilities particularly in digital distribution, which will positively impact multiple lines of business.”

 

Ahmad Idris, CEO of Adnic, said: “Our financial performance in the first quarter remains robust and reflects our ability to adapt to current market conditions amidst global economic tensions, as well as to develop new services and technological capabilities. This year marks our 50th anniversary and the hard work over the decades is paying off. Adnic has been named ‘General Insurer of the year’ at the InsurTek Golden Shield Excellence Awards 2022, a prestigious recognition that measures numerous criteria including financial performance, standard of services, tech innovation and market share.”

 

He added: “Adnic continues its commitment to multiple facets of its business, including Emiratisation, wellbeing and giving back to the local community. Over the past few months, Adnic has renewed its partnerships with several CSR initiatives, developed a UAE national talent programme ‘Emkanati’ and implemented wellbeing procedures for its employees and customers.”-- TradeArabia News Service